Bill
Bill > S1660
US S1660
US S1660A bill to amend the Internal Revenue Code of 1986 to modify and make permanent bonus depreciation.
summary
Introduced
06/24/2015
06/24/2015
In Committee
06/24/2015
06/24/2015
Crossed Over
Passed
Dead
01/03/2017
01/03/2017
Introduced Session
114th Congress
Bill Summary
A bill to amend the Internal Revenue Code of 1986 to modify and make permanent bonus depreciation. This bill amends the Internal Revenue Code to make permanent the additional 50% depreciation allowance, known as bonus depreciation, for depreciable business property (i.e., qualified property) placed in service after December 31, 2014. The term "qualified property" is modified to include qualified improvement property, in lieu of qualified leasehold improvement property, which is defined as any improvement to an interior portion of a building that is nonresidential real property if such improvement is placed in service after the date such building was first placed in service. The bill also increases by $8,000 (with an annual inflation adjustment after 2015) the maximum allowable depreciation deduction for a passenger automobile (i.e., any 4-wheeled vehicle that is manufactured primarily for use on public streets, roads, and highways and is rated at 6,000 pounds unloaded gross vehicle weight or less). Also made permanent, for taxable years ending after December 31, 2014, is the election to increase the alternative minium tax credit limitation in lieu of bonus depreciation. The bill allows an additional depreciation allowance for any specified plant that is planted, or grafted to a plant that has already been planted, by the taxpayer in the ordinary course of the taxpayer's farming business. The term "specified plant" means: (1) any tree or vine that bears fruits or nuts, and (2) any other plant that will have more than one yield of fruits or nuts and that generally has a period of more than two years from the time of planting or grafting to the time at which such plant begins bearing fruits or nuts. This allowance is applicable to specified plants planted or grafted after December 31, 2014. Finally, the bill prohibits the entry of the budgetary effects of this Act on any PAYGO scorecard maintained pursuant to the Statutory Pay-As-You-Go Act of 2010.
AI Summary
This bill aims to make permanent and modify "bonus depreciation," which is an accelerated tax deduction businesses can take for certain new or used assets, known as "qualified property," that they purchase and put into service. Specifically, it makes permanent the allowance for an additional 50% depreciation in the first year for qualified property placed in service after December 31, 2014. The definition of "qualified property" is expanded to include "qualified improvement property," which refers to improvements made to the interior of nonresidential buildings, replacing the previous category of "qualified leasehold improvement property." Additionally, the bill increases the maximum depreciation deduction for passenger automobiles by $8,000, with adjustments for inflation annually after 2015. It also makes permanent an election that allows corporations to increase their alternative minimum tax (AMT) credit limitation instead of taking bonus depreciation. Furthermore, the bill introduces a new provision allowing an additional depreciation deduction for "specified plants" used in farming businesses, such as fruit or nut trees and vines, that are planted or grafted after December 31, 2014. Finally, the bill states that the budgetary impact of this legislation will not be counted on the "PAYGO scorecard," which is a system used to track the costs of new laws under the Statutory Pay-As-You-Go Act of 2010.
Committee Categories
Budget and Finance
Sponsors (5)
Last Action
Read twice and referred to the Committee on Finance. (on 06/24/2015)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...