To amend the Internal Revenue Code of 1986 to reduce corporate marginal income tax rates, and for other purposes.

Summary: Middle Class Jobs Protection Act of 2008 - Amends the Internal Revenue Code to: (1) reduce the maximum corporate income tax rate to 25%; (2) increase the expensing allowance for depreciable business assets to $250,000 in 2008 and 2009; (3) increase to 50% the current year bonus depreciation allowance for certain property placed in service in 2008 and 2009; and (4) allow additional carrybacks for certain net operating losses and for excess business and foreign tax credit amounts arising in 2008 and 2009.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Middle Class Jobs Protection Act of 
2008''.

SEC. 2. REDUCTION IN CORPORATE MARGINAL INCOME TAX RATES.

    (a) General Rule.--Paragraph (1) of section 11(b) of the Internal 
Revenue Code of 1986 is amended--
            (1) by inserting ``and'' at the end of subparagraph (A),
            (2) by striking ``but does not exceed $75,000,'' in 
        subparagraph (B) and inserting a period,
            (3) by striking subparagraphs (C) and (D), and
            (4) by striking the last 2 sentences.
    (b) Personal Service Corporations.--Paragraph (2) of section 11(b) 
of such Code is amended by striking ``35 percent'' and inserting ``25 
percent''.
    (c) Conforming Amendments.--Paragraphs (1) and (2) of section 
1445(e) of such Code are each amended by striking ``35 percent'' and 
inserting ``25 percent''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act, except that the amendments made by subsection (c) shall take 
effect on such date.

SEC. 3. TEMPORARY INCREASE IN LIMITATION ON EXPENSING CERTAIN 
              DEPRECIABLE BUSINESS ASSETS.

    (a) Dollar Limitation.--Paragraph (1) of section 179(b) of the 
Internal Revenue Code of 1986 (relating to limitations) is amended by 
striking ``$125,000 in the case of taxable years beginning after 2006 
and before 2011'' and inserting ``$125,000 in the case of taxable years 
beginning in 2007 or 2010 and $250,000 in the case of taxable years 
beginning in 2008 or 2009''.
    (b) Reduction in Limitation.--Paragraph (2) of section 179(b) of 
such Code (relating to limitations) is amended by striking ``$500,000 
in the case of taxable years beginning after 2006 and before 2011'' and 
inserting ``$500,000 in the case of taxable years beginning in 2007 or 
2010 and $1,000,000 in the case of taxable years beginning in 2008 or 
2009''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 4. 50 PERCENT ALLOWANCE FOR DEPRECIATION FOR CERTAIN PROPERTY 
              ACQUIRED DURING 2008 AND 2009.

    (a) In General.--Paragraph (4) of section 168(k) of the Internal 
Revenue Code of 1986 (relating to 50-percent bonus for certain 
property) is amended--
            (1) by striking ``May 5, 2003'' each place it appears and 
        inserting ``December 31, 2007'',
            (2) by striking ``January 1, 2005'' each place it appears 
        and inserting ``January 1, 2010'',
            (3) by striking ``May 6, 2003'' in subparagraph (B)(ii)(I) 
        and inserting ``January 1, 2008'',
            (4) by striking ``January 1, 2006'' in subparagraph 
        (B)(iii) and inserting ``January 1, 2011'', and
            (5) by striking ``of 30-percent bonus'' in the heading for 
        subparagraph (E).
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to property placed in service in taxable years beginning 
        after December 31, 2007.
            (2) Exception for certain property.--The amendments made by 
        this section shall not apply to any property to which section 
        105 of the Gulf Opportunity Zone Act of 2005 applies.

SEC. 5. 5-YEAR CARRYBACK FOR CERTAIN NET OPERATING LOSSES.

    (a) In General.--Subsection (H) of section 172(b)(1) of the 
Internal Revenue Code of 1986 is amended by inserting ``or beginning 
during 2008 or 2009,'' after ``2002''.
    (b) Effective Date.--The amendments made by this section shall 
apply to net operating losses for taxable years beginning after 
December 31, 2007.

SEC. 6. 3-YEAR CARRYBACK FOR CERTAIN CREDITS.

    (a) General Business Credit.--Subsection (a) of section 39 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(4) Special rule for 2008 and 2009.--In the case of an 
        excess described in paragraph (1) arising in a taxable year 
        beginning in 2008 or 2009--
                    ``(A) paragraph (1)(A) shall be applied by 
                substituting `3 taxable years' for `taxable year',
                    ``(B) paragraph (2)(A) shall be applied by 
                substituting `24 taxable years' for `21 taxable years', 
                and
                    ``(C) paragraph (2)(B) shall be applied by 
                substituting `23 taxable years' for `20 taxable 
                years'.''.
    (b) Foreign Tax Credit.--Section 904(c) of the Internal Revenue 
Code of 1986 is amended by adding at the end thereof the following: 
``In the case of taxable years beginning in 2008 or 2009, the first 
sentence of this subsection shall, at the election of the taxpayer, be 
applied by substituting `any of the three preceding taxable years' for 
`the first preceding taxable year'.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to credits arising in taxable years beginning after December 31, 
2007.