SECTION 1. BONUS DEPRECIATION FOR CERTAIN PROPERTY ACQUIRED DURING 
              2008.

    (a) In General.--Subsection (k) of section 168 of the Internal 
Revenue Code of 1986 (relating to special allowance for certain 
property acquired after September 10, 2001, and before January 1, 2005) 
is amended--
            (1) by striking ``September 10, 2001'' each place it 
        appears and inserting ``December 31, 2007'',
            (2) by striking ``September 11, 2001'' each place it 
        appears and inserting ``January 1, 2008'',
            (3) by striking ``January 1, 2005'' each place it appears 
        and inserting ``January 1, 2009'', and
            (4) by striking ``January 1, 2006'' each place it appears 
        and inserting ``January 1, 2010''.
    (b) 50 Percent Allowance.--Subparagraph (A) of section 168(k)(1) of 
such Code is amended by striking ``30 percent'' and inserting ``50 
percent''.
    (c) Conforming Amendments.--
            (1) Subclause (I) of section 168(k)(2)(B)(i) of such Code 
        is amended by striking ``and (iii)'' and inserting ``(iii), and 
        (iv)''.
            (2) Subclause (IV) of section 168(k)(2)(B)(i) of such Code 
        is amended by striking ``clauses (ii) and (iii)'' and inserting 
        ``clause (iii)''.
            (3) Clause (i) of section 168(k)(2)(C) of such Code is 
        amended by striking ``and (iii)'' and inserting ``, (iii), and 
        (iv)''.
            (4) Clause (i) of section 168(k)(2)(F) of such Code is 
        amended by striking ``$4,600'' and inserting ``$8,000''.
            (5)(A) Subsection (k) of section 168 of such Code is 
        amended by striking paragraph (4).
            (B) Clause (iii) of section 168(k)(2)(D) of such Code is 
        amended by striking the last sentence.
            (6) Paragraph (4) of section 168(l) of such Code is amended 
        by redesignating subparagraphs (A), (B), and (C) as 
        subparagraphs (B), (C), and (D) and inserting before 
        subparagraph (B) (as so redesignated) the following new 
        subparagraph:
                    ``(A) Bonus depreciation property under subsection 
                (k).--Such term shall not include any property to which 
                section 168(k) applies.''.
            (7) Paragraph (5) of section 168(l) of such Code is 
        amended--
                    (A) by striking ``September 10, 2001'' in 
                subparagraph (A) and inserting ``December 31, 2007'', 
                and
                    (B) by striking ``January 1, 2005'' in subparagraph 
                (B) and inserting ``January 1, 2009''.
            (8) Subparagraph (D) of section 1400L(b)(2) of such Code is 
        amended by striking ``January 1, 2005'' and inserting ``January 
        1, 2010''.
            (9) Paragraph (3) of section 1400N(d) of such Code is 
        amended--
                    (A) by striking ``September 10, 2001'' in 
                subparagraph (A) and inserting ``December 31, 2007'', 
                and
                    (B) by striking ``January 1, 2005'' in subparagraph 
                (B) and inserting ``January 1, 2009''.
            (10) Paragraph (6) of section 1400N(d) of such Code is 
        amended by adding at the end the following new subparagraph:
                    ``(E) Exception for bonus depreciation property 
                under section 168(k).--The term `specified Gulf 
                Opportunity Zone extension property' shall not include 
                any property to which section 168(k) applies.''.
            (11) The heading for subsection (k) of section 168 of such 
        Code is amended--
                    (A) by striking ``September 10, 2001'' and 
                inserting ``December 31, 2007'', and
                    (B) by striking ``January 1, 2005'' and inserting 
                ``January 1, 2009''.
            (12) The heading for clause (ii) of section 168(k)(2)(B) of 
        such Code is amended by striking ``pre-january 1, 2005'' and 
        inserting ``pre-january 1, 2009''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2007, in taxable 
years ending after such date.

SEC. 2. ELECTION TO INCREASE MINIMUM TAX CREDIT IN LIEU OF BONUS 
              DEPRECIATION.

    (a) In General.--Section 53 of the Internal Revenue Code of 1986 
(relating to credit for prior year minimum tax liability) is amended by 
adding at the end the following new subsection:
    ``(f) Additional Credit in Lieu of Bonus Depreciation.--
            ``(1) In general.--In the case of a corporation making an 
        election under this subsection for a taxable year, the 
        limitation under subsection (c) shall be increased by an amount 
        equal to the bonus depreciation amount.
            ``(2) Bonus depreciation amount.--For purposes of paragraph 
        (1), the bonus depreciation amount for any taxable year is an 
        amount equal to the product of--
                    ``(A) 35 percent, and
                    ``(B) the excess (if any) of--
                            ``(i) the aggregate amount of depreciation 
                        which would be determined under section 168 for 
                        property placed in service during such taxable 
                        year if no election under this subsection were 
                        made, over
                            ``(ii) the aggregate allowance for 
                        depreciation allowable with respect to such 
                        property placed in service for such taxable 
                        year.
            ``(3) Aggregation rule.--All members of the same controlled 
        group shall be treated as 1 corporation for purposes of this 
        subsection.
            ``(4) Election.--Section 168(k) (relating to bonus 
        depreciation) shall not apply to any property placed in service 
        during a taxable year by a corporation making an election under 
        this subsection for such taxable year. An election under this 
        subsection may only be revoked with the consent of the 
        Secretary.
            ``(5) Credit refundable.--The aggregate increase in the 
        credit allowed by this section for any taxable year by reason 
        of this subsection shall for purposes of this title (other than 
        subsection (b)(2) of this section) be treated as a credit 
        allowed to the taxpayer under subpart C.''.
    (b) Cross Reference.--Section 168(k) of such Code (relating to 
bonus depreciation) is amended by adding at the end the following new 
paragraph:
            ``(5) Cross reference.--For an election to claim additional 
        minimum tax credits in lieu of the allowance determined under 
        this subsection, see section 53(f).''.
Amends the Internal Revenue Code to: (1) increase from 30 to 50% the rate of the special depreciation allowance (bonus depreciation) for certain business equipment and assets placed in service in 2008; and (2) allow a corporation to elect to increase its alternative minimum tax credit by its bonus depreciation amount in lieu of applying such allowance.
A bill to amend the Internal Revenue Code of 1986 to provide for bonus depreciation or an additional minimum tax credit in lieu of such bonus depreciation.