SECTION 1. EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``January 1, 2016'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2018'', and
            (2) by striking ``January 1, 2015'' each place it appears 
        and inserting ``January 1, 2017''.
    (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of 
section 460(c)(6)(B) of the Internal Revenue Code of 1986 is amended by 
striking ``January 1, 2015 (January 1, 2016'' and inserting ``January 
1, 2017 (January 1, 2018''.
    (c) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 of the 
        Internal Revenue Code of 1986 is amended by striking ``January 
        1, 2015'' and inserting ``January 1, 2017''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) of 
        such Code is amended by striking ``Pre-january 1, 2015'' and 
        inserting ``Pre-january 1, 2017''.
            (3) Section 168(k)(4)(D)(iii)(II) of such Code is amended 
        by striking ``January 1, 2015'' and inserting ``January 1, 
        2017''.
            (4) Section 168(l)(4) of such Code is amended by striking 
        ``and'' at the end of subparagraph (A), by redesignating 
        subparagraph (B) as subparagraph (C), and by inserting after 
        subparagraph (A) the following new subparagraph:
                    ``(B) by substituting `January 1, 2015' for 
                `January 1, 2017' in clause (i) thereof, and''.
            (5) Clause (ii) of section 168(n)(2)(C) of such Code is 
        amended by striking ``January 1, 2015'' and inserting ``January 
        1, 2017''.
            (6) Subparagraph (D) of section 1400L(b)(2) of such Code is 
        amended by striking ``January 1, 2015'' and inserting ``January 
        1, 2017''.
            (7) Subparagraph (B) of section 1400N(d)(3) of such Code is 
        amended by striking ``January 1, 2015'' and inserting ``January 
        1, 2017''.
    (d) Election To Accelerate the AMT Credit in Lieu of Bonus 
Depreciation.--Paragraph (4) of section 168(k) of such Code is amended 
by adding at the end the following new subparagraph:
                    ``(L) Special rules for round 5 extension 
                property.--
                            ``(i) In general.--In the case of any round 
                        5 extension property, in applying this 
                        paragraph to any taxpayer, the limitation 
                        described in subparagraph (B)(i) and the 
                        business credit increase amount under 
                        subparagraph (E)(iii) thereof shall not apply, 
                        and the bonus depreciation amount, maximum 
                        amount, and maximum increase amount--
                                    ``(I) shall be computed separately 
                                from amounts computed with respect to 
                                eligible qualified property which is 
                                not round 5 extension property, and
                                    ``(II) shall be computed separately 
                                with respect to round 5 extension 
                                property placed in service before 
                                January 1, 2016 (January 1, 2017, in 
                                the case of property described in 
                                subparagraph (B) or (C) of paragraph 
                                (2)) and with respect to other round 5 
                                extension property.
                            ``(ii) Election.--
                                    ``(I) A taxpayer who has an 
                                election in effect under this paragraph 
                                for round 4 extension property shall be 
                                treated as having an election in effect 
                                for round 5 extension property unless 
                                the taxpayer elects to not have this 
                                paragraph apply to round 5 extension 
                                property.
                                    ``(II) A taxpayer who does not have 
                                an election in effect under this 
                                paragraph for round 4 extension 
                                property may elect to have this 
                                paragraph apply to round 5 extension 
                                property.
                            ``(iii) Round 5 extension property.--For 
                        purposes of this subparagraph, the term `round 
                        5 extension property' means property which is 
                        eligible qualified property solely by reason of 
                        the extension of the application of the special 
                        allowance under paragraph (1) pursuant to the 
                        amendments made by section 1 of the Act 
                        entitled `an Act to amend the Internal Revenue 
                        Code of 1986 to increase the limitation on the 
                        election to accelerate the AMT credit in lieu 
                        of bonus depreciation for 2015 and 2016, and 
                        for other purposes' (and the application of 
                        such extension to this paragraph pursuant to 
                        the amendment made by section 1(d) of such 
                        Act).
                            ``(iv) Special maximum increase amount.--In 
                        the case of round 5 extension property placed 
                        in service by a corporation, subparagraph 
                        (C)(iii) shall not apply and the term `maximum 
                        increase amount' shall mean an amount equal to 
                        the lesser of--
                                    ``(I) 50 percent of the minimum tax 
                                credit under section 53(b) for the 
                                first taxable year ending after 
                                December 31, 2014, or
                                    ``(II) the minimum tax credit under 
                                section 53(b) for such taxable year 
                                determined by taking into account only 
                                the adjusted net minimum tax for 
                                taxable years ending before January 1, 
                                2015 (determined by treating credits as 
                                allowed on a first-in, first-out 
                                basis).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2014, in taxable 
years ending after such date.
Amends the Internal Revenue Code to: (1) extend through 2016&nbsp;the special depreciation allowance for business assets (bonus depreciation), and (2) increase the limitation on the election to accelerate the alternative minimum tax credit in lieu of bonus depreciation for 2015 and 2016.
A bill to amend the Internal Revenue Code of 1986 to increase the limitation on the election to accelerate the AMT credit in lieu of bonus depreciation for 2015 and 2016, and for other purposes.