SECTION 1. EXTENSION AND MODIFICATION OF SPECIAL ALLOWANCE FOR CERTAIN 
              PROPERTY ACQUIRED DURING 2009.

    (a) Extension.--
            (1) In general.--Paragraph (2) of section 168(k) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``January 1, 2010'' and inserting 
                ``January 1, 2011'', and
                    (B) by striking ``January 1, 2009'' each place it 
                appears and inserting ``January 1, 2010''.
            (2) Conforming amendments.--
                    (A) The heading for subsection (k) of section 168 
                of such Code is amended by striking ``January 1, 2009'' 
                and inserting ``January 1, 2010''.
                    (B) The heading for clause (ii) of section 
                168(k)(2)(B) of such Code is amended by striking ``pre-
                january 1, 2009'' and inserting ``pre-january 1, 
                2010''.
                    (C) Subparagraph (D) of section 168(k)(4) of such 
                Code is amended--
                            (i) by striking ``and'' at the end of 
                        clause (i),
                            (ii) by redesignating clause (ii) as clause 
                        (v), and
                            (iii) by inserting after clause (i) the 
                        following new clauses:
                            ``(ii) `April 1, 2008' shall be substituted 
                        for `January 1, 2008' in subparagraph 
                        (A)(iii)(I) thereof,
                            ``(iii) `January 1, 2009' shall be 
                        substituted for `January 1, 2010' each place it 
                        appears,
                            ``(iv) `January 1, 2010' shall be 
                        substituted for `January 1, 2011' in 
                        subparagraph (A)(iv) thereof, and''.
                    (D) Subparagraph (B) of section 168(l)(5) of such 
                Code is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
                    (E) Subparagraph (B) of section 1400N(d)(3) of such 
                Code is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
            (3) Effective dates.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by this subsection shall apply 
                to property placed in service after December 31, 2008, 
                in taxable years ending after such date.
                    (B) Technical amendment.--Section 168(k)(4)(D)(ii) 
                of the Internal Revenue Code of 1986, as added by 
                paragraph (2)(C)(iii), shall apply to taxable years 
                ending after March 31, 2008.
    (b) Inclusion of Films or Videotape as Qualified Property.--
            (1) In general.--Section 168(k)(2) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        subparagraph:
                    ``(H) Certain films.--The term `qualified property' 
                includes property--
                            ``(i) which is a motion picture film or 
                        video tape (within the meaning of subsection 
                        (f)(3)) for which a deduction is allowable 
                        under section 167(a) without regard to this 
                        section,
                            ``(ii) the original use of which commences 
                        with the taxpayer after December 31, 2008,
                            ``(iii) which is--
                                    ``(I) acquired by the taxpayer 
                                after December 31, 2008, and before 
                                January 1, 2010, but only if no written 
                                binding contract for the acquisition 
                                was in effect before January 1, 2009, 
                                or
                                    ``(II) acquired by the taxpayer 
                                pursuant to a written binding contract 
                                which was entered into after December 
                                31, 2008, and before January 1, 2010, 
                                and
                            ``(iv) which is placed in service by the 
                        taxpayer before January 1, 2010, or, in the 
                        case of property described in subparagraph (B), 
                        before January 1, 2011.''.
            (2) Conforming amendments.--
                    (A) Subclause (I) of section 168(k)(2)(B)(i) of 
                such Code is amended by inserting ``or (H)'' after 
                ``subparagraph (A)''.
                    (B) Clause (iii) of section 168(k)(2)(D) of such 
                Code is amended by adding at the end the following new 
                sentence: ``For purposes of the preceding sentence, all 
                property described in subparagraph (H) shall be treated 
                as one class of property.''.
                    (C) Subparagraph (E) of section 168(k)(2) of such 
                Code is amended by adding at the end the following new 
                clause:
                            ``(v) Application to film and videotape 
                        property.--In the case of property described in 
                        subparagraph (H), clauses (i), (ii), (iii), and 
                        (iv) of this subparagraph shall be applied--
                                    ``(I) by substituting `December 31, 
                                2008' for `December 31, 2007' each 
                                place it appears, and
                                    ``(II) by treating any reference to 
                                a clause of subparagraph (A) as a 
                                reference to the corresponding clause 
                                of subparagraph (H).''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2008.

SEC. 2. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN 
              DEPRECIABLE BUSINESS ASSETS.

    (a) In General.--Paragraph (7) of section 179(b) of the Internal 
Revenue Code of 1986 is amended--
            (1) by inserting ``and 2009'' after ``2008'' in the 
        heading, and
            (2) by inserting ``or 2009'' after ``In the case of any 
        taxable year beginning in 2008''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
Amends the Internal Revenue Code to: (1) extend for one year the additional 50% depreciation allowance (bonus depreciation) for business property placed in service in 2009; (2) qualify motion picture film or video tape for bonus depreciation; and (3) extend through 2009 the increased ($250,000) expensing allowance for certain depreciable business assets.
A bill to amend the Internal Revenue Code of 1986 to extend and modify the special allowance for property acquired during 2009 and to temporarily increase the limitation for expensing certain business assets.