SECTION 1. EXPENSING FOR CERTAIN PROPERTY PLACED IN SERVICE DURING 2008 
              AND 2009.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(m) Special Allowance for Certain Qualified Property Placed in 
Service During 2008 and 2009.--
            ``(1) In general.--In the case of any qualified property--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                property is placed in service shall include an 
                allowance equal to 100 percent of the adjusted basis of 
                the qualified property, and
                    ``(B) the adjusted basis of the qualified property 
                shall be reduced by the amount of such deduction before 
                computing the amount otherwise allowable as a 
                depreciation deduction under this chapter for such 
                taxable year and any subsequent taxable year.
            ``(2) Qualified property.--For purposes of this subsection, 
        the term `qualified property' means property--
                    ``(A) which is 3-year property, 5-year property, or 
                7-year property,
                    ``(B) the original use of which commences with the 
                taxpayer on or after the starting date,
                    ``(C) which is--
                            ``(i) acquired by the taxpayer on or after 
                        the starting date and before the ending date, 
                        but only if no written binding contract for the 
                        acquisition was in effect before the starting 
                        date, or
                            ``(ii) acquired by the taxpayer pursuant to 
                        a written binding contract which was entered 
                        into on or after the starting date and before 
                        the ending date, and
                    ``(D) which is placed in service by the taxpayer 
                before the ending date.
            ``(3) Exceptions.--
                    ``(A) Alternative depreciation property.--This 
                subsection shall not apply to any property to which the 
                alternative depreciation system under subsection (g) 
                applies, determined--
                            ``(i) without regard to paragraph (7) of 
                        subsection (g) (relating to election to have 
                        system apply), and
                            ``(ii) after application of section 280F(b) 
                        (relating to listed property with limited 
                        business use).
                    ``(B) Election out.--If a taxpayer makes an 
                election under this subparagraph with respect to any 
                class of property for any taxable year, this subsection 
                shall not apply to all property in such class placed in 
                service during such taxable year.
            ``(4) Special rules.--
                    ``(A) Self-constructed property.--In the case of a 
                taxpayer manufacturing, constructing, or producing 
                property for the taxpayer's own use, the requirements 
                of paragraph (2)(C) shall be treated as met if the 
                taxpayer begins manufacturing, constructing, or 
                producing the property after the starting date and 
                before the ending date.
                    ``(B) Sale-leasebacks.--For purposes of 
                subparagraph (C) and paragraph (2)(B), if property is--
                            ``(i) originally placed in service on or 
                        after the starting date by a person, and
                            ``(ii) sold and leased back by such person 
                        within 3 months after the date such property 
                        was originally placed in service,
                such property shall be treated as originally placed in 
                service not earlier than the date on which such 
                property is used under the leaseback referred to in 
                subclause (II).
                    ``(C) Syndication.--For purposes of paragraph 
                (2)(B), if--
                            ``(i) property is originally placed in 
                        service on or after the starting date by the 
                        lessor of such property,
                            ``(ii) such property is sold by such lessor 
                        or any subsequent purchaser within 3 months 
                        after the date such property was originally 
                        placed in service (or, in the case of multiple 
                        units of property subject to the same lease, 
                        within 3 months after the date the final unit 
                        is placed in service, so long as the period 
                        between the time the first unit is placed in 
                        service and the time the last unit is placed in 
                        service does not exceed 12 months), and
                            ``(iii) the user of such property after the 
                        last sale during such 3-month period remains 
                        the same as when such property was originally 
                        placed in service,
                such property shall be treated as originally placed in 
                service not earlier than the date of such last sale.
                    ``(D) Limitations related to users and related 
                parties.--This subsection shall not apply to any 
                property if--
                            ``(i) the user of such property (as of the 
                        date on which such property is originally 
                        placed in service) or a person which is related 
                        (within the meaning of section 267(b) or 
                        707(b)) to such user or to the taxpayer had a 
                        written binding contract in effect for the 
                        acquisition of such property at any time before 
                        the starting date, or
                            ``(ii) in the case of property 
                        manufactured, constructed, or produced for such 
                        user's or person's own use, the manufacture, 
                        construction, or production of such property 
                        began at any time before the starting date.
            ``(5) Coordination with section 280f.--For purposes of 
        section 280F--
                    ``(A) Automobiles.--In the case of a passenger 
                automobile (as defined in section 280F(d)(5)) which is 
                qualified property, the Secretary shall increase the 
                limitation under section 280F(a)(1)(A)(i) by $7,650.
                    ``(B) Listed property.--The deduction allowable 
                under paragraph (1) shall be taken into account in 
                computing any recapture amount under section 
                280F(b)(2).
            ``(6) Deduction allowed in computing minimum tax.--For 
        purposes of determining alternative minimum taxable income 
        under section 55, the deduction under subsection (a) for 
        qualified property shall be determined under this section 
        without regard to any adjustment under section 56.
            ``(7) Starting date; ending date.--For purposes of this 
        paragraph--
                    ``(A) Starting date.--The term `starting date' 
                means January 1, 2008.
                    ``(B) Ending date.--The term `ending date' means 
                January 1, 2010.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2007.
Amends the Internal Revenue Code to allow a current year tax deduction of the cost of business equipment placed in service in 2008 and 2009 for which cost recovery periods of three, five, or seven years are currently allowed.
A bill to amend the Internal Revenue Code to provide expensing for certain property placed in service during 2008 and 2009.