A bill to amend the Internal Revenue Code of 1986 to stimulate business investment, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Main Street Recovery Act''.

SEC. 2. TEMPORARY REINSTATEMENT OF REGULAR INVESTMENT TAX CREDIT.

    The current year business credit under section 38 of Internal 
Revenue Code of 1986 shall include the amount that would be determined 
under section 46(a) of such Code (without regard to paragraphs (2) and 
(3) of such subsection) (as such Code was in effect before the 
amendments made by the Revenue Reconciliation Act of 1990 (Public Law 
101-508)) with respect to property placed in service after 2008 and 
before July 1, 2010, if the regular percentage were 15 percent.

SEC. 3. TEMPORARY EXTENSION AND MODIFICATION OF SPECIAL ALLOWANCE FOR 
              CERTAIN PROPERTY.

    (a) Temporary 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 
                ``July 1, 2011'', and
                    (B) by striking ``January 1, 2009'' each place it 
                appears and inserting ``July 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 ``July 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-july 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 `July 1, 2010' each place it 
                        appears,
                            ``(iv) `January 1, 2010' shall be 
                        substituted for `July 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 ``July 1, 2010''.
                    (E) Subparagraph (B) of section 1400N(d)(3) of such 
                Code is amended by striking ``January 1, 2009'' and 
                inserting ``July 1, 2010''.
    (b) Expansion to Certain Real Property.--
            (1) In general.--Section 168(k)(2)(A)(i) of the Internal 
        Revenue Code of 1986 is amended by striking ``or'' at the end 
        of subclause (III), by inserting ``or'' at the end of subclause 
        (IV), and by inserting after subclause (IV) the following new 
        subclause:
                                    ``(V) which is nonresidential real 
                                property or residential rental 
                                property,''.
            (2) Conforming amendments.--Sections 1400L(b)(2)(A)(i)(I) 
        and 1400N(d)(2)(A)(i)(I) of such Code are each amended by 
        inserting ``subclause (I), (II), (III), or (IV) of'' before 
        ``section 168(k)(2)(A)(i)''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to property placed 
        in service after December 31, 2008, in taxable years ending 
        after such date.
            (2) Technical amendment.--Section 168(k)(4)(D)(ii) of the 
        Internal Revenue Code of 1986, as added by subsection 
        (a)(2)(C)(iii), shall apply to taxable years ending after March 
        31, 2008.

SEC. 4. TEMPORARY INCREASE IN LIMITATIONS ON, AND MODIFICATION OF, 
              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 ``, 2009, and 2010'' after ``2008'' in the 
        heading, and
            (2) by inserting ``, 2009, or 2010'' after ``In the case of 
        any taxable year beginning in 2008''.
    (b) Expensing Available for All Tangible Depreciable Property.--
Section 179(d)(1) of the Internal Revenue Code of 1986 (defining 
section 179 property) is amended by inserting ``and'' at the end of 
subparagraph (A)(ii), by striking subparagraph (B), and by 
redesignating subparagraph (C) as subparagraph (B).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

Summary: Main Street Recovery Act - Provides for a 15 investment tax credit through June 30, 2010, for the purchase of business equipment and machinery. Amends the Internal Revenue Code to: (1) extend through June 30, 2010, the additional 50 depreciation allowance for business and investment property. (2) allow such depreciation for nonresidential real property or residential rental property. And (3) extend through 2010 the increased expensing allowance for depreciable business assets and expand the types of depreciable property eligible for expensing.