I 

114TH CONGRESS 

1ST SESSION H. R. 3933 

To amend the Internal Revenue Code of 1986 to make permanent the expensing limitations and treatment of certain real property as section 179 

property, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 5, 2015 

Mr. CONAWAY introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

permanent the expensing limitations and treatment of 

certain real property as section 179 property, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘179 Act’’. 

5 SEC. 2. EXTENSION OF INCREASED EXPENSING LIMITA6 TIONS AND TREATMENT OF CERTAIN REAL 

7 PROPERTY AS SECTION 179 PROPERTY. 

8 (a) IN GENERAL.— 


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1 (1) DOLLAR LIMITATION.—Section 179(b)(1) of 

2 the Internal Revenue Code of 1986 is amended to 

3 read as follows: 

4 ‘‘(1) DOLLAR LIMITATION.—The aggregate cost 

5 which may be taken into account under subsection 

6 (a) for any taxable year shall not exceed $500,000.’’. 

7 (2) REDUCTION IN LIMITATION.—Section 

8 179(b)(2) of such Code is amended to read as fol9 lows: 

10 ‘‘(2) REDUCTION IN LIMITATION.—The limita11 tion under paragraph (1) for any taxable year shall 

12 be reduced (but not below zero) by the amount by 

13 which the cost of section 179 property placed in 

14 service during such taxable year exceeds 

15 $2,000,000.’’. 

16 (b) COMPUTER SOFTWARE.—Section 

17 179(d)(1)(A)(ii) of such Code is amended by striking ‘‘and 

18 before 2015’’. 

19 (c) ELECTION.—Section 179(c)(2) of such Code is 

20 amended by striking ‘‘and before 2015’’. 

21 (d) SPECIAL RULES FOR TREATMENT OF QUALIFIED

22 REAL PROPERTY.— 

23 (1) IN GENERAL.—Section 179(f)(1) of such 

24 Code is amended by striking ‘‘and before 2015’’. 


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1 (2) CARRYOVER LIMITATION.—Section 

2 179(f)(4) of such Code is amended to read as fol3 lows: 

4 ‘‘(4) CARRYOVER LIMITATION.—For purposes 

5 of applying this paragraph and subsection (b)(3)(B) 

6 to any taxable year, the amount which is disallowed 

7 under subsection (b)(3)(A) for such taxable year 

8 which is attributed to qualified real property shall be 

9 the amount which bears the same ratio to the total 

10 amount so disallowed as— 

11 ‘‘(A) the aggregate amount attributable to 

12 qualified real property placed in service during 

13 such taxable year, increased by the portion of 

14 any amount carried over to such taxable year 

15 from a prior taxable year which is attributable 

16 to such property, bears to 

17 ‘‘(B) the total amount of section 179 prop18 erty placed in service during such taxable year, 

19 increased by the aggregate amount carried over 

20 to such taxable year from any prior taxable 

21 year. 

22 For purposes of the preceding sentence, only section 

23 179 property with respect to which an election was 

24 made under subsection (c)(1) shall be taken into ac25 count.’’. 


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1 (e) TIME WHEN PROPERTY TREATED AS PLACED IN

2 SERVICE FOR 2016.—Section 179(d) of such Code is 

3 amended by adding at the end the following: 

4 ‘‘(11) TIME WHEN PROPERTY TREATED AS

5 PLACED IN SERVICE.—For purposes of this section, 

6 section 179 property placed in service during the 

7 first quarter of the first taxable year beginning in 

8 2016 by a taxpayer shall be treated as having placed 

9 such property in service on the last day of the pre10 ceding taxable year if the taxpayer elects such treat11 ment with respect to such preceding taxable year in 

12 accordance with subsection (c).’’. 

13 (f) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2014. 

Æ 


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