II 

112TH CONGRESS 

2D SESSION S. 2240 

To amend the Internal Revenue Code of 1986 to extend the allowance for 

bonus depreciation for certain business assets. 

IN THE SENATE OF THE UNITED STATES 

MARCH 27, 2012 

Ms. STABENOW (for herself, Mr. BLUNT, Mr. BROWN of Ohio, and Mr. ROBERTS) introduced the following bill; which was read twice and referred to 

the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

the allowance for bonus depreciation for certain business 

assets. 

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

3 SECTION 1. EXTENSION OF ALLOWANCE FOR BONUS DE4 PRECIATION FOR CERTAIN BUSINESS AS5 SETS. 

6 (a) EXTENSION OF 100 PERCENT BONUS DEPRECIA7 TION.— 


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•S 2240 IS

1 (1) IN GENERAL.—Paragraph (5) of section 

2 168(k) of the Internal Revenue Code of 1986 is 

3 amended— 

4 (A) by striking ‘‘January 1, 2012’’ each 

5 place it appears and inserting ‘‘January 1, 

6 2013’’, and 

7 (B) by striking ‘‘January 1, 2013’’ and in8 serting ‘‘January 1, 2014’’. 

9 (2) CONFORMING AMENDMENTS.— 

10 (A) The heading for paragraph (5) of sec11 tion 168(k) of such Code is amended by strik12 ing ‘‘PRE-2012 PERIODS’’ and inserting ‘‘PRE13 2013 PERIODS’’. 

14 (B) Clause (ii) of section 460(c)(6)(B) of 

15 such Code is amended to read as follows: 

16 ‘‘(ii) is placed in service— 

17 ‘‘(I) after December 31, 2009, 

18 and before January 1, 2011 (January 

19 1, 2012, in the case of property de20 scribed in section 168(k)(2)(B)), or 

21 ‘‘(II) after December 31, 2011, 

22 and before January 1, 2013 (January 

23 1, 2014, in the case of property de24 scribed in section 168(k)(2)(B)).’’. 


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•S 2240 IS

1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to property placed in 

3 service after December 31, 2011. 

4 (b) EXPANSION OF ELECTION TO ACCELERATE AMT 

5 CREDITS IN LIEU OF BONUS DEPRECIATION.— 

6 (1) IN GENERAL.—Paragraph (4) of section 

7 168(k) of such Code is amended to read as follows: 

8 ‘‘(4) ELECTION TO ACCELERATE AMT CREDITS

9 IN LIEU OF BONUS DEPRECIATION.— 

10 ‘‘(A) IN GENERAL.—If a corporation elects 

11 to have this paragraph apply for any taxable 

12 year— 

13 ‘‘(i) paragraph (1) shall not apply to 

14 any eligible qualified property placed in 

15 service by the taxpayer in such taxable 

16 year, 

17 ‘‘(ii) the applicable depreciation meth18 od used under this section with respect to 

19 such property shall be the straight line 

20 method, and 

21 ‘‘(iii) the limitation imposed by section 

22 53(c) for such taxable year shall be in23 creased by the bonus depreciation amount 

24 which is determined for such taxable year 

25 under subparagraph (B). 


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•S 2240 IS

1 ‘‘(B) BONUS DEPRECIATION AMOUNT.— 

2 For purposes of this paragraph— 

3 ‘‘(i) IN GENERAL.—The bonus depre4 ciation amount for any taxable year is an 

5 amount equal to 20 percent of the excess 

6 (if any) of— 

7 ‘‘(I) the aggregate amount of de8 preciation which would be allowed 

9 under this section for eligible qualified 

10 property placed in service by the tax11 payer during such taxable year if 

12 paragraph (1) applied to all such 

13 property, over 

14 ‘‘(II) the aggregate amount of 

15 depreciation which would be allowed 

16 under this section for eligible qualified 

17 property placed in service by the tax18 payer during such taxable year if 

19 paragraph (1) did not apply to any 

20 such property. 

21 The aggregate amounts determined under 

22 subclauses (I) and (II) shall be determined 

23 without regard to any election made under 

24 subsection (b)(2)(D), (b)(3)(D), or (g)(7) 


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•S 2240 IS

1 and without regard to subparagraph 

2 (A)(ii). 

3 ‘‘(ii) LIMITATION.—The bonus depre4 ciation amount for any taxable year shall 

5 not exceed the lesser of— 

6 ‘‘(I) 50 percent of the minimum 

7 tax credit under section 53(b) for the 

8 first taxable year ending after Decem9 ber 31, 2011, or 

10 ‘‘(II) the minimum tax credit 

11 under section 53(b) for such taxable 

12 year determined by taking into ac13 count only the adjusted minimum tax 

14 for taxable years ending before Janu15 ary 1, 2012 (determined by treating 

16 credits as allowed on a first-in, first17 out basis). 

18 ‘‘(iii) AGGREGATION RULE.—All cor19 porations which are treated as a single em20 ployer under section 52(a) shall be treat21 ed— 

22 ‘‘(I) as 1 taxpayer for purposes 

23 of this paragraph, and 


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•S 2240 IS

1 ‘‘(II) as having elected the appli2 cation of this paragraph if any such 

3 corporation so elects. 

4 ‘‘(C) ELIGIBLE QUALIFIED PROPERTY.— 

5 For purposes of this paragraph, the term ‘eligi6 ble qualified property’ means qualified property 

7 under paragraph (2), except that in applying 

8 paragraph (2) for purposes of this paragraph— 

9 ‘‘(i) ‘March 31, 2008’ shall be sub10 stituted for ‘December 31, 2007’ each 

11 place it appears in subparagraph (A) and 

12 clauses (i) and (ii) of subparagraph (E) 

13 thereof, 

14 ‘‘(ii) ‘April 1, 2008’ shall be sub15 stituted for ‘January 1, 2008’ in subpara16 graph (A)(iii)(I) thereof, and 

17 ‘‘(iii) only adjusted basis attributable 

18 to manufacture, construction, or produc19 tion— 

20 ‘‘(I) after March 31, 2008, and 

21 before January 1, 2010, and 

22 ‘‘(II) after December 31, 2010, 

23 and before January 1, 2013, shall be 

24 taken into account under subpara25 graph (B)(ii) thereof. 


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1 ‘‘(D) CREDIT REFUNDABLE.—For pur2 poses of section 6401(b), the aggregate increase 

3 in the credits allowable under part IV of sub4 chapter A for any taxable year resulting from 

5 the application of this paragraph shall be treat6 ed as allowed under subpart C of such part 

7 (and not any other subpart). 

8 ‘‘(E) OTHER RULES.— 

9 ‘‘(i) ELECTION.—Any election under 

10 this paragraph may be revoked only with 

11 the consent of the Secretary. 

12 ‘‘(ii) PARTNERSHIPS WITH ELECTING

13 PARTNERS.—In the case of a corporation 

14 making an election under subparagraph 

15 (A) and which is a partner in a partner16 ship, for purposes of determining such cor17 poration’s distributive share of partnership 

18 items under section 702— 

19 ‘‘(I) paragraph (1) shall not 

20 apply to any eligible qualified prop21 erty, and 

22 ‘‘(II) the applicable depreciation 

23 method used under this section with 

24 respect to such property shall be the 

25 straight line method. 


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1 ‘‘(iii) CERTAIN PARTNERSHIPS.—In 

2 the case of a partnership in which more 

3 than 50 percent of the capital and profits 

4 interests are owned (directly or indirectly) 

5 at all times during the taxable year by one 

6 corporation (or by corporations treated as 

7 1 taxpayer under subparagraph (B)(iii)), 

8 for purposes of subparagraph (B), each 

9 partner shall take into account its distribu10 tive share of the amounts determined by 

11 the partnership under subclauses (I) and 

12 (II) of clause (i) of such subparagraph for 

13 the taxable year of the partnership ending 

14 with or within the taxable year of the part15 ner. The preceding sentence shall apply 

16 only to amounts determined with respect to 

17 property placed in service after December 

18 31, 2011. 

19 ‘‘(iv) SPECIAL RULE FOR PASSENGER

20 AIRCRAFT.—In the case of any passenger 

21 aircraft, the written binding contract limi22 tation under paragraph (2)(A)(iii)(I) shall 

23 not apply for purposes of subparagraphs 

24 (B)(i)(I) and (C).’’. 


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•S 2240 IS

1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to taxable years end3 ing after December 31, 2011. 

4 (3) TRANSITIONAL RULE.—In the case of a tax5 able year beginning before January 1, 2012, and 

6 ending after December 31, 2011, the bonus depre7 ciation amount determined under paragraph (4) of 

8 section 168(k) of the Internal Revenue Code of 1986 

9 for such year shall be the sum of— 

10 (A) such amount determined under such 

11 paragraph as in effect on the date before the 

12 date of enactment of this Act— 

13 (i) taking into account only property 

14 placed in service before January 1, 2012, 

15 and 

16 (ii) multiplying the limitation under 

17 subparagraph (C)(ii) of such paragraph (as 

18 so in effect) by a fraction the numerator of 

19 which is the number of days in the taxable 

20 year before January 1, 2012, and the de21 nominator of which is the number of days 

22 in the taxable year, and 

23 (B) such amount determined under such 

24 paragraph as amended by this Act— 


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•S 2240 IS

1 (i) taking into account only property 

2 placed in service after December 31, 2011, 

3 and 

4 (ii) multiplying the limitation under 

5 subparagraph (B)(ii) of such paragraph 

6 (as so in effect) by a fraction the numer7 ator of which is the number of days in the 

8 taxable year after December 31, 2011, and 

9 the denominator of which is the number of 

10 days in the taxable year. 

Æ 


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