II 

111TH CONGRESS 

1ST SESSION S. 233 

To amend the Internal Revenue Code of 1986 to make the allowance of 

bonus depreciation and the increased expensing limitations permanent. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 14, 2009 

Mr. ALEXANDER 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 make 

the allowance of bonus depreciation and the increased 

expensing limitations permanent. 

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

3 SECTION 1. BONUS DEPRECIATION MADE PERMANENT. 

4 (a) IN GENERAL.—Paragraph (2) of section 168(k) 

5 of the Internal Revenue Code of 1986 (relating to special 

6 allowance for certain property acquired after December 

7 31, 2007, and before January 1, 2009) is amended— 

8 (1) in subparagraph (A)— 

9 (A) by adding ‘‘and’’ at the end of clause 

10 (ii), 


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•S 233 IS

1 (B) by striking ‘‘, and before January 1, 

2 2009’’ in clause (iii)(I), 

3 (C) by striking ‘‘, and before January 1, 

4 2009, and’’ in clause (iii)(II) and inserting a 

5 period, and 

6 (D) by striking clause (iv), 

7 (2) in subparagraph (B), by striking clause (ii) 

8 and by redesignating clauses (iii) and (iv) as clauses 

9 (ii) and (iii), respectively, and 

10 (3) in subparagraph (E)(i), by striking ‘‘, and 

11 before January 1, 2009’’. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) Subclause (I) of section 168(k)(2)(B)(i) of 

14 the Internal Revenue Code of 1986 is amended by 

15 striking ‘‘(iii), and (iv)’’ and inserting ‘‘and (iii)’’. 

16 (2) Clause (i) of section 168(k)(2)(C) of such 

17 Code is amended by striking ‘‘, (iii) and (iv)’’ and 

18 inserting ‘‘and (iii)’’. 

19 (3) Subparagraph (B) of section 168(l)(5) of 

20 such Code is amended to read as follows: 

21 ‘‘(B) by substituting ‘January 1, 2013.’ for 

22 the period at the end of clause (i) thereof, 

23 and’’. 

24 (4) Subparagraph (D) of section 1400L(b)(2) 

25 of such Code is amended by striking ‘‘clause (i) 


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1 thereof shall be applied without regard to ‘and be2 fore January 1, 2010’, and’’. 

3 (5) Subparagraph (B) of section 1400N(d)(3) 

4 of such Code is amended to read as follows: 

5 ‘‘(B) by substituting ‘January 1, 2008.’ for 

6 the period at the end of clause (i) thereof, 

7 and’’. 

8 (6) The heading for subsection (k) of section 

9 168 of such Code is amended by striking ‘‘AND BE10 FORE JANUARY 1, 2009’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to property placed in service after 

13 December 31, 2008. 

14 SEC. 2. PERMANENT INCREASE IN LIMITATIONS ON EX15 PENSING OF CERTAIN DEPRECIABLE BUSI16 NESS ASSETS. 

17 (a) IN GENERAL.—Subsection (b) of section 179 of 

18 the Internal Revenue Code of 1986 (relating to limita19 tions) is amended— 

20 (1) by striking ‘‘$25,000’’ and all that follows 

21 in paragraph (1) and inserting ‘‘$250,000.’’, 

22 (2) by striking ‘‘$200,000’’ and all that follows 

23 in paragraph (2) and inserting ‘‘$800,000’’, 

24 (3) by striking ‘‘after 2007 and before 2011, 

25 the $120,000 and $500,000’’ in paragraph (5)(A) 


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1 and inserting ‘‘after 2009, the $250,000 and the 

2 $800,000’’, 

3 (4) by striking ‘‘2006’’ in paragraph (5)(A)(ii) 

4 and inserting ‘‘2008’’, and 

5 (5) by striking paragraph (7). 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2008. 

Æ 


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