I 

112TH CONGRESS 

1ST SESSION H. R. 158 

To amend the Internal Revenue Code of 1986 to repeal certain limitations 

on the expensing of section 179 property, to allow taxpayers to elect 

shorter recovery periods for purposes of determining the deduction for 

depreciation, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 5, 2011 

Mr. SESSIONS 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 repeal 

certain limitations on the expensing of section 179 property, to allow taxpayers to elect shorter recovery periods 

for purposes of determining the deduction for depreciation, 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 ‘‘Expensing Property 

5 Expands our Nation’s Strong Economy Act of 2011’’ or 

6 as the ‘‘EXPENSE Act of 2011’’. 


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1 SEC. 2. REPEAL OF CERTAIN LIMITATIONS ON THE EX2 PENSING OF SECTION 179 PROPERTY. 

3 (a) IN GENERAL.—Section 179 of the Internal Rev4 enue Code of 1986 is amended by striking subsections (b) 

5 and (e) and by redesignating subsections (c), (d), and (f) 

6 as subsections (b), (c), and (d), respectively. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Subsection (c) of section 179 of such Code, 

9 as redesignated by subsection (a), is amended by 

10 striking paragraphs (6) and (8), and by redesig11 nating paragraphs (7), (9), and (10) as paragraphs 

12 (6), (7), and (8), respectively. 

13 (2) Paragraph (6) of section 179(c) of such 

14 Code, as redesignated by paragraph (1) and sub15 section (a), is amended by striking ‘‘paragraphs (2) 

16 and (6)’’ and inserting ‘‘paragraph (2)’’. 

17 (3) Subsection (d) of section 179 of such Code, 

18 as redesignated by subsection (a), is amended— 

19 (A) by striking ‘‘in 2010 or 2011’’ in para20 graph (1), and 

21 (B) by striking paragraphs (3) and (4). 

22 (4) Sections 42(d)(2)(B)(i), 1397D(d)(1), 

23 1400B(b)(4)(A)(i) and 1400F(b)(4)(A)(i) of such 

24 Code are each amended by striking ‘‘section 

25 179(d)(2)’’ and inserting ‘‘section 179(c)(2)’’. 


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1 (5) Subclause (I) of section 42(d)(2)(D)(iii) of 

2 such Code is amended— 

3 (A) by striking ‘‘section 179(d)’’ and in4 serting ‘‘section 179(c)’’, and 

5 (B) by striking ‘‘section 179(d)(7)’’ and 

6 inserting ‘‘section 179(c)(6)’’. 

7 (6)(A) Subpart B of part III of subchapter U 

8 of chapter 1 of such Code is hereby repealed. 

9 (B) The table of subparts for such part III is 

10 amended by striking the item relating to subpart B. 

11 (7)(A) Part III of subchapter X of chapter 1 of 

12 such Code is amended by striking section 1400J. 

13 (B) The table of sections for such part is 

14 amended by striking the item relating to section 

15 1400J. 

16 (C) Paragraph (3) of section 1400E(b) of such 

17 Code is amended by striking ‘‘sections 1400F and 

18 1400J’’ and inserting ‘‘section 1400F’’. 

19 (8) Clause (iv) of section 1400L(b)(2)(A) of 

20 such Code is amended by striking ‘‘section 179(d)’’ 

21 and inserting ‘‘section 179(c)’’. 

22 (9) Section 1400L of such Code is amended by 

23 striking subsection (f). 

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

25 this section shall apply to property placed in service during 


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1 taxable years ending on or after the date of the enactment 

2 of this Act. 

3 SEC. 3. ELECTION OF SHORTER RECOVERY PERIOD FOR 

4 PURPOSE OF DETERMINING DEPRECIATION 

5 DEDUCTION. 

6 (a) IN GENERAL.—Section 168 of the Internal Rev7 enue Code of 1986 is amended by adding at the end the 

8 following new subsection: 

9 ‘‘(o) ELECTION OF SHORTER RECOVERY PERIOD.— 

10 ‘‘(1) IN GENERAL.—Notwithstanding sub11 sections (c), (e), (g), and (j), for purposes of sub12 section (a), the applicable recovery period for any 

13 property placed in service during a taxable year end14 ing on or after the date of the enactment of this 

15 subsection shall not exceed any period of two or 

16 more years elected by the taxpayer with respect to 

17 such property. 

18 ‘‘(2) ELECTION.—An election made under this 

19 subsection shall be made at such time and in such 

20 form and manner as the Secretary may require. An 

21 election under this subsection, once made, shall 

22 apply to the taxable year for which made and all 

23 subsequent taxable years unless revoked with the 

24 consent of the Secretary. 


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1 ‘‘(3) TRANSITION RULE.—In the case of any 

2 property placed in service during a taxable year end3 ing before the date of the enactment of this sub4 section, paragraph (1) shall apply with respect to 

5 the adjusted basis of such property in the same 

6 manner as if such property (with such adjusted 

7 basis) were placed in service on the first day of the 

8 taxable year which includes the date of the enact9 ment of this subsection. The application of this 

10 paragraph shall not be treated as a change in meth11 od of accounting for purposes of section 481.’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to property placed in service be14 fore, on, or after the date of the enactment of this Act. 

Æ 


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