I 

111TH CONGRESS 

1ST SESSION H. R. 4311 

To amend the Internal Revenue Code of 1986 to extend the increase in 

the expensing deduction for small businesses. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 15, 2009 

Mrs. HALVORSON 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 extend 

the increase in the expensing deduction for small businesses. 

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 ‘‘Bonus Depreciation 

5 and Enhanced Expensing for Small Businesses Extension 

6 Act of 2009’’. 

7 SEC. 2. EXTENSION OF INCREASED EXPENSING FOR SMALL 

8 BUSINESSES. 

9 (a) IN GENERAL.—Paragraph (7) of section 179(b) 

10 of the Internal Revenue Code of 1986 is amended— 


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1 (1) by striking ‘‘or 2009’’ and inserting ‘‘2009, 

2 or 2010’’, and 

3 (2) by striking ‘‘AND 2009’’ in the heading 

4 thereof and inserting ‘‘2009, OR 2010’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2009. 

8 SEC. 3. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY AC9 QUIRED DURING 2010. 

10 (a) EXTENSION OF SPECIAL ALLOWANCE.— 

11 (1) IN GENERAL.—Paragraph (2) of section 

12 168(k) of the Internal Revenue Code of 1986 is 

13 amended— 

14 (A) by striking ‘‘January 1, 2011’’ and in15 serting ‘‘January 1, 2012’’, and 

16 (B) by striking ‘‘January 1, 2010’’ each 

17 place it appears and inserting ‘‘January 1, 

18 2011’’. 

19 (2) CONFORMING AMENDMENTS.— 

20 (A) The heading for subsection (k) of sec21 tion 168 of such Code is amended by striking 

22 ‘‘2010’’ and inserting ‘‘2011’’. 

23 (B) The heading for clause (ii) of section 

24 168(k)(2)(B) of such Code is amended by strikVerDate Nov 24 2008 16:58 Dec 16, 2009 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4311.IH H4311

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1 ing ‘‘PRE-JANUARY 1, 2010’’ and inserting ‘‘PRE2 JANUARY 1, 2011’’. 

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

4 of such Code is amended by striking ‘‘January 

5 1, 2009’’ and inserting ‘‘January 1, 2010’’. 

6 (D) Subparagraph (C) of section 168(n)(2) 

7 of such Code is amended by striking ‘‘January 

8 1, 2009’’ and inserting ‘‘January 1, 2010’’. 

9 (E) Subparagraph (B) of section 

10 1400N(d)(3) of such Code is amended by strik11 ing ‘‘January 1, 2009’’ and inserting ‘‘January 

12 1, 2010’’. 

13 (b) EXTENSION OF ELECTION TO ACCELERATE THE

14 AMT AND RESEARCH CREDITS IN LIEU OF BONUS DE15 PRECIATION.—Section 168(k)(4) of such Code (relating to 

16 election to accelerate the AMT and research credits in lieu 

17 of bonus depreciation) is amended— 

18 (1) by striking ‘‘January, 1, 2010’’ and insert19 ing ‘‘January 1, 2011’’ in subparagraph (D)(iii), 

20 and 

21 (2) by adding at the end the following new sub22 paragraph: 

23 ‘‘(I) SPECIAL RULES FOR 2010 EXTENSION

24 PROPERTY.— 


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1 ‘‘(i) TAXPAYERS PREVIOUSLY ELECT2 ING ACCELERATION.—In the case of a tax3 payer who made the election under sub4 paragraph (A) for its first taxable year 

5 ending after March 31, 2008— 

6 ‘‘(I) the taxpayer may elect not 

7 to have this paragraph apply to 2010 

8 extension property, but 

9 ‘‘(II) if the taxpayer does not 

10 make the election under subclause (I), 

11 in applying this paragraph to the tax12 payer a separate bonus depreciation 

13 amount, maximum amount, and max14 imum increase amount shall be com15 puted and applied to eligible qualified 

16 property which is 2010 extension 

17 property and to eligible qualified prop18 erty which is not 2010 extension prop19 erty. 

20 ‘‘(ii) TAXPAYERS NOT PREVIOUSLY

21 ELECTING ACCELERATION.—In the case of 

22 a taxpayer who did not make the election 

23 under subparagraph (A) for its first tax24 able year ending after March 31, 2008— 


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1 ‘‘(I) the taxpayer may elect to 

2 have this paragraph apply to its first 

3 taxable year ending after December 

4 31, 2009, and each subsequent tax5 able year, and 

6 ‘‘(II) if the taxpayer makes the 

7 election under subclause (I), this 

8 paragraph shall only apply to eligible 

9 qualified property which is 2010 ex10 tension property. 

11 ‘‘(iii) MODIFICATION OF MAXIMUM IN12 CREASE AMOUNT.—In applying this para13 graph with respect to 2010 extension prop14 erty, subparagraph (C)(iii) shall be applied 

15 without regard to subclause (II) thereof. 

16 ‘‘(iv) 2010 EXTENSION PROPERTY.— 

17 For purposes of this subparagraph, the 

18 term ‘2010 extension property’ means 

19 property which is eligible qualified property 

20 solely by reason of the extension of the ap21 plication of the special allowance under 

22 paragraph (1) pursuant to the amend23 ments made by section 3 of the Bonus De24 preciation and Enhanced Expensing for 

25 Small Businesses Extension Act of 2009 


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1 (and the application of such extension to 

2 this paragraph pursuant to the amendment 

3 made by section 3(b)(1) of such Act).’’. 

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

5 this section shall apply to property placed in service after 

6 December 31, 2009, in taxable years ending after such 

7 date. 

Æ 


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