II 

114TH CONGRESS 

1ST SESSION H. R. 636 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 23, 2015 

Received 

AN ACT 

To amend the Internal Revenue Code of 1986 to permanently 

extend increased expensing limitations, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘America’s Small Busi3 ness Tax Relief Act of 2015’’. 

4 SEC. 2. EXPENSING CERTAIN DEPRECIABLE BUSINESS AS5 SETS FOR SMALL BUSINESS. 

6 (a) IN GENERAL.— 

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

8 the Internal Revenue Code of 1986 is amended by 

9 striking ‘‘shall not exceed—’’ and all that follows 

10 and inserting ‘‘shall not exceed $500,000.’’. 

11 (2) REDUCTION IN LIMITATION.—Section 

12 179(b)(2) of such Code is amended by striking ‘‘ex13 ceeds—’’ and all that follows and inserting ‘‘exceeds 

14 $2,000,000.’’. 

15 (b) COMPUTER SOFTWARE.—Section 

16 179(d)(1)(A)(ii) of such Code is amended by striking ‘‘, 

17 to which section 167 applies, and which is placed in service 

18 in a taxable year beginning after 2002 and before 2015’’ 

19 and inserting ‘‘and to which section 167 applies’’. 

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

21 amended— 

22 (1) by striking ‘‘may not be revoked’’ and all 

23 that follows through ‘‘and before 2015’’; and 

24 (2) by striking ‘‘IRREVOCABLE’’ in the heading 

25 thereof. 


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1 (d) AIR CONDITIONING AND HEATING UNITS.—Sec2 tion 179(d)(1) of such Code is amended by striking ‘‘and 

3 shall not include air conditioning or heating units’’. 

4 (e) QUALIFIED REAL PROPERTY.—Section 179(f) of 

5 such Code is amended— 

6 (1) by striking ‘‘beginning after 2009 and be7 fore 2015’’ in paragraph (1); and 

8 (2) by striking paragraphs (3) and (4). 

9 (f) INFLATION ADJUSTMENT.—Section 179(b) of 

10 such Code is amended by adding at the end the following 

11 new paragraph: 

12 ‘‘(6) INFLATION ADJUSTMENT.— 

13 ‘‘(A) IN GENERAL.—In the case of any 

14 taxable year beginning after 2015, the dollar 

15 amounts in paragraphs (1) and (2) shall each 

16 be increased by an amount equal to— 

17 ‘‘(i) such dollar amount, multiplied by 

18 ‘‘(ii) the cost-of-living adjustment de19 termined under section 1(f)(3) for the cal20 endar year in which the taxable year be21 gins, determined by substituting ‘calendar 

22 year 2014’ for ‘calendar year 1992’ in sub23 paragraph (B) thereof. 


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1 ‘‘(B) ROUNDING.—The amount of any in2 crease under subparagraph (A) shall be round3 ed to the nearest multiple of $10,000.’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2014. 

7 SEC. 3. REDUCED RECOGNITION PERIOD FOR BUILT-IN 

8 GAINS OF S CORPORATIONS MADE PERMA9 NENT. 

10 (a) IN GENERAL.—Paragraph (7) of section 1374(d) 

11 of the Internal Revenue Code of 1986 is amended to read 

12 as follows: 

13 ‘‘(7) RECOGNITION PERIOD.— 

14 ‘‘(A) IN GENERAL.—The term ‘recognition 

15 period’ means the 5-year period beginning with 

16 the first day of the first taxable year for which 

17 the corporation was an S corporation. For pur18 poses of applying this section to any amount in19 cludible in income by reason of distributions to 

20 shareholders pursuant to section 593(e), the 

21 preceding sentence shall be applied without re22 gard to the phrase ‘5-year’. 

23 ‘‘(B) INSTALLMENT SALES.—If an S cor24 poration sells an asset and reports the income 

25 from the sale using the installment method 


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1 under section 453, the treatment of all pay2 ments received shall be governed by the provi3 sions of this paragraph applicable to the taxable 

4 year in which such sale was made.’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2014. 

8 SEC. 4. PERMANENT RULE REGARDING BASIS ADJUST9 MENT TO STOCK OF S CORPORATIONS MAK10 ING CHARITABLE CONTRIBUTIONS OF PROP11 ERTY. 

12 (a) IN GENERAL.—Section 1367(a)(2) of the Internal 

13 Revenue Code of 1986 is amended by striking the last sen14 tence. 

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

16 this section shall apply to contributions made in taxable 

17 years beginning after December 31, 2014. 


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1 SEC. 5. BUDGETARY EFFECTS. 

2 The budgetary effects of this Act shall not be entered 

3 on either PAYGO scorecard maintained pursuant to sec4 tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 

Passed the House of Representatives February 13, 

2015. 

Attest: KAREN L. HAAS, 

Clerk. 


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