II 

Calendar No. 55 

114TH CONGRESS 

1ST SESSION H. R. 636 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 23, 2015 

Received 

APRIL 16, 2015 

Read the first time 

APRIL 20, 2015 

Read the second time and placed on the calendar 

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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘America’s Small Busi5 ness Tax Relief Act of 2015’’. 


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HR 636 PCS

1 SEC. 2. EXPENSING CERTAIN DEPRECIABLE BUSINESS AS2 SETS FOR SMALL BUSINESS. 

3 (a) IN GENERAL.— 

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

5 the Internal Revenue Code of 1986 is amended by 

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

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

8 (2) REDUCTION IN LIMITATION.—Section 

9 179(b)(2) of such Code is amended by striking ‘‘ex10 ceeds—’’ and all that follows and inserting ‘‘exceeds 

11 $2,000,000.’’. 

12 (b) COMPUTER SOFTWARE.—Section 

13 179(d)(1)(A)(ii) of such Code is amended by striking ‘‘, 

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

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

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

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

18 amended— 

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

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

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

22 thereof. 

23 (d) AIR CONDITIONING AND HEATING UNITS.—Sec24 tion 179(d)(1) of such Code is amended by striking ‘‘and 

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


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HR 636 PCS

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

2 such Code is amended— 

3 (1) by striking ‘‘beginning after 2009 and be4 fore 2015’’ in paragraph (1); and 

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

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

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

8 new paragraph: 

9 ‘‘(6) INFLATION ADJUSTMENT.— 

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

11 taxable year beginning after 2015, the dollar 

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

13 be increased by an amount equal to— 

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

15 ‘‘(ii) the cost-of-living adjustment de16 termined under section 1(f)(3) for the cal17 endar year in which the taxable year be18 gins, determined by substituting ‘calendar 

19 year 2014’ for ‘calendar year 1992’ in sub20 paragraph (B) thereof. 

21 ‘‘(B) ROUNDING.—The amount of any in22 crease under subparagraph (A) shall be round23 ed to the nearest multiple of $10,000.’’. 


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HR 636 PCS

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2014. 

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

5 GAINS OF S CORPORATIONS MADE PERMA6 NENT. 

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

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

9 as follows: 

10 ‘‘(7) RECOGNITION PERIOD.— 

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

12 period’ means the 5-year period beginning with 

13 the first day of the first taxable year for which 

14 the corporation was an S corporation. For pur15 poses of applying this section to any amount in16 cludible in income by reason of distributions to 

17 shareholders pursuant to section 593(e), the 

18 preceding sentence shall be applied without re19 gard to the phrase ‘5-year’. 

20 ‘‘(B) INSTALLMENT SALES.—If an S cor21 poration sells an asset and reports the income 

22 from the sale using the installment method 

23 under section 453, the treatment of all pay24 ments received shall be governed by the proviVerDate Sep 11 2014 00:58 Apr 21, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H636.PCS H636

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HR 636 PCS

1 sions of this paragraph applicable to the taxable 

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

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2014. 

6 SEC. 4. PERMANENT RULE REGARDING BASIS ADJUST7 MENT TO STOCK OF S CORPORATIONS MAK8 ING CHARITABLE CONTRIBUTIONS OF PROP9 ERTY. 

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

11 Revenue Code of 1986 is amended by striking the last sen12 tence. 

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

14 this section shall apply to contributions made in taxable 

15 years beginning after December 31, 2014. 

16 SEC. 5. BUDGETARY EFFECTS. 

17 The budgetary effects of this Act shall not be entered 

18 on either PAYGO scorecard maintained pursuant to sec19 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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Calendar No. 55 

114TH CONGRESS 

1ST SESSION H. R. 636 

AN ACT 

To amend the Internal Revenue Code of 1986 to 

tions, and for other purposes. permanently extend increased expensing limitaAPRIL 20, 2015 

Read the second time and placed on the calendar 


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