I 

110TH CONGRESS 

2D SESSION H. R. 4995 

To amend the Internal Revenue Code of 1986 to reduce corporate marginal 

income tax rates, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 16, 2008 

Mr. CANTOR (for himself, Mr. HENSARLING, Mr. BLUNT, Mr. CAMPBELL of 

California, Ms. GRANGER, Mr. JORDAN of Ohio, Mr. MCHENRY, Mrs. 

BACHMANN, Mr. HERGER, Mr. CHABOT, Mr. PRICE of Georgia, Mr. 

FLAKE, Mr. FEENEY, Mr. DAVID DAVIS of Tennessee, Mr. BROWN of 

South Carolina, Mr. BARRETT of South Carolina, Mr. GARRETT of New 

Jersey, Mr. DOOLITTLE, Mr. LAMBORN, Mr. AKIN, Mr. WELDON of Florida, Mr. KINGSTON, Mr. PITTS, Mr. MARCHANT, Mr. GINGREY, Mr. 

SOUDER, Mr. GOODE, Ms. FOXX, Mr. ROSKAM, Mr. KUHL of New York, 

Mr. WALBERG, Mr. BISHOP of Utah, Mr. FRANKS of Arizona, Mr. KING

of Iowa, and Mr. PENCE) 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 reduce 

corporate marginal income tax rates, 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 ‘‘Middle Class Jobs Pro5 tection Act of 2008’’. 


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1 SEC. 2. REDUCTION IN CORPORATE MARGINAL INCOME 

2 TAX RATES. 

3 (a) GENERAL RULE.—Paragraph (1) of section 11(b) 

4 of the Internal Revenue Code of 1986 is amended— 

5 (1) by inserting ‘‘and’’ at the end of subpara6 graph (A), 

7 (2) by striking ‘‘but does not exceed $75,000,’’ 

8 in subparagraph (B) and inserting a period, 

9 (3) by striking subparagraphs (C) and (D), and 

10 (4) by striking the last 2 sentences. 

11 (b) PERSONAL SERVICE CORPORATIONS.—Para12 graph (2) of section 11(b) of such Code is amended by 

13 striking ‘‘35 percent’’ and inserting ‘‘25 percent’’. 

14 (c) CONFORMING AMENDMENTS.—Paragraphs (1) 

15 and (2) of section 1445(e) of such Code are each amended 

16 by striking ‘‘35 percent’’ and inserting ‘‘25 percent’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 the date of the enactment of this Act, except that the 

20 amendments made by subsection (c) shall take effect on 

21 such date. 

22 SEC. 3. TEMPORARY INCREASE IN LIMITATION ON EXPENS23 ING CERTAIN DEPRECIABLE BUSINESS AS24 SETS. 

25 (a) DOLLAR LIMITATION.—Paragraph (1) of section 

26 179(b) of the Internal Revenue Code of 1986 (relating to 


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1 limitations) is amended by striking ‘‘$125,000 in the case 

2 of taxable years beginning after 2006 and before 2011’’ 

3 and inserting ‘‘$125,000 in the case of taxable years be4 ginning in 2007 or 2010 and $250,000 in the case of tax5 able years beginning in 2008 or 2009’’. 

6 (b) REDUCTION IN LIMITATION.—Paragraph (2) of 

7 section 179(b) of such Code (relating to limitations) is 

8 amended by striking ‘‘$500,000 in the case of taxable 

9 years beginning after 2006 and before 2011’’ and insert10 ing ‘‘$500,000 in the case of taxable years beginning in 

11 2007 or 2010 and $1,000,000 in the case of taxable years 

12 beginning in 2008 or 2009’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2007. 

16 SEC. 4. 50 PERCENT ALLOWANCE FOR DEPRECIATION FOR 

17 CERTAIN PROPERTY ACQUIRED DURING 2008 

18 AND 2009. 

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

20 of the Internal Revenue Code of 1986 (relating to 50-per21 cent bonus for certain property) is amended— 

22 (1) by striking ‘‘May 5, 2003’’ each place it ap23 pears and inserting ‘‘December 31, 2007’’, 

24 (2) by striking ‘‘January 1, 2005’’ each place 

25 it appears and inserting ‘‘January 1, 2010’’, 


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1 (3) by striking ‘‘May 6, 2003’’ in subparagraph 

2 (B)(ii)(I) and inserting ‘‘January 1, 2008’’, 

3 (4) by striking ‘‘January 1, 2006’’ in subpara4 graph (B)(iii) and inserting ‘‘January 1, 2011’’, and 

5 (5) by striking ‘‘OF 30-PERCENT BONUS’’ in the 

6 heading for subparagraph (E). 

7 (b) EFFECTIVE DATE.— 

8 (1) IN GENERAL.—The amendments made by 

9 this section shall apply to property placed in service 

10 in taxable years beginning after December 31, 2007. 

11 (2) EXCEPTION FOR CERTAIN PROPERTY.—The 

12 amendments made by this section shall not apply to 

13 any property to which section 105 of the Gulf Op14 portunity Zone Act of 2005 applies. 

15 SEC. 5. 5-YEAR CARRYBACK FOR CERTAIN NET OPERATING 

16 LOSSES. 

17 (a) IN GENERAL.—Subsection (H) of section 

18 172(b)(1) of the Internal Revenue Code of 1986 is amend19 ed by inserting ‘‘or beginning during 2008 or 2009,’’ after 

20 ‘‘2002’’. 

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

22 this section shall apply to net operating losses for taxable 

23 years beginning after December 31, 2007. 


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1 SEC. 6. 3-YEAR CARRYBACK FOR CERTAIN CREDITS. 

2 (a) GENERAL BUSINESS CREDIT.—Subsection (a) of 

3 section 39 of the Internal Revenue Code of 1986 is amend4 ed by adding at the end the following new paragraph: 

5 ‘‘(4) SPECIAL RULE FOR 2008AND 2009.—In the 

6 case of an excess described in paragraph (1) arising 

7 in a taxable year beginning in 2008 or 2009— 

8 ‘‘(A) paragraph (1)(A) shall be applied by 

9 substituting ‘3 taxable years’ for ‘taxable year’, 

10 ‘‘(B) paragraph (2)(A) shall be applied by 

11 substituting ‘24 taxable years’ for ‘21 taxable 

12 years’, and 

13 ‘‘(C) paragraph (2)(B) shall be applied by 

14 substituting ‘23 taxable years’ for ‘20 taxable 

15 years’.’’. 

16 (b) FOREIGN TAX CREDIT.—Section 904(c) of the 

17 Internal Revenue Code of 1986 is amended by adding at 

18 the end thereof the following: ‘‘In the case of taxable years 

19 beginning in 2008 or 2009, the first sentence of this sub20 section shall, at the election of the taxpayer, be applied 

21 by substituting ‘any of the three preceding taxable years’ 

22 for ‘the first preceding taxable year’.’’. 

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

24 this section shall apply to credits arising in taxable years 

25 beginning after December 31, 2007. 

Æ 


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