I 

110TH CONGRESS 

2D SESSION H. R. 5141 

To amend the Internal Revenue Code of 1986 to encourage investment in 

high productivity property, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 28, 2008 

Mr. ENGLISH of Pennsylvania 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 encourage 

investment in high productivity property, 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 ‘‘Job Creation Economic 

5 Stimulus Act of 2008’’. 

6 SEC. 2. ADOPTION OF THE HIGH PRODUCTIVITY INVEST7 MENT DEDUCTION. 

8 (a) IN GENERAL.—Part VI of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 (relating to 

10 itemized deductions for individuals and corporations) is 


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1 amended by inserting after section 168 the following new 

2 section: 

3 ‘‘SEC. 168A. HIGH PRODUCTIVITY INVESTMENT DEDUC4 TION. 

5 ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 

6 elect to treat the cost of any high productivity property 

7 as an expense not chargeable to capital account. Any cost 

8 so treated shall be allowed as a deduction in the taxable 

9 year in which the high productivity property is placed in 

10 service. 

11 ‘‘(b) DEFINITION OF HIGH PRODUCTIVITY PROP12 ERTY.— 

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (3), the term ‘high productivity property’ 

15 means any— 

16 ‘‘(A) computer, 

17 ‘‘(B) computer related peripheral equip18 ment, 

19 ‘‘(C) computer based machinery, 

20 ‘‘(D) electronic diagnostic equipment, 

21 ‘‘(E) electronic control equipment, 

22 ‘‘(F) other electronic, electromechanical, 

23 laser or computer based equipment, 

24 ‘‘(G) computer software, 


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1 ‘‘(H) equipment used in the manufacture 

2 of semiconductors, 

3 ‘‘(I) high technology medical equipment, 

4 ‘‘(J) advanced technology communications 

5 equipment, 

6 ‘‘(K) optical fiber and photonics equip7 ment, 

8 ‘‘(L) advanced environmental products, 

9 ‘‘(M) advanced life science products, or 

10 ‘‘(N) new high productivity assets. 

11 ‘‘(2) DEFINITIONS.—For purposes of this sub12 section: 

13 ‘‘(A) COMPUTER.—The term ‘computer’ 

14 means a programmable electronically activated 

15 device which— 

16 ‘‘(i) is capable of accepting informa17 tion, applying prescribed processes to the 

18 information, and supplying the results of 

19 those processes, and 

20 ‘‘(ii) consists of a central processing 

21 unit containing extensive storage, logic, 

22 arithmetic and control capabilities. 

23 ‘‘(B) COMPUTER RELATED PERIPHERAL

24 EQUIPMENT.—The term ‘computer related pe25 ripheral equipment’ means any auxiliary maVerDate Aug 31 2005 03:39 Jan 29, 2008 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5141.IH H5141

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1 chine or other equipment (whether on-line or 

2 off-line) which is designed to be placed under 

3 the control of the central processing unit of a 

4 computer (as determined without regard to 

5 whether such machine or equipment is an inte6 gral part of other property which is not a com7 puter). 

8 ‘‘(C) COMPUTER BASED MACHINERY.—The 

9 term ‘computer based machinery’ means any 

10 machine which— 

11 ‘‘(i) cuts, forms, shapes, drills, bores, 

12 mixes, paints, seals, welds, or otherwise 

13 transforms material, or 

14 ‘‘(ii) handles, conveys, assembles, or 

15 packages materials or products, 

16 by responding to electronically stored informa17 tion and programmed commands. 

18 ‘‘(D) ELECTRONIC DIAGNOSTIC EQUIP19 MENT.—The term ‘electronic diagnostic equip20 ment’ means equipment that uses electronic 

21 components to sense or monitor location, size, 

22 volume, surface characteristics, pressure, tem23 perature, speed, chemical composition, or other 

24 similar characteristics. 


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1 ‘‘(E) ELECTRONIC CONTROL EQUIP2 MENT.—The term ‘electronic control equipment’ 

3 means equipment that electronically controls 

4 pressure, temperature, size, volume, composi5 tion purity or other similar characteristics. 

6 ‘‘(F) HIGH TECHNOLOGY MEDICAL EQUIP7 MENT.—The term ‘high technology medical 

8 equipment’ means any electronic, 

9 electromechanical, or computer-based high tech10 nology equipment used in the screening, moni11 toring, observation, diagnosis, or treatment of 

12 patients in a laboratory, medical, or hospital en13 vironment. 

14 ‘‘(G) ADVANCED TECHNOLOGY COMMU15 NICATIONS EQUIPMENT.—The term ‘advanced 

16 technology communications equipment’ means 

17 equipment used in the transmission or reception 

18 of voice, data, video, paging, messaging, or 

19 other communications services that are deliv20 ered using packet technology. A packet is a unit 

21 of data, or sequence of binary digits, that is 

22 routed between an origin and a destination on 

23 a packet-switched network. 

24 ‘‘(H) OPTICAL FIBER AND PHOTONICS

25 EQUIPMENT.—The term ‘optical fiber and 


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1 photonics equipment’ means optical fiber and 

2 the equipment and materials used to generate, 

3 manipulate and direct light particles over such 

4 fiber. 

5 ‘‘(I) ADVANCED ENVIRONMENTAL PROD6 UCTS.—The term ‘advanced environmental 

7 product’ means any high cell density ceramic or 

8 other device used for the control of nitrogen 

9 oxide and particulate emissions. 

10 ‘‘(J) ADVANCED LIFE SCIENCES PROD11 UCTS.—The term ‘advanced life sciences prod12 uct’ means any polymer, ceramic or high-purity 

13 glass product used in biological research. 

14 ‘‘(K) NEW HIGH PRODUCTIVITY ASSETS.— 

15 ‘‘(i) IN GENERAL.—The term ‘new 

16 high productivity assets’ means any asset 

17 utilizing 1 or more technological or sci18 entific processes which were not in com19 mon commercial use before January 1, 

20 2007. 

21 ‘‘(ii) DETERMINATIONS.—The Sec22 retary shall establish procedures pursuant 

23 to which taxpayers can seek a public ruling 

24 that a particular class of assets qualifies as 

25 new high productivity assets. The proceVerDate Aug 31 2005 03:39 Jan 29, 2008 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5141.IH H5141

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1 dures shall require the Secretary to provide 

2 a determination within 90 days of receipt 

3 of a properly completed request for a pub4 lic ruling. 

5 ‘‘(3) EXCLUDED PROPERTY.—The term ‘high 

6 productivity property’ shall not include— 

7 ‘‘(A) an entire car, locomotive, aircraft, 

8 ship or other vehicle solely because the vehicle 

9 is controlled in whole or part by a computer or 

10 other electronic equipment, 

11 ‘‘(B) any equipment of a kind used pri12 marily for entertainment or amusement of the 

13 user, and 

14 ‘‘(C) typewriters, calculators, copiers, du15 plication equipment, and other similar equip16 ment. 

17 ‘‘(c) ELECTION.—An election under this section for 

18 any taxable year shall— 

19 ‘‘(1) be made on an asset by asset basis, and 

20 ‘‘(2) be made on the taxpayer’s return of the 

21 tax imposed by this chapter for the taxable year. 

22 ‘‘(d) SPECIAL RULES.— 

23 ‘‘(1) COST.—For purposes of this section, the 

24 cost of property does not include so much of the 

25 basis of such property as is determined by reference 


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1 to the basis of other property held at any time by 

2 the person acquiring such property. 

3 ‘‘(2) ANTICHURNING RULES.— 

4 ‘‘(A) IN GENERAL.—This section shall not 

5 apply to any property acquired by the taxpayer 

6 after December 31, 2007, if— 

7 ‘‘(i) the property was owned or used 

8 at any time during the period beginning on 

9 January 1, 2007, and ending on December 

10 31, 2007, by the taxpayer or a related per11 son, 

12 ‘‘(ii) the property was owned or used 

13 at any time during the period described in 

14 clause (i), and, as part of the transaction, 

15 the user of the property does not change, 

16 ‘‘(iii) the taxpayer leases such prop17 erty to a person (or a person related to 

18 such person) who owned or used such 

19 property at any time during the period de20 scribed in clause (i), or 

21 ‘‘(iv) the property is acquired in a 

22 transaction as part of which the user of 

23 such property does not change and the 

24 property was acquired from a person to 

25 which clause (ii) or clause (iii) applies. 


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1 ‘‘(B) APPLICABLE COST RECOVERY

2 RULES.—Section 168 shall apply to any prop3 erty to which this section does not apply by rea4 son of this paragraph. 

5 ‘‘(C) SPECIAL RULES.—For purposes of 

6 this paragraph— 

7 ‘‘(i) property shall not be treated as 

8 owned before it is placed in service, and 

9 ‘‘(ii) whether the user of a property 

10 changes will be determined in accordance 

11 with regulations prescribed by the Sec12 retary. 

13 ‘‘(3) RECAPTURE IN CERTAIN CASES.—The 

14 Secretary shall, by regulations, provide for the re15 capturing the benefit under any deduction allowable 

16 under subsection (a) with respect to any property 

17 which is not used predominantly in a trade or busi18 ness at any time. 

19 ‘‘(4) ALTERNATIVE DEPRECIATION SYSTEM AP20 PLIES.—The election under subsection (a) may not 

21 be made with respect to property which at any time 

22 during the taxable year in which such property is 

23 placed in service is— 

24 ‘‘(A) described in paragraph (1) of section 

25 168A(g), or 


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1 ‘‘(B) ‘listed property’ ‘not predominantly 

2 used in a qualified business use’ as such terms 

3 apply for purposes of paragraph (1) of 

4 280F(b). 

5 ‘‘(e) TERMINATION.—This section shall only apply to 

6 property which is— 

7 ‘‘(1) acquired by the taxpayer after December 

8 31, 2007, and before January 1, 2009, but only if 

9 no written binding contract for the acquisition was 

10 in effect before January 1, 2008, or 

11 ‘‘(2)(A) acquired by the taxpayer pursuant to a 

12 written binding contract which was entered into 

13 after December 31, 2007, and before January 1, 

14 2009, and 

15 ‘‘(B) placed in service in taxable years begin16 ning after December 31, 2009.’’. 

17 (b) CONFORMING AMENDMENT.—The table of sec18 tions for part VI of subchapter B of chapter 1 of such 

19 Code is amended by adding after section 168 the following 

20 new item: 

‘‘Sec. 168A. High productivity investment deduction.’’. 

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

22 this section shall apply to property placed in service after 

23 December 31, 2007, with respect to taxable years begin24 ning after such date. 


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1 SEC. 3. 50 PERCENT ALLOWANCE FOR DEPRECIATION FOR 

2 CERTAIN PROPERTY ACQUIRED DURING 2008. 

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

4 of the Internal Revenue Code of 1986 (relating to 50-per5 cent bonus for certain property) is amended— 

6 (1) by striking ‘‘May 5, 2003’’ each place it ap7 pears and inserting ‘‘December 31, 2007’’, 

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

9 it appears and inserting ‘‘January 1, 2009’’, 

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

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

12 (4) by striking ‘‘January 1, 2006’’ in subpara13 graph (B)(iii) and inserting ‘‘January 1, 2010’’, and 

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

15 heading for subparagraph (E). 

16 (b) REPEAL OF BASIS LIMITATION FOR CERTAIN

17 PROPERTY.—Subparagraph (B) of section 168(k)(2) of 

18 such Code is amended by striking clause (ii) and redesig19 nating clause (iii) as clause (ii). 

20 (c) SYNDICATIONS.—Paragraph (4) of section 168(k) 

21 of such Code (relating to 50-percent depreciation for cer22 tain property) is amended by adding at the end the fol23 lowing: 

24 ‘‘(F) SYNDICATIONS.—For purposes of ap25 plying paragraph (2)(A)(ii) by reason of this 

26 paragraph, if property— 


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1 ‘‘(i) is treated as originally placed in 

2 service after December 31, 2007, either di3 rectly or by a lessor of such property or 

4 pursuant to paragraph (2)(D)(ii), and 

5 ‘‘(ii) is sold within 6 months after 

6 such property is so placed in service, 

7 such property shall be treated as originally 

8 placed in service not earlier than the date of 

9 such sale.’’. 

10 (d) EFFECTIVE DATE.— 

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

12 this section shall apply to property placed in service 

13 in taxable years beginning after December 31, 2007. 

14 (2) EXCEPTION FOR CERTAIN PROPERTY.—The 

15 amendments made by this section shall not apply to 

16 any property to which section 105 of the Gulf Op17 portunity Zone Act of 2005 applies. 

18 SEC. 4. DEPRECIATION RULES NOT MODIFIED FOR PUR19 POSES OF ALTERNATIVE MINIMUM TAX. 

20 (a) DETERMINATION OF ALTERNATIVE TAXABLE IN21 COME.—Paragraph (1) of section 56(a) of the Internal 

22 Revenue Code of 1986 (relating to depreciation) is amend23 ed by adding at the end the following new subparagraph: 


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1 ‘‘(E) TERMINATION.—This paragraph 

2 shall not apply to property placed in service in 

3 a taxable year beginning in 2008 or 2009.’’. 

4 (b) DETERMINATION OF ADJUSTED CURRENT EARN5 INGS.—Subparagraph (A) of section 56(g)(4) of such 

6 Code (relating to depreciation) is amended by adding at 

7 the end the following new clause: 

8 ‘‘(vi) TERMINATION.—This subpara9 graph shall not apply to property placed in 

10 service in a taxable year beginning in 2008 

11 or 2009.’’. 

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

13 this section shall apply to property placed in service after 

14 December 31, 2007, in taxable years beginning after such 

15 date. 

16 SEC. 5. LONG-TERM CONTRACT ACCOUNTING. 

17 (a) IN GENERAL.—Section 168(k)(2) of the Internal 

18 Revenue Code of 1986 is amended by adding after sub19 paragraph (G) the following new subparagraph: 

20 ‘‘(H) LONG-TERM CONTRACT ACCOUNT21 ING.—The percentage of completion method 

22 under section 460 shall be applied as if this 

23 subsection had not been enacted.’’. 

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

25 subsection (a) shall apply to property placed in service 


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1 after the date of the enactment of this Act in taxable years 

2 ending after such date. 

3 SEC. 6. LONG-TERM UNUSED CREDITS ALLOWED AGAINST 

4 MINIMUM TAX. 

5 (a) IN GENERAL.—Subsection (c) of section 53 of the 

6 Internal Revenue Code of 1986 (relating to limitation) is 

7 amended by adding at the end the following new para8 graph: 

9 ‘‘(2) SPECIAL RULE FOR CORPORATIONS WITH

10 LONG-TERM UNUSED CREDITS.— 

11 ‘‘(A) IN GENERAL.—If a corporation to 

12 which section 56(g) applies has a long-term un13 used minimum tax credit for a taxable year, the 

14 credit allowable under subsection (a) for the 

15 taxable year shall not exceed the greater of— 

16 ‘‘(i) the limitation determined under 

17 paragraph (1) for the taxable year, or 

18 ‘‘(ii) the least of the following for the 

19 taxable year: 

20 ‘‘(I) The sum of the tax imposed 

21 by section 55 and the regular tax re22 duced by the sum of the credits al23 lowed under subparts A, B, D, E, and 

24 F of this part. 


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1 ‘‘(II) The long-term unused min2 imum tax credit. 

3 ‘‘(III) The sum of— 

4 ‘‘(aa) 50 percent of qualified 

5 investment, plus 

6 ‘‘(bb) the qualified invest7 ment carryover to the taxable 

8 year. 

9 ‘‘(B) LONG-TERM UNUSED MINIMUM TAX

10 CREDIT.—For purposes of this paragraph— 

11 ‘‘(i) IN GENERAL.—The long-term un12 used minimum tax credit for any taxable 

13 year is the portion of the minimum tax 

14 credit determined under subsection (b) at15 tributable to the adjusted net minimum tax 

16 for taxable years beginning after 1986 and 

17 ending before the 3rd taxable year imme18 diately preceding the taxable year for 

19 which the determination is being made. 

20 ‘‘(ii) FIRST-IN, FIRST-OUT ORDERING

21 RULE.—For purposes of clause (i), credits 

22 shall be treated as allowed under sub23 section (a) on a first-in, first-out basis. 


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1 ‘‘(C) QUALIFIED INVESTMENT AND QUALI2 FIED INVESTMENT CARRYOVER.—For purposes 

3 of this paragraph— 

4 ‘‘(i) QUALIFIED INVESTMENT.—Quali5 fied investment is property described in 

6 section 1245(a)(3) placed in service in the 

7 taxable year. 

8 ‘‘(ii) QUALIFIED INVESTMENT CARRY9 OVER.—The qualified investment carryover 

10 is the amount by which 50 percent of 

11 qualified investment exceeds the amount of 

12 tax in paragraph (2)(A)(ii)(I). The quali13 fied investment carryover may be carried 

14 only to the first taxable year following the 

15 current year. 

16 ‘‘(D) TERMINATION.—Subparagraph (A) 

17 shall not apply to any taxable year beginning 

18 after December 31, 2008.’’. 

19 (b) CONFORMING AMENDMENTS.—Section 53(c) of 

20 such Code is amended— 

21 (1) by striking ‘‘The’’ and inserting the fol22 lowing: 

23 ‘‘(1) IN GENERAL.—The’’; and 


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1 (2) by redesignating paragraphs (1) and (2) as 

2 subparagraphs (A) and (B), respectively. 

Æ 


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