II 

110TH CONGRESS 

2D SESSION S. 3048 

To amend the Internal Revenue Code of 1986 to make the allowance of 

bonus depreciation and the increased expensing limitations permanent. 

IN THE SENATE OF THE UNITED STATES 

MAY 22, 2008 

Mr. ALEXANDER introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

the allowance of bonus depreciation and the increased 

expensing limitations permanent. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. BONUS DEPRECIATION MADE PERMANENT. 

4 (a) IN GENERAL.—Paragraph (2) of section 168(k) 

5 of the Internal Revenue Code of 1986 (relating to special 

6 allowance for certain property acquired after December 

7 31, 2007, and before January 1, 2009) is amended— 

8 (1) in subparagraph (A)— 

9 (A) by adding ‘‘and’’ at the end of clause 

10 (ii), 


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1 (B) by striking ‘‘, and before January 1, 

2 2009’’ in clause (iii)(I), 

3 (C) by striking ‘‘, and before January 1, 

4 2009, and’’ in clause (iii)(II) and inserting a 

5 period, and 

6 (D) by striking clause (iv), 

7 (2) in subparagraph (B), by striking clause (ii) 

8 and by redesignating clauses (iii) and (iv) as clauses 

9 (ii) and (iii), respectively, and 

10 (3) in subparagraph (E)(i), by striking ‘‘, and 

11 before January 1, 2009’’. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) Subclause (I) of section 168(k)(2)(B)(i) of 

14 such Code is amended by striking ‘‘(iii), and (iv)’’ 

15 and inserting ‘‘and (iii)’’. 

16 (2) Clause (i) of section 168(k)(2)(C) of such 

17 Code is amended by striking ‘‘, (iii) and (iv)’’ and 

18 inserting ‘‘and (iii)’’. 

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

20 such Code is amended to read as follows: 

21 ‘‘(B) by substituting ‘January 1, 2013.’ for 

22 the period at the end of clause (i) thereof, 

23 and’’. 

24 (4) Subparagraph (D) of section 1400L(b)(2) 

25 of such Code is amended by striking ‘‘clause (i) 


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1 thereof shall be applied without regard to ‘and be2 fore January 1, 2010’, and’’. 

3 (5) Subparagraph (B) of section 1400N(d)(3) 

4 of such Code is amended to read as follows: 

5 ‘‘(B) by substituting ‘January 1, 2008.’ for 

6 the period at the end of clause (i) thereof, 

7 and’’. 

8 (6) The heading for subsection (k) of section 

9 168 of such Code is amended by striking ‘‘AND BE10 FORE JANUARY 1, 2009’’. 

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

12 this section shall apply to property placed in service after 

13 the date of the enactment of this Act, in taxable years 

14 ending after such date. 

15 SEC. 2. PERMANENT INCREASE IN LIMITATIONS ON EX16 PENSING OF CERTAIN DEPRECIABLE BUSI17 NESS ASSETS. 

18 (a) IN GENERAL.—Subsection (b) of section 179 of 

19 the Internal Revenue Code of 1986 (relating to limita20 tions) is amended— 

21 (1) by striking ‘‘$25,000’’ and all that follows 

22 in paragraph (1) and inserting ‘‘$250,000.’’, 

23 (2) by striking‘‘$200,000’’ and all that follows 

24 in paragraph (2) and inserting ‘‘$800,000’’, 


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1 (3) by striking ‘‘after 2003 and before 2010, 

2 the $100,000 and $400,000’’ in paragraph (5)(A) 

3 and inserting ‘‘after 2008, the $250,000 and the 

4 $800,000’’, 

5 (4) by striking ‘‘2002’’ in paragraph (5)(A)(ii) 

6 and inserting ‘‘2007’’, and 

7 (5) by striking paragraph (7). 

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2008. 

Æ 


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