I 

113TH CONGRESS 

2D SESSION H. R. 4743 

To amend the Internal Revenue Code of 1986 to provide for an extension 

of bonus depreciation. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 23, 2014 

Mr. LARSON of Connecticut (for himself and Mr. NEAL) 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 provide 

for an extension of bonus depreciation. 

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 ‘‘Bonus Depreciation 

5 Extension Act of 2014’’. 

6 SEC. 2. EXTENSION OF BONUS DEPRECIATION. 

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

8 of the Internal Revenue Code of 1986 is amended— 

9 (1) by striking ‘‘January 1, 2015’’ in subpara10 graph (A)(iv) and inserting ‘‘January 1, 2017’’, and 


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1 (2) by striking ‘‘January 1, 2014’’ each place 

2 it appears and inserting ‘‘January 1, 2016’’. 

3 (b) SPECIAL RULE FOR FEDERAL LONG-TERM CON4 TRACTS.—Clause (ii) of section 460(c)(6)(B) of such Code 

5 is amended by striking ‘‘January 1, 2014 (January 1, 

6 2015’’ and inserting ‘‘January 1, 2016 (January 1, 

7 2017’’. 

8 (c) EXPANSION OF ELECTION TO ACCELERATE AMT 

9 CREDITS IN LIEU OF BONUS DEPRECIATION.—Section 

10 168(k)(4) of such Code is amended to read as follows: 

11 ‘‘(4) ELECTION TO ACCELERATE AMT CREDITS

12 IN LIEU OF BONUS DEPRECIATION.— 

13 ‘‘(A) IN GENERAL.—If a corporation elects 

14 to have this paragraph apply for any taxable 

15 year— 

16 ‘‘(i) paragraphs (1) and (2)(F)(i) 

17 shall not apply for such taxable year, 

18 ‘‘(ii) the applicable depreciation meth19 od used under this section with respect to 

20 any qualified property shall be the straight 

21 line method, and 

22 ‘‘(iii) the limitation imposed by section 

23 53(c) for such taxable year shall be in24 creased by the bonus depreciation amount 


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1 which is determined for such taxable year 

2 under subparagraph (B). 

3 ‘‘(B) BONUS DEPRECIATION AMOUNT.— 

4 For purposes of this paragraph— 

5 ‘‘(i) IN GENERAL.—The bonus depre6 ciation amount for any taxable year is an 

7 amount equal to 20 percent of the excess 

8 (if any) of— 

9 ‘‘(I) the aggregate amount of de10 preciation which would be allowed 

11 under this section for qualified prop12 erty placed in service by the taxpayer 

13 during such taxable year if paragraph 

14 (1) applied to all such property, over 

15 ‘‘(II) the aggregate amount of 

16 depreciation which would be allowed 

17 under this section for qualified prop18 erty placed in service by the taxpayer 

19 during such taxable year if paragraph 

20 (1) did not apply to any such prop21 erty. 

22 The aggregate amounts determined under 

23 subclauses (I) and (II) shall be determined 

24 without regard to any election made under 

25 subsection (b)(2)(D), (b)(3)(D), or (g)(7) 


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1 and without regard to subparagraph 

2 (A)(ii). 

3 ‘‘(ii) LIMITATION.—The bonus depre4 ciation amount for any taxable year shall 

5 not exceed the lesser of— 

6 ‘‘(I) 50 percent of the minimum 

7 tax credit under section 53(b) for the 

8 first taxable year ending after Decem9 ber 31, 2013, or 

10 ‘‘(II) the minimum tax credit 

11 under section 53(b) for such taxable 

12 year determined by taking into ac13 count only the adjusted minimum tax 

14 for taxable years ending before Janu15 ary 1, 2014 (determined by treating 

16 credits as allowed on a first-in, first17 out basis). 

18 ‘‘(iii) AGGREGATION RULE.—All cor19 porations which are treated as a single em20 ployer under section 52(a) shall be treat21 ed— 

22 ‘‘(I) as 1 taxpayer for purposes 

23 of this paragraph, and 


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1 ‘‘(II) as having elected the appli2 cation of this paragraph if any such 

3 corporation so elects. 

4 ‘‘(C) CREDIT REFUNDABLE.—For pur5 poses of section 6401(b), the aggregate increase 

6 in the credits allowable under part IV of sub7 chapter A for any taxable year resulting from 

8 the application of this paragraph shall be treat9 ed as allowed under subpart C of such part 

10 (and not any other subpart). 

11 ‘‘(D) OTHER RULES.— 

12 ‘‘(i) ELECTION.—Any election under 

13 this paragraph may be revoked only with 

14 the consent of the Secretary. 

15 ‘‘(ii) PARTNERSHIPS WITH ELECTING

16 PARTNERS.—In the case of a corporation 

17 which is a partner in a partnership and 

18 which makes an election under subpara19 graph (A) for the taxable year, for pur20 poses of determining such corporation’s 

21 distributive share of partnership items 

22 under section 702 for such taxable year— 

23 ‘‘(I) paragraphs (1)(A) and 

24 (2)(F)(i) shall not apply, and 


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1 ‘‘(II) the applicable depreciation 

2 method used under this section with 

3 respect to any qualified property shall 

4 be the straight line method. 

5 ‘‘(iii) CERTAIN PARTNERSHIPS.—In 

6 the case of a partnership in which more 

7 than 50 percent of the capital and profits 

8 interests are owned (directly or indirectly) 

9 at all times during the taxable year by 1 

10 corporation (or by corporations treated as 

11 1 taxpayer under subparagraph (B)(iii)), 

12 each partner shall compute its bonus de13 preciation amount under clause (i) of sub14 paragraph (B) by taking into account its 

15 distributive share of the amounts deter16 mined by the partnership under subclauses 

17 (I) and (II) of such clause for the taxable 

18 year of the partnership ending with or 

19 within the taxable year of the partner. 

20 ‘‘(iv) SPECIAL RULE FOR PASSENGER

21 AIRCRAFT.—In the case of any passenger 

22 aircraft, the written binding contract limi23 tation under paragraph (2)(A)(iii)(I) shall 

24 not apply for purposes of subparagraph 

25 (B)(i)(I).’’. 


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1 (d) CONFORMING AMENDMENTS.— 

2 (1) The heading for subsection (k) of section 

3 168 of such Code is amended by striking ‘‘JANUARY

4 1, 2014’’ and inserting ‘‘JANUARY 1, 2016’’. 

5 (2) The heading for clause (ii) of section 

6 168(k)(2)(B) of such Code is amended by striking 

7 ‘‘PRE-JANUARY 1, 2014’’ and inserting ‘‘PRE-JANU8 ARY 1, 2016’’. 

9 (3) Subparagraph (C) of section 168(n)(2) of 

10 such Code is amended by striking ‘‘January 1, 

11 2014’’ and inserting ‘‘January 1, 2016’’. 

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

13 of such Code is amended by striking ‘‘January 1, 

14 2014’’ and inserting ‘‘January 1, 2016’’. 

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

16 of such Code is amended by striking ‘‘January 1, 

17 2014’’ and inserting ‘‘January 1, 2016’’. 

18 (e) TECHNICAL AMENDMENT RELATING TO SECTION

19 331 OF THE AMERICAN TAXPAYER RELIEF ACT OF

20 2012.—Clause (iii) of section 168(k)(4)(J) of such Code 

21 is amended by striking ‘‘any taxable year’’ and inserting 

22 ‘‘its first taxable year’’. 

23 (f) EFFECTIVE DATES.— 

24 (1) IN GENERAL.—Except as otherwise pro25 vided in this subsection, the amendments made by 


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1 this subsection shall apply to property placed in 

2 service after December 31, 2013. 

3 (2) EXPANSION OF ELECTION TO ACCELERATE

4 AMT CREDITS IN LIEU OF BONUS DEPRECIATION.— 

5 (A) IN GENERAL.—The amendment made 

6 by subsection (c) (other than so much of such 

7 amendment as relates to section 

8 168(k)(4)(D)(iii) of such Code, as added by 

9 such amendment) shall apply to taxable years 

10 ending after December 31, 2013. 

11 (B) TRANSITIONAL RULE.—In the case of 

12 a taxable year beginning before January 1, 

13 2014, and ending after December 31, 2013, the 

14 bonus depreciation amount determined under 

15 section 168(k)(4) of such Code for such year 

16 shall be the sum of— 

17 (i) such amount determined without 

18 regard to the amendments made by this 

19 section and— 

20 (I) by taking into account only 

21 property placed in service before Jan22 uary 1, 2014, and 

23 (II) by multiplying the limitation 

24 under section 168(k)(4)(C)(ii) of such 

25 Code (determined without regard to 


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1 the amendments made by this section) 

2 by a fraction the numerator of which 

3 is the number of days in the taxable 

4 year before January 1, 2014, and the 

5 denominator of which is the number 

6 of days in the taxable year, and 

7 (ii) such amount determined after 

8 taking into account the amendments made 

9 by this section and— 

10 (I) by taking into account only 

11 property placed in service after De12 cember 31, 2013, and 

13 (II) by multiplying the limitation 

14 under section 168(k)(4)(B)(ii) of such 

15 Code (as amended by this section) by 

16 a fraction the numerator of which is 

17 the number of days in the taxable 

18 year after December 31, 2013, and 

19 the denominator of which is the num20 ber of days in the taxable year. 

21 (3) TECHNICAL AMENDMENT.—The amendment 

22 made by subsection (e) shall take effect as if in23 cluded in the provision of the American Taxpayer 

24 Relief Act of 2012 to which it relates. 

Æ 


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