I 

110TH CONGRESS 

1ST SESSION H. R. 1250 

To amend the Internal Revenue Code of 1986 to repeal certain limitations 

on the expensing of section 179 property, to allow taxpayers to elect 

shorter recovery periods for purposes of determining the deduction for 

depreciation, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2007 

Mr. SESSIONS (for himself, Mr. TIAHRT, Mr. MCCAUL of Texas, Mr. 

CONAWAY, Mr. MCHUGH, Mr. ENGLISH of Pennsylvania, and Mrs. 

MUSGRAVE) 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 repeal 

certain limitations on the expensing of section 179 property, to allow taxpayers to elect shorter recovery periods 

for purposes of determining the deduction for depreciation, 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 ‘‘Expensing Property 

5 Expands our Nation’s Strong Economy Act of 2007’’ or 

6 as the ‘‘EXPENSE Act of 2007’’. 

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1 SEC. 2. REPEAL OF CERTAIN LIMITATIONS ON THE EX2 PENSING OF SECTION 179 PROPERTY. 

3 (a) IN GENERAL.—Section 179 of the Internal Rev4 enue Code of 1986 is amended by striking subsection (b) 

5 and by redesignating subsections (c) and (d) as sub6 sections (b) and (c), respectively. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Subsection (c) of section 179 of such Code, 

9 as redesignated by subsection (a), is amended by 

10 striking paragraphs (6) and (8), and by redesig11 nating paragraphs (7), (9), and (10) as paragraphs 

12 (6), (7), and (8), respectively. 

13 (2) Paragraph (6) of section 179 of such Code, 

14 as redesignated by paragraph (1) and subsection (a), 

15 is amended by striking ‘‘paragraphs (2) and (6)’’ 

16 and inserting ‘‘paragraph (2)’’. 

17 (3) Sections 42(d)(2)(B)(i), 1397D(d)(1), 

18 1400B(b)(4)(A)(i) and 1400F(b)(4)(A)(i) of such 

19 Code are each amended by striking ‘‘section 

20 179(d)(2)’’ and inserting ‘‘section 179(c)(2)’’. 

21 (4) Subclause (I) of section 42(d)(2)(D)(iii) of 

22 such Code is amended— 

23 (A) by striking ‘‘section 179(d)’’ and in24 serting ‘‘section 179(c)’’, and 

25 (B) by striking ‘‘section 179(d)(7)’’ and 

26 inserting ‘‘section 179(c)(6)’’. 

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1 (5)(A) Subpart B of part III of subchapter U 

2 of chapter 1 of such Code is hereby repealed. 

3 (B) The table of subparts for such part III is 

4 amended by striking the item relating to subpart B. 

5 (6)(A) Part III of subchapter X of chapter 1 of 

6 such Code is amended by striking section 1400J. 

7 (B) The table of sections for such part is 

8 amended by striking the item relating to section 

9 1400J. 

10 (C) Paragraph (3) of section 1400E(b) of such 

11 Code is amended by striking ‘‘sections 1400F and 

12 1400J’’ and inserting ‘‘section 1400F’’. 

13 (7) Clause (iv) of section 1400L(b)(2)(A) of 

14 such Code is amended by striking ‘‘section 179(d)’’ 

15 and inserting ‘‘section 179(c)’’. 

16 (8) Section 1400L of such Code is amended by 

17 striking subsection (f). 

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

19 this section shall apply to property placed in service during 

20 taxable years ending on or after the date of the enactment 

21 of this Act. 

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1 SEC. 3. ELECTION OF SHORTER RECOVERY PERIOD FOR 

2 PURPOSE OF DETERMINING DEPRECIATION 

3 DEDUCTION. 

4 (a) IN GENERAL.—Section 168 of the Internal Rev5 enue Code of 1986 is amended by adding at the end the 

6 following new subsection: 

7 ‘‘(l) ELECTION OF SHORTER RECOVERY PERIOD.— 

8 ‘‘(1) IN GENERAL.—Notwithstanding sub9 sections (c), (e), (g), and (j), for purposes of sub10 section (a), the applicable recovery period for any 

11 property placed in service during a taxable year end12 ing on or after the date of the enactment of this 

13 subsection shall not exceed any period of 2 or more 

14 years elected by the taxpayer with respect to such 

15 property. 

16 ‘‘(2) ELECTION.—An election made under this 

17 subsection shall be made at such time and in such 

18 form and manner as the Secretary may require. An 

19 election under this subsection, once made, shall 

20 apply to the taxable year for which made and all 

21 subsequent taxable years unless revoked with the 

22 consent of the Secretary. 

23 ‘‘(3) TRANSITION RULE.—In the case of any 

24 property placed in service during a taxable year end25 ing before the date of the enactment of this sub26 section, paragraph (1) shall apply with respect to 

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1 the adjusted basis of such property in the same 

2 manner as if such property (with such adjusted 

3 basis) were placed in service on the first day of the 

4 taxable year which includes the date of the enact5 ment of this subsection. The application of this 

6 paragraph shall not be treated as a change in meth7 od of accounting for purposes of section 481.’’. 

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

9 this section shall apply to property placed in service be10 fore, on, or after the date of the enactment of this Act. 

Æ 

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