II 

111TH CONGRESS 

1ST SESSION S. 2723 

To amend the Internal Revenue Code of 1986 to provide a special depreciation 

allowance and recovery period for noncommercial aircraft property. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 3, 2009 

Mr. BROWNBACK (for himself and Mr. ROBERTS) 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 provide 

a special depreciation allowance and recovery period for 

noncommercial aircraft property. 

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

3 SECTION 1. SPECIAL DEPRECIATION ALLOWANCE AND RE4 COVERY PERIOD FOR NONCOMMERCIAL AIR5 CRAFT PROPERTY. 

6 (a) IN GENERAL.—Section 168 of the Internal Rev7 enue Code of 1986 is amended by adding at the end the 

8 following: 

9 ‘‘(o) SPECIAL ALLOWANCE FOR NONCOMMERCIAL

10 AIRPLANES.— 


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1 ‘‘(1) ADDITIONAL ALLOWANCE.— 

2 ‘‘(A) IN GENERAL.—In the case of any 

3 qualified noncommercial aircraft to which this 

4 subparagraph applies— 

5 ‘‘(i) the depreciation deduction pro6 vided by section 167(a) for the taxable 

7 year in which such property is placed in 

8 service shall include an allowance equal to 

9 50 percent of the adjusted basis of the 

10 qualified noncommercial aircraft property, 

11 and 

12 ‘‘(ii) the adjusted basis of the quali13 fied noncommercial aircraft property shall 

14 be reduced by the amount of such deduc15 tion before computing the amount other16 wise allowable as a depreciation deduction 

17 under this chapter for such taxable year 

18 and any subsequent taxable year. 

19 ‘‘(B) APPLICATION TO AIRCRAFT PUR20 CHASED IN 2010 OR 2011.—Subparagraph (A) 

21 applies to qualified noncommercial aircraft 

22 property placed in service after December 31, 

23 2009, and before January 1, 2012, which is— 

24 ‘‘(i) acquired by the taxpayer after 

25 December 31, 2009, and before January 1, 


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1 2012, but only if no written binding con2 tract for the acquisition was in effect be3 fore January 1, 2010, or 

4 ‘‘(ii) acquired by the taxpayer pursu5 ant to a written binding contract which 

6 was entered into after December 31, 2009, 

7 and before January 1, 2012. 

8 ‘‘(2) RECOVERY PERIOD.—For purposes of this 

9 section— 

10 ‘‘(A) IN GENERAL.—Qualified noncommer11 cial aircraft to which this subparagraph applies 

12 shall be treated as 3-year property. 

13 ‘‘(B) APPLICATION TO AIRCRAFT PUR14 CHASED BEFORE 2015.—Subparagraph (A) ap15 plies to qualified noncommercial aircraft placed 

16 in service after the date of the enactment of 

17 this subsection and before January 1, 2015, 

18 which is— 

19 ‘‘(i) acquired by the taxpayer after the 

20 date of the enactment of this subsection 

21 and before January 1, 2015, but only if no 

22 written binding contract for the acquisition 

23 was in effect before such date of the enact24 ment, or 


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1 ‘‘(ii) acquired by the taxpayer pursu2 ant to a written binding contract which 

3 was entered into after December 31, 2008, 

4 and before January 1, 2015. 

5 ‘‘(3) QUALIFIED NONCOMMERCIAL AIRCRAFT

6 PROPERTY.—For purposes of this subsection— 

7 ‘‘(A) IN GENERAL.—The term ‘qualified 

8 noncommercial aircraft property’ means any 

9 aircraft— 

10 ‘‘(i) which is not used in the trade or 

11 business of transporting persons or prop12 erty, 

13 ‘‘(ii) to which this section applies, and 

14 ‘‘(iii) the original use of which com15 mences with the taxpayer after— 

16 ‘‘(I) December 31, 2009, for pur17 poses of paragraph (1), and 

18 ‘‘(II) the date of the enactment 

19 of this subsection for purposes of 

20 paragraph (2). 

21 ‘‘(B) EXCEPTIONS.— 

22 ‘‘(i) BONUS DEPRECIATION PROPERTY

23 UNDER SUBSECTION (k).—The term ‘quali24 fied noncommercial aircraft property’ shall 


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1 not include any property to which sub2 section (k)(1) applies. 

3 ‘‘(ii) ALTERNATIVE DEPRECIATION

4 PROPERTY.—The term ‘qualified non5 commercial aircraft property’ shall not in6 clude any property to which the alternative 

7 depreciation system under subsection (g) 

8 applies, determined— 

9 ‘‘(I) without regard to paragraph 

10 (7) of subsection (g) (relating to elec11 tion to have system apply), and 

12 ‘‘(II) after application of section 

13 280F(b) (relating to listed property 

14 with limited business use). 

15 ‘‘(iii) ELECTION OUT.—If a taxpayer 

16 makes an election under this clause with 

17 respect to any class of property for any 

18 taxable year, this subsection shall not 

19 apply to all property in such class placed 

20 in service during such taxable year. 

21 ‘‘(C) SPECIAL RULE FOR SELF-CON22 STRUCTED PROPERTY.—In the case of a tax23 payer manufacturing, constructing, or pro24 ducing property for the taxpayer’s own use, if 


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1 the taxpayer begins manufacturing, con2 structing, or producing the property— 

3 ‘‘(i) after December 31, 2009, and be4 fore January 1, 2012, for purposes of 

5 paragraph (1), and 

6 ‘‘(ii) after the date of the enactment 

7 of this subsection and before January 1, 

8 2015, for purposes of paragraph (2), 

9 the requirements of paragraph (1)(B) or (2)(B) 

10 (as the case may be) shall be treated as met. 

11 ‘‘(D) DEDUCTION ALLOWED IN COM12 PUTING MINIMUM TAX.—For purposes of deter13 mining alternative minimum taxable income 

14 under section 55, the deduction under sub15 section (a) for qualified noncommercial aircraft 

16 property shall be determined under this section 

17 without regard to any adjustment under section 

18 56.’’. 

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

20 this section shall apply to property placed in service after 

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

22 ending after such date. 

Æ 


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