II 

111TH CONGRESS 

1ST SESSION S. 294 

To amend the Internal Revenue Code of 1986 to extend and modify the 

special allowance for property acquired during 2009 and to temporarily 

increase the limitation for expensing certain business assets. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 21, 2009 

Mr. SPECTER 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 extend 

and modify the special allowance for property acquired 

during 2009 and to temporarily increase the limitation 

for expensing certain business assets. 

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

3 SECTION 1. EXTENSION AND MODIFICATION OF SPECIAL 

4 ALLOWANCE FOR CERTAIN PROPERTY AC5 QUIRED DURING 2009. 

6 (a) EXTENSION.— 


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•S 294 IS

1 (1) IN GENERAL.—Paragraph (2) of section 

2 168(k) of the Internal Revenue Code of 1986 is 

3 amended— 

4 (A) by striking ‘‘January 1, 2010’’ and in5 serting ‘‘January 1, 2011’’, and 

6 (B) by striking ‘‘January 1, 2009’’ each 

7 place it appears and inserting ‘‘January 1, 

8 2010’’. 

9 (2) CONFORMING AMENDMENTS.— 

10 (A) The heading for subsection (k) of sec11 tion 168 of such Code is amended by striking 

12 ‘‘JANUARY 1, 2009’’ and inserting ‘‘JANUARY

13 1, 2010’’. 

14 (B) The heading for clause (ii) of section 

15 168(k)(2)(B) of such Code is amended by strik16 ing ‘‘PRE-JANUARY 1, 2009’’ and inserting ‘‘PRE17 JANUARY 1, 2010’’. 

18 (C) Subparagraph (D) of section 168(k)(4) 

19 of such Code is amended— 

20 (i) by striking ‘‘and’’ at the end of 

21 clause (i), 

22 (ii) by redesignating clause (ii) as 

23 clause (v), and 

24 (iii) by inserting after clause (i) the 

25 following new clauses: 


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•S 294 IS

1 ‘‘(ii) ‘April 1, 2008’ shall be sub2 stituted for ‘January 1, 2008’ in subpara3 graph (A)(iii)(I) thereof, 

4 ‘‘(iii) ‘January 1, 2009’ shall be sub5 stituted for ‘January 1, 2010’ each place it 

6 appears, 

7 ‘‘(iv) ‘January 1, 2010’ shall be sub8 stituted for ‘January 1, 2011’ in subpara9 graph (A)(iv) thereof, and’’. 

10 (D) Subparagraph (B) of section 168(l)(5) 

11 of such Code is amended by striking ‘‘January 

12 1, 2009’’ and inserting ‘‘January 1, 2010’’. 

13 (E) Subparagraph (B) of section 

14 1400N(d)(3) of such Code is amended by strik15 ing ‘‘January 1, 2009’’ and inserting ‘‘January 

16 1, 2010’’. 

17 (3) EFFECTIVE DATES.— 

18 (A) IN GENERAL.—Except as provided in 

19 subparagraph (B), the amendments made by 

20 this subsection shall apply to property placed in 

21 service after December 31, 2008, in taxable 

22 years ending after such date. 

23 (B) TECHNICAL AMENDMENT.—Section 

24 168(k)(4)(D)(ii) of the Internal Revenue Code 

25 of 1986, as added by paragraph (2)(C)(iii), 


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1 shall apply to taxable years ending after March 

2 31, 2008. 

3 (b) INCLUSION OF FILMS OR VIDEOTAPE AS QUALI4 FIED PROPERTY.— 

5 (1) IN GENERAL.—Section 168(k)(2) of the In6 ternal Revenue Code of 1986 is amended by adding 

7 at the end the following new subparagraph: 

8 ‘‘(H) CERTAIN FILMS.—The term ‘quali9 fied property’ includes property— 

10 ‘‘(i) which is a motion picture film or 

11 video tape (within the meaning of sub12 section (f)(3)) for which a deduction is al13 lowable under section 167(a) without re14 gard to this section, 

15 ‘‘(ii) the original use of which com16 mences with the taxpayer after December 

17 31, 2008, 

18 ‘‘(iii) which is— 

19 ‘‘(I) acquired by the taxpayer 

20 after December 31, 2008, and before 

21 January 1, 2010, but only if no writ22 ten binding contract for the acquisi23 tion was in effect before January 1, 

24 2009, or 


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1 ‘‘(II) acquired by the taxpayer 

2 pursuant to a written binding contract 

3 which was entered into after Decem4 ber 31, 2008, and before January 1, 

5 2010, and 

6 ‘‘(iv) which is placed in service by the 

7 taxpayer before January 1, 2010, or, in 

8 the case of property described in subpara9 graph (B), before January 1, 2011.’’. 

10 (2) CONFORMING AMENDMENTS.— 

11 (A) Subclause (I) of section 

12 168(k)(2)(B)(i) of such Code is amended by in13 serting ‘‘or (H)’’ after ‘‘subparagraph (A)’’. 

14 (B) Clause (iii) of section 168(k)(2)(D) of 

15 such Code is amended by adding at the end the 

16 following new sentence: ‘‘For purposes of the 

17 preceding sentence, all property described in 

18 subparagraph (H) shall be treated as one class 

19 of property.’’. 

20 (C) Subparagraph (E) of section 168(k)(2) 

21 of such Code is amended by adding at the end 

22 the following new clause: 

23 ‘‘(v) APPLICATION TO FILM AND VID24 EOTAPE PROPERTY.—In the case of prop25 erty described in subparagraph (H), 


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1 clauses (i), (ii), (iii), and (iv) of this sub2 paragraph shall be applied— 

3 ‘‘(I) by substituting ‘December 

4 31, 2008’ for ‘December 31, 2007’ 

5 each place it appears, and 

6 ‘‘(II) by treating any reference to 

7 a clause of subparagraph (A) as a ref8 erence to the corresponding clause of 

9 subparagraph (H).’’. 

10 (3) EFFECTIVE DATE.—The amendments made 

11 by this subsection shall apply to property placed in 

12 service after December 31, 2008. 

13 SEC. 2. TEMPORARY INCREASE IN LIMITATIONS ON EX14 PENSING OF CERTAIN DEPRECIABLE BUSI15 NESS ASSETS. 

16 (a) IN GENERAL.—Paragraph (7) of section 179(b) 

17 of the Internal Revenue Code of 1986 is amended— 

18 (1) by inserting ‘‘AND 2009’’ after ‘‘2008’’ in the 

19 heading, and 

20 (2) by inserting ‘‘or 2009’’ after ‘‘In the case 

21 of any taxable year beginning in 2008’’. 

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

23 this section shall apply to taxable years beginning after 

24 December 31, 2008. 

Æ 


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