I 

112TH CONGRESS 

1ST SESSION H. R. 3123 

To amend the Internal Revenue Code of 1986 to allow for annual elections 

to accelerate AMT credits in lieu of bonus depreciation. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 6, 2011 

Mr. TIBERI (for himself, Mr. LARSON of Connecticut, Mr. REICHERT, Mr. 

PETERS, and Mr. LEVIN) 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 allow for 

annual elections to accelerate AMT credits in lieu 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 ‘‘American Job Creation 

5 and Investment Act of 2011’’. 

6 SEC. 2. EXPANSION OF ELECTION TO ACCELERATE AMT 

7 CREDITS IN LIEU OF BONUS DEPRECIATION. 

8 (a) MAXIMUM INCREASE AMOUNT.—Clause (iii) of 

9 section 168(k)(4)(C) of the Internal Revenue Code of 


rfrederick on DSK6VPTVN1PROD with BILLS
2 

•HR 3123 IH

1 1986 is amended by striking ‘‘the lesser of’’ and all that 

2 follows through ‘‘6 percent’’ and inserting ‘‘50 percent’’. 

3 (b) ALLOWANCE OF PRE-2011 AMT CREDITS.— 

4 Clause (iv) of section 168(k)(4)(E) of such Code is amend5 ed to read as follows: 

6 ‘‘(iv) AMT CREDIT INCREASE

7 AMOUNT.—For purposes of this paragraph, 

8 the term ‘AMT credit increase amount’ 

9 means the minimum tax credit under sec10 tion 53(b) for the first taxable year ending 

11 after December 31, 2010. For purposes of 

12 the preceding sentence, credits shall be 

13 treated as allowed on a first-in, first-out 

14 basis.’’. 

15 (c) APPLICATION TO PARTNERSHIPS.—Subpara16 graph (C) of section 168(k)(4) of such Code is amended 

17 by adding at the end the following new clause: 

18 ‘‘(v) APPLICATION TO PARTNER19 SHIPS.—In the case of a partnership in 

20 which more than 50 percent of the capital 

21 and profits interests in the partnership are 

22 owned (directly or indirectly) at all times 

23 during the taxable year by the corporations 

24 treated as 1 taxpayer under clause (iv)— 


rfrederick on DSK6VPTVN1PROD with BILLS
3 

•HR 3123 IH

1 ‘‘(I) this paragraph shall be ap2 plied at the partner level, and 

3 ‘‘(II) each partner shall be treat4 ed as having for the taxable year an 

5 amount equal to such partner’s allo6 cable share of the eligible qualified 

7 property for such taxable year (as de8 termined under regulations prescribed 

9 by the Secretary).’’. 

10 (d) SEPARATE ELECTIONS FOR EACH TAXABLE

11 YEAR.— 

12 (1) TAXPAYERS PREVIOUSLY ELECTING ACCEL13 ERATION.—Clause (ii) of section 168(k)(4)(I) of 

14 such Code is amended— 

15 (A) by striking ‘‘property,’’ in subclause 

16 (I) and inserting ‘‘property for its first taxable 

17 year ending after December 31, 2010, or, by 

18 separate elections, any subsequent taxable 

19 year,’’ 

20 (B) by striking ‘‘the election under sub21 clause (I)’’ in subclause (II) and inserting ‘‘an 

22 election under subclause (I) for a taxable year’’, 

23 and 

24 (C) by adding at the end the following: ‘‘A 

25 separate bonus depreciation amount, maximum 


rfrederick on DSK6VPTVN1PROD with BILLS
4 

•HR 3123 IH

1 amount, and maximum increase amount shall 

2 be computed for each of the taxpayer’s taxable 

3 years ending after December 31, 2010, deter4 mined by the round 2 extension property placed 

5 in service in the taxable year.’’. 

6 (2) TAXPAYERS NOT PREVIOUSLY ELECTING

7 ACCELERATION.—Clause (iii) of section 168(k)(4)(I) 

8 of such Code is amended— 

9 (A) by striking ‘‘and each’’ in subclause (I) 

10 and inserting ‘‘or, by separate elections, any’’, 

11 (B) by striking ‘‘the election under sub12 clause (I)’’ in subclause (II) and inserting ‘‘an 

13 election under subclause (I) for a taxable year’’, 

14 and 

15 (C) by adding at the end the following: ‘‘A 

16 separate bonus depreciation amount, maximum 

17 amount, and maximum increase amount shall 

18 be computed for each of the taxpayer’s taxable 

19 years ending after December 31, 2010, deter20 mined by the round 2 extension property placed 

21 in service in the taxable year.’’. 

22 (3) MAXIMUM AMOUNT.—Clause (ii) of section 

23 168(k)(4)(C) of such Code is amended by striking ‘‘, 

24 reduced (but not below zero) by the sum of the 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

•HR 3123 IH

1 bonus depreciation amounts for all preceding taxable 

2 years’’. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to property placed in service after 

5 December 31, 2010, in taxable years ending after such 

6 date. 

Æ 


rfrederick on DSK6VPTVN1PROD with BILLS