A bill to amend the Internal Revenue Code of 1986 to increase the limitation on the election to accelerate the AMT credit in lieu of bonus depreciation for 2015 and 2016, and for other purposes.

To amend the Internal Revenue Code of 1986 to increase the limitation on the election to accelerate the AMT credit in lieu of bonus depreciation for 2015 and 2016, and for other purposes. 1. Extension of bonus depreciation (a) In general Paragraph (2) of section 168(k) (1) by striking January 1, 2016 January 1, 2018 (2) by striking January 1, 2015 January 1, 2017 (b) Special rule for Federal long-Term contracts Clause (ii) of section 460(c)(6)(B) January 1, 2015 (January 1, 2016 January 1, 2017 (January 1, 2018 (c) Conforming Amendments (1) The heading for subsection (k) of section 168 January 1, 2015 January 1, 2017 (2) The heading for clause (ii) of section 168(k)(2)(B) of such Code is amended by striking Pre-January 1, 2015 Pre-January 1, 2017 (3) Section 168(k)(4)(D)(iii)(II) of such Code is amended by striking January 1, 2015 January 1, 2017 (4) Section 168(l)(4) of such Code is amended by striking and (B) by substituting January 1, 2015 January 1, 2017 . (5) Clause (ii) of section 168(n)(2)(C) of such Code is amended by striking January 1, 2015 January 1, 2017 (6) Subparagraph (D) of section 1400L(b)(2) of such Code is amended by striking January 1, 2015 January 1, 2017 (7) Subparagraph (B) of section 1400N(d)(3) of such Code is amended by striking January 1, 2015 January 1, 2017 (d) Election To Accelerate the AMT Credit in Lieu of Bonus Depreciation Paragraph (4) of section 168(k) of such Code is amended by adding at the end the following new subparagraph: (L) Special rules for round 5 extension property (i) In general In the case of any round 5 extension property, in applying this paragraph to any taxpayer, the limitation described in subparagraph (B)(i) and the business credit increase amount under subparagraph (E)(iii) thereof shall not apply, and the bonus depreciation amount, maximum amount, and maximum increase amount— (I) shall be computed separately from amounts computed with respect to eligible qualified property which is not round 5 extension property, and (II) shall be computed separately with respect to round 5 extension property placed in service before January 1, 2016 (January 1, 2017, in the case of property described in subparagraph (B) or (C) of paragraph (2)) and with respect to other round 5 extension property. (ii) Election (I) A taxpayer who has an election in effect under this paragraph for round 4 extension property shall be treated as having an election in effect for round 5 extension property unless the taxpayer elects to not have this paragraph apply to round 5 extension property. (II) A taxpayer who does not have an election in effect under this paragraph for round 4 extension property may elect to have this paragraph apply to round 5 extension property. (iii) Round 5 extension property For purposes of this subparagraph, the term round 5 extension property an Act to amend the Internal Revenue Code of 1986 to increase the limitation on the election to accelerate the AMT credit in lieu of bonus depreciation for 2015 and 2016, and for other purposes (iv) Special maximum increase amount In the case of round 5 extension property placed in service by a corporation, subparagraph (C)(iii) shall not apply and the term maximum increase amount (I) 50 percent of the minimum tax credit under section 53(b) for the first taxable year ending after December 31, 2014, or (II) the minimum tax credit under section 53(b) for such taxable year determined by taking into account only the adjusted net minimum tax for taxable years ending before January 1, 2015 (determined by treating credits as allowed on a first-in, first-out basis). . (e) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014, in taxable years ending after such date.

Summary: Amends the Internal Revenue Code to: (1) extend through 2016 the special depreciation allowance for business assets (bonus depreciation), and (2) increase the limitation on the election to accelerate the alternative minimum tax credit in lieu of bonus depreciation for 2015 and 2016.