I 
109TH CONGRESS 
1ST SESSION H. R. 2320 
To amend the Internal Revenue Code of 1986 to permanently extend the 
50-percent bonus depreciation added by the Jobs and Growth Tax Relief 
Reconciliation Act of 2003. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 12, 2005 
Mr. WELLER 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 permanently 
extend the 50-percent bonus depreciation added by the 
Jobs and Growth Tax Relief Reconciliation Act of 2003. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 
1. 
PERMANENT 
EXTENSION 
OF 
50-PERCENT 
BONUS DEPRECIATION. 
(a) IN GENERAL.—Subparagraph (B) of section 
168(k)(4) of the Internal Revenue Code of 1986 (relating 
to special allowance for certain property acquired after 
September 10, 2001, and before January 1, 2005) is 
amended to read as follows:
‘‘(B) 50-PERCENT
BONUS
DEPRECIATION 
PROPERTY.—For purposes of this subsection, 
the term ‘50-percent bonus depreciation prop-
erty’ means property described in paragraph 
(2)(A)(i)— 
‘‘(i) the original use of which com-
mences with the taxpayer after May 5, 
2003, and 
‘‘(ii) which is acquired by the taxpayer 
after May 5, 2003, but only if no written 
binding contract for the acquisition was in 
effect before May 6, 2003.’’ 
(b) REPEAL OF TERMINATION DATES FOR 30-PER-
CENT BONUS DEPRECIATION PROPERTY.—Subparagraph 
(A) of section 168(k)(2) of such Code is amended by add-
ing ‘‘and’’ at the end of clause (ii) and by striking clauses 
(iii) and (iv) and inserting the following new clause: 
‘‘(iii) which is— 
‘‘(I) acquired by the taxpayer 
after September 10, 2001, but only if 
no written binding contract for the ac-
quisition was in effect before Sep-
tember 11, 2001, or 
‘‘(II) acquired by the taxpayer 
pursuant to a written binding contract
which was entered into after Sep-
tember 10, 2001.’’ 
(c) TECHNICAL AMENDMENTS.— 
(1) Paragraph (2) of section 168(k) of such 
Code is amended by striking subparagraph (B) and 
by redesignating the succeeding subparagraphs ac-
cordingly. 
(2) Clause (i) of section 168(k)(2)(D) of such 
Code, as redesignated by paragraph (1), is amended 
by striking ‘‘and before January 1, 2005’’. 
(3) The subsection heading for section 168(k) 
of such Code is amended by striking ‘‘, AND BEFORE 
JANUARY 1, 2005’’. 
SEC. 2. LONG-TERM CONTRACT ACCOUNTING. 
Section 168(k)(2) of the Internal Revenue Code of 
1986 is amended by adding after subparagraph (F), as 
redesignated by section 1, the following new subpara-
graph: 
‘‘(F) LONG-TERM
CONTRACT
ACCOUNT-
ING.—The percentage of completion method 
under section 460 shall be applied as if this 
subsection had not been enacted.’’.
SEC. 3. ELECTION TO INCREASE MINIMUM TAX CREDIT 
LIMITATION IN LIEU OF BONUS DEPRECIA-
TION. 
(a) IN GENERAL.—Section 53 of the Internal Rev-
enue Code of 1986 (relating to credit for prior year min-
imum tax liability) is amended by adding at the end of 
the following new subsection: 
‘‘(e) ADDITIONAL CREDIT IN LIEU OF BONUS DE-
PRECIATION.— 
‘‘(1) IN GENERAL.—In the case of a corpora-
tion making an election under this subsection for a 
taxable year, the limitation under subsection (c) 
shall be increased by an amount equal to the bonus 
depreciation amount. 
‘‘(2) BONUS
DEPRECIATION
AMOUNT.—For 
purposes of paragraph (1), the bonus depreciation 
amount for any taxable year is an amount equal to 
the product of— 
‘‘(A) 35 percent, and 
‘‘(B) the excess (if any) of— 
‘‘(i) the aggregate amount of depre-
ciation which would be determined under 
section 168 for property placed in service 
during such taxable year if no election 
under this subsection were made, over
‘‘(ii) the aggregate allowance for de-
preciation allowable with respect to such 
property placed in service for such taxable 
year. 
‘‘(3) ELECTION.—Section 168(k) (other than 
paragraph (2)(E) thereof) shall not apply to any 
property placed in service during a taxable year by 
a corporation making an election under this sub-
section for such taxable year. An election under this 
subsection may only be revoked with the consent of 
the Secretary. 
‘‘(4) CREDIT REFUNDABLE.—The aggregate in-
crease in the credit allowed by this section for any 
taxable year by reason of this subsection shall for 
purposes of this title (other than subsection (b)(2) 
of this section) be treated as a credit allowed to the 
taxpayer under subpart C.’’. 
(b) CONFORMING AMENDMENT.—Subsection (k) of 
section 168 of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(5) CROSS REFERENCE.—For an election to 
claim certain minimum tax credits in lieu of the al-
lowance determined under this subsection, see sec-
tion 53(e).’’.
SEC. 4. EFFECTIVE DATE. 
The amendments made by this Act shall apply to tax-
able years ending after December 31, 2004. 
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