‘‘(ii) the original use of which com-
mences with the taxpayer. 
‘‘(B) EXCEPTION FOR ALTERNATIVE DEPRE-
CIATION PROPERTY.—The term ‘qualified prop-
erty’ shall not include any property to which the 
alternative depreciation system under subsection 
(g) applies, determined— 
‘‘(i) without regard to paragraph (7) of 
subsection (g) (relating to election to have 
system apply), and 
‘‘(ii) 
after 
application 
of 
section 
280F(b) (relating to listed property with 
limited business use). 
‘‘(C) SPECIAL RULES.— 
‘‘(i) SALE-LEASEBACKS.—For purposes 
of clause (ii) and subparagraph (A)(ii), if 
property is— 
‘‘(I) originally placed in service 
by a person, and 
‘‘(II) sold and leased back by such 
person within 3 months after the date 
such property was originally placed in 
service, 
such property shall be treated as originally 
placed in service not earlier than the date 
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on which such property is used under the 
leaseback referred to in subclause (II). 
‘‘(ii) SYNDICATION.—For purposes of 
subparagraph (A)(ii), if— 
‘‘(I) property is originally placed 
in service by the lessor of such prop-
erty, 
‘‘(II) such property is sold by 
such lessor or any subsequent pur-
chaser within 3 months after the date 
such property was originally placed in 
service (or, in the case of multiple 
units of property subject to the same 
lease, within 3 months after the date 
the final unit is placed in service, so 
long as the period between the time the 
first unit is placed in service and the 
time the last unit is placed in service 
does not exceed 12 months), and 
‘‘(III) the user of such property 
after the last sale during such 3-month 
period remains the same as when such 
property was originally placed in serv-
ice, 
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such property shall be treated as originally 
placed in service not earlier than the date 
of such last sale. 
‘‘(D) COORDINATION WITH SECTION 280F.— 
For purposes of section 280F— 
‘‘(i) AUTOMOBILES.—In the case of a 
passenger automobile (as defined in section 
280F(d)(5)) which is qualified property, the 
Secretary shall increase the limitation 
under section 280F(a)(1)(A)(i) by $8,000. 
‘‘(ii) LISTED PROPERTY.—The deduc-
tion allowable under paragraph (1) shall be 
taken into account in computing any recap-
ture amount under section 280F(b)(2). 
‘‘(iii) INFLATION
ADJUSTMENT.— In 
the case of any taxable year beginning in a 
calendar year after 2014, the $8,000 
amount in clause (i) shall be increased by 
an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the automobile price infla-
tion adjustment determined under sec-
tion 280F(d)(7)(B)(i) for the calendar 
year in which such taxable year begins 
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by substituting ‘2013’ for ‘1987’ in 
subclause (II) thereof. 
If any increase under the preceding sentence 
is not a multiple of $100, such increase 
shall be rounded to the nearest multiple of 
$100. 
‘‘(E) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM TAX.—For purposes of determining al-
ternative minimum taxable income under section 
55, the deduction under section 167 for qualified 
property shall be determined without regard to 
any adjustment under section 56.’’. 
(b) EXPANSION OF ELECTION TO ACCELERATE AMT 
CREDITS
IN LIEU
OF BONUS DEPRECIATION.—Section 
168(k)(4) of such Code is amended to read as follows: 
‘‘(4) ELECTION TO ACCELERATE AMT CREDITS IN 
LIEU OF BONUS DEPRECIATION.— 
‘‘(A) IN GENERAL.—If a corporation elects 
to have this paragraph apply for any taxable 
year— 
‘‘(i) paragraphs (1)(A), (2)(D)(i), and 
(5)(A)(i) shall not apply for such taxable 
year, 
‘‘(ii) the applicable depreciation meth-
od used under this section with respect to 
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any qualified property shall be the straight 
line method, and 
‘‘(iii) the limitation imposed by section 
53(c) for such taxable year shall be in-
creased by the bonus depreciation amount 
which is determined for such taxable year 
under subparagraph (B). 
‘‘(B) BONUS DEPRECIATION AMOUNT.—For 
purposes of this paragraph— 
‘‘(i) IN GENERAL.—The bonus depre-
ciation amount for any taxable year is an 
amount equal to 20 percent of the excess (if 
any) of— 
‘‘(I) the aggregate amount of de-
preciation which would be allowed 
under this section for qualified prop-
erty placed in service by the taxpayer 
during such taxable year if paragraph 
(1) applied to all such property, over 
‘‘(II) the aggregate amount of de-
preciation which would be allowed 
under this section for qualified prop-
erty placed in service by the taxpayer 
during such taxable year if paragraph 
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(1) did not apply to any such prop-
erty. 
The aggregate amounts determined under 
subclauses (I) and (II) shall be determined 
without regard to any election made under 
subsection (b)(2)(D), (b)(3)(D), or (g)(7) 
and 
without 
regard 
to 
subparagraph 
(A)(ii). 
‘‘(ii) LIMITATION.—The bonus depre-
ciation amount for any taxable year shall 
not exceed the lesser of— 
‘‘(I) 50 percent of the minimum 
tax credit under section 53(b) for the 
first taxable year ending after Decem-
ber 31, 2013, or 
‘‘(II) the minimum tax credit 
under section 53(b) for such taxable 
year determined by taking into ac-
count only the adjusted net minimum 
tax for taxable years ending before 
January 1, 2014 (determined by treat-
ing credits as allowed on a first-in, 
first-out basis). 
‘‘(iii) AGGREGATION
RULE.—All cor-
porations which are treated as a single em-
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ployer under section 52(a) shall be treat-
ed— 
‘‘(I) as 1 taxpayer for purposes of 
this paragraph, and 
‘‘(II) as having elected the appli-
cation of this paragraph if any such 
corporation so elects. 
‘‘(C) CREDIT REFUNDABLE.—For purposes 
of section 6401(b), the aggregate increase in the 
credits allowable under part IV of subchapter A 
for any taxable year resulting from the applica-
tion of this paragraph shall be treated as allowed 
under subpart C of such part (and not any other 
subpart). 
‘‘(D) OTHER RULES.— 
‘‘(i) ELECTION.—Any election under 
this paragraph may be revoked only with 
the consent of the Secretary. 
‘‘(ii) PARTNERSHIPS
WITH
ELECTING 
PARTNERS.—In the case of a corporation 
which is a partner in a partnership and 
which makes an election under subpara-
graph (A) for the taxable year, for purposes 
of determining such corporation’s distribu-
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tive share of partnership items under sec-
tion 702 for such taxable year— 
‘‘(I) paragraphs (1)(A), (2)(D)(i), 
and (5)(A)(i) shall not apply, and 
‘‘(II) the applicable depreciation 
method used under this section with re-
spect to any qualified property shall be 
the straight line method. 
‘‘(iii) CERTAIN
PARTNERSHIPS.—In 
the case of a partnership in which more 
than 50 percent of the capital and profits 
interests are owned (directly or indirectly) 
at all times during the taxable year by 1 
corporation (or by corporations treated as 1 
taxpayer under subparagraph (B)(iii)), 
each partner shall compute its bonus depre-
ciation amount under clause (i) of subpara-
graph (B) by taking into account its dis-
tributive share of the amounts determined 
by the partnership under subclauses (I) and 
(II) of such clause for the taxable year of 
the partnership ending with or within the 
taxable year of the partner.’’. 
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(c) SPECIAL RULES FOR TREES AND VINES BEARING 
FRUITS AND NUTS.—Section 168(k) of such Code is amend-
ed— 
(1) by striking paragraph (5), and 
(2) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) SPECIAL
RULES
FOR
TREES
AND
VINES 
BEARING FRUITS AND NUTS.— 
‘‘(A) IN GENERAL.—In the case of any tree 
or vine bearing fruits or nuts which is planted, 
or is grafted to a plant that has already been 
planted, by the taxpayer in the ordinary course 
of the taxpayer’s farming business (as defined in 
section 263A(e)(4))— 
‘‘(i) a depreciation deduction equal to 
50 percent of the adjusted basis of such tree 
or vine shall be allowed under section 
167(a) for the taxable year in which such 
tree or vine is so planted or grafted, and 
‘‘(ii) the adjusted basis of such tree or 
vine shall be reduced by the amount of such 
deduction. 
‘‘(B) ELECTION OUT.—If a taxpayer makes 
an election under this subparagraph for any tax-
able year, this paragraph shall not apply to any 
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tree or vine planted or grafted during such tax-
able year. An election under this subparagraph 
may be revoked only with the consent of the Sec-
retary. 
‘‘(C) ADDITIONAL
DEPRECIATION
MAY
BE 
CLAIMED ONLY ONCE.—If this paragraph applies 
to any tree or vine, such tree or vine shall not 
be treated as qualified property in the taxable 
year in which placed in service. 
‘‘(D) COORDINATION WITH ELECTION TO AC-
CELERATE
AMT
CREDITS.—If a corporation 
makes an election under paragraph (4) for any 
taxable year, the amount under paragraph 
(4)(B)(i)(I) for such taxable year shall be in-
creased by the amount determined under sub-
paragraph (A)(i) for such taxable year. 
‘‘(E) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM
TAX.—Rules similar to the rules of 
paragraph (2)(E) shall apply for purposes of 
this paragraph.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 168(e)(8) of such Code is amended by 
striking subparagraph (D). 
(2) Section 168(k) of such Code is amended by 
adding at the end the following new paragraph: 
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‘‘(6) ELECTION OUT.—If a taxpayer makes an 
election under this paragraph with respect to any 
class of property for any taxable year, this subsection 
shall not apply to all property in such class placed 
in service (or, in the case of paragraph (5), planted 
or grafted) during such taxable year. An election 
under this paragraph may be revoked only with the 
consent of the Secretary.’’. 
(3) Section 168(l)(5) of such Code is amended by 
striking ‘‘section 168(k)(2)(G)’’ and inserting ‘‘section 
168(k)(2)(E)’’. 
(4) Section 263A(c) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(7) COORDINATION WITH SECTION 168(k)(5).— 
This section shall not apply to any amount allowable 
as a deduction by reason of section 168(k)(5) (relat-
ing to special rules for trees and vines bearing fruits 
and nuts).’’. 
(5) Section 460(c)(6)(B) of such Code is amend-
ed by striking ‘‘which—’’ and all that follows and in-
serting ‘‘which has a recovery period of 7 years or 
less.’’. 
(6) Section 168(k) of such Code is amended by 
striking ‘‘ACQUIRED AFTER DECEMBER 31, 2007, 
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AND BEFORE JANUARY 1, 2014’’ in the heading there-
of. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to property placed in service after 
December 31, 2013. 
(2) EXPANSION OF ELECTION TO ACCELERATE 
AMT CREDITS IN LIEU OF BONUS DEPRECIATION.— 
(A) IN
GENERAL.—The amendment made 
by subsection (b) (other than so much of such 
amendment as relates to section 168(k)(4)(D)(iii) 
of such Code, as added by such amendment) shall 
apply to taxable years ending after December 31, 
2013. 
(B) TRANSITIONAL RULE.—In the case of a 
taxable year beginning before January 1, 2014, 
and ending after December 31, 2013, the bonus 
depreciation amount determined under section 
168(k)(4) of such Code for such year shall be the 
sum of— 
(i) such amount determined without 
regard to the amendments made by this sec-
tion and— 
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