I 
111TH CONGRESS 
1ST SESSION H. R. 2198 
To amend the Internal Revenue Code of 1986 to provide a shorter recovery 
period for the depreciation of certain systems installed in nonresidential 
real property or residential rental property. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 30, 2009 
Ms. BEAN (for herself and Mr. HOEKSTRA) 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 provide 
a shorter recovery period for the depreciation of certain 
systems installed in nonresidential real property or resi-
dential rental property. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. RECOVERY PERIOD FOR DEPRECIATION OF 
CERTAIN SYSTEMS INSTALLED IN NONRESI-
DENTIAL AND RESIDENTIAL RENTAL BUILD-
INGS. 
(a) 20-YEAR RECOVERY PERIOD FOR HIGHLY EFFI-
CIENT HVAC&R EQUIPMENT.—Subparagraph (F) of sec-
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tion 168(e)(3) of the Internal Revenue Code of 1986 (re-
lating to 20-year property) is amended to read as follows: 
‘‘(F) 20-YEAR PROPERTY.—The term ‘20- 
year property’ means— 
‘‘(i) initial clearing and grading land 
improvements with respect to any electric 
utility transmission and distribution plant, 
and 
‘‘(ii) any property— 
‘‘(I) which is part of a heating, 
ventilation, air conditioning, or com-
mercial refrigeration system, 
‘‘(II) which exceeds by at least 
10 percent the applicable minimum 
performance standard for such system 
or component under the National Ap-
pliance Energy Conservation Act of 
1987 or the Energy Policy Act of 
1992 (as such Acts are in effect on 
the date that such property is placed 
in service and taking into account any 
changes to the American Society of 
Heating, Refrigerating and Air-condi-
tioning 
Engineers 
Standard 
90.1 
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which have been adopted by the De-
partment of Energy as of such date), 
‘‘(III) which is installed on or in 
a building which is nonresidential real 
property or residential rental prop-
erty, 
‘‘(IV) the original use of which 
commences with the taxpayer (the 
owner or lessor in the case of residen-
tial rental property), and 
‘‘(V) which is placed in service 
before January 1, 2013.’’ 
(b) 25-YEAR RECOVERY PERIOD.—Section 168(e)(3) 
of such Code is further amended by inserting after sub-
paragraph (F) the following new subparagraph: 
‘‘(G) 25-YEAR PROPERTY.—The term ‘25- 
year property’ means any property— 
‘‘(i) which is part of a heating, ven-
tilation, air conditioning, or commercial re-
frigeration system, 
‘‘(ii) which is not described in sub-
paragraph (F), 
‘‘(iii) which is installed on or in a 
building which is nonresidential real prop-
erty or residential rental property, 
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‘‘(iv) the original use of which com-
mences with the taxpayer (the owner or 
lessor in the case of residential rental 
property), and 
‘‘(v) which is placed in service before 
January 1, 2013.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The table contained in section 168(c) of 
such Code is amended by inserting after the item re-
lating to 20-year property the following new item: 
‘‘25-year property ........................................................................ 25 years’’. 
(2) The table contained in section 467(e)(3)(A) 
of such Code is amended by inserting after the item 
relating to residential rental property and nonresi-
dential real property the following new item: 
‘‘25-year property ........................................................................ 25 years’’. 
(d) REQUIREMENT TO USE STRAIGHT LINE METH-
OD.—Paragraph (3) of section 168(b) of such Code (relat-
ing to property to which straight line method applies) is 
amended by redesignating subparagraphs (F), (G), (H), 
and (I) as subparagraphs (G), (H), (I), and (J), respec-
tively, and by inserting after subparagraph (E) the fol-
lowing new subparagraph: 
‘‘(F) 
Property 
described 
in 
subsection 
(e)(3)(F)(ii) and subsection (e)(3)(G).’’. 
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(e) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) of such Code is amended by striking 
the items relating to subparagraph (F) and inserting the 
following new items: 
‘‘(F)(i) ................................................................................................
(F)(ii) ...............................................................................................
(G) ....................................................................................................
25’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2008. 
Æ 
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