I 
111TH CONGRESS 
1ST SESSION H. R. 4311 
To amend the Internal Revenue Code of 1986 to extend the increase in 
the expensing deduction for small businesses. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 15, 2009 
Mrs. HALVORSON 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 extend 
the increase in the expensing deduction for small businesses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Bonus Depreciation 
and Enhanced Expensing for Small Businesses Extension 
Act of 2009’’. 
SEC. 2. EXTENSION OF INCREASED EXPENSING FOR SMALL 
BUSINESSES. 
(a) IN GENERAL.—Paragraph (7) of section 179(b) 
of the Internal Revenue Code of 1986 is amended— 
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(1) by striking ‘‘or 2009’’ and inserting ‘‘2009, 
or 2010’’, and 
(2) by striking ‘‘AND
2009’’ in the heading 
thereof and inserting ‘‘2009, OR 2010’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 3. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY AC-
QUIRED DURING 2010. 
(a) EXTENSION OF SPECIAL ALLOWANCE.— 
(1) IN
GENERAL.—Paragraph (2) of section 
168(k) of the Internal Revenue Code of 1986 is 
amended— 
(A) by striking ‘‘January 1, 2011’’ and in-
serting ‘‘January 1, 2012’’, and 
(B) by striking ‘‘January 1, 2010’’ each 
place it appears and inserting ‘‘January 1, 
2011’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for subsection (k) of sec-
tion 168 of such Code is amended by striking 
‘‘2010’’ and inserting ‘‘2011’’. 
(B) The heading for clause (ii) of section 
168(k)(2)(B) of such Code is amended by strik-
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ing ‘‘PRE-JANUARY 1, 2010’’ and inserting ‘‘PRE- 
JANUARY 1, 2011’’. 
(C) Subparagraph (B) of section 168(l)(5) 
of such Code is amended by striking ‘‘January 
1, 2009’’ and inserting ‘‘January 1, 2010’’. 
(D) Subparagraph (C) of section 168(n)(2) 
of such Code is amended by striking ‘‘January 
1, 2009’’ and inserting ‘‘January 1, 2010’’. 
(E) 
Subparagraph 
(B) 
of 
section 
1400N(d)(3) of such Code is amended by strik-
ing ‘‘January 1, 2009’’ and inserting ‘‘January 
1, 2010’’. 
(b) EXTENSION OF ELECTION TO ACCELERATE THE 
AMT AND RESEARCH CREDITS IN LIEU OF BONUS DE-
PRECIATION.—Section 168(k)(4) of such Code (relating to 
election to accelerate the AMT and research credits in lieu 
of bonus depreciation) is amended— 
(1) by striking ‘‘January, 1, 2010’’ and insert-
ing ‘‘January 1, 2011’’ in subparagraph (D)(iii), 
and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(I) SPECIAL RULES FOR 2010 EXTENSION 
PROPERTY.— 
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‘‘(i) TAXPAYERS PREVIOUSLY ELECT-
ING ACCELERATION.—In the case of a tax-
payer who made the election under sub-
paragraph (A) for its first taxable year 
ending after March 31, 2008— 
‘‘(I) the taxpayer may elect not 
to have this paragraph apply to 2010 
extension property, but 
‘‘(II) if the taxpayer does not 
make the election under subclause (I), 
in applying this paragraph to the tax-
payer a separate bonus depreciation 
amount, maximum amount, and max-
imum increase amount shall be com-
puted and applied to eligible qualified 
property which is 2010 extension 
property and to eligible qualified prop-
erty which is not 2010 extension prop-
erty. 
‘‘(ii) TAXPAYERS
NOT
PREVIOUSLY 
ELECTING ACCELERATION.—In the case of 
a taxpayer who did not make the election 
under subparagraph (A) for its first tax-
able year ending after March 31, 2008— 
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‘‘(I) the taxpayer may elect to 
have this paragraph apply to its first 
taxable year ending after December 
31, 2009, and each subsequent tax-
able year, and 
‘‘(II) if the taxpayer makes the 
election under subclause (I), this 
paragraph shall only apply to eligible 
qualified property which is 2010 ex-
tension property. 
‘‘(iii) MODIFICATION OF MAXIMUM IN-
CREASE AMOUNT.—In applying this para-
graph with respect to 2010 extension prop-
erty, subparagraph (C)(iii) shall be applied 
without regard to subclause (II) thereof. 
‘‘(iv) 2010 EXTENSION PROPERTY.— 
For purposes of this subparagraph, the 
term ‘2010 extension property’ means 
property which is eligible qualified property 
solely by reason of the extension of the ap-
plication of the special allowance under 
paragraph (1) pursuant to the amend-
ments made by section 3 of the Bonus De-
preciation and Enhanced Expensing for 
Small Businesses Extension Act of 2009 
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(and the application of such extension to 
this paragraph pursuant to the amendment 
made by section 3(b)(1) of such Act).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2009, in taxable years ending after such 
date. 
Æ 
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