I 
111TH CONGRESS 
1ST SESSION H. R. 3178 
To amend the Internal Revenue Code of 1986 to allow the expensing of 
certain real property. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 10, 2009 
Ms. MARKEY of Colorado (for herself, Mr. LUETKEMEYER, Mr. GRAYSON, Mr. 
PAUL, Ms. GINNY BROWN-WAITE of Florida, Mr. BUCHANAN, Mr. 
BRIGHT, and Mrs. KIRKPATRICK of Arizona) 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 allow the 
expensing of certain real property. 
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 ‘‘Small Business Growth 
Act of 2009’’. 
SEC. 2. EXPENSING FOR CERTAIN REAL PROPERTY. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 is amended by inserting after section 179E the fol-
lowing new section: 
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‘‘SEC. 179F. ELECTION TO EXPENSE CERTAIN REAL PROP-
ERTY. 
‘‘(a) TREATMENT AS EXPENSES.—In the case of a 
taxpayer described in subsection (e), the taxpayer may 
elect to treat the cost of any qualified real property as 
an expense which is not chargeable to capital account. Any 
cost so treated shall be allowed as a deduction for the tax-
able year in which the qualified real property is placed 
in service. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The aggregate cost which 
may be taken into account under subsection (a) for 
any taxable year shall not exceed $125,000. 
‘‘(2) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2009, the $125,000 amount in paragraph (1) 
shall be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, by substituting ‘calendar year 2008’ 
for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
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‘‘(B) ROUNDING.—If any amount as ad-
justed under subparagraph (A) is not a multiple 
of $1,000, such amount shall be rounded to the 
nearest multiple of $1,000. 
‘‘(c) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall be made on the tax-
payer’s return of the tax imposed by this chapter for 
the taxable year. Such election shall specify the 
qualified real property to which the election applies 
and shall be made in such manner as the Secretary 
may by regulations prescribe. 
‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section may not be revoked except 
with the consent of the Secretary. 
‘‘(d) QUALIFIED REAL PROPERTY.—For purposes of 
this section, the term ‘qualified real property’ means sec-
tion 1250 property (as defined by section 1250(c)) located 
in the United States— 
‘‘(1) the original use of which commences with 
the taxpayer, and 
‘‘(2) which is placed in service by the taxpayer 
after the date of the enactment of this section. 
‘‘(e) TAXPAYER DESCRIBED.— 
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‘‘(1) IN GENERAL.—A taxpayer is described in 
this subsection if, for the immediately prior taxable 
year, the taxpayer (or any predecessor) met the 
$5,000,000 gross receipts test of paragraph (2). 
‘‘(2) $5,000,000 GROSS RECEIPTS TEST.—For 
purposes of paragraph (1)— 
‘‘(A) IN GENERAL.—A taxpayer meets the 
$5,000,000 gross receipts test of this paragraph 
for a taxable year if the average annual gross 
receipts of the taxpayer for the 3-taxable-year 
period ending with such taxable year does not 
exceed $5,000,000. 
‘‘(B) AGGREGATION
RULES.—All persons 
treated as a single employer under subsection 
(a) or (b) of section 52 or subsection (m) or (o) 
of section 414 shall be treated as one person for 
purposes of subparagraph (A). 
‘‘(C) NOT IN EXISTENCE FOR ENTIRE 3- 
YEAR PERIOD.—If the taxpayer was not in ex-
istence for the entire 3-year period referred to 
in subparagraph (A), such paragraph shall be 
applied on the basis of the period during which 
the taxpayer (or trade or business) was in exist-
ence. 
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‘‘(D) SPECIAL
RULES.—For purposes of 
subparagraph (A), the rules of paragraph (3) of 
section 448(c) shall apply. 
‘‘(f) REPORTING.—No deduction shall be allowed 
under subsection (a) to any taxpayer for any taxable year 
unless the taxpayer files with the Secretary a report con-
taining such information as the Secretary shall require.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 263(a)(1) is amended by striking 
‘‘or’’ at the end of subparagraph (K), by striking the 
period at the end of subparagraph (L) and inserting 
‘‘, or’’, and by inserting after subparagraph (L) the 
following new subparagraph: 
‘‘(M) expenditures for which a deduction is 
allowed under section 179F.’’. 
(2) Section 312(k)(3)(B) is amended by strik-
ing ‘‘or 179E’’ each place it appears in the heading 
and text thereof and inserting ‘‘179E, or 179F’’. 
(3) The table of sections for part VI of sub-
chapter B of chapter 1 is amended by inserting after 
the item relating to section 179E the following new 
item: 
‘‘Sec. 179F. Election to expense certain real property.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to costs paid or incurred after the 
date of the enactment of this Act. 
Æ 
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