I 
110TH CONGRESS 
2D SESSION 
H. R. 5141 
To amend the Internal Revenue Code of 1986 to encourage investment in 
high productivity property, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 28, 2008 
Mr. ENGLISH of Pennsylvania 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 encourage 
investment in high productivity property, and for other 
purposes. 
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 ‘‘Job Creation Economic 
Stimulus Act of 2008’’. 
SEC. 2. ADOPTION OF THE HIGH PRODUCTIVITY INVEST-
MENT DEDUCTION. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
itemized deductions for individuals and corporations) is 
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amended by inserting after section 168 the following new 
section: 
‘‘SEC. 168A. HIGH PRODUCTIVITY INVESTMENT DEDUC-
TION. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the cost of any high productivity property 
as an expense not chargeable to capital account. Any cost 
so treated shall be allowed as a deduction in the taxable 
year in which the high productivity property is placed in 
service. 
‘‘(b) DEFINITION OF HIGH PRODUCTIVITY PROP-
ERTY.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), the term ‘high productivity property’ 
means any— 
‘‘(A) computer, 
‘‘(B) computer related peripheral equip-
ment, 
‘‘(C) computer based machinery, 
‘‘(D) electronic diagnostic equipment, 
‘‘(E) electronic control equipment, 
‘‘(F) other electronic, electromechanical, 
laser or computer based equipment, 
‘‘(G) computer software, 
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‘‘(H) equipment used in the manufacture 
of semiconductors, 
‘‘(I) high technology medical equipment, 
‘‘(J) advanced technology communications 
equipment, 
‘‘(K) optical fiber and photonics equip-
ment, 
‘‘(L) advanced environmental products, 
‘‘(M) advanced life science products, or 
‘‘(N) new high productivity assets. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) COMPUTER.—The term ‘computer’ 
means a programmable electronically activated 
device which— 
‘‘(i) is capable of accepting informa-
tion, applying prescribed processes to the 
information, and supplying the results of 
those processes, and 
‘‘(ii) consists of a central processing 
unit containing extensive storage, logic, 
arithmetic and control capabilities. 
‘‘(B) COMPUTER
RELATED
PERIPHERAL 
EQUIPMENT.—The term ‘computer related pe-
ripheral equipment’ means any auxiliary ma-
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chine or other equipment (whether on-line or 
off-line) which is designed to be placed under 
the control of the central processing unit of a 
computer (as determined without regard to 
whether such machine or equipment is an inte-
gral part of other property which is not a com-
puter). 
‘‘(C) COMPUTER BASED MACHINERY.—The 
term ‘computer based machinery’ means any 
machine which— 
‘‘(i) cuts, forms, shapes, drills, bores, 
mixes, paints, seals, welds, or otherwise 
transforms material, or 
‘‘(ii) handles, conveys, assembles, or 
packages materials or products, 
by responding to electronically stored informa-
tion and programmed commands. 
‘‘(D) ELECTRONIC
DIAGNOSTIC
EQUIP-
MENT.—The term ‘electronic diagnostic equip-
ment’ means equipment that uses electronic 
components to sense or monitor location, size, 
volume, surface characteristics, pressure, tem-
perature, speed, chemical composition, or other 
similar characteristics. 
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‘‘(E) 
ELECTRONIC
CONTROL
EQUIP-
MENT.—The term ‘electronic control equipment’ 
means equipment that electronically controls 
pressure, temperature, size, volume, composi-
tion purity or other similar characteristics. 
‘‘(F) HIGH TECHNOLOGY MEDICAL EQUIP-
MENT.—The term ‘high technology medical 
equipment’ 
means 
any 
electronic, 
electromechanical, or computer-based high tech-
nology equipment used in the screening, moni-
toring, observation, diagnosis, or treatment of 
patients in a laboratory, medical, or hospital en-
vironment. 
‘‘(G) ADVANCED
TECHNOLOGY
COMMU-
NICATIONS
EQUIPMENT.—The term ‘advanced 
technology communications equipment’ means 
equipment used in the transmission or reception 
of voice, data, video, paging, messaging, or 
other communications services that are deliv-
ered using packet technology. A packet is a unit 
of data, or sequence of binary digits, that is 
routed between an origin and a destination on 
a packet-switched network. 
‘‘(H) OPTICAL
FIBER
AND
PHOTONICS 
EQUIPMENT.—The term ‘optical fiber and 
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photonics equipment’ means optical fiber and 
the equipment and materials used to generate, 
manipulate and direct light particles over such 
fiber. 
‘‘(I) ADVANCED
ENVIRONMENTAL
PROD-
UCTS.—The 
term 
‘advanced 
environmental 
product’ means any high cell density ceramic or 
other device used for the control of nitrogen 
oxide and particulate emissions. 
‘‘(J) ADVANCED
LIFE
SCIENCES
PROD-
UCTS.—The term ‘advanced life sciences prod-
uct’ means any polymer, ceramic or high-purity 
glass product used in biological research. 
‘‘(K) NEW HIGH PRODUCTIVITY ASSETS.— 
‘‘(i) IN
GENERAL.—The term ‘new 
high productivity assets’ means any asset 
utilizing 1 or more technological or sci-
entific processes which were not in com-
mon commercial use before January 1, 
2007. 
‘‘(ii) 
DETERMINATIONS.—The 
Sec-
retary shall establish procedures pursuant 
to which taxpayers can seek a public ruling 
that a particular class of assets qualifies as 
new high productivity assets. The proce-
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dures shall require the Secretary to provide 
a determination within 90 days of receipt 
of a properly completed request for a pub-
lic ruling. 
‘‘(3) EXCLUDED PROPERTY.—The term ‘high 
productivity property’ shall not include— 
‘‘(A) an entire car, locomotive, aircraft, 
ship or other vehicle solely because the vehicle 
is controlled in whole or part by a computer or 
other electronic equipment, 
‘‘(B) any equipment of a kind used pri-
marily for entertainment or amusement of the 
user, and 
‘‘(C) typewriters, calculators, copiers, du-
plication equipment, and other similar equip-
ment. 
‘‘(c) ELECTION.—An election under this section for 
any taxable year shall— 
‘‘(1) be made on an asset by asset basis, and 
‘‘(2) be made on the taxpayer’s return of the 
tax imposed by this chapter for the taxable year. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) COST.—For purposes of this section, the 
cost of property does not include so much of the 
basis of such property as is determined by reference 
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to the basis of other property held at any time by 
the person acquiring such property. 
‘‘(2) ANTICHURNING RULES.— 
‘‘(A) IN GENERAL.—This section shall not 
apply to any property acquired by the taxpayer 
after December 31, 2007, if— 
‘‘(i) the property was owned or used 
at any time during the period beginning on 
January 1, 2007, and ending on December 
31, 2007, by the taxpayer or a related per-
son, 
‘‘(ii) the property was owned or used 
at any time during the period described in 
clause (i), and, as part of the transaction, 
the user of the property does not change, 
‘‘(iii) the taxpayer leases such prop-
erty to a person (or a person related to 
such person) who owned or used such 
property at any time during the period de-
scribed in clause (i), or 
‘‘(iv) the property is acquired in a 
transaction as part of which the user of 
such property does not change and the 
property was acquired from a person to 
which clause (ii) or clause (iii) applies. 
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‘‘(B) 
APPLICABLE
COST
RECOVERY 
RULES.—Section 168 shall apply to any prop-
erty to which this section does not apply by rea-
son of this paragraph. 
‘‘(C) SPECIAL
RULES.—For purposes of 
this paragraph— 
‘‘(i) property shall not be treated as 
owned before it is placed in service, and 
‘‘(ii) whether the user of a property 
changes will be determined in accordance 
with regulations prescribed by the Sec-
retary. 
‘‘(3) RECAPTURE
IN
CERTAIN
CASES.—The 
Secretary shall, by regulations, provide for the re-
capturing the benefit under any deduction allowable 
under subsection (a) with respect to any property 
which is not used predominantly in a trade or busi-
ness at any time. 
‘‘(4) ALTERNATIVE DEPRECIATION SYSTEM AP-
PLIES.—The election under subsection (a) may not 
be made with respect to property which at any time 
during the taxable year in which such property is 
placed in service is— 
‘‘(A) described in paragraph (1) of section 
168A(g), or 
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‘‘(B) ‘listed property’ ‘not predominantly 
used in a qualified business use’ as such terms 
apply for purposes of paragraph (1) of 
280F(b). 
‘‘(e) TERMINATION.—This section shall only apply to 
property which is— 
‘‘(1) acquired by the taxpayer after December 
31, 2007, and before January 1, 2009, but only if 
no written binding contract for the acquisition was 
in effect before January 1, 2008, or 
‘‘(2)(A) acquired by the taxpayer pursuant to a 
written binding contract which was entered into 
after December 31, 2007, and before January 1, 
2009, and 
‘‘(B) placed in service in taxable years begin-
ning after December 31, 2009.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for part VI of subchapter B of chapter 1 of such 
Code is amended by adding after section 168 the following 
new item: 
‘‘Sec. 168A. High productivity investment deduction.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2007, with respect to taxable years begin-
ning after such date. 
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SEC. 3. 50 PERCENT ALLOWANCE FOR DEPRECIATION FOR 
CERTAIN PROPERTY ACQUIRED DURING 2008. 
(a) IN GENERAL.—Paragraph (4) of section 168(k) 
of the Internal Revenue Code of 1986 (relating to 50-per-
cent bonus for certain property) is amended— 
(1) by striking ‘‘May 5, 2003’’ each place it ap-
pears and inserting ‘‘December 31, 2007’’, 
(2) by striking ‘‘January 1, 2005’’ each place 
it appears and inserting ‘‘January 1, 2009’’, 
(3) by striking ‘‘May 6, 2003’’ in subparagraph 
(B)(ii)(I) and inserting ‘‘January 1, 2008’’, 
(4) by striking ‘‘January 1, 2006’’ in subpara-
graph (B)(iii) and inserting ‘‘January 1, 2010’’, and 
(5) by striking ‘‘OF 30-PERCENT BONUS’’ in the 
heading for subparagraph (E). 
(b) REPEAL OF BASIS LIMITATION FOR CERTAIN 
PROPERTY.—Subparagraph (B) of section 168(k)(2) of 
such Code is amended by striking clause (ii) and redesig-
nating clause (iii) as clause (ii). 
(c) SYNDICATIONS.—Paragraph (4) of section 168(k) 
of such Code (relating to 50-percent depreciation for cer-
tain property) is amended by adding at the end the fol-
lowing: 
‘‘(F) SYNDICATIONS.—For purposes of ap-
plying paragraph (2)(A)(ii) by reason of this 
paragraph, if property— 
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‘‘(i) is treated as originally placed in 
service after December 31, 2007, either di-
rectly or by a lessor of such property or 
pursuant to paragraph (2)(D)(ii), and 
‘‘(ii) is sold within 6 months after 
such property is so placed in service, 
such property shall be treated as originally 
placed in service not earlier than the date of 
such sale.’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to property placed in service 
in taxable years beginning after December 31, 2007. 
(2) EXCEPTION FOR CERTAIN PROPERTY.—The 
amendments made by this section shall not apply to 
any property to which section 105 of the Gulf Op-
portunity Zone Act of 2005 applies. 
SEC. 4. DEPRECIATION RULES NOT MODIFIED FOR PUR-
POSES OF ALTERNATIVE MINIMUM TAX. 
(a) DETERMINATION OF ALTERNATIVE TAXABLE IN-
COME.—Paragraph (1) of section 56(a) of the Internal 
Revenue Code of 1986 (relating to depreciation) is amend-
ed by adding at the end the following new subparagraph: 
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after the date of the enactment of this Act in taxable years 
ending after such date. 
SEC. 6. LONG-TERM UNUSED CREDITS ALLOWED AGAINST 
MINIMUM TAX. 
(a) IN GENERAL.—Subsection (c) of section 53 of the 
Internal Revenue Code of 1986 (relating to limitation) is 
amended by adding at the end the following new para-
graph: 
‘‘(2) SPECIAL RULE FOR CORPORATIONS WITH 
LONG-TERM UNUSED CREDITS.— 
‘‘(A) IN
GENERAL.—If a corporation to 
which section 56(g) applies has a long-term un-
used minimum tax credit for a taxable year, the 
credit allowable under subsection (a) for the 
taxable year shall not exceed the greater of— 
‘‘(i) the limitation determined under 
paragraph (1) for the taxable year, or 
‘‘(ii) the least of the following for the 
taxable year: 
‘‘(I) The sum of the tax imposed 
by section 55 and the regular tax re-
duced by the sum of the credits al-
lowed under subparts A, B, D, E, and 
F of this part. 
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‘‘(II) The long-term unused min-
imum tax credit. 
‘‘(III) The sum of— 
‘‘(aa) 50 percent of qualified 
investment, plus 
‘‘(bb) the qualified invest-
ment carryover to the taxable 
year. 
‘‘(B) LONG-TERM UNUSED MINIMUM TAX 
CREDIT.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The long-term un-
used minimum tax credit for any taxable 
year is the portion of the minimum tax 
credit determined under subsection (b) at-
tributable to the adjusted net minimum tax 
for taxable years beginning after 1986 and 
ending before the 3rd taxable year imme-
diately preceding the taxable year for 
which the determination is being made. 
‘‘(ii) FIRST-IN, FIRST-OUT ORDERING 
RULE.—For purposes of clause (i), credits 
shall be treated as allowed under sub-
section (a) on a first-in, first-out basis. 
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‘‘(C) QUALIFIED INVESTMENT AND QUALI-
FIED INVESTMENT CARRYOVER.—For purposes 
of this paragraph— 
‘‘(i) QUALIFIED INVESTMENT.—Quali-
fied investment is property described in 
section 1245(a)(3) placed in service in the 
taxable year. 
‘‘(ii) QUALIFIED INVESTMENT CARRY-
OVER.—The qualified investment carryover 
is the amount by which 50 percent of 
qualified investment exceeds the amount of 
tax in paragraph (2)(A)(ii)(I). The quali-
fied investment carryover may be carried 
only to the first taxable year following the 
current year. 
‘‘(D) TERMINATION.—Subparagraph (A) 
shall not apply to any taxable year beginning 
after December 31, 2008.’’. 
(b) CONFORMING AMENDMENTS.—Section 53(c) of 
such Code is amended— 
(1) by striking ‘‘The’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—The’’; and 
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(2) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively. 
Æ 
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