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† HR 1 EAS 
‘‘(iv) in the case of a plant which is 
planted or grafted after December 31, 2024, 
and before January 1, 2026, 40 percent, 
and 
‘‘(v) in the case of a plant which is 
planted or grafted after December 31, 2025, 
and before January 1, 2027, 20 percent.’’. 
(3) CONFORMING AMENDMENT.—Paragraph (5) 
of section 168(k) is amended by striking subpara-
graph (F). 
(b) EXTENSION.— 
(1) IN GENERAL.—Section 168(k) is amended— 
(A) in paragraph (2)— 
(i) in subparagraph (A)(iii), clauses 
(i)(III) and (ii) of subparagraph (B), and 
subparagraph (E)(i), by striking ‘‘January 
1, 2020’’ each place it appears and insert-
ing ‘‘January 1, 2027’’, and 
(ii) in subparagraph (B)— 
(I) in clause (i)(II), by striking 
‘‘January 1, 2021’’ and inserting 
‘‘January 1, 2028’’, and 
(II) in the heading of clause (ii), 
by striking ‘‘PRE-JANUARY 1, 2020’’ and 
inserting ‘‘PRE-JANUARY 1, 2027’’, and
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† HR 1 EAS 
(B) in paragraph (5)(A), by striking ‘‘Jan-
uary 1, 2020’’ and inserting ‘‘January 1, 2027’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Clause (ii) of section 460(c)(6)(B) is 
amended by striking ‘‘January 1, 2020 (Janu-
ary 1, 2021’’ and inserting ‘‘January 1, 2027 
(January 1, 2028’’. 
(B) The heading of section 168(k) is amend-
ed by striking ‘‘ACQUIRED AFTER DECEMBER 
31, 2007, AND BEFORE JANUARY 1, 2020’’. 
(c) EXCEPTION
FOR
PUBLIC
UTILITIES.—Section 
168(k) is amended by adding at the end the following new 
paragraph: 
‘‘(8) EXCEPTION FOR CERTAIN PROPERTY.—The 
term ‘qualified property’ shall not include any prop-
erty which is primarily used in a trade or business 
described in clause (iv) of section 163(j)(7)(A).’’. 
(d) SPECIAL RULE.—Section 168(k), as amended by 
subsection (c), is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(9) SPECIAL RULE FOR PROPERTY PLACED IN 
SERVICE DURING CERTAIN PERIODS.— 
‘‘(A) IN GENERAL.—In the case of qualified 
property placed in service by the taxpayer dur-
ing the first taxable year ending after September
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† HR 1 EAS 
27, 2017, if the taxpayer elects to have this para-
graph apply for such taxable year, paragraphs 
(1)(A) and (5)(A)(i) shall be applied by sub-
stituting ‘50 percent’ for ‘the applicable percent-
age’. 
‘‘(B) FORM
OF
ELECTION.—Any election 
under this paragraph shall be made at such time 
and in such form and manner as the Secretary 
may prescribe.’’. 
(e) COORDINATION WITH SECTION 280F.—Section 
168(k)(2)(F) is amended by striking clause (iii). 
(f) QUALIFIED FILM AND TELEVISION AND LIVE THE-
ATRICAL PRODUCTIONS.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
168(k)(2)(A), as amended by section 13204, is amend-
ed— 
(A) in subclause (II), by striking ‘‘or’’, 
(B) in subclause (III), by adding ‘‘or’’ after 
the comma, and 
(C) by adding at the end the following: 
‘‘(IV) which is a qualified film or tele-
vision production (as defined in subsection 
(d) of section 181) for which a deduction 
would have been allowable under section
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† HR 1 EAS 
181 without regard to subsections (a)(2) 
and (g) of such section or this subsection, or 
‘‘(V) which is a qualified live theat-
rical production (as defined in subsection 
(e) of section 181) for which a deduction 
would have been allowable under section 
181 without regard to subsections (a)(2) 
and (g) of such section or this subsection,’’. 
(2) PRODUCTION
PLACED
IN
SERVICE.—Para-
graph (2) of section 168(k) is amended by adding at 
the end the following: 
‘‘(H) PRODUCTION PLACED IN SERVICE.— 
For purposes of subparagraph (A)— 
‘‘(i) a qualified film or television pro-
duction shall be considered to be placed in 
service at the time of initial release or 
broadcast, and 
‘‘(ii) a qualified live theatrical produc-
tion shall be considered to be placed in serv-
ice at the time of the initial live staged per-
formance.’’. 
(g) EFFECTIVE DATES.—The amendments made by 
this section shall apply to property placed in service, and 
specified plants planted or grafted after, after September 
27, 2017, in taxable years ending after such date.
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† HR 1 EAS 
SEC. 13202. MODIFICATIONS TO DEPRECIATION LIMITA-
TIONS ON LUXURY AUTOMOBILES AND PER-
SONAL USE PROPERTY. 
(a) LUXURY AUTOMOBILES.— 
(1) IN GENERAL.—280F(a)(1)(A) is amended— 
(A) in clause (i), by striking ‘‘$2,560’’ and 
inserting ‘‘$10,000’’, 
(B) in clause (ii), by striking ‘‘$4,100’’ and 
inserting ‘‘$16,000’’, 
(C) in clause (iii), by striking ‘‘$2,450’’ and 
inserting ‘‘$9,600’’, and 
(D) in clause (iv), by striking ‘‘$1,475’’ and 
inserting ‘‘$5,760’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Clause (ii) of section 280F(a)(1)(B) is 
amended by striking ‘‘$1,475’’ in the text and 
heading and inserting ‘‘$5,760’’. 
(B) Paragraph (7) of section 280F(d) is 
amended— 
(i) in subparagraph (A), by striking 
‘‘1988’’ and inserting ‘‘2018’’, and 
(ii) in subparagraph (B)(i)(II), by 
striking ‘‘1987’’ and inserting ‘‘2017’’. 
(b) REMOVAL OF COMPUTER EQUIPMENT FROM LIST-
ED PROPERTY.—
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† HR 1 EAS 
(1) IN
GENERAL.—Section 280F(d)(4)(A) is 
amended— 
(A) by inserting ‘‘and’’ at the end of clause 
(iii), 
(B) by striking clause (iv), and 
(C) by redesignating clause (v) as clause 
(iv). 
(2) 
CONFORMING
AMENDMENT.—Section 
280F(d)(4) is amended by striking subparagraph (B) 
and by redesignating subparagraph (C) as subpara-
graph (B). 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after De-
cember 31, 2017, in taxable years ending after such date. 
SEC. 13203. MODIFICATIONS OF TREATMENT OF CERTAIN 
FARM PROPERTY. 
(a) TREATMENT OF CERTAIN FARM PROPERTY AS 5- 
YEAR PROPERTY.—Clause (vii) of section 168(e)(3)(B) is 
amended by striking ‘‘after December 31, 2008, and which 
is placed in service before January 1, 2010’’ and inserting 
‘‘after December 31, 2017’’. 
(b) REPEAL OF REQUIRED USE OF 150-PERCENT DE-
CLINING BALANCE METHOD.—Section 168(b)(2) is amend-
ed by striking subparagraph (B) and by redesignating sub-
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† HR 1 EAS 
paragraphs (C) and (D) as subparagraphs (B) and (C), re-
spectively. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after De-
cember 31, 2017, in taxable years ending after such date. 
SEC. 13204. APPLICABLE RECOVERY PERIOD FOR REAL 
PROPERTY. 
(a) RESIDENTIAL RENTAL PROPERTY AND NONRESI-
DENTIAL REAL PROPERTY.— 
(1) REDUCTION
OF
RECOVERY
PERIOD.—The 
table contained in section 168(c) is amended— 
(A) by striking ‘‘27.5 years’’ and inserting 
‘‘25 years’’, and 
(B) by striking ‘‘39 years’’ and inserting 
‘‘25 years’’. 
(2) STATUTORY RECOVERY PERIOD.—The table 
contained in section 467(e)(3)(A) is amended— 
(A) by inserting ‘‘(other than residential 
rental property and nonresidential real prop-
erty)’’ after ‘‘15-year and 20-year property’’, 
and 
(B) by striking ‘‘19 years’’ and inserting 
‘‘25 years’’.
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† HR 1 EAS 
(3) CONFORMING
AMENDMENT.—Clause (ii) of 
section 168(e)(2)(B) is amended by striking ‘‘27.5 
years’’ and inserting ‘‘25 years’’. 
(b) IMPROVEMENTS TO REAL PROPERTY.— 
(1) CLASSIFICATION
OF
QUALIFIED
IMPROVE-
MENT PROPERTY AS 10-YEAR PROPERTY.—Subpara-
graph (D) of section 168(e)(3) is amended— 
(A) in clause (iii), by striking ‘‘and’’, 
(B) in clause (iv), by striking the period 
and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(v) any qualified improvement prop-
erty described in subsection (e)(6).’’. 
(2) ELIMINATION OF QUALIFIED LEASEHOLD IM-
PROVEMENT, QUALIFIED
RESTAURANT, AND
QUALI-
FIED RETAIL IMPROVEMENT PROPERTY.—Subsection 
(e) of section 168 is amended— 
(A) in subparagraph (E) of paragraph 
(3)— 
(i) by striking clauses (iv), (v), and 
(ix), 
(ii) in clause (vii), by inserting ‘‘and’’ 
at the end,
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† HR 1 EAS 
(iii) in clause (viii), by striking ‘‘, 
and’’ and inserting a period, and 
(iv) by redesignating clauses (vi), (vii), 
and (viii), as so amended, as clauses (iv), 
(v), and (vi), respectively, and 
(B) by striking paragraphs (6), (7), and 
(8). 
(3) APPLICATION OF STRAIGHT LINE METHOD TO 
QUALIFIED IMPROVEMENT PROPERTY.—Paragraph (3) 
of section 168(b) is amended— 
(A) by striking subparagraphs (G), (H), 
and (I), and 
(B) by inserting after subparagraph (F) the 
following new subparagraph: 
‘‘(G) Qualified improvement property de-
scribed in subsection (e)(6).’’. 
(4) ALTERNATIVE DEPRECIATION SYSTEM.— 
(A) ELECTING REAL PROPERTY TRADE OR 
BUSINESS.—Subsection (g) of section 168 is 
amended— 
(i) in paragraph (1)— 
(I) in subparagraph (D), by strik-
ing ‘‘and’’ at the end, 
(II) in subparagraph (E), by in-
serting ‘‘and’’ at the end, and
143 
† HR 1 EAS 
erally accepted accounting principles and which 
is— 
‘‘(i) a 10–K (or successor form), or an-
nual statement to shareholders, required to 
be filed by the taxpayer with the United 
States Securities and Exchange Commis-
sion, 
‘‘(ii) an audited financial statement of 
the taxpayer which is used for— 
‘‘(I) credit purposes, 
‘‘(II) reporting to shareholders, 
partners, or other proprietors, or to 
beneficiaries, or 
‘‘(III) 
any 
other 
substantial 
nontax purpose, 
but only if there is no statement of the tax-
payer described in clause (i), or 
‘‘(iii) filed by the taxpayer with any 
other Federal agency for purposes other 
than Federal tax purposes, but only if there 
is no statement of the taxpayer described in 
clause (i) or (ii), 
‘‘(B) a financial statement which is made 
on the basis of international financial reporting 
standards and is filed by the taxpayer with an