I 
112TH CONGRESS 
2D SESSION 
H. R. 4196 
To amend the Internal Revenue Code of 1986 to extend the allowance for 
bonus depreciation for certain business assets. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 13, 2012 
Mr. TIBERI (for himself, Mr. LARSON of Connecticut, Mr. PAULSEN, Mr. 
NEAL, Mr. MARCHANT, and Mr. PASCRELL) 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 allowance for bonus depreciation for certain business 
assets. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXTENSION OF ALLOWANCE FOR BONUS DE-
PRECIATION FOR CERTAIN BUSINESS AS-
SETS. 
(a) EXTENSION OF 100 PERCENT BONUS DEPRECIA-
TION.— 
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(1) IN
GENERAL.—Paragraph (5) of section 
168(k) of the Internal Revenue Code of 1986 is 
amended— 
(A) by striking ‘‘January 1, 2012’’ each 
place it appears and inserting ‘‘January 1, 
2013’’, and 
(B) by striking ‘‘January 1, 2013’’ and in-
serting ‘‘January 1, 2014’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for paragraph (5) of sec-
tion 168(k) of such Code is amended by strik-
ing ‘‘PRE-2012 PERIODS’’ and inserting ‘‘PRE- 
2013 PERIODS’’. 
(B) Clause (ii) of section 460(c)(6)(B) of 
such Code is amended to read as follows: 
‘‘(ii) is placed in service— 
‘‘(I) after December 31, 2009, 
and before January 1, 2011 (January 
1, 2012, in the case of property de-
scribed in section 168(k)(2)(B)), or 
‘‘(II) after December 31, 2011, 
and before January 1, 2013 (January 
1, 2014, in the case of property de-
scribed in section 168(k)(2)(B)).’’. 
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(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after December 31, 2011. 
(b) EXPANSION OF ELECTION TO ACCELERATE AMT 
CREDITS IN LIEU OF BONUS DEPRECIATION.— 
(1) IN
GENERAL.—Paragraph (4) of section 
168(k) of such Code is amended to read as follows: 
‘‘(4) ELECTION TO ACCELERATE AMT CREDITS 
IN LIEU OF BONUS DEPRECIATION.— 
‘‘(A) IN GENERAL.—If a corporation elects 
to have this paragraph apply for any taxable 
year— 
‘‘(i) paragraph (1) shall not apply to 
any eligible qualified property placed in 
service by the taxpayer in such taxable 
year, 
‘‘(ii) the applicable depreciation meth-
od used under this section with respect to 
such property shall be the straight line 
method, and 
‘‘(iii) the limitation imposed by section 
53(c) for such taxable year shall be in-
creased by the bonus depreciation amount 
which is determined for such taxable year 
under subparagraph (B). 
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and 
without 
regard 
to 
subparagraph 
(A)(ii). 
‘‘(ii) LIMITATION.—The bonus depre-
ciation amount for any taxable year shall 
not exceed the lesser of— 
‘‘(I) 50 percent of the minimum 
tax credit under section 53(b) for the 
first taxable year ending after Decem-
ber 31, 2011, or 
‘‘(II) the minimum tax credit 
under section 53(b) for such taxable 
year determined by taking into ac-
count only the adjusted minimum tax 
for taxable years ending before Janu-
ary 1, 2012 (determined by treating 
credits as allowed on a first-in, first- 
out basis). 
‘‘(iii) AGGREGATION RULE.—All cor-
porations which are treated as a single em-
ployer under section 52(a) shall be treat-
ed— 
‘‘(I) as 1 taxpayer for purposes 
of this paragraph, and 
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‘‘(II) as having elected the appli-
cation of this paragraph if any such 
corporation so elects. 
‘‘(C) ELIGIBLE
QUALIFIED
PROPERTY.— 
For purposes of this paragraph, the term ‘eligi-
ble qualified property’ means qualified property 
under paragraph (2), except that in applying 
paragraph (2) for purposes of this paragraph— 
‘‘(i) ‘March 31, 2008’ shall be sub-
stituted for ‘December 31, 2007’ each 
place it appears in subparagraph (A) and 
clauses (i) and (ii) of subparagraph (E) 
thereof, 
‘‘(ii) ‘April 1, 2008’ shall be sub-
stituted for ‘January 1, 2008’ in subpara-
graph (A)(iii)(I) thereof, and 
‘‘(iii) only adjusted basis attributable 
to manufacture, construction, or produc-
tion— 
‘‘(I) after March 31, 2008, and 
before January 1, 2010, and 
‘‘(II) after December 31, 2010, 
and before January 1, 2013, shall be 
taken into account under subpara-
graph (B)(ii) thereof. 
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‘‘(D) CREDIT
REFUNDABLE.—For pur-
poses of section 6401(b), the aggregate increase 
in the credits allowable under part IV of sub-
chapter A for any taxable year resulting from 
the application of this paragraph shall be treat-
ed as allowed under subpart C of such part 
(and not any other subpart). 
‘‘(E) OTHER RULES.— 
‘‘(i) ELECTION.—Any election under 
this paragraph may be revoked only with 
the consent of the Secretary. 
‘‘(ii) PARTNERSHIPS WITH ELECTING 
PARTNERS.—In the case of a corporation 
making an election under subparagraph 
(A) and which is a partner in a partner-
ship, for purposes of determining such cor-
poration’s distributive share of partnership 
items under section 702— 
‘‘(I) paragraph (1) shall not 
apply to any eligible qualified prop-
erty, and 
‘‘(II) the applicable depreciation 
method used under this section with 
respect to such property shall be the 
straight line method. 
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‘‘(iii) CERTAIN
PARTNERSHIPS.—In 
the case of a partnership in which more 
than 50 percent of the capital and profits 
interests are owned (directly or indirectly) 
at all times during the taxable year by one 
corporation (or by corporations treated as 
1 taxpayer under subparagraph (B)(iii)), 
for purposes of subparagraph (B), each 
partner shall take into account its distribu-
tive share of the amounts determined by 
the partnership under subclauses (I) and 
(II) of clause (i) of such subparagraph for 
the taxable year of the partnership ending 
with or within the taxable year of the part-
ner. The preceding sentence shall apply 
only to amounts determined with respect to 
property placed in service after December 
31, 2011. 
‘‘(iv) SPECIAL RULE FOR PASSENGER 
AIRCRAFT.—In the case of any passenger 
aircraft, the written binding contract limi-
tation under paragraph (2)(A)(iii)(I) shall 
not apply for purposes of subparagraphs 
(B)(i)(I) and (C).’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years end-
ing after December 31, 2011. 
(3) TRANSITIONAL RULE.—In the case of a tax-
able year beginning before January 1, 2012, and 
ending after December 31, 2011, the bonus depre-
ciation amount determined under paragraph (4) of 
section 168(k) of the Internal Revenue Code of 1986 
for such year shall be the sum of— 
(A) such amount determined under such 
paragraph as in effect on the date before the 
date of enactment of this Act— 
(i) taking into account only property 
placed in service before January 1, 2012, 
and 
(ii) multiplying the limitation under 
subparagraph (C)(ii) of such paragraph (as 
so in effect) by a fraction the numerator of 
which is the number of days in the taxable 
year before January 1, 2012, and the de-
nominator of which is the number of days 
in the taxable year, and 
(B) such amount determined under such 
paragraph as amended by this Act— 
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(i) taking into account only property 
placed in service after December 31, 2011, 
and 
(ii) multiplying the limitation under 
subparagraph (B)(ii) of such paragraph 
(as so in effect) by a fraction the numer-
ator of which is the number of days in the 
taxable year after December 31, 2011, and 
the denominator of which is the number of 
days in the taxable year. 
Æ 
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