II 
Calendar No. 55 
114TH CONGRESS 
1ST SESSION 
H. R. 636 
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 23, 2015 
Received 
APRIL 16, 2015 
Read the first time 
APRIL 20, 2015 
Read the second time and placed on the calendar 
AN ACT 
To amend the Internal Revenue Code of 1986 to permanently 
extend increased expensing limitations, 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 ‘‘America’s Small Busi-
ness Tax Relief Act of 2015’’. 
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SEC. 2. EXPENSING CERTAIN DEPRECIABLE BUSINESS AS-
SETS FOR SMALL BUSINESS. 
(a) IN GENERAL.— 
(1) DOLLAR LIMITATION.—Section 179(b)(1) of 
the Internal Revenue Code of 1986 is amended by 
striking ‘‘shall not exceed—’’ and all that follows 
and inserting ‘‘shall not exceed $500,000.’’. 
(2) 
REDUCTION
IN
LIMITATION.—Section 
179(b)(2) of such Code is amended by striking ‘‘ex-
ceeds—’’ and all that follows and inserting ‘‘exceeds 
$2,000,000.’’. 
(b) 
COMPUTER
SOFTWARE.—Section 
179(d)(1)(A)(ii) of such Code is amended by striking ‘‘, 
to which section 167 applies, and which is placed in service 
in a taxable year beginning after 2002 and before 2015’’ 
and inserting ‘‘and to which section 167 applies’’. 
(c) ELECTION.—Section 179(c)(2) of such Code is 
amended— 
(1) by striking ‘‘may not be revoked’’ and all 
that follows through ‘‘and before 2015’’; and 
(2) by striking ‘‘IRREVOCABLE’’ in the heading 
thereof. 
(d) AIR CONDITIONING AND HEATING UNITS.—Sec-
tion 179(d)(1) of such Code is amended by striking ‘‘and 
shall not include air conditioning or heating units’’. 
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(e) QUALIFIED REAL PROPERTY.—Section 179(f) of 
such Code is amended— 
(1) by striking ‘‘beginning after 2009 and be-
fore 2015’’ in paragraph (1); and 
(2) by striking paragraphs (3) and (4). 
(f) INFLATION ADJUSTMENT.—Section 179(b) of 
such Code is amended by adding at the end the following 
new paragraph: 
‘‘(6) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning after 2015, the dollar 
amounts in paragraphs (1) and (2) shall each 
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, determined by substituting ‘calendar 
year 2014’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(B) ROUNDING.—The amount of any in-
crease under subparagraph (A) shall be round-
ed to the nearest multiple of $10,000.’’. 
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(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 3. REDUCED RECOGNITION PERIOD FOR BUILT-IN 
GAINS OF S CORPORATIONS MADE PERMA-
NENT. 
(a) IN GENERAL.—Paragraph (7) of section 1374(d) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(7) RECOGNITION PERIOD.— 
‘‘(A) IN GENERAL.—The term ‘recognition 
period’ means the 5-year period beginning with 
the first day of the first taxable year for which 
the corporation was an S corporation. For pur-
poses of applying this section to any amount in-
cludible in income by reason of distributions to 
shareholders pursuant to section 593(e), the 
preceding sentence shall be applied without re-
gard to the phrase ‘5-year’. 
‘‘(B) INSTALLMENT SALES.—If an S cor-
poration sells an asset and reports the income 
from the sale using the installment method 
under section 453, the treatment of all pay-
ments received shall be governed by the provi-
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sions of this paragraph applicable to the taxable 
year in which such sale was made.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 4. PERMANENT RULE REGARDING BASIS ADJUST-
MENT TO STOCK OF S CORPORATIONS MAK-
ING CHARITABLE CONTRIBUTIONS OF PROP-
ERTY. 
(a) IN GENERAL.—Section 1367(a)(2) of the Internal 
Revenue Code of 1986 is amended by striking the last sen-
tence. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2014. 
SEC. 5. BUDGETARY EFFECTS. 
The budgetary effects of this Act shall not be entered 
on either PAYGO scorecard maintained pursuant to sec-
tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 
Passed the House of Representatives February 13, 
2015. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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Calendar No. 55 
114TH CONGRESS 
1ST SESSION 
H. R. 636 
AN ACT 
To amend the Internal Revenue Code of 1986 to 
permanently extend increased expensing limita-
tions, and for other purposes. 
APRIL 20, 2015 
Read the second time and placed on the calendar 
VerDate Sep 11 2014 
00:58 Apr 21, 2015
Jkt 049200
PO 00000
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