I 
114TH CONGRESS 
1ST SESSION H. R. 2510 
To amend the Internal Revenue Code of 1986 to modify and make permanent 
bonus depreciation. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 21, 2015 
Mr. TIBERI (for himself, Mr. SMITH of Missouri, Mr. BUCHANAN, Mr. KELLY 
of Pennsylvania, Mr. REED, Mr. NUNES, Mrs. BLACK, Mr. BRADY of 
Texas, Mr. REICHERT, Mr. MEEHAN, Mr. MARCHANT, Mr. YOUNG of In-
diana, Mr. PAULSEN, Mr. RENACCI, Mrs. NOEM, Mr. DOLD, Mr. ROS-
KAM, Ms. JENKINS of Kansas, Mr. BOUSTANY, Mr. HOLDING, Ms. 
SINEMA, Mr. HUIZENGA
of Michigan, Mr. WALBERG, and Mr. 
MOOLENAAR) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on the 
Budget, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
and make permanent bonus depreciation. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. BONUS DEPRECIATION MODIFIED AND MADE 
PERMANENT. 
(a) MADE PERMANENT; APPLICABLE TO QUALIFIED 
IMPROVEMENT PROPERTY.— 
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(1) IN GENERAL.—Section 168(k)(2) of the In-
ternal Revenue Code of 1986 is amended to read as 
follows: 
‘‘(2) QUALIFIED PROPERTY.—For purposes of 
this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
property’ means property— 
‘‘(i)(I) to which this section applies 
which has a recovery period of 20 years or 
less, 
‘‘(II) which is computer software (as 
defined in section 167(f)(1)(B)) for which 
a deduction is allowable under section 
167(a) without regard to this subsection, 
‘‘(III) which is water utility property, 
or 
‘‘(IV) which is qualified improvement 
property, and 
‘‘(ii) the original use of which com-
mences with the taxpayer. 
‘‘(B) EXCEPTION FOR ALTERNATIVE DE-
PRECIATION
PROPERTY.—The term ‘qualified 
property’ shall not include any property to 
which the alternative depreciation system under 
subsection (g) applies, determined— 
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‘‘(i) without regard to paragraph (7) 
of subsection (g) (relating to election to 
have system apply), and 
‘‘(ii) after application of section 
280F(b) (relating to listed property with 
limited business use). 
‘‘(C) SPECIAL RULES.— 
‘‘(i) 
SALE-LEASEBACKS.—For 
pur-
poses of clause (ii) and subparagraph 
(A)(ii), if property is— 
‘‘(I) originally placed in service 
by a person, and 
‘‘(II) sold and leased back by 
such person within 3 months after the 
date such property was originally 
placed in service, 
such property shall be treated as originally 
placed in service not earlier than the date 
on which such property is used under the 
leaseback referred to in subclause (II). 
‘‘(ii) SYNDICATION.—For purposes of 
subparagraph (A)(ii), if— 
‘‘(I) property is originally placed 
in service by the lessor of such prop-
erty, 
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‘‘(II) such property is sold by 
such lessor or any subsequent pur-
chaser within 3 months after the date 
such property was originally placed in 
service (or, in the case of multiple 
units of property subject to the same 
lease, within 3 months after the date 
the final unit is placed in service, so 
long as the period between the time 
the first unit is placed in service and 
the time the last unit is placed in 
service does not exceed 12 months), 
and 
‘‘(III) the user of such property 
after the last sale during such 3- 
month period remains the same as 
when such property was originally 
placed in service, 
such property shall be treated as originally 
placed in service not earlier than the date 
of such last sale. 
‘‘(D) 
COORDINATION
WITH
SECTION 
280F.—For purposes of section 280F— 
‘‘(i) AUTOMOBILES.—In the case of a 
passenger automobile (as defined in section 
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‘‘(E) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM
TAX.—For purposes of determining 
alternative minimum taxable income under sec-
tion 55, the deduction under section 167 for 
qualified property shall be determined without 
regard to any adjustment under section 56.’’. 
(2) QUALIFIED
IMPROVEMENT
PROPERTY.— 
Section 168(k)(3) of such Code is amended to read 
as follows: 
‘‘(3) QUALIFIED
IMPROVEMENT
PROPERTY.— 
For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
improvement property’ means any improvement 
to an interior portion of a building which is 
nonresidential real property if such improve-
ment is placed in service after the date such 
building was first placed in service. 
‘‘(B) CERTAIN
IMPROVEMENTS
NOT
IN-
CLUDED.—Such term shall not include any im-
provement for which the expenditure is attrib-
utable to— 
‘‘(i) the enlargement of the building, 
‘‘(ii) any elevator or escalator, or 
‘‘(iii) the internal structural frame-
work of the building.’’. 
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(b) EXPANSION OF ELECTION TO ACCELERATE AMT 
CREDITS IN LIEU OF BONUS DEPRECIATION.—Section 
168(k)(4) 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) paragraphs (1) and (2)(D) shall 
not apply to any qualified property placed 
in service during 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). 
‘‘(B) BONUS
DEPRECIATION
AMOUNT.— 
For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The bonus depre-
ciation amount for any taxable year is an 
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amount equal to 20 percent of the excess 
(if any) of— 
‘‘(I) the aggregate amount of de-
preciation which would be allowed 
under this section for qualified prop-
erty placed in service by the taxpayer 
during such taxable year if paragraph 
(1) applied to all such property (and, 
in the case of any such property which 
is a passenger automobile (as defined 
in section 280F(d)(5)), if paragraph 
(2)(D) applied to such automobile), 
over 
‘‘(II) the aggregate amount of 
depreciation which would be allowed 
under this section for qualified prop-
erty placed in service by the taxpayer 
during such taxable year if para-
graphs (1) and (2)(D) did not apply 
to any such property. 
The aggregate amounts determined under 
subclauses (I) and (II) shall be determined 
without regard to any election made under 
subparagraph (A) or subsection (b)(2)(D), 
(b)(3)(D), or (g)(7). 
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‘‘(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, 2014, or 
‘‘(II) the minimum tax credit 
under section 53(b) for such taxable 
year determined by taking into ac-
count only the adjusted net minimum 
tax for taxable years ending before 
January 1, 2015 (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 
‘‘(II) as having elected the appli-
cation of this paragraph if any such 
corporation so elects. 
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‘‘(C) 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). 
‘‘(D) 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 
which is a partner in a partnership and 
which makes an election under subpara-
graph (A) for the taxable year, for pur-
poses of determining such corporation’s 
distributive share of partnership items 
under section 702 for such taxable year— 
‘‘(I) paragraphs (1) and (2)(D) 
shall not apply to any qualified prop-
erty placed in service during such tax-
able year, and 
‘‘(II) the applicable depreciation 
method used under this section with 
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respect to such property shall be the 
straight line method. 
‘‘(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 1 
corporation (or by corporations treated as 
1 taxpayer under subparagraph (B)(iii)), 
each partner shall compute its bonus de-
preciation amount under clause (i) of sub-
paragraph (B) by taking into account its 
distributive share of the amounts deter-
mined by the partnership under subclauses 
(I) and (II) of such clause for the taxable 
year of the partnership ending with or 
within the taxable year of the partner.’’. 
(c) SPECIAL RULES FOR CERTAIN PLANTS BEARING 
FRUITS
AND NUTS.—Section 168(k) of such Code is 
amended— 
(1) by striking paragraph (5), and 
(2) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) SPECIAL
RULES
FOR
CERTAIN
PLANTS 
BEARING FRUITS AND NUTS.— 
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