IB 
Union Calendar No. 240 
114TH CONGRESS 
1ST SESSION H. R. 2510 
[Report No. 114–317, Part I] 
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 
OCTOBER 28, 2015 
Additional sponsors: Mr. SAM JOHNSON of Texas, Mr. BLUM, Mr. BOST, Mrs. 
WALORSKI, Mr. UPTON, Mr. BISHOP of Michigan, Mr. LOEBSACK, Mr. 
ABRAHAM, Mr. YOUNG of Iowa, Mr. TROTT, Mr. CARTER of Georgia, Mr. 
KNIGHT, Mr. GRAVES of Louisiana, Mr. POLIQUIN, Mr. VALADAO, Mr. 
EMMER of Minnesota, Mr. NEWHOUSE, Mr. KLINE, Mr. ROUZER, Mr. 
COSTELLO of Pennsylvania, Mr. NEUGEBAUER, Mr. ASHFORD, Mr. STIV-
ERS, Mr. COFFMAN, Mrs. LAWRENCE, Mr. BYRNE, and Mr. CRAWFORD 
OCTOBER 28, 2015 
Reported from the Committee on Ways and Means with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
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OCTOBER 28, 2015 
The Committee on the Budget discharged; committed to the Committee of the 
Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on May 21, 2015] 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
and make permanent bonus depreciation. 
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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 
280F(d)(5)) which is qualified property, the 
Secretary shall increase the limitation 
under section 280F(a)(1)(A)(i) by $8,000. 
‘‘(ii) LISTED PROPERTY.—The deduc-
tion allowable under paragraph (1) shall be 
taken into account in computing any recap-
ture amount under section 280F(b)(2). 
‘‘(iii) 
INFLATION
ADJUSTMENT.—In 
the case of any taxable year beginning in a 
calendar year after 2015, the $8,000 
amount in clause (i) shall be increased by 
an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the automobile price infla-
tion adjustment determined under sec-
tion 280F(d)(7)(B)(i) for the calendar 
year in which such taxable year begins 
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by substituting ‘2014’ for ‘1987’ in 
subclause (II) thereof. 
If any increase under the preceding sentence 
is not a multiple of $100, such increase 
shall be rounded to the nearest multiple of 
$100. 
‘‘(E) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM TAX.—For purposes of determining al-
ternative minimum taxable income under section 
55, the deduction under section 167 for qualified 
property shall be determined without regard to 
any adjustment under section 56.’’. 
(2) QUALIFIED IMPROVEMENT PROPERTY.—Sec-
tion 168(k)(3) of such Code is amended to read as fol-
lows: 
‘‘(3) QUALIFIED IMPROVEMENT PROPERTY.—For 
purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘qualified im-
provement property’ means any improvement to 
an interior portion of a building which is non-
residential real property if such improvement 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-
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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.’’. 
(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 
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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 
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 de-
preciation which would be allowed 
under this section for qualified prop-
erty placed in service by the taxpayer 
during such taxable year if paragraphs 
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(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). 
‘‘(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 treat-
ing credits as allowed on a first-in, 
first-out basis). 
‘‘(iii) AGGREGATION
RULE.—All cor-
porations which are treated as a single em-
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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. 
‘‘(C) CREDIT REFUNDABLE.—For purposes 
of section 6401(b), the aggregate increase in the 
credits allowable under part IV of subchapter A 
for any taxable year resulting from the applica-
tion of this paragraph shall be treated 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 purposes 
of determining such corporation’s distribu-
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tive share of partnership items under sec-
tion 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 re-
spect 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 depre-
ciation amount under clause (i) of subpara-
graph (B) by taking into account its dis-
tributive share of the amounts determined 
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.’’. 
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(c) SPECIAL RULES FOR CERTAIN PLANTS BEARING 
FRUITS AND NUTS.—Section 168(k) of such Code is amend-
ed— 
(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.— 
‘‘(A) IN GENERAL.—In the case of any spec-
ified plant which is planted, or is grafted to a 
plant that has already been planted, by the tax-
payer in the ordinary course of the taxpayer’s 
farming 
business 
(as 
defined 
in 
section 
263A(e)(4)) during a taxable year for which the 
taxpayer has elected the application of this para-
graph— 
‘‘(i) a depreciation deduction equal to 
50 percent of the adjusted basis of such 
specified plant shall be allowed under sec-
tion 167(a) for the taxable year in which 
such specified plant is so planted or grafted, 
and 
‘‘(ii) the adjusted basis of such speci-
fied plant shall be reduced by the amount of 
such deduction. 
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‘‘(B) SPECIFIED PLANT.—For purposes of 
this paragraph, the term ‘specified plant’ 
means— 
‘‘(i) any tree or vine which bears fruits 
or nuts, and 
‘‘(ii) any other plant which will have 
more than one yield of fruits or nuts and 
which generally has a period of more than 
2 years from the time of planting or graft-
ing to the time at which such plant begins 
bearing fruits or nuts. 
Such term shall not include any property which 
is planted or grafted outside of the United 
States. 
‘‘(C) ELECTION
REVOCABLE
ONLY
WITH 
CONSENT.—An election under this paragraph 
may be revoked only with the consent of the Sec-
retary. 
‘‘(D) ADDITIONAL
DEPRECIATION
MAY
BE 
CLAIMED ONLY ONCE.—If this paragraph applies 
to any specified plant, such specified plant shall 
not be treated as qualified property in the tax-
able year in which placed in service. 
‘‘(E) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM
TAX.—Rules similar to the rules of 
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paragraph (2)(E) shall apply for purposes of 
this paragraph.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 168(e)(6) of such Code is amended— 
(A) by redesignating subparagraphs (A) 
and (B) as subparagraphs (D) and (E), respec-
tively, 
(B) by striking all that precedes subpara-
graph (D) (as so redesignated) and inserting the 
following: 
‘‘(6) 
QUALIFIED
LEASEHOLD
IMPROVEMENT 
PROPERTY.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
leasehold improvement property’ means any im-
provement to an interior portion of a building 
which is nonresidential real property if— 
‘‘(i) such improvement is made under 
or pursuant to a lease (as defined in sub-
section (h)(7))— 
‘‘(I) by the lessee (or any subles-
see) of such portion, or 
‘‘(II) by the lessor of such portion, 
‘‘(ii) such portion is to be occupied ex-
clusively by the lessee (or any sublessee) of 
such portion, and 
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‘‘(iii) such improvement is placed in 
service more than 3 years after the date the 
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, 
‘‘(iii) any structural component bene-
fitting a common area, or 
‘‘(iv) the internal structural framework 
of the building. 
‘‘(C) DEFINITIONS AND SPECIAL RULES.— 
For purposes of this paragraph— 
‘‘(i) COMMITMENT TO LEASE TREATED 
AS LEASE.—A commitment to enter into a 
lease shall be treated as a lease, and the 
parties to such commitment shall be treated 
as lessor and lessee, respectively. 
‘‘(ii) RELATED PERSONS.—A lease be-
tween related persons shall not be considered 
a lease. For purposes of the preceding sen-
tence, the term ‘related persons’ means— 
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in such class placed in service during such taxable 
year. An election under this paragraph may be re-
voked only with the consent of the Secretary.’’. 
(5) Section 168(l)(3) of such Code is amended— 
(A) by striking ‘‘section 168(k)’’ in sub-
paragraph (A) and inserting ‘‘subsection (k)’’, 
and 
(B) by striking ‘‘section 168(k)(2)(D)(i)’’ in 
subparagraph (B) and inserting ‘‘subsection 
(k)(2)(B)’’. 
(6) Section 168(l)(4) of such Code is amended by 
striking ‘‘subparagraph (E) of section 168(k)(2)’’ and 
all that follows and inserting ‘‘subsection (k)(2)(C) 
shall apply.’’. 
(7) Section 168(l)(5) of such Code is amended by 
striking ‘‘section 168(k)(2)(G)’’ and inserting ‘‘sub-
section (k)(2)(E)’’. 
(8) Section 263A(c) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(7) COORDINATION WITH SECTION 168(k)(5).— 
This section shall not apply to any amount allowed 
as a deduction by reason of section 168(k)(5) (relat-
ing to special rules for certain plants bearing fruits 
and nuts).’’. 
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(9) Section 460(c)(6)(B) of such Code is amend-
ed by striking ‘‘which—’’ and all that follows and in-
serting ‘‘which has a recovery period of 7 years or 
less.’’. 
(10) Section 168(k) of such Code is amended by 
striking ‘‘ACQUIRED AFTER DECEMBER 31, 2007, 
AND BEFORE JANUARY 1, 2015’’ in the heading there-
of. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to property placed in service after 
December 31, 2014, in taxable years ending after such 
date. 
(2) EXPANSION OF ELECTION TO ACCELERATE 
AMT CREDITS IN LIEU OF BONUS DEPRECIATION.— 
(A) IN
GENERAL.—The amendment made 
by subsection (b) shall apply to taxable years 
ending after December 31, 2014. 
(B) TRANSITIONAL RULE.—In the case of 
any taxable year beginning before January 1, 
2015, and ending after December 31, 2014, the 
limitation under section 168(k)(4)(B)(ii) of the 
Internal Revenue Code of 1986 (as amended by 
this section) shall be the sum of— 
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(i) the product of— 
(I) the maximum increase amount 
(within 
the 
meaning 
of 
section 
168(k)(4)(C)(iii) of such Code, as in ef-
fect before the amendments made by 
this section), multiplied by 
(II) a fraction the numerator of 
which is the number of days in the tax-
able year before January 1, 2015, and 
the denominator of which is the num-
ber of days in the taxable year, plus 
(ii) the product of— 
(I) such limitation (determined 
without regard to this subparagraph), 
multiplied by 
(II) a fraction the numerator of 
which is the number of days in the tax-
able year after December 31, 2014, and 
the denominator of which is the num-
ber of days in the taxable year. 
(3) SPECIAL RULES FOR CERTAIN PLANTS BEAR-
ING FRUITS AND NUTS.—The amendments made by 
subsection (c) (other than paragraph (1) thereof) shall 
apply to specified plants (as defined in section 
168(k)(5)(B) of the Internal Revenue Code of 1986, as 
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amended by this section) planted or grafted after De-
cember 31, 2014. 
SEC. 2. BUDGETARY EFFECTS. 
The budgetary effects of this Act shall not be entered 
on either PAYGO scorecard maintained pursuant to section 
4(d) of the Statutory Pay-As-You-Go Act of 2010. 
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Union Calendar No. 240 
114TH CONGRESS 
1ST SESSION 
H. R. 2510 
[Report No. 114–317, Part I] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
modify and make permanent bonus depreciation. 
OCTOBER 28, 2015 
Reported from the Committee on Ways and Means with 
an amendment 
OCTOBER 28, 2015 
The Committee on the Budget discharged; committed to 
the Committee of the Whole House on the State of the 
Union and ordered to be printed 
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