To amend the Internal Revenue Code of 1986 to provide a 1-year extension of the increased expensing of certain depreciable business assets and the special depreciation allowance for certain business property.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Expansion and Job 
Creation Act of 2010''.

SEC. 2. EXTENSION OF INCREASE IN LIMITATION ON EXPENSING OF CERTAIN 
              DEPRECIABLE BUSINESS ASSETS.

    (a) Extension of Increased Limitations.--Paragraph (7) of section 
179(b) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``or 2009'' and inserting ``2009, or 
        2010'', and
            (2) by striking ``and 2009'' in the heading and inserting 
        ``2009, and 2010''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 3. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2010.

    (a) Extension of Special Allowance.--
            (1) In general.--Paragraph (2) of section 168(k) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``January 1, 2011'' and inserting 
                ``January 1, 2012'', and
                    (B) by striking ``January 1, 2010'' each place it 
                appears and inserting ``January 1, 2011''.
            (2) Conforming amendments.--
                    (A) The heading for subsection (k) of section 168 
                of such Code is amended by striking ``2010'' and 
                inserting ``2011''.
                    (B) The heading for clause (ii) of section 
                168(k)(2)(B) of such Code is amended by striking ``pre-
                january 1, 2010'' and inserting ``pre-january 1, 
                2011''.
                    (C) Subparagraph (B) of section 168(l)(5) of such 
                Code is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
                    (D) Subparagraph (C) of section 168(n)(2) of such 
                Code is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
                    (E) Subparagraph (B) of section 1400N(d)(3) of such 
                Code is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
    (b) Extension of Election To Accelerate the AMT and Research 
Credits in Lieu of Bonus Depreciation.--Paragraph (4) of section 168(k) 
of such Code (relating to election to accelerate the AMT and research 
credits in lieu of bonus depreciation) is amended--
            (1) by striking ``January, 1, 2010'' and inserting 
        ``January 1, 2011'' in subparagraph (D)(iii), and
            (2) by adding at the end the following new subparagraph:
                    ``(I) Special rules for 2010 extension property.--
                            ``(i) Taxpayers previously electing 
                        acceleration.--In the case of a taxpayer who 
                        made the election under subparagraph (A) for 
                        its first taxable year ending after March 31, 
                        2008, or under subparagraph (H) for its first 
                        taxable year ending after December 31, 2008--
                                    ``(I) the taxpayer may elect not to 
                                have this paragraph apply to 2010 
                                extension property, but
                                    ``(II) if the taxpayer does not 
                                make the election under subclause (I), 
                                in applying this paragraph to the 
                                taxpayer a separate bonus depreciation 
                                amount, maximum amount, and maximum 
                                increase amount shall be computed and 
                                applied to eligible qualified property 
                                which is 2010 extension property.
                            ``(ii) Taxpayers not previously electing 
                        acceleration.--In the case of a taxpayer who 
                        did not make the election under subparagraph 
                        (A) for its first taxable year ending after 
                        March 31, 2008, or under subparagraph (H) for 
                        its first taxable year ending after December 
                        31, 2008--
                                    ``(I) the taxpayer may elect to 
                                have this paragraph apply to its first 
                                taxable year ending after December 31, 
                                2009, and each subsequent taxable year, 
                                and
                                    ``(II) if the taxpayer makes the 
                                election under subclause (I), this 
                                paragraph shall only apply to eligible 
                                qualified property which is 2010 
                                extension property.
                            ``(iii) 2010 extension property.--For 
                        purposes of this subparagraph, the term `2010 
                        extension property' means property which is 
                        eligible qualified property solely by reason of 
                        the extension of the application of the special 
                        allowance under paragraph (1) pursuant to the 
                        amendments made by section 2(a) of the Small 
                        Business Expansion and Job Creation Act of 2010 
                        (and the application of such extension to this 
                        paragraph pursuant to the amendment made by 
                        section 2(b)(1) of such Act).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2009, in taxable 
years ending after such date.

Summary: Small Business Expansion and Job Creation Act of 2010 - Amends the Internal Revenue Code to extend through 2010: (1) the increased ($250,000) expensing allowance for depreciable business assets; (2) the additional 50% depreciation allowance for certain types of investment property acquired in 2010; and (3) the election to accelerate the tax credits for the alternative minimum tax and research expenditures in lieu of bonus depreciation.