Mandated Expenses Tax Relief Act

Bill: 114-hr-5818
Sponsor: full_name: Rep. Blum, Rod [R-IA-1]
Introduced: 2016-07-14
Policy area: Taxation
Subjects: Administrative law and regulatory procedures

Business expenses

Business investment and capital

Income tax deductions
Latest action: action_date: 2016-07-14
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-07-14
action_desc: Introduced in House
text: <p><b>Mandated Expenses Tax Relief Act </b></p> <p>This bill amends the Internal Revenue Code to permit a taxpayer to elect to expense the cost of federal compliance property and deduct the cost for the taxable year in which the property is placed in service. &quot;Federal compliance property&quot; is any property that: (1) is of a character with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and (2) is used by the taxpayer to comply with any federal law or regulation. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5818 IN THE HOUSE OF REPRESENTATIVES July 14, 2016 Mr. Blum (for himself, Mr. Grothman , and Mr. Bishop of Michigan ) 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 provide for expensing of property used to comply with Federal laws and regulations.

1. Short title This Act may be cited as the Mandated Expenses Tax Relief Act . 2. Expensing of property used to comply with Federal laws and regulations (a) In general Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 179E the following new section: 179F. Election to expense property used to comply with Federal laws and regulations (a) In general A taxpayer may elect to treat the cost of any Federal compliance property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the Federal compliance property is placed in service. (b) Federal compliance property For purposes of this section, the term Federal compliance property means any property— (1) which is of a character with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and (2) which is used by the taxpayer to comply with any Federal law or regulation. (c) Election (1) In general An election under this section for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year. Such election shall specify the Federal compliance property to which the election applies and shall be made in such manner as the Secretary may provide. (2) Election irrevocable Any election made under this section may not be revoked except with the consent of the Secretary. . (b) Conforming amendments (1) Section 312(k)(3)(B) of such Code is amended by striking or 179E each place it appears in the heading and text and inserting 179E, or 179F . (2) Paragraphs (2)(C) and (3)(C) of section 1245(a) of such Code are each amended by inserting 179F, after 179E, . (3) The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 179E the following new item: Sec. 179F. Election to expense property used to comply with Federal laws and regulations. . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.