SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Stimulus Through Bonus 
Depreciation Act of 2001''.

SEC. 2. BONUS DEPRECIATION ALLOWANCE FOR CERTAIN BUSINESS ASSETS.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
(relating to accelerated cost recovery system) is amended by adding at 
the end the following:
    ``(k) Bonus Allowance for Certain Business Assets.--
            ``(1) In general.--In the case of any qualified property--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                property is placed in service shall be an amount equal 
                to 50 percent of the adjusted basis of the qualified 
                property, and
                    ``(B) subject to paragraph (2), the amount 
                otherwise allowable as a depreciation deduction under 
                this chapter for any subsequent taxable year shall be 
                computed in the same manner as if this subsection had 
                not been enacted.
            ``(2) Adjusted basis.--The aggregate deduction allowed 
        under this section for taxable years described in paragraph 
        (1)(B) with respect to any qualified property shall not exceed 
        the adjusted basis of such property reduced by the amount of 
        the deduction allowed under paragraph (1)(A).
            ``(3) Qualified property.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified property' 
                means property--
                            ``(i)(I) to which this section applies, or
                            ``(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,
                            ``(ii) the original use of which commences 
                        with the taxpayer on or after September 11, 
                        2001,
                            ``(iii) which is--
                                    ``(I) acquired by the taxpayer on 
                                or after September 11, 2001, and before 
                                July 1, 2002, but only if no written 
                                binding contract for the acquisition 
                                was in effect before September 11, 
                                2001, or
                                    ``(II) acquired by the taxpayer 
                                pursuant to a written binding contract 
                                which was entered into on or after 
                                September 11, 2001, and before July 1, 
                                2002, and
                            ``(iv) which is placed in service by the 
                        taxpayer before January 1, 2003.
                    ``(B) Exceptions.--
                            ``(i) Alternative depreciation property.--
                        The term `qualified property' shall not include 
                        any property to which the alternative 
depreciation system under subsection (g) applies, determined--
                                    ``(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).
                            ``(ii) Election out.--If a taxpayer makes 
                        an election under this clause with respect to 
                        any class of property for any taxable year, 
                        this subsection shall not apply to all property 
                        in such class placed in service during such 
                        taxable year.
                            ``(iii) Repaired or reconstructed 
                        property.--Except as otherwise provided in 
                        regulations, the term `qualified property' 
                        shall not include any repaired or reconstructed 
                        property.
                    ``(C) Special rules relating to original use.--
                            ``(i) Self-constructed property.--In the 
                        case of a taxpayer manufacturing, constructing, 
                        or producing property for the taxpayer's own 
                        use, the requirements of clause (ii) of 
                        subparagraph (A) shall be treated as met if the 
                        taxpayer begins manufacturing, constructing, or 
                        producing the property on or after September 
                        11, 2001, and before January 1, 2003.
                            ``(ii) Sale-leasebacks.--For purposes of 
                        subparagraph (A)(i), if property--
                                    ``(I) is originally placed in 
                                service on or after September 11, 2001, 
                                by a person, and
                                    ``(II) is 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).
                    ``(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 equipment, the 
                        Secretary shall increase the limitation under 
                        section 280F(a)(1)(A)(i), and decrease each 
                        other limitation under subparagraphs (A) and 
                        (B) of section 280F(a)(1), to appropriately 
                        reflect the amount of the deduction allowable 
                        under paragraph (1).
                            ``(ii) Listed property.--The deduction 
                        allowable under paragraph (1) shall be taken 
                        into account in computing any recapture amount 
                        under section 280F(b)(2).
            ``(4) Applicable convention.--Subsection (d)(3) shall not 
        apply in determining the applicable convention with respect to 
        qualified property.''.
    (b) Allowance Against Alternative Minimum Tax.--
            (1) In general.--Section 56(a)(1)(A) of the Internal 
        Revenue Code of 1986 (relating to depreciation adjustment for 
        alternative minimum tax) is amended by adding at the end the 
        following:
                            ``(iii) Additional allowance for certain 
                        business assets.--The deduction under section 
                        168(k) shall be allowed.''.
            (2) Conforming amendment.--Clause (i) of section 
        56(a)(1)(A) of such Code is amended by inserting ``or (iii)'' 
        after ``(ii)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service on or after September 11, 2001, in 
taxable years ending on or after such date.
Output: Economic Stimulus Through Bonus Depreciation Act of 2001 - Amends the Internal Revenue Code to provide a 50 percent bonus (first-year) deduction for qualified business property (including computer software) acquired or contracted for between September 11, 2001 and July 1, 2002, and placed in service before January 1, 2003.Sets forth related provisions respecting: (1) alternative depreciation property; (2) original use; and (3) alternative minimum tax.