SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Job Creation Economic Stimulus Act 
of 2008''.

SEC. 2. ADOPTION OF THE HIGH PRODUCTIVITY INVESTMENT DEDUCTION.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by inserting after section 168 
the following new section:

``SEC. 168A. HIGH PRODUCTIVITY INVESTMENT DEDUCTION.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat the 
cost of any high productivity property as an expense not chargeable to 
capital account. Any cost so treated shall be allowed as a deduction in 
the taxable year in which the high productivity property is placed in 
service.
    ``(b) Definition of High Productivity Property.--
            ``(1) In general.--Except as provided in paragraph (3), the 
        term `high productivity property' means any--
                    ``(A) computer,
                    ``(B) computer related peripheral equipment,
                    ``(C) computer based machinery,
                    ``(D) electronic diagnostic equipment,
                    ``(E) electronic control equipment,
                    ``(F) other electronic, electromechanical, laser or 
                computer based equipment,
                    ``(G) computer software,
                    ``(H) equipment used in the manufacture of 
                semiconductors,
                    ``(I) high technology medical equipment,
                    ``(J) advanced technology communications equipment,
                    ``(K) optical fiber and photonics equipment,
                    ``(L) advanced environmental products,
                    ``(M) advanced life science products, or
                    ``(N) new high productivity assets.
            ``(2) Definitions.--For purposes of this subsection:
                    ``(A) Computer.--The term `computer' means a 
                programmable electronically activated device which--
                            ``(i) is capable of accepting information, 
                        applying prescribed processes to the 
                        information, and supplying the results of those 
                        processes, and
                            ``(ii) consists of a central processing 
                        unit containing extensive storage, logic, 
                        arithmetic and control capabilities.
                    ``(B) Computer related peripheral equipment.--The 
                term `computer related peripheral equipment' means any 
                auxiliary machine or other equipment (whether on-line 
                or off-line) which is designed to be placed under the 
                control of the central processing unit of a computer 
                (as determined without regard to whether such machine 
                or equipment is an integral part of other property 
                which is not a computer).
                    ``(C) Computer based machinery.--The term `computer 
                based machinery' means any machine which--
                            ``(i) cuts, forms, shapes, drills, bores, 
                        mixes, paints, seals, welds, or otherwise 
                        transforms material, or
                            ``(ii) handles, conveys, assembles, or 
                        packages materials or products,
                by responding to electronically stored information and 
                programmed commands.
                    ``(D) Electronic diagnostic equipment.--The term 
                `electronic diagnostic equipment' means equipment that 
                uses electronic components to sense or monitor 
                location, size, volume, surface characteristics, 
                pressure, temperature, speed, chemical composition, or 
                other similar characteristics.
                    ``(E) Electronic control equipment.--The term 
                `electronic control equipment' means equipment that 
                electronically controls pressure, temperature, size, 
                volume, composition purity or other similar 
                characteristics.
                    ``(F) High technology medical equipment.--The term 
                `high technology medical equipment' means any 
                electronic, electromechanical, or computer-based high 
                technology equipment used in the screening, monitoring, 
                observation, diagnosis, or treatment of patients in a 
                laboratory, medical, or hospital environment.
                    ``(G) Advanced technology communications 
                equipment.--The term `advanced technology 
                communications equipment' means equipment used in the 
                transmission or reception of voice, data, video, 
                paging, messaging, or other communications services 
                that are delivered using packet technology. A packet is 
                a unit of data, or sequence of binary digits, that is 
                routed between an origin and a destination on a packet-
                switched network.
                    ``(H) Optical fiber and photonics equipment.--The 
                term `optical fiber and photonics equipment' means 
                optical fiber and the equipment and materials used to 
                generate, manipulate and direct light particles over 
                such fiber.
                    ``(I) Advanced environmental products.--The term 
                `advanced environmental product' means any high cell 
                density ceramic or other device used for the control of 
                nitrogen oxide and particulate emissions.
                    ``(J) Advanced life sciences products.--The term 
                `advanced life sciences product' means any polymer, 
                ceramic or high-purity glass product used in biological 
                research.
                    ``(K) New high productivity assets.--
                            ``(i) In general.--The term `new high 
                        productivity assets' means any asset utilizing 
                        1 or more technological or scientific processes 
                        which were not in common commercial use before 
                        January 1, 2007.
                            ``(ii) Determinations.--The Secretary shall 
                        establish procedures pursuant to which 
                        taxpayers can seek a public ruling that a 
                        particular class of assets qualifies as new 
                        high productivity assets. The procedures shall 
                        require the Secretary to provide a 
                        determination within 90 days of receipt of a 
                        properly completed request for a public ruling.
            ``(3) Excluded property.--The term `high productivity 
        property' shall not include--
                    ``(A) an entire car, locomotive, aircraft, ship or 
                other vehicle solely because the vehicle is controlled 
                in whole or part by a computer or other electronic 
                equipment,
                    ``(B) any equipment of a kind used primarily for 
                entertainment or amusement of the user, and
                    ``(C) typewriters, calculators, copiers, 
                duplication equipment, and other similar equipment.
    ``(c) Election.--An election under this section for any taxable 
year shall--
            ``(1) be made on an asset by asset basis, and
            ``(2) be made on the taxpayer's return of the tax imposed 
        by this chapter for the taxable year.
    ``(d) Special Rules.--
            ``(1) Cost.--For purposes of this section, the cost of 
        property does not include so much of the basis of such property 
        as is determined by reference to the basis of other property 
        held at any time by the person acquiring such property.
            ``(2) Antichurning rules.--
                    ``(A) In general.--This section shall not apply to 
                any property acquired by the taxpayer after December 
                31, 2007, if--
                            ``(i) the property was owned or used at any 
                        time during the period beginning on January 1, 
                        2007, and ending on December 31, 2007, by the 
                        taxpayer or a related person,
                            ``(ii) the property was owned or used at 
                        any time during the period described in clause 
                        (i), and, as part of the transaction, the user 
                        of the property does not change,
                            ``(iii) the taxpayer leases such property 
                        to a person (or a person related to such 
                        person) who owned or used such property at any 
                        time during the period described in clause (i), 
                        or
                            ``(iv) the property is acquired in a 
                        transaction as part of which the user of such 
                        property does not change and the property was 
                        acquired from a person to which clause (ii) or 
                        clause (iii) applies.
                    ``(B) Applicable cost recovery rules.--Section 168 
                shall apply to any property to which this section does 
                not apply by reason of this paragraph.
                    ``(C) Special rules.--For purposes of this 
                paragraph--
                            ``(i) property shall not be treated as 
                        owned before it is placed in service, and
                            ``(ii) whether the user of a property 
                        changes will be determined in accordance with 
                        regulations prescribed by the Secretary.
            ``(3) Recapture in certain cases.--The Secretary shall, by 
        regulations, provide for the recapturing the benefit under any 
        deduction allowable under subsection (a) with respect to any 
        property which is not used predominantly in a trade or business 
        at any time.
            ``(4) Alternative depreciation system applies.--The 
        election under subsection (a) may not be made with respect to 
        property which at any time during the taxable year in which 
        such property is placed in service is--
                    ``(A) described in paragraph (1) of section 
                168A(g), or
                    ``(B) `listed property' `not predominantly used in 
                a qualified business use' as such terms apply for 
                purposes of paragraph (1) of 280F(b).
    ``(e) Termination.--This section shall only apply to property which 
is--
            ``(1) acquired by the taxpayer after December 31, 2007, and 
        before January 1, 2009, but only if no written binding contract 
        for the acquisition was in effect before January 1, 2008, or
            ``(2)(A) acquired by the taxpayer pursuant to a written 
        binding contract which was entered into after December 31, 
        2007, and before January 1, 2009, and
            ``(B) placed in service in taxable years beginning after 
        December 31, 2009.''.
    (b) Conforming Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by adding after 
section 168 the following new item:

``Sec. 168A. High productivity investment deduction.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2007, with 
respect to taxable years beginning after such date.

SEC. 3. 50 PERCENT ALLOWANCE FOR DEPRECIATION FOR CERTAIN PROPERTY 
              ACQUIRED DURING 2008.

    (a) In General.--Paragraph (4) of section 168(k) of the Internal 
Revenue Code of 1986 (relating to 50-percent bonus for certain 
property) is amended--
            (1) by striking ``May 5, 2003'' each place it appears and 
        inserting ``December 31, 2007'',
            (2) by striking ``January 1, 2005'' each place it appears 
        and inserting ``January 1, 2009'',
            (3) by striking ``May 6, 2003'' in subparagraph (B)(ii)(I) 
        and inserting ``January 1, 2008'',
            (4) by striking ``January 1, 2006'' in subparagraph 
        (B)(iii) and inserting ``January 1, 2010'', and
            (5) by striking ``of 30-percent bonus'' in the heading for 
        subparagraph (E).
    (b) Repeal of Basis Limitation for Certain Property.--Subparagraph 
(B) of section 168(k)(2) of such Code is amended by striking clause 
(ii) and redesignating clause (iii) as clause (ii).
    (c) Syndications.--Paragraph (4) of section 168(k) of such Code 
(relating to 50-percent depreciation for certain property) is amended 
by adding at the end the following:
                    ``(F) Syndications.--For purposes of applying 
                paragraph (2)(A)(ii) by reason of this paragraph, if 
                property--
                            ``(i) is treated as originally placed in 
                        service after December 31, 2007, either 
                        directly or by a lessor of such property or 
                        pursuant to paragraph (2)(D)(ii), and
                            ``(ii) is sold within 6 months after such 
                        property is so placed in service,
                such property shall be treated as originally placed in 
                service not earlier than the date of such sale.''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to property placed in service in taxable years beginning 
        after December 31, 2007.
            (2) Exception for certain property.--The amendments made by 
        this section shall not apply to any property to which section 
        105 of the Gulf Opportunity Zone Act of 2005 applies.

SEC. 4. DEPRECIATION RULES NOT MODIFIED FOR PURPOSES OF ALTERNATIVE 
              MINIMUM TAX.

    (a) Determination of Alternative Taxable Income.--Paragraph (1) of 
section 56(a) of the Internal Revenue Code of 1986 (relating to 
depreciation) is amended by adding at the end the following new 
subparagraph:
                    ``(E) Termination.--This paragraph shall not apply 
                to property placed in service in a taxable year 
                beginning in 2008 or 2009.''.
    (b) Determination of Adjusted Current Earnings.--Subparagraph (A) 
of section 56(g)(4) of such Code (relating to depreciation) is amended 
by adding at the end the following new clause:
                            ``(vi) Termination.--This subparagraph 
                        shall not apply to property placed in service 
                        in a taxable year beginning in 2008 or 2009.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2007, in taxable 
years beginning after such date.

SEC. 5. LONG-TERM CONTRACT ACCOUNTING.

    (a) In General.--Section 168(k)(2) of the Internal Revenue Code of 
1986 is amended by adding after subparagraph (G) the following new 
subparagraph:
                    ``(H) Long-term contract accounting.--The 
                percentage of completion method under section 460 shall 
                be applied as if this subsection had not been 
                enacted.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act in taxable years ending after such date.

SEC. 6. LONG-TERM UNUSED CREDITS ALLOWED AGAINST MINIMUM TAX.

    (a) In General.--Subsection (c) of section 53 of the Internal 
Revenue Code of 1986 (relating to limitation) is amended by adding at 
the end the following new paragraph:
            ``(2) Special rule for corporations with long-term unused 
        credits.--
                    ``(A) In general.--If a corporation to which 
                section 56(g) applies has a long-term unused minimum 
                tax credit for a taxable year, the credit allowable 
                under subsection (a) for the taxable year shall not 
                exceed the greater of--
                            ``(i) the limitation determined under 
                        paragraph (1) for the taxable year, or
                            ``(ii) the least of the following for the 
                        taxable year:
                                    ``(I) The sum of the tax imposed by 
                                section 55 and the regular tax reduced 
                                by the sum of the credits allowed under 
                                subparts A, B, D, E, and F of this 
                                part.
                                    ``(II) The long-term unused minimum 
                                tax credit.
                                    ``(III) The sum of--
                                            ``(aa) 50 percent of 
                                        qualified investment, plus
                                            ``(bb) the qualified 
                                        investment carryover to the 
                                        taxable year.
                    ``(B) Long-term unused minimum tax credit.--For 
                purposes of this paragraph--
                            ``(i) In general.--The long-term unused 
                        minimum tax credit for any taxable year is the 
                        portion of the minimum tax credit determined 
                        under subsection (b) attributable to the 
                        adjusted net minimum tax for taxable years 
                        beginning after 1986 and ending before the 3rd 
                        taxable year immediately preceding the taxable 
                        year for which the determination is being made.
                            ``(ii) First-in, first-out ordering rule.--
                        For purposes of clause (i), credits shall be 
                        treated as allowed under subsection (a) on a 
                        first-in, first-out basis.
                    ``(C) Qualified investment and qualified investment 
                carryover.--For purposes of this paragraph--
                            ``(i) Qualified investment.--Qualified 
                        investment is property described in section 
                        1245(a)(3) placed in service in the taxable 
                        year.
                            ``(ii) Qualified investment carryover.--The 
                        qualified investment carryover is the amount by 
                        which 50 percent of qualified investment 
                        exceeds the amount of tax in paragraph 
                        (2)(A)(ii)(I). The qualified investment 
                        carryover may be carried only to the first 
                        taxable year following the current year.
                    ``(D) Termination.--Subparagraph (A) shall not 
                apply to any taxable year beginning after December 31, 
                2008.''.
    (b) Conforming Amendments.--Section 53(c) of such Code is amended--
            (1) by striking ``The'' and inserting the following:
            ``(1) In general.--The''; and
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively.
Output: Job Creation Economic Stimulus Act of 2008 - Amends the Internal Revenue Code to allow the expensing of the cost of certain high productivity property placed in service in 2008, including computer and computer-related peripheral equipment, electronic equipment, software, high technology medical equipment, and advanced environmental and life science products.

Allow a 50% depreciation allowance for certain business equipment acquired in 2008.

Exempts acclerated depreciation amounts related to properties placed in service in 2008 or 2009 from adjustments in computing alternative minimum taxable income.

Allows an offset in 2008 against the alternative minimum tax liability of corporations for their long-term unused tax credits.