[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7298 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 7298
To amend the Internal Revenue Code of 1986 to make permanent the
deduction for expensing certain depreciable business assets and to
allow a deduction for the original purchase of domestically
manufactured automobiles.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 20, 2008
Mr. Lamborn (for himself, Mr. Paul, and Ms. Foxx) 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 make permanent the
deduction for expensing certain depreciable business assets and to
allow a deduction for the original purchase of domestically
manufactured automobiles.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SMALL BUSINESS EXPENSING PROVISIONS MADE PERMANENT.
(a) Increase in Small Business Expensing Made Permanent.--
(1) In general.--Subsection (b) of section 179 of the
Internal Revenue Code of 1986 (relating to limitations) is
amended--
(A) by striking ``$25,000 ($125,000 in the case of
taxable years beginning after 2006 and before 2011)''
in paragraph (1) and inserting ``$500,000'', and
(B) by striking ``$200,000 ($500,000 in the case of
taxable years beginning after 2006 and before 2011)''
in paragraph (2) and inserting ``$1,000,000''.
(2) Conforming amendment.--Section 179(b) of such Code is
amended by striking paragraph (7).
(b) Expensing for Computer Software Made Permanent.--Clause (ii) of
section 179(d)(1)(A) of such Code is amended by striking ``and which is
placed in service in a taxable year beginning after 2002 and before
2011,''.
(c) Inflation Adjustment.--
(1) So much of subparagraph (A) of section 179(b)(5) of
such Code as precedes clause (i) thereof is amended to read as
follows:
``(A) In general.--In the case of any taxable year
beginning in a calendar year after 2009, the $500,000
and $1,00,000 amounts in paragraphs (1) and (2) shall
each be increased by an amount equal to--''.
(2) Section 179(b)(5)(A)(ii) of such Code is amended by
striking ``2006'' and inserting ``2008''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 2. DEDUCTION FOR PURCHASE OF DOMESTICALLY MANUFACTURED
AUTOMOBILES.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to additional itemized
deductions for individuals) is amended by redesignating section 224 as
section 225 and by inserting after section 223 the following new
section:
``SEC. 224. DEDUCTION FOR PURCHASE OF DOMESTICALLY MANUFACTURED
AUTOMOBILES.
``(a) Allowance of Deduction.--In the case of an individual, there
shall be allowed as a deduction an amount equal to the cost of any
qualified automobile placed in service by the taxpayer during the
taxable year.
``(b) Limitation Per Vehicle.--The amount of the deduction allowed
under subsection (a) for any vehicle shall not exceed $10,000.
``(c) Qualified Automobile.--For purposes of this section--
``(1) In general.--The term `qualified automobile' means
any motor vehicle--
``(A) the final assembly of which is in the United
States by a manufacturer,
``(B) the original use of which commences with the
taxpayer, and
``(C) which is acquired for use by the taxpayer and
not for resale.
``(2) Motor vehicle.--For purposes of paragraph (1), the
term `motor vehicle' means any vehicle which is manufactured
primarily for use on public streets, roads, and highways (not
including a vehicle operated exclusively on a rail or rails)
and which has at least 4 wheels.
``(d) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a deduction is allowable under subsection (a) shall be reduced
by the amount of such deduction.
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any deduction allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such deduction.
``(3) Property used outside united states, etc., not
qualified.--No deduction shall be allowed under subsection (a)
with respect to any property referred to in section 50(b) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(4) Property used in trade or business.--No deduction
shall be allowed under subsection (a) with respect to any
property of a character which is subject to the allowance under
section 167 (relating to allowance for depreciation, etc.).
``(e) Denial of Double Benefit.--No deduction shall be allowed
under subsection (a) for any expense for which a deduction or credit is
allowed under any other provision of this chapter.
``(f) Termination.--This section shall not apply to any taxable
year beginning after December 31, 2010.''.
(b) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by striking the last
item and inserting the following new items:
``Sec. 224. Deduction for purchase of domestically manufactured
automobiles.
``Sec. 225. Cross reference.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service in taxable years ending after the
date of the enactment of this Act.
<all>