1.This Act may be cited as the
Invest in America Now Act of
2012
.
2.Extension of allowance
for bonus depreciation for certain business assets
(a)Extension of 100
percent bonus depreciation for 2012
(1)Paragraph (5) of section 168(k) of the Internal Revenue
Code of 1986 is amended—
(A)by striking
January 1, 2012
each place it appears and inserting
January 1, 2013
, and
(B)by striking
January 1, 2013
and inserting January 1,
2014
.
(2)
(A)The heading for
paragraph (5) of section 168(k) of such Code is amended by striking
pre-2012
periods
and inserting pre-2013 periods
.
(B)Clause (ii) of
section 460(c)(6)(B) of such Code is amended by striking January 1, 2011
(January 1, 2012
and inserting January 1, 2013 (January 1,
2014
.
(3)
(A)Except as provided in subparagraph (B), the amendments
made by this subsection shall apply to property placed in service after
December 31, 2011.
(B)The amendment made by paragraph (2)(B) shall apply to
property placed in service after December 31, 2010.
(b)Expansion of
election To accelerate AMT credits in lieu of bonus depreciation
(1)Paragraph (4) of section 168(k) of the Internal Revenue
Code of 1986 is amended to read as follows:
(4)Election to
accelerate amt credits in lieu of bonus depreciation
(A)If a corporation elects to have this paragraph apply for
any taxable year—
(i)paragraph (1)
shall not apply to any eligible qualified property placed in service by the
taxpayer in such taxable year,
(ii)the applicable
depreciation method used under this section with respect to such property shall
be the straight line method, and
(iii)the limitation
imposed by section 53(c) for such taxable year shall be increased by the bonus
depreciation amount which is determined for such taxable year under
subparagraph (B).
(B)Bonus
depreciation amountFor purposes of this paragraph—
(i)The bonus depreciation amount for any taxable year is an
amount equal to 20 percent of the excess (if any) of—
(I)the aggregate
amount of depreciation which would be allowed under this section for eligible
qualified property placed in service by the taxpayer during such taxable year
if paragraph (1) applied to all such property, over
(II)the aggregate
amount of depreciation which would be allowed under this section for eligible
qualified property placed in service by the taxpayer during such taxable year
if paragraph (1) did not apply to any such property.
The aggregate
amounts determined under subclauses (I) and (II) shall be determined without
regard to any election made under subsection (b)(2)(D), (b)(3)(D), or (g)(7)
and without regard to subparagraph (A)(ii).(ii)The
bonus depreciation amount for any taxable year shall not exceed the lesser
of—
(I)50 percent of the minimum tax credit under
section 53(b) for the first taxable year ending after December 31, 2011,
reduced (but not below zero) by the sum of the bonus depreciation amounts for
all taxable years ending after such date for which an election under this
paragraph was made which precede the taxable year for which the determination
is made (other than amounts determined with respect to property placed in
service by the taxpayer on or before such date), or
(II)the minimum tax
credit under section 53(b) for such taxable year determined by taking into
account only the adjusted minimum tax for taxable years ending before January
1, 2012 (determined by treating credits as allowed on a first-in, first-out
basis).
(iii)All corporations which are treated as a single employer
under section 52(a) shall be treated—
(I)as 1 taxpayer for
purposes of this paragraph, and
(II)as having elected
the application of this paragraph if any such corporation so elects.
(C)Eligible
qualified propertyFor purposes of this paragraph, the term
eligible qualified property means qualified property under
paragraph (2), except that in applying paragraph (2) for purposes of this
paragraph—
(i)March 31,
2008
shall be substituted for December 31, 2007
each
place it appears in subparagraph (A) and clauses (i) and (ii) of subparagraph
(E) thereof,
(ii)April 1,
2008
shall be substituted for January 1, 2008
in
subparagraph (A)(iii)(I) thereof, and
(iii)only adjusted
basis attributable to manufacture, construction, or production—
(I)after March 31,
2008, and before January 1, 2010, and
(II)after December
31, 2010, and before January 1, 2013, shall be taken into account under
subparagraph (B)(ii) thereof.
(D)For purposes of section 6401(b), the aggregate
increase in the credits allowable under part IV of subchapter A for any taxable
year resulting from the application of this paragraph shall be treated as
allowed under subpart C of such part (and not any other subpart).
(E)
(i)Any
election under this paragraph may be revoked only with the consent of the
Secretary.
(ii)Partnerships
with electing partnersIn the case of a corporation making an
election under subparagraph (A) and which is a partner in a partnership, for
purposes of determining such corporation’s distributive share of partnership
items under section 702—
(I)paragraph (1)
shall not apply to any eligible qualified property, and
(II)the applicable
depreciation method used under this section with respect to such property shall
be the straight line method.
(iii)In the case of a
partnership in which more than 50 percent of the capital and profits interests
are owned (directly or indirectly) at all times during the taxable year by one
corporation (or by corporations treated as 1 taxpayer under subparagraph
(B)(iii)), for purposes of subparagraph (B), each partner shall take into
account its distributive share of the amounts determined by the partnership
under subclauses (I) and (II) of clause (i) of such subparagraph for the
taxable year of the partnership ending with or within the taxable year of the
partner. The preceding sentence shall apply only to amounts determined with
respect to property placed in service after December 31, 2011.
(iv)Special rule
for passenger aircraftIn the case of any passenger aircraft, the
written binding contract limitation under paragraph (2)(A)(iii)(I) shall not
apply for purposes of subparagraphs (B)(i)(I) and
(C).
.
(2)The amendment made by this subsection shall apply to taxable
years ending after December 31, 2011.
(3)In the case of a taxable year beginning before January 1,
2012, and ending after December 31, 2011, the bonus depreciation amount
determined under paragraph (4) of section 168(k) of the Internal Revenue Code
of 1986 for such year shall be the sum of—
(A)such amount
determined under such paragraph as in effect on the date before the date of
enactment of this Act—
(i)taking into
account only property placed in service before January 1, 2012, and
(ii)multiplying the
limitation under subparagraph (C)(ii) of such paragraph (as so in effect) by a
fraction the numerator of which is the number of days in the taxable year
before January 1, 2012, and the denominator of which is the number of days in
the taxable year, and
(B)such amount
determined under such paragraph as amended by this Act—
(i)taking into
account only property placed in service after December 31, 2011, and
(ii)multiplying the
limitation under subparagraph (B)(ii) of such paragraph (as so in effect) by a
fraction the numerator of which is the number of days in the taxable year after
December 31, 2011, and the denominator of which is the number of days in the
taxable year.
3.Limitation on section
199 deduction attributable to oil, natural
gas, or primary products thereof
(a)Paragraph (4) of section 199(c) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subparagraph:
(E)Special rule for
certain oil and gas incomeIn the case of any taxpayer who is a
major integrated oil company (as defined in section 167(h)(5)(B)) for the
taxable year, the term domestic production gross receipts shall
not include gross receipts from the production, transportation, or distribution
of oil, natural gas, or any primary product (within the meaning of subsection
(d)(9))
thereof.
.
(b)The amendment made by this section shall apply to taxable
years beginning after December 31, 2011.