April 3, 2008, 12:00 am ET - Amendment SA 4406 proposed by Senator Voinovich to Amendment SA 4387.
April 4, 2008, 12:00 am ET - Considered by Senate.
April 4, 2008, 9:08 am ET - Voinovich Amdt. No. 4406 As Modified
Full Text of this Amendment
and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:
At the end of title VI, insert the following:
SEC. __X. ELECTION TO ACCELERATE AMT AND R AND D CREDITS IN LIEU OF BONUS DEPRECIATION.
(a) In General.--Section 168(k), as amended by this Act, is amended by adding at the end the following new paragraph:
``(5) ELECTION TO ACCELERATE AMT AND R AND D CREDITS IN LIEU OF BONUS DEPRECIATION.--
``(A) IN GENERAL.--If a corporation which is an eligible taxpayer (within the meaning of paragraph (4)) for purposes of this subsection elects to have this paragraph apply--
``(i) no additional depreciation shall be allowed under paragraph (1) for any qualified property placed in service during any taxable year to which paragraph (1) would otherwise apply, and
``(ii) the limitations described in subparagraph (B) for such taxable year shall be increased by an aggregate amount not in excess of the bonus depreciation amount for such taxable year.
``(B) LIMITATIONS TO BE INCREASED.--The limitations described in this subparagraph are--
``(i) the limitation under section 38(c), and
``(ii) the limitation under section 53(c).
``(C) BONUS DEPRECIATION AMOUNT.--For purposes of this paragraph--
``(i) IN GENERAL.--The bonus depreciation amount for any applicable taxable year is an amount equal to the product of 20 percent and the excess (if any) of--
``(I) the aggregate amount of depreciation which would be determined under this section for the taxable year if no election under this paragraph were made and if this subsection applied only to eligible qualified property, over
``(II) the aggregate amount of depreciation allowable under this section for the taxable year.
``(ii) ELIGIBLE QUALIFIED PROPERTY.--For purposes of clause (i), the term `eligible qualified property' means qualified property under paragraph (2), except that in applying paragraph (2) for purposes of this clause--
``(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) only adjusted basis attributable to manufacture, construction, or production after March 31, 2008, and before January 1, 2009, shall be taken into account under subparagraph (B)(ii) thereof, and
``(III) in the case of property which is a passenger aircraft, the written binding contract limitation under subparagraph (A)(iii)(I) thereof shall not apply.
``(iii) MAXIMUM AMOUNT.--The bonus depreciation amount for any applicable taxable year shall not exceed the applicable limitation under clause (iv), reduced (but not below zero) by the bonus depreciation amount for any preceding taxable year.
``(iv) APPLICABLE LIMITATION.--For purposes of clause (iii), the term `applicable limitation' means, with respect to any eligible taxpayer, the lesser of--
``(I) $50,000,000, or
``(II) 50 percent of the sum of the amounts determined with respect to the eligible taxpayer under clauses (ii) and (iii) of subparagraph (D).
``(v) AGGREGATION RULE.--All corporations which are treated as a single employer under section 52(a) shall be treated as 1 taxpayer for purposes of applying the limitation under this subparagraph and determining the applicable limitation under clause (iv).
``(D) ALLOCATION OF BONUS DEPRECIATION AMOUNTS.--
``(i) IN GENERAL.--Subject to clauses (ii) and (iii), the taxpayer shall, at such time and in such manner as the Secretary may prescribe, specify the portion (if any) of the bonus depreciation amount which is to be allocated to each of the limitations described in subparagraph (B).
``(ii) BUSINESS CREDIT LIMITATION.--The portion of the bonus depreciation amount allocated to the limitation described in subparagraph (B)(i) shall not exceed an amount equal to the portion of the credit allowable under section 38 for the taxable year which is allocable to business credit carryforwards to such taxable year which are--
``(I) from taxable years beginning before January 1, 2006, and
``(II) properly allocable (determined under the rules of section 38(d)) to the research credit determined under section 41(a).
``(iii) ALTERNATIVE MINIMUM TAX CREDIT LIMITATION.--The portion of the bonus depreciation amount allocated to the limitation described in subparagraph (B)(ii) shall not exceed an amount equal to the portion of the minimum tax credit allowable under section 53 for the taxable year which is allocable to the adjusted minimum tax imposed for taxable years beginning before January 1, 2006.
``(E) CREDIT REFUNDABLE.--Any aggregate increases in the credits allowed under section 38 or 53 by reason of this paragraph shall, for purposes of this title, be treated as a credit allowed to the taxpayer under subpart C of part IV of subchapter A.
``(F) OTHER RULES.--
``(i) ELECTION.--Any election under this paragraph (including any allocation under subparagraph (D)) may be revoked only with the consent of the Secretary.
``(ii) DEDUCTION ALLOWED IN COMPUTING MINIMUM TAX.--Notwithstanding this paragraph, paragraph (2)(G) shall apply with respect to the deduction computed under this section (after application of this paragraph) with respect to property placed in service during any applicable taxable year.''.
(b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2007, in taxable years ending after such date.
(As printed in the Congressional Record for the Senate on Apr 3, 2008.)