Under the bill the taxpayers election to claim prior

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Under the bill, the taxpayer’s election to claim prior year minimum tax credits in lieu of bonus depreciation would be repealed. The repeal of this election would be effective for tax years beginning after 2017. y e ar ad d i t io n a l depre c ia t i on f or qua l i f i ed proper t y p l aced i n s er v i c e , and s p eci f ied f r u i t- and n ut- b e ari n g p l a n t s p l a n ted or gra f ted a f ter S e pt. 27, 20 17 , and be f ore J an. 1, 2 0 2 3 ( J an. 1, 20 2 4 f o r l o ng pr o du c t ion p e r i o d p r o p e r t y ). T a xp a y e r s could e l ect to ta k e 50% i n l i eu of 100% f i rs t - y ear a dd i t i o n a l depre ci ation f or q u ali f ied proper t y p laced i n serv i c e d u ri n g t h e f i rst tax y e ar e n ding a f ter Sep t . 2 7 , 2 0 17. The bill would initially allow full expensing for property placed in service after Sept. 27, 2017, but begin to phase down the percent that may be expensed for property placed in service after Jan. 1, 2023, as follows: For property placed in service after Sept. 27, 2017, and before Jan. 1, 2023, 100% expensing. For property placed in service after Dec. 31, 2022, and before Jan. 1, 2024, 80% expensing. For property placed in service after Dec. 31, 2023, and before Jan. 1, 2025, 60% expensing. For property placed in service after Dec. 31, 2024, and before Jan. 1, 2026, 40% expensing. For property placed in service after Dec. 31, 2025, and before Jan. 1, 2027, 20% expensing. § 3101 Senate § 13 2 01 , § 12001, § 13312
Roadmap to House and Senate Tax Reform Plans Corporate and Business Topic House Bill Senate Bill (per Cong. Rec.) Bill Sections I.R.C. Sections Temporary 100% Expensing for Certain Business Assets (cont.) Proper t y with L o nger Pro duc t i o n Per i ods For property placed in service after Sept. 27, 2017, and before Jan. 1, 2024, 100% expensing. For property place in service after Dec. 31, 2023, and before Jan. 1, 2025, 80% expensing. For property place in service after Dec. 31, 2024, and before Jan. 1, 2026, 60% expensing. For property placed in service after Dec. 31, 2025, and before Jan. 1, 2027, 40% expensing. For property placed in service after Dec. 31, 2026, and before Jan. 1, 2028, 20% expensing. P l a n t Bea r i n g F r u i ts a nd N uts For plants planted or grafted after Sept. 27, 2017, and before Jan. 1, 2023, 100% expensing. For plants planted or grafted after Dec. 31, 2022, and before Jan. 1, 2024, 80% expensing. For plants planted or grafted after Dec. 31, 2023, and before Jan. 1, 2025, 60% expensing.
Roadmap to House and Senate Tax Reform Plans Corporate and Business Topic House Bill Senate Bill (per Cong. Rec.) Bill Sections I.R.C. Sections Temporary 100% Expensing for Certain Business Assets (cont.) For plants planted or grafted after December 31, 2024, and before Jan. 1, 2026, 40% expensing. For plants planted or grafted after Dec. 31, 2025, and before Jan. 1, 2027, 20% expensing. The bill would exclude certain public utility property from the definition of qualified property.

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