S.Amdt. 1622

SA 1622. Mr. PAUL (for himself and Mr. Kennedy) submitted an
amendment intended to be proposed to amendment SA 1618 proposed by Mr.
Hatch (for himself and Ms. Murkowski) and intended to be proposed to
the bill H.R. 1, to provide for reconciliation pursuant to titles II
and V of the concurrent resolution on the budget for fiscal year 2018;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. 1____. FLOOR PLAN FINANCING.

(a) Application of Interest Limitation.--
(1) In general.--Section 163(j), as amended by section
13301, is amended--
(A) in paragraph (1), by striking ``plus'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, plus'', and by inserting
after subparagraph (B) the following new subparagraph:
``(C) the floor plan financing interest of such taxpayer
for such taxable year.'', and
(B) in paragraph (4)(C)(i)(II), by inserting ``, reduced by
the floor plan financing interest,'' after ``business
interest of the partnership'', and
(C) by redesignating paragraph (9) as paragraph (10) and
inserting after paragraph (8) the following new paragraph:
``(9) Floor plan financing interest defined.--For purposes
of this subsection--
``(A) In general.--The term `floor plan financing interest'
means interest paid or accrued on floor plan financing
indebtedness.
``(B) Floor plan financing indebtedness.--The term `floor
plan financing indebtedness' means indebtedness--
``(i) used to finance the acquisition of motor vehicles
held for sale or lease, and
``(ii) secured by the inventory so acquired.
``(C) Motor vehicle.--The term `motor vehicle' means a
motor vehicle that is any of the following:
``(i) An automobile.
``(ii) A truck.
``(iii) A recreational vehicle.
``(iv) A motorcycle.
``(v) Any self-propelled vehicle designed for transporting
persons or property on a public street, highway, or road.
``(vi) A boat.
``(vii) Farm machinery or equipment.''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2017.
(b) Exception From 100 Percent Expensing.--
(1) In general.--Paragraph (6) of section 168(k), as added
by section 13201(a)(4), is amended--
(A) by striking ``shall not include any property'' and
inserting ``shall not include--
``(A) any property'', and
(B) by adding at the end the following new subparagraph:
``(B) any property used in a trade or business that has had
floor plan financing indebtedness (as defined in paragraph
(9) of section 163(j)), if the floor plan financing interest
related to such indebtedness was taken into account under
paragraph (1)(C) of such section.''.
(2) Effective date.--The amendments made by this subsection
shall apply to property placed in service after September 27,
2017, in taxable years ending after such date.
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