S.Amdt. 1810

SA 1810. Mr. FLAKE submitted an amendment intended to be proposed to
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself
and Ms. Murkowski)) 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. 13201. TEMPORARY 100-PERCENT EXPENSING FOR CERTAIN
BUSINESS ASSETS.

(a) Increased Expensing.--
(1) In general.--Section 168(k) is amended--
(A) in paragraph (1)(A), by striking ``50 percent'' and
inserting ``the applicable percentage'', and
(B) in paragraph (5)(A)(i), by striking ``50 percent'' and
inserting ``the applicable percentage''.
(2) Applicable percentage.--Paragraph (6) of section 168(k)
is amended to read as follows:
``(6) Applicable percentage.--For purposes of this
subsection--
``(A) In general.--Except as otherwise provided in this
paragraph, the term `applicable percentage' means--
``(i) in the case of property placed in service after
September 27, 2017, and before January 1, 2023, 100 percent,
``(ii) in the case of property placed in service after
December 31, 2022, and before January 1, 2024, 80 percent,
``(iii) in the case of property placed in service after
December 31, 2023, and before January 1, 2025, 60 percent,
``(iv) in the case of property placed in service after
December 31, 2024, and before January 1, 2026, 40 percent,
and
``(v) in the case of property placed in service after
December 31, 2025, and before January 1, 2027, 20 percent.
``(B) Rule for property with longer production periods.--In
the case of property described in paragraph (2)(B) or (C),
the term `applicable percentage' means--
``(i) in the case of property placed in service after
September 27, 2017, and before January 1, 2024, 100 percent,
``(ii) in the case of property placed in service after
December 31, 2023, and before January 1, 2025, 80 percent,
``(iii) in the case of property placed in service after
December 31, 2024, and before January 1, 2026, 60 percent,
``(iv) in the case of property placed in service after
December 31, 2025, and before January 1, 2027, 40 percent,
and
``(v) in the case of property placed in service after
December 31, 2026, and before January 1, 2028, 20 percent.
``(C) Rule for plants bearing fruits and nuts.--In the case
of a specified plant described in paragraph (5), the term
`applicable percentage' means--
``(i) in the case of a plant which is planted or grafted
after September 27, 2017, and before January 1, 2023, 100
percent,
``(ii) in the case of a plant which is planted or grafted
after December 31, 2022, and before January 1, 2024, 80
percent,
``(iii) in the case of a plant which is planted or grafted
after December 31, 2023, and before January 1, 2025, 60
percent,
``(iv) in the case of a plant which is planted or grafted
after December 31, 2024, and before January 1, 2026, 40
percent, and
``(v) in the case of a plant which is planted or grafted
after December 31, 2025, and before January 1, 2027, 20
percent.''.
(3) Conforming amendment.--Paragraph (5) of section 168(k)
is amended by striking subparagraph (F).
(b) Extension.--
(1) In general.--Section 168(k) is amended--
(A) in paragraph (2)--
(i) in subparagraph (A)(iii), clauses (i)(III) and (ii) of
subparagraph (B), and subparagraph (E)(i), by striking
``January 1, 2020'' each place it appears and inserting
``January 1, 2026'', and
(ii) in subparagraph (B)--

(I) in clause (i)(II), by striking ``January 1, 2021'' and
inserting ``January 1, 2027'', and
(II) in the heading of clause (ii), by striking ``pre-
january 1, 2020'' and inserting ``pre-january 1, 2026'', and

(B) in paragraph (5)(A), by striking ``January 1, 2020''
and inserting ``January 1, 2026''.
(2) Conforming amendments.--
(A) Clause (ii) of section 460(c)(6)(B) is amended by
striking ``January 1, 2020 (January 1, 2021'' and inserting
``January 1, 2026 (January 1, 2027''.
(B) The heading of section 168(k) is amended by striking
``Acquired After December 31, 2007, and Before January 1,
2020''.
(c) Exception for Public Utilities.--Section 168(k) is
amended by adding at the end the following new paragraph:
``(8) Exception for certain public utility property.--The
term `qualified property' shall not include any property
which is primarily used in a trade or business described in
clause (iv) of section 163(j)(7)(A).''.
(d) Special Rule.--Section 168(k), as amended by subsection
(c), is amended by adding at the end the following new
paragraph:
``(9) Special rule for property placed in service during
certain periods.--
``(A) In general.--In the case of qualified property placed
in service by the taxpayer

[[Page S7650]]

during the first taxable year ending after September 27,
2017, if the taxpayer elects to have this paragraph apply for
such taxable year, paragraphs (1)(A) and (5)(A)(i) shall be
applied by substituting `50 percent' for `the applicable
percentage'.
``(B) Form of election.--Any election under this paragraph
shall be made at such time and in such form and manner as the
Secretary may prescribe.''.
(e) Coordination With Section 280F.--Section 168(k)(2)(F)
is amended by striking clause (iii).
(f) Qualified Film and Television and Live Theatrical
Productions.--
(1) In general.--Clause (i) of section 168(k)(2)(A), as
amended by section 13204, is amended--
(A) in subclause (II), by striking ``or'',
(B) in subclause (III), by adding ``or'' after the comma,
and
(C) by adding at the end the following:
``(IV) which is a qualified film or television production
(as defined in subsection (d) of section 181) for which a
deduction would have been allowable under section 181 without
regard to subsections (a)(2) and (g) of such section or this
subsection, or
``(V) which is a qualified live theatrical production (as
defined in subsection (e) of section 181) for which a
deduction would have been allowable under section 181 without
regard to subsections (a)(2) and (g) of such section or this
subsection,''.
(2) Production placed in service.--Paragraph (2) of section
168(k) is amended by adding at the end the following:
``(H) Production placed in service.--For purposes of
subparagraph (A)--
``(i) a qualified film or television production shall be
considered to be placed in service at the time of initial
release or broadcast, and
``(ii) a qualified live theatrical production shall be
considered to be placed in service at the time of the initial
live staged performance.''.
(g) Effective Dates.--The amendments made by this section
shall apply to property placed in service, and specified
plants planted after, after September 27, 2017, in taxable
years ending after such date.

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