I
110th CONGRESS
2d Session
H. R. 4995
IN THE HOUSE OF REPRESENTATIVES
January 16, 2008
Mr. Cantor (for himself, Mr. Hensarling, Mr. Blunt, Mr. Campbell of California, Ms. Granger, Mr. Jordan of Ohio, Mr. McHenry, Mrs. Bachmann, Mr. Herger, Mr. Chabot, Mr. Price of Georgia, Mr. Flake, Mr. Feeney, Mr. David Davis of Tennessee, Mr. Brown of South Carolina, Mr. Barrett of South Carolina, Mr. Garrett of New Jersey, Mr. Doolittle, Mr. Lamborn, Mr. Akin, Mr. Weldon of Florida, Mr. Kingston, Mr. Pitts, Mr. Marchant, Mr. Gingrey, Mr. Souder, Mr. Goode, Ms. Foxx, Mr. Roskam, Mr. Kuhl of New York, Mr. Walberg, Mr. Bishop of Utah, Mr. Franks of Arizona, Mr. King of Iowa, and Mr. Pence) introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to reduce corporate marginal income tax rates, and for other purposes.
Short title
This Act may be cited as the
Middle Class Jobs Protection Act of
2008
.
Reduction in corporate marginal income tax rates
General rule
Paragraph (1) of section 11(b) of the Internal Revenue Code of 1986 is amended—
by inserting
and
at the end of subparagraph (A),
by striking
but does not exceed $75,000,
in subparagraph (B) and inserting a
period,
by striking subparagraphs (C) and (D), and
by striking the last 2 sentences.
Personal service corporations
Paragraph (2) of section 11(b) of such Code is
amended by striking 35 percent
and inserting 25
percent
.
Conforming amendments
Paragraphs (1) and
(2) of section 1445(e) of such Code are each amended by striking 35
percent
and inserting 25 percent
.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act, except that the amendments made by subsection (c) shall take effect on such date.
Temporary increase in limitation on expensing certain depreciable business assets
Dollar limitation
Paragraph (1) of
section 179(b) of the Internal Revenue Code of 1986 (relating to limitations)
is amended by striking $125,000 in the case of taxable years beginning
after 2006 and before 2011
and inserting $125,000 in the case of
taxable years beginning in 2007 or 2010 and $250,000 in the case of taxable
years beginning in 2008 or 2009
.
Reduction in limitation
Paragraph (2) of
section 179(b) of such Code (relating to limitations) is amended by striking
$500,000 in the case of taxable years beginning after 2006 and before
2011
and inserting $500,000 in the case of taxable years
beginning in 2007 or 2010 and $1,000,000 in the case of taxable years beginning
in 2008 or 2009
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
50 percent allowance for depreciation for certain property acquired during 2008 and 2009
In general
Paragraph (4) of section 168(k) of the Internal Revenue Code of 1986 (relating to 50-percent bonus for certain property) is amended—
by striking
May 5, 2003
each place it appears and inserting December
31, 2007
,
by striking
January 1, 2005
each place it appears and inserting
January 1, 2010
,
by striking
May 6, 2003
in subparagraph (B)(ii)(I) and inserting
January 1, 2008
,
by
striking January 1, 2006
in subparagraph (B)(iii) and inserting
January 1, 2011
, and
by striking
of 30-percent
bonus
in the heading for subparagraph (E).
Effective date
In general
The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2007.
Exception for certain property
The amendments made by this section shall not apply to any property to which section 105 of the Gulf Opportunity Zone Act of 2005 applies.
5-year carryback for certain net operating losses
In general
Subsection (H) of
section 172(b)(1) of the Internal Revenue Code of 1986 is amended by inserting
or beginning during 2008 or 2009,
after
2002
.
Effective date
The amendments made by this section shall apply to net operating losses for taxable years beginning after December 31, 2007.
3-year carryback for certain credits
General business credit
Subsection (a) of section 39 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Special rule for 2008 and 2009
In the case of an excess described in paragraph (1) arising in a taxable year beginning in 2008 or 2009—
paragraph (1)(A)
shall be applied by substituting 3 taxable years
for
taxable year
,
paragraph (2)(A)
shall be applied by substituting 24 taxable years
for 21
taxable years
, and
paragraph (2)(B)
shall be applied by substituting 23 taxable years
for 20
taxable years
.
.
Foreign tax credit
Section 904(c) of the
Internal Revenue Code of 1986 is amended by adding at the end thereof the
following: In the case of taxable years beginning in 2008 or 2009, the
first sentence of this subsection shall, at the election of the taxpayer, be
applied by substituting
.any of the three preceding taxable years
for the first preceding taxable year
.
Effective date
The amendments made by this section shall apply to credits arising in taxable years beginning after December 31, 2007.