S. 2723Senate111th Congress (2009-2011)In Committee

A bill to amend the Internal Revenue Code of 1986 to provide a special depreciation allowance and recovery period for noncommercial aircraft property.

Introduced November 3, 2009

Legislative Activity

Stay on top of the latest movement without scrolling through every action

2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

November 3, 2009

View full timeline
SenateIntro Referral

Introduced in Senate

November 3, 2009

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S11051-11052)

November 3, 2009

SenateIntro Referral

Read twice and referred to the Committee on Finance.

November 3, 2009

Floor Debate

6 members

What members said about S. 2723 on the floor

4 Republicans2 Democrats
Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Nov 3, 2009

Mr. President, Lake Tahoe is a national treasure. Her alpine beauty has drawn and inspired people for centuries: artists and poets, John Muir and Mark Twain, and countless millions the world over.…

Harry Reid
Sen. Harry ReidD-NV · Nov 3, 2009

Mr. President, I rise today with my good friends, Senator Feinstein, Senator Ensign, and Senator Boxer to introduce the Lake Tahoe Restoration Act of 2009. Representatives Heller, Titus, Berkley and…

Michael B. Enzi
Sen. Michael B. EnziR-WY · Nov 3, 2009

Mr. President, I rise today to discuss the importance of preserving the Heart Mountain World War II Internment Camp in Powell, Wyoming. My good friend and colleague Senator John Barrasso and I are…

Sam Brownback
Sen. Sam BrownbackR-KS · Nov 3, 2009

Mr. President, Today I introduce an important piece of legislation that would provide a real boost to our economy at little, if any, expense to taxpayers. The bill I introduce would offer bonus…

Sam Brownback
Sen. Sam BrownbackR-KS · Nov 3, 2009

Mr. President, Today I introduce an important piece of legislation that would provide a real boost to our economy at little, if any, expense to taxpayers. The bill I introduce would offer bonus…

Show 2 more
John Ensign
Sen. John EnsignR-NV · Nov 3, 2009

Mr. President, I rise to talk about a bill that has been introduced today by myself, along with Senators Reid, Feinstein, and Boxer, that will be the next chapter in our continuing support of one of…

John Barrasso
Sen. John BarrassoR-WY · Nov 3, 2009

Mr. President, I join Senator Enzi today to introduce the Heart Mountain Relocation Center Study Act. This legislation will authorize the National Park Service to conduct a special resource study of…

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued November 3, 2009

II

111th CONGRESS

1st Session

S. 2723

IN THE SENATE OF THE UNITED STATES

November 3, 2009

Mr. Brownback (for himself and Mr. Roberts) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide a special depreciation allowance and recovery period for noncommercial aircraft property.

1.

Special depreciation allowance and recovery period for noncommercial aircraft property

(a)

In general

Section 168 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

(o)

Special allowance for noncommercial airplanes

(1)

Additional allowance

(A)

In general

In the case of any qualified noncommercial aircraft to which this subparagraph applies—

(i)

the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 50 percent of the adjusted basis of the qualified noncommercial aircraft property, and

(ii)

the adjusted basis of the qualified noncommercial aircraft property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year.

(B)

Application to aircraft purchased in 2010 or 2011

Subparagraph (A) applies to qualified noncommercial aircraft property placed in service after December 31, 2009, and before January 1, 2012, which is—

(i)

acquired by the taxpayer after December 31, 2009, and before January 1, 2012, but only if no written binding contract for the acquisition was in effect before January 1, 2010, or

(ii)

acquired by the taxpayer pursuant to a written binding contract which was entered into after December 31, 2009, and before January 1, 2012.

(2)

Recovery period

For purposes of this section—

(A)

In general

Qualified noncommercial aircraft to which this subparagraph applies shall be treated as 3-year property.

(B)

Application to aircraft purchased before 2015

Subparagraph (A) applies to qualified noncommercial aircraft placed in service after the date of the enactment of this subsection and before January 1, 2015, which is—

(i)

acquired by the taxpayer after the date of the enactment of this subsection and before January 1, 2015, but only if no written binding contract for the acquisition was in effect before such date of the enactment, or

(ii)

acquired by the taxpayer pursuant to a written binding contract which was entered into after December 31, 2008, and before January 1, 2015.

(3)

Qualified noncommercial aircraft property

For purposes of this subsection—

(A)

In general

The term qualified noncommercial aircraft property means any aircraft—

(i)

which is not used in the trade or business of transporting persons or property,

(ii)

to which this section applies, and

(iii)

the original use of which commences with the taxpayer after—

(I)

December 31, 2009, for purposes of paragraph (1), and

(II)

the date of the enactment of this subsection for purposes of paragraph (2).

(B)

Exceptions

(i)

Bonus depreciation property under subsection (k)

The term qualified noncommercial aircraft property shall not include any property to which subsection (k)(1) applies.

(ii)

Alternative depreciation property

The term qualified noncommercial aircraft property shall not include any property to which the alternative depreciation system under subsection (g) applies, determined—

(I)

without regard to paragraph (7) of subsection (g) (relating to election to have system apply), and

(II)

after application of section 280F(b) (relating to listed property with limited business use).

(iii)

Election out

If a taxpayer makes an election under this clause with respect to any class of property for any taxable year, this subsection shall not apply to all property in such class placed in service during such taxable year.

(C)

Special rule for self-constructed property

In the case of a taxpayer manufacturing, constructing, or producing property for the taxpayer’s own use, if the taxpayer begins manufacturing, constructing, or producing the property—

(i)

after December 31, 2009, and before January 1, 2012, for purposes of paragraph (1), and

(ii)

after the date of the enactment of this subsection and before January 1, 2015, for purposes of paragraph (2),

the requirements of paragraph (1)(B) or (2)(B) (as the case may be) shall be treated as met.
(D)

Deduction allowed in computing minimum tax

For purposes of determining alternative minimum taxable income under section 55, the deduction under subsection (a) for qualified noncommercial aircraft property shall be determined under this section without regard to any adjustment under section 56.

.

(b)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.