EXTENSION OF BONUS DEPRECIATION.

SEC. 125. EXTENSION OF BONUS DEPRECIATION.(a) In General.—Paragraph (2) of section 168(k) is amended—(1) by striking “January 1, 2015” in subparagraph (A)(iv) and inserting “January 1, 2016”, and(2) by striking “January 1, 2014” each place it appears and inserting “January 1, 2015”.(b) Special Rule for Federal Long-Term Contracts.—Clause (ii) of section 460(c)(6)(B) is amended by striking “January 1, 2014 (January 1, 2015” and inserting “January 1, 2015 (January 1, 2016”.(c) Extension of Election To Accelerate the AMT Credit in Lieu of Bonus Depreciation.—(1) In general.—Subclause (II) of section 168(k)(4)(D)(iii) is amended by striking “January 1, 2014” and inserting “January 1, 2015”.(2) Round 4 extension property.—Paragraph (4) of section 168(k) is amended by adding at the end the following new subparagraph:“(K) Special rules for round 4 extension property.—“(i) In general.—In the case of round 4 extension property, in applying this paragraph to any taxpayer—“(I) the limitation described in subparagraph (B)(i) and the business credit increase amount under subparagraph (E)(iii) thereof shall not apply, and“(II) the bonus depreciation amount, maximum amount, and maximum increase amount shall be computed separately from amounts computed with respect to eligible qualified property which is not round 4 extension property.“(ii) Election.—“(I) A taxpayer who has an election in effect under this paragraph for round 3 extension property shall be treated as having an election in effect for round 4 extension property unless the taxpayer elects to not have this paragraph apply to round 4 extension property.“(II) A taxpayer who does not have an election in effect under this paragraph for round 3 extension property may elect to have this paragraph apply to round 4 extension property.“(iii) Round 4 extension property.—For purposes of this subparagraph, the term ‘round 4 extension property’ means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 125(a) of the Tax Increase Prevention Act of 2014 (and the application 128 STAT. 4017 of such extension to this paragraph pursuant to the amendment made by section 125(c) of such Act).”.(d) Conforming Amendments.—(1) The heading for subsection (k) of section 168 is amended by striking “January 1, 2014” and inserting “January 1, 2015”.(2) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking “pre-january 1, 2014” and inserting “pre-january 1, 2015”.(3) Subparagraph (C) of section 168(n)(2) is amended by striking “January 1, 2014” and inserting “January 1, 2015”.(4) Subparagraph (D) of section 1400L(b)(2) is amended by striking “January 1, 2014” and inserting “January 1, 2015”.(5) Subparagraph (B) of section 1400N(d)(3) is amended by striking “January 1, 2014” and inserting “January 1, 2015”.(e) Effective Date.—The amendments made by this section shall apply to property placed in service after December 31, 2013, in taxable years ending after such date.