TEMPORARY 100-PERCENT EXPENSING FOR CERTAIN BUSINESS ASSETS.

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 subparagraph (B) or (C) of paragraph (2), 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—131 STAT. 2106“(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.—(A) Paragraph (5) of section 168(k) is amended by striking subparagraph (F).(B) Section 168(k) is amended by adding at the end the following new paragraph:“(8) Phase down.—In the case of qualified property acquired by the taxpayer before September 28, 2017, and placed in service by the taxpayer after September 27, 2017, paragraph (6) shall be applied by substituting for each percentage therein—“(A) ‘50 percent’ in the case of—“(i) property placed in service before January 1, 2018, and“(ii) property described in subparagraph (B) or (C) of paragraph (2) which is placed in service in 2018,“(B) ‘40 percent’ in the case of—“(i) property placed in service in 2018 (other than property described in subparagraph (B) or (C) of paragraph (2)), and“(ii) property described in subparagraph (B) or (C) of paragraph (2) which is placed in service in 2019,“(C) ‘30 percent’ in the case of—“(i) property placed in service in 2019 (other than property described in subparagraph (B) or (C) of paragraph (2)), and“(ii) property described in subparagraph (B) or (C) of paragraph (2) which is placed in service in 2020, and“(D) ‘0 percent’ in the case of—“(i) property placed in service after 2019 (other than property described in subparagraph (B) or (C) of paragraph (2)), and“(ii) property described in subparagraph (B) or (C) of paragraph (2) which is placed in service after 2020.”.(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, 2027”, and(ii) in subparagraph (B)—131 STAT. 2107(I) in clause (i)(II), by striking “January 1, 2021” and inserting “January 1, 2028”, and(II) in the heading of clause (ii), by striking “pre-january 1, 2020” and inserting “pre-january 1, 2027”, and(B) in paragraph (5)(A), by striking “January 1, 2020” and inserting “January 1, 2027”.(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, 2027 (January 1, 2028”.(B) The heading of section 168(k) is amended by striking “Acquired After December 31, 2007, and Before January 1, 2020”.(c) Application to Used Property.—(1) In general.—Section 168(k)(2)(A)(ii) is amended to read as follows:“(ii) the original use of which begins with the taxpayer or the acquisition of which by the taxpayer meets the requirements of clause (ii) of subparagraph (E), and”.(2) Acquisition requirements.—Section 168(k)(2)(E)(ii) is amended to read as follows:“(ii) Acquisition requirements.—An acquisition of property meets the requirements of this clause if—“(I) such property was not used by the taxpayer at any time prior to such acquisition, and“(II) the acquisition of such property meets the requirements of paragraphs (2)(A), (2)(B), (2)(C), and (3) of section 179(d).”,(3) Anti-abuse rules.—Section 168(k)(2)(E) is further amended by amending clause (iii)(I) to read as follows:“(I) property is used by a lessor of such property and such use is the lessor’s first use of such property,”.(d) Exception for Certain Property.—Section 168(k), as amended by this section, is amended by adding at the end the following new paragraph:“(9) Exception for certain property.—The term ‘qualified property’ shall not include—“(A) any property which is primarily used in a trade or business described in clause (iv) of section 163(j)(7)(A), or“(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.”.(e) Special Rule.—Section 168(k), as amended by this section, is amended by adding at the end the following new paragraph:“(10) 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 during the first taxable year ending after September 27, 2017, if the taxpayer elects to have this paragraph apply for such taxable year, 131 STAT. 2108 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.”.(f) Coordination With Section 280F.—Clause (iii) of section 168(k)(2)(F) is amended by striking “placed in service by the taxpayer after December 31, 2017” and inserting “acquired by the taxpayer before September 28, 2017, and placed in service by the taxpayer after September 27, 2017”.(g) 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.”.(h) Effective Date.—(1) In general.—Except as provided by paragraph (2), the amendments made by this section shall apply to property which—(A) is acquired after September 27, 2017, and(B) is placed in service after such date.For purposes of the preceding sentence, property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition.(2) Specified plants.—The amendments made by this section shall apply to specified plants planted or grafted after September 27, 2017.