AMORTIZATION OF CERTAIN EXPENDITURES FOR ON-THE-JOB TRAINING AND FOR CHILD CARE CENTERS.

SEC. 303. AMORTIZATION OF CERTAIN EXPENDITURES FOR ON-THE-JOB TRAINING AND FOR CHILD CARE CENTERS. (a) Amortization Deduction—Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by adding at the end thereof the following new section: “SEC. 188. AMORTIZATION OF CERTAIN EXPENDITURES FOR ON-THE-JOB TRAINING AND CHILD CARE FACILITIES. “(a) Allowance of Deduction.—At the election of the taxpayer, made in accordance with regulations prescribed by the Secretary or his delegate, any expenditure chargeable to capital account made by an employer to acquire, construct, reconstruct, or rehabilitate section 188 property (as defined in subsection (b)) shall be allowable as a deduction ratably over a period of 60 months, beginning with the month in which the property is placed in service. The deduction provided by this section with respect to such expenditure shall be in lieu of any depreciation deduction otherwise allowable on account of such expenditure. 85 Stat. 522 “(b) Section 188 Property—For purposes of this section, the term ‘section 188 property’ means tangible property which qualifies under regulations prescribed by the Secretary or his delegate as a facility for on-the-job training of employees (or prospective employees) of the taxpayer, or as a child care center facility primarily for the children of employees of the taxpayer; except that such term shall not include— “(1) any property which is not of a character subject to depreciation; or “(2) property located outside the United States. “(c) Application of Section—This section shall apply only with respect to expenditures made after December 31, 1971, and before January 1, 1977.” (b) Minimum Tax—Section 57(a) (relating to items of tax preference) is amended by inserting after paragraph (9) the following hew paragraph: “(10) Amortization of on-the-job training and child care facilities—With respect to each item of section 188 property for which an election is in effect under section 188, the amount by which the deduction allowable for the taxable year under such section exceeds the depreciation deduction which would otherwise be allowable under section 167.” (c) Technical Amendments— (1) Section 1245(a)(2) is amended by striking out “or 187” each place it appears and inserting in lieu thereof “187, or 188”. (2) Section 1245(a)(3)(D) is amended by striking out “or 185” and inserting in lieu thereof “, 185, or 188”. (3) Section 1250(b)(3) is amended by striking out “or 185” and inserting in lieu thereof “, 185, or 188”. (4) Section 642(f) is amended by striking out “and 187” and inserting in lieu thereof “187, and 188”. (5) Section 1082(a)(2)(B) is amended by striking out “or 187” and inserting in lieu thereof “187, or 188”. (6) The table of sections for part VI of subchapter B of chapter 1 is amended by adding at the end thereof the following new item: “Sec. 188. Amortization of certain expenditures for on-the-job training and child care facilities.” (d) Effective Date—The amendments made by this section shall apply to taxable years ending after December 31, 1971.