EXTENSION OF BONUS DEPRECIATION; TEMPORARY 100 PERCENT EXPENSING FOR CERTAIN BUSINESS ASSETS.

SEC. 401. EXTENSION OF BONUS DEPRECIATION; TEMPORARY 100 PERCENT EXPENSING FOR CERTAIN BUSINESS ASSETS.(a) In General.—Paragraph (2) of section 168(k) is amended—(1) by striking “January 1, 2012” in subparagraph (A)(iv) and inserting “January 1, 2014”, and(2) by striking “January 1, 2011” each place it appears and inserting “January 1, 2013”.(b) Temporary 100 Percent Expensing.—Subsection (k) of section 168 is amended by adding at the end the following new paragraph:“(5) Special rule for property acquired during certain pre-2012 periods.—In the case of qualified property acquired by the taxpayer (under rules similar to the rules of clauses (ii) and (iii) of paragraph (2)(A)) after September 8, 2010, and before January 1, 2012, and which is placed in service by the taxpayer before January 1, 2012 (January 1, 2013, in the case of property described in subparagraph (2)(B) or (2)(C)), paragraph (1)(A) shall be applied by substituting ‘100 percent’ for ‘50 percent’.”.(c) Extension of Election To Accelerate the AMT Credit in Lieu of Bonus Depreciation.—(1) Extension.—Clause (iii) of section 168(k)(4)(D) is amended by striking “or production” and all that follows and inserting “or production—“(I) after March 31, 2008, and before January 1, 2010, and“(II) after December 31, 2010, and before January 1, 2013,shall be taken into account under subparagraph (B)(ii) thereof,”.(2) Rules for round 2 extension property.—Paragraph (4) of section 168(k) is amended by adding at the end the following new subparagraph:“(I) Special rules for round 2 extension property.—“(i) In general.—In the case of round 2 extension property, this paragraph shall be applied without regard to—“(I) the limitation described in subparagraph (B)(i) thereof, and124 STAT. 3305“(II) the business credit increase amount under subparagraph (E)(iii) thereof.“(ii) Taxpayers previously electing acceleration.—In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, or a taxpayer who made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008—“(I) the taxpayer may elect not to have this paragraph apply to round 2 extension property, but“(II) if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer the bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is round 2 extension property.The amounts described in subclause (II) shall be computed separately from any amounts computed with respect to eligible qualified property which is not round 2 extension property.“(iii) Taxpayers not previously electing acceleration.—In the case of a taxpayer who neither made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, nor made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008—“(I) the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2010, and each subsequent taxable year, and“(II) if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is round 2 extension property.“(iv) Round 2 extension property.—For purposes of this subparagraph, the term ‘round 2 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 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (and the application of such extension to this paragraph pursuant to the amendment made by section 401(c)(1) of such Act).”.(d) Conforming Amendments.—(1) The heading for subsection (k) of section 168 is amended by striking “January 1, 2011” and inserting “January 1, 2013”.(2) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking “pre-january 1, 2011” and inserting “pre-january 1, 2013”.(3) Subparagraph (D) of section 168(k)(4) is amended—(A) by striking clauses (iv) and (v),(B) by inserting “and” at the end of clause (ii), and(C) by striking the comma at the end of clause (iii) and inserting a period.(4) Paragraph (5) of section 168(l) is amended—124 STAT. 3306(A) by inserting “and” at the end of subparagraph (A),(B) by striking subparagraph (B), and(C) by redesignating subparagraph (C) as subparagraph (B).(5) Subparagraph (C) of section 168(n)(2) is amended by striking “January 1, 2011” and inserting “January 1, 2013”.(6) Subparagraph (D) of section 1400L(b)(2) is amended by striking “January 1, 2011” and inserting “January 1, 2013”.(7) Subparagraph (B) of section 1400N(d)(3) is amended by striking “January 1, 2011” and inserting “January 1, 2013”.(e) Effective Dates.—(1) In general.—Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2010, in taxable years ending after such date.(2) Temporary 100 percent expensing.—The amendment made by subsection (b) shall apply to property placed in service after September 8, 2010, in taxable years ending after such date.