TEMPORARY EXTENSION OF INCREASED SMALL BUSINESS EXPENSING.

SEC. 402. TEMPORARY EXTENSION OF INCREASED SMALL BUSINESS EXPENSING.(a) Dollar Limitation.—Section 179(b)(1) is amended by striking “and” at the end of subparagraph (B) and by striking subparagraph (C) and inserting the following new subparagraphs:“(C) $125,000 in the case of taxable years beginning in 2012, and“(D) $25,000 in the case of taxable years beginning after 2012.”.(b) Reduction in Limitation.—Section 179(b)(2) is amended by striking “and” at the end of subparagraph (B) and by striking subparagraph (C) and inserting the following new subparagraphs:“(C) $500,000 in the case of taxable years beginning in 2012, and“(D) $200,000 in the case of taxable years beginning after 2012.”.(c) Inflation Adjustment.—Subsection (b) of section 179 is amended by adding at the end the following new paragraph:“(6) Inflation adjustment.—“(A) In general.—In the case of any taxable year beginning in calendar year 2012, the $125,000 and $500,000 amounts in paragraphs (1)(C) and (2)(C) shall each be increased by an amount equal to—“(i) such dollar amount, multiplied by“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting ‘calendar year 2006’ for ‘calendar year 1992’ in subparagraph (B) thereof.“(B) Rounding.—“(i) Dollar limitation.—If the amount in paragraph (1) as increased under subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000.“(ii) Phaseout amount.—If the amount in paragraph (2) as increased under subparagraph (A) is not 124 STAT. 3307 a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.”.(d) Computer Software.—Section 179(d)(1)(A)(ii) is amended by striking “2012” and inserting “2013”.(e) Conforming Amendment.—Section 179(c)(2) is amended by striking “2012” and inserting “2013”.(f) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2011.