EXTENSION AND MODIFICATION OF INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 179 PROPERTY.

SEC. 124. EXTENSION AND MODIFICATION OF INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 179 PROPERTY. (a) Made Permanent.— (1) [26 U.S.C. 179] Dollar limitation.—Section 179(b)(1) is amended by striking “shall not exceed—” and all that follows and inserting “shall not exceed $500,000.”. (2) Reduction in limitation.—Section 179(b)(2) is amended by striking “exceeds—” and all that follows and inserting “exceeds $2,000,000.”. (b) Computer Software.—Section 179(d)(1)(A)(ii) is amended by striking “, to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2015” and inserting “and to which section 167 applies”. (c) Special Rules for Treatment of Qualified Real Property.— (1) Extension for 2015.—Section 179(f) is amended— (A) by striking “2015” in paragraph (1) and inserting “2016”, (B) by striking “2014” each place it appears in paragraph (4) and inserting “2015”, and (C) by striking “and 2013” in the heading of paragraph (4)(C) and inserting “2013, and 2014”. (2) Made Permanent.—Section 179(f), as amended by paragraph (1), is amended— (A) by striking “beginning after 2009 and before 2016” in paragraph (1), and (B) by striking paragraphs (3) and (4). (d) Election.—Section 179(c)(2) is amended— (1) by striking “may not be revoked” and all that follows through “and before 2015”, and (2) by striking “irrevocable” in the heading thereof. (e) Air Conditioning and Heating Units.—Section 179(d)(1) is amended by striking “and shall not include air conditioning or heating units”. (f) Inflation adjustment.—Section 179(b) 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 after 2015, the dollar amounts in paragraphs (1) and (2) 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, determined by substituting ‘calendar year 2014’ for ‘calendar year 1992’ in subparagraph (B) thereof. “(B) Rounding.—The amount of any increase under subparagraph (A) shall be rounded to the nearest multiple of $10,000.” . (g) [26 U.S.C. 179 note] Effective Dates.— (1) Extension.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Modifications.—The amendments made by subsections (c)(2) and (e) shall apply to taxable years beginning after December 31, 2015.