Sec. 3313. Modification of income forecast method

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Paragraph

(1)of section 167(g) is amended by striking 10th each place it appears and inserting 20th . Paragraph

(4)of section 167(g) is amended by striking the 3d and the 10th and inserting the 5th, 10th, 15th, and 20th . Paragraph

(7)of section 167(g) is amended to read as follows: In the case of any participation or residual with respect to any property to which this subsection applies (including any property to which section 168 applies by reason of paragraph (8)), the taxpayer— shall exclude such participation or residual from the adjusted basis of such property, and shall be allowed a deduction for such participation or residual in the taxable year in which such participation or residual is paid. For purposes of this paragraph, the term participation or residual means, with respect to any property, any cost the amount of which by contract varies with the amount of income earned in connection with such property. . Subsection

(g)of section 167 is amended by redesignating

(8)as paragraph

(9)and by inserting after paragraph

(7)the following new paragraph: If the taxpayer elects the application of this paragraph for any taxable year, the depreciation deduction allowable with respect to any property placed in service by the taxpayer during such taxable year which would otherwise be determined under paragraph

(1)shall be determined under section 168— by treating the straight line method as the applicable depreciation method, and by treating 20 years as the applicable recovery period. . Subsection

(g)of section 167, as amended by subsection (c), is amended by striking paragraph (9). Effective for property placed in service after December 31, 2014, the Secretary of the Treasury, or the Secretary’s designee, shall revise Treasury Regulation section 1.167(a)–3(b) (and such regulation shall be applied) such that the safe harbor amortization for certain intangible assets to which such regulation applies shall allow the taxpayer to treat such asset as having a useful life equal to 20 years (and not 15 years). The amendments made by this section shall apply to property placed in service after December 31, 2014.