Sec. 3201. Expansion of section 179 expensing
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Section 179(b) is amended— by inserting ($5,000,000, in the case of taxable years beginning before January 1, 2023) after $500,000 in paragraph (1), and by inserting ($20,000,000, in the case of taxable years beginning before January 1, 2023) after $2,000,000 in paragraph (2). Section 179(b)(6) is amended to read as follows: In the case of a taxable year beginning after 2015 (2018 in the case of the $5,000,000 and $20,000,000 amounts in subsection (b)), each dollar amount in subsection
(b)shall be increased by an amount equal to such dollar amount multiplied by— in the case of the $500,000 and $2,000,000 amounts in subsection (b), the cost-of-living adjustment determined under section 1(c)(2) for the calendar year in which the taxable year begins, determined by substituting calendar year 2014 for calendar year 2016 in subparagraph (A)(ii) thereof, and in the case of the $5,000,000 and $20,000,000 amounts in subsection (b), the cost-of-living adjustment determined under section 1(c)(2) for the calendar year in which the taxable year begins, determined by substituting calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof. The amount of any increase under subparagraph
(A)shall be rounded to the nearest multiple of $10,000 ($100,000 in the case of the $5,000,000 and $20,000,000 amounts in subsection (b)). . Section 179(f)(2) is amended by striking and at the end of subparagraph (B), by striking the period at the end of subparagraph
(C)and inserting , and , and by adding at the end the following new subparagraph: qualified energy efficient heating and air-conditioning property. . Section 179(f) is amended by adding at the end the following new paragraph: For purposes of this subsection— The term qualified energy efficient heating and air-conditioning property means any section 1250 property— with respect to which depreciation (or amortization in lieu of depreciation) is allowable, which is installed as part of a building’s heating, cooling, ventilation, or hot water system, and which is within the scope of Standard 90.1–2007 or any successor standard. The term Standard 90.1–2007 means Standard 90.1–2007 of the American Society of Heating, Refrigerating and Air-Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on the day before the date of the adoption of Standard 90.1–2010 of such Societies). . The amendments made by subsection
(a)shall apply to taxable years beginning after December 31, 2017. The amendments made by subsection
(b)shall apply to property acquired and placed in service after November 2, 2017. For purposes of the preceding sentence, property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition.