COMMITTEE ON FINANCE
SENATE AMENDMENTS TO H.B. 2664
(Reference to House engrossed bill)
Page 16, line 14, after the period insert “FOR PROPERTY PLACED IN SERVICE IN A TAXABLE YEAR BEGINNING BEFORE JANUARY 1, 2014,”
Page 17, line 16, strike “THE DIFFERENCE BETWEEN”
Lines 17 and 18, strike “AND THE AMOUNT OF DEPRECIATION OR AMORTIZATION COMPUTED UNDER THE INTERNAL REVENUE CODE”
Line 19, after the period insert “IF THE PROPERTY IS SOLD OR OTHERWISE DISPOSED OF DURING THE TAXABLE YEAR, THE TAXPAYER SHALL MAKE THE ADJUSTMENT REQUIRED UNDER PARAGRAPH 34 OF THIS SECTION IN LIEU OF THE ADJUSTMENT UNDER THIS PARAGRAPH RELATED TO THE PROPERTY.”
Line 28, after the period insert “IF THE PROPERTY IS SOLD OR OTHERWISE DISPOSED OF DURING THE TAXABLE YEAR, THE TAXPAYER SHALL MAKE THE ADJUSTMENT REQUIRED UNDER PARAGRAPH 36 OF THIS SECTION IN LIEU OF THE ADJUSTMENT UNDER THIS PARAGRAPH RELATED TO THE PROPERTY.”
Page 22, line 19, after the period insert “AT THE TAXPAYER’S ELECTION”
Line 35, after the period insert “AN ELECTION UNDER THIS PARAGRAPH MAY BE MADE BY CLAIMING THE SUBTRACTION ON THE TAXPAYER’S RETURN”
Line 44, strike “THE AMOUNT OF” insert “AT THE TAX PAYER’S ELECTION THE DIFFERENCE BETWEEN THE EXPENSE AMOUNT ALLOWED PURSUANT TO SECTION 179 OF THE INTERNAL REVENUE CODE IN DETERMINING THE TAXPAYER’S FEDERAL ADJUSTED GROSS INCOME AND AN AMOUNT NOT TO EXCEED”
Page 23, line 5, after the second comma insert “A TAXPAYER MAY ELECT”
Page 25, line 13, after “11,” insert “24,”; strike “36” insert “32”
Page 27, between lines 18 and 19, insert:
“26. WITH RESPECT TO PROPERTY FOR WHICH AN ADJUSTMENT IS MADE UNDER SECTION 43-1122, PARAGRAPH 19, ONE-FIFTH OF THE AMOUNT OF THE ADJUSTMENT UNDER SECTION 43-1122, PARAGRAPH 19 FOR THE YEAR IN WHICH THE ADJUSTMENT IS MADE AND IN EACH OF THE FOLLOWING FOUR YEARS. IF THE PROPERTY IS SOLD OR OTHERWISE DISPOSED OF DURING THE TAXABLE YEAR, THE TAXPAYER SHALL MAKE THE ADJUSTMENT REQUIRED UNDER PARAGRAPH 27 OF THIS SECTION IN LIEU OF THE ADJUSTMENT UNDER THIS PARAGRAPH RELATED TO THE PROPERTY.
27. FOR PROPERTY FOR WHICH AN ADJUSTMENT WAS MADE UNDER SECTION 43-1122, PARAGRAPH 19 AND THAT IS SOLD OR OTHERWISE DISPOSED OF DURING THE TAXABLE YEAR, THE AMOUNT BY WHICH THE ADJUSTED BASIS COMPUTED UNDER THE INTERNAL REVENUE CODE WITH RESPECT TO THE PROPERTY EXCEEDS THE ADJUSTED BASIS OF THE PROPERTY COMPUTED UNDER THIS TITLE.
28. WITH RESPECT TO QUALIFIED PROPERTY FOR WHICH AN ADJUSTMENT IS MADE UNDER SECTION 43-1122, PARAGRAPH 20, ONE-FIFTH OF THE AMOUNT OF THE ADJUSTMENT FOR THE YEAR IN WHICH THE ADJUSTMENT IS MADE AND IN EACH OF THE FOLLOWING FOUR YEARS.
29. FOR PROPERTY FOR WHICH AN ADJUSTMENT WAS MADE UNDER SECTION 43-1122, PARAGRAPH 20 AND THAT IS SOLD OR OTHERWISE DISPOSED OF DURING THE TAXABLE YEAR, THE AMOUNT BY WHICH THE ADJUSTED BASIS COMPUTED UNDER THE INTERNAL REVENUE CODE WITH RESPECT TO THE PROPERTY EXCEEDS THE ADJUSTED BASIS OF THE PROPERTY COMPUTED UNDER THIS TITLE.”
Page 27, line 25 strike “25,”; after “29” strike the comma, insert “AND”; after “30” strike remainder of line
Line 26, strike “37”
Page 28, between lines 40 and 41, insert:
“19. FOR PROPERTY PLACED IN SERVICE IN TAXABLE YEARS BEGINNING FROM AND AFTER DECEMBER 31, 2013, THE DIFFERENCE BETWEEN THE EXPENSE AMOUNT ALLOWED PURSUANT TO SECTION 179 OF THE INTERNAL REVENUE CODE IN DETERMINING THE TAXPAYER’S FEDERAL TAXABLE INCOME AND THE AMOUNT OF THE EXPENSE DEDUCTION THAT WOULD BE ALLOWED PURSUANT TO SECTION 179 OF THE INTERNAL REVENUE CODE IF THE MAXIMUM DEDUCTION ALLOWED WERE FIVE HUNDRED THOUSAND DOLLARS AND THIS LIMITATION WERE REDUCED BY THE AMOUNT THAT THE COST OF SECTION 179 PROPERTY PLACED IN SERVICE IN THE TAXABLE YEAR EXCEEDS TWO MILLION DOLLARS.
20. FOR QUALIFIED PROPERTY THAT IS PLACED IN SERVICE IN TAXABLE YEARS BEGINNING FROM AND AFTER DECEMBER 31, 2013, AN ALLOWANCE EQUAL TO FIFTY PER CENT OF THE ADJUSTED BASIS OF THE QUALIFIED PROPERTY REMAINING AFTER THE ADJUSTMENT FOR THE ALLOWANCE UNDER PARAGRAPH 19 OF THIS SECTION AND ADJUSTMENTS FOR ANY OTHER DEPRECIATION ALLOWANCE UNDER THE INTERNAL REVENUE CODE OR THIS TITLE. FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFIED PROPERTY" MEANS PROPERTY THAT IS NOT SUBJECT TO THE ALTERNATIVE DEPRECIATION SYSTEM UNDER SECTION 168(g) OF THE INTERNAL REVENUE CODE AND THAT MEETS THE FOLLOWING QUALIFICATIONS:
(a) THE PROPERTY IS ANY OF THE FOLLOWING:
(i) TANGIBLE PROPERTY DEPRECIATED UNDER THE MODIFIED ACCELERATED COST RECOVERY SYSTEM THAT HAS A RECOVERY PERIOD EQUAL TO OR LESS THAN TWENTY YEARS AND IS WITHIN THE SCOPE OF SECTION 168 OF THE INTERNAL REVENUE CODE.
(ii) COMPUTER SOFTWARE AS DEFINED IN SECTION 167(f)(1)(b) OF THE INTERNAL REVENUE CODE FOR WHICH A DEDUCTION IS ALLOWABLE UNDER SECTION 167(a) OF THE INTERNAL REVENUE CODE.
(iii) WATER UTILITY PROPERTY AS DEFINED IN SECTION 168 OF THE INTERNAL REVENUE CODE.
(iv) QUALIFIED LEASEHOLD PROPERTY AS DEFINED IN SECTION 168 OF THE INTERNAL REVENUE CODE.
(b) THE ORIGINAL USE OF THE PROPERTY COMMENCES WITH THE TAXPAYER AFTER DECEMBER 31, 2013.
(c) THE PROPERTY IS ACQUIRED BY THE TAXPAYER AFTER DECEMBER 31, 2013 PURSUANT TO A WRITTEN BINDING CONTRACT ENTERED INTO AFTER DECEMBER 31, 2013.
(d) THE PROPERTY IS PLACED IN SERVICE FOR USE IN THE TAXPAYER'S TRADE OR BUSINESS OR FOR THE PRODUCTION OF INCOME AFTER DECEMBER 31, 2013.
(e) THE PROPERTY IS NOT EXCEPTED PROPERTY OR SUBJECT TO ANY SPECIAL RULES UNDER SECTION 168 OF THE INTERNAL REVENUE CODE.”
Amend title to conform