COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2083
(Reference to printed bill)
Page 1, line 17, after "is" strike remainder of line; strike line 18; line 19, strike "reported on the individual's Arizona return" insert "determined to be necessary based on information provided by the United States internal revenue service"
Page 13, line 36, after "16." insert "For property placed in service in a taxable year beginning before January 1, 2015,"
Page 14, line 26, strike "the difference between"
Line 27, after "31" strike remainder of line; line 28, strike "depreciation or amortization computed under the internal revenue code"
Line 29, 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 23 of this section in lieu of the adjustment under this paragraph related to the property."
Line 38, 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 25 of this section in lieu of the adjustment under this paragraph related to the property."
Page 17, line 12, strike "2014" insert "2015"
Page 19, line 11, strike "2013" insert "2014"
Line 15, after the period insert "That amount shall be reduced by the expense amount allowed pursuant to section 179 of the internal revenue code in determining the taxpayer's federal adjusted gross income, but not below zero."
Line 17, strike "2013" insert "2014"
Page 19, line 20, strike "the internal revenue"
Line 21, strike "code or"; after the period insert "The amount determined under this paragraph shall be reduced by the special allowance determined under section 168(k) of the internal revenue code, but not below zero."
Lines 37, 38, 39 and 41, strike "2013" insert "2014"
Page 20, line 26, after "5." insert "For property placed in service in a taxable year beginning before January 1, 2015,"
Page 23, strike lines 1 and 2, insert:
"29. With respect to property for which an adjustment is made under section 43-1122, paragraph 25, one-fifth of the amount of the adjustment under section 43-1122, paragraph 25 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 30 of this section in lieu of the adjustment under this paragraph related to the property.
30. For property for which an adjustment was made under section 43‑1122, paragraph 25 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 property exceeds the adjusted basis of the property computed under this title.
31. With respect to qualified property for which an adjustment is made under section 43-1122, paragraph 26, one-fifth of the amount of adjustment 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 32 of this section in lieu of the adjustment under this paragraph related to the property.
32. For property for which an adjustment was made under section 43‑1122, paragraph 26 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 property exceeds the adjusted basis of the property computed under this title."
Page 25, line 2, strike "2014" insert "2015"
Strike lines 7 and 8, insert:
"25. For property placed in service in taxable years beginning from and after December 31, 2014, 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. That amount shall be reduced by the expense amount allowed pursuant to section 179 of the internal revenue code in determining the taxpayer's federal adjusted gross income, but not below zero.
26. For qualified property that is placed in service in taxable years beginning from and after December 31, 2014, an allowance equal to fifty percent of the adjusted basis of the qualified property remaining after the adjustment for the allowance under paragraph 25 of this section and adjustments for any other depreciation allowance under this title. The amount determined under this paragraph shall be reduced by the special allowance determined under section 168(k) of the internal revenue code, but not below zero. For the purposes of this paragraph, "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 improvement 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, 2014.
(c) The property is acquired by the taxpayer after December 31, 2014 pursuant to a written binding contract entered into after December 31, 2014.
(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, 2014.
(e) The property is not excepted property or subject to any special rules under section 168 of the internal revenue code."
Page 26, line 42, strike "and" insert ", 42-1123,"; after "42-2059" insert ", 42‑2075 and 42-5069"
Amend title to conform