ALIGN Act

II 116TH CONGRESS 2D SESSION S. 3296 To amend the Internal Revenue Code of 1986 to permanently allow a tax deduction at the time an investment in qualified property is made, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 13, 2020 Mr. TOOMEY (for himself, Mr. PERDUE, Mr. TILLIS, Mr. CRUZ, Mr. RUBIO, Mr. RISCH, Mr. CRAMER, Mrs. CAPITO, Mr. INHOFE, Mr. GARDNER, Mr. PORTMAN, Mr. BRAUN, Mr. SCOTT of South Carolina, Mr. MORAN, and Mr. LANKFORD) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to permanently allow a tax deduction at the time an investment in quali- fied property is made, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Accelerate Long-term 4 Investment Growth Now Act’’ or the ‘‘ALIGN Act’’. 5 VerDate Sep 11 2014 00:35 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3296.IS S3296 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3296 IS SEC. 2. PERMANENT FULL EXPENSING FOR QUALIFIED 1 PROPERTY. 2 (a) IN GENERAL.—Paragraph (6) of section 168(k) 3 of the Internal Revenue Code of 1986 is amended to read 4 as follows: 5 ‘‘(6) APPLICABLE PERCENTAGE.—For purposes 6 of this subsection, the term ‘applicable percentage’ 7 means, in the case of property placed in service (or, 8 in the case of a specified plant described in para- 9 graph (5), a plant which is planted or grafted) after 10 September 27, 2017, 100 percent.’’. 11 (b) CONFORMING AMENDMENTS.— 12 (1) Section 168(k) of the Internal Revenue 13 Code of 1986 is amended— 14 (A) in paragraph (2)— 15 (i) in subparagraph (A)— 16 (I) in clause (i)(V), by inserting 17 ‘‘and’’ at the end, 18 (II) in clause (ii), by striking 19 ‘‘clause (ii) of subparagraph (E), 20 and’’ and inserting ‘‘clause (i) of sub- 21 paragraph (E).’’, and 22 (III) by striking clause (iii), 23 (ii) in subparagraph (B)— 24 (I) in clause (i)— 25 VerDate Sep 11 2014 00:35 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3296.IS S3296 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3296 IS (aa) by striking subclauses 1 (II) and (III), and 2 (bb) by redesignating sub- 3 clauses (IV) through (VI) as sub- 4 clauses (II) through (IV), respec- 5 tively, 6 (II) by striking clause (ii), and 7 (III) by redesignating clauses 8 (iii) and (iv) as clauses (ii) and (iii), 9 respectively, 10 (iii) in subparagraph (C)— 11 (I) in clause (i), by striking ‘‘and 12 subclauses (II) and (III) of subpara- 13 graph (B)(i)’’, and 14 (II) in clause (ii), by striking 15 ‘‘subparagraph (B)(iii)’’ and inserting 16 ‘‘subparagraph (B)(ii)’’, and 17 (iv) in subparagraph (E)— 18 (I) by striking clause (i), and 19 (II) by redesignating clauses (ii) 20 and (iii) as clauses (i) and (ii), respec- 21 tively, and 22 (B) in paragraph (5)(A), by striking 23 ‘‘planted before January 1, 2027, or is grafted 24 before such date to a plant that has already 25 VerDate Sep 11 2014 00:35 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3296.IS S3296 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3296 IS been planted,’’ and inserting ‘‘planted or graft- 1 ed’’. 2 (2) Section 460(c)(6)(B) of such Code is 3 amended by striking ‘‘which’’ and all that follows 4 through the period and inserting ‘‘which has a recov- 5 ery period of 7 years or less.’’. 6 (c) EFFECTIVE DATE.—The amendments made by 7 this section shall take effect as if included in section 8 13201 of Public Law 115–97. 9 SEC. 3. TECHNICAL AMENDMENTS REGARDING QUALIFIED 10 IMPROVEMENT PROPERTY. 11 (a) IN GENERAL.—Section 168 of the Internal Rev- 12 enue Code of 1986, as amended by section 2, is amend- 13 ed— 14 (1) in subsection (e)— 15 (A) in paragraph (3)(E), by striking ‘‘and’’ 16 at the end of clause (v), by striking the period 17 at the end of clause (vi) and inserting ‘‘, and’’, 18 and by adding at the end the following new 19 clause: 20 ‘‘(vii) any qualified improvement prop- 21 erty.’’, and 22 (B) in paragraph (6)(A), by inserting 23 ‘‘made by the taxpayer’’ after ‘‘any improve- 24 ment’’, and 25 VerDate Sep 11 2014 00:35 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3296.IS S3296 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3296 IS (2) in the table contained in subsection 1 (g)(3)(B)— 2 (A) by striking the item relating to sub- 3 paragraph (D)(v), and 4 (B) by inserting after the item relating to 5 subparagraph (E)(vi) the following new item: 6 ‘‘(E)(vii) ....................................................................................... 20’’. (b) EFFECTIVE DATE.—The amendments made by 7 this section shall take effect as if included in section 8 13204 of Public Law 115–97. 9 Æ VerDate Sep 11 2014 00:35 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S3296.IS S3296 pamtmann on DSKBC07HB2PROD with BILLS