What This Bill Does
This bill changes how people and businesses can deduct investments in qualified property (physical assets like equipment and buildings) from their taxes. Instead of spreading the deduction over many years, the bill allows a full deduction when the investment is made.
Who It Affects
Taxpayers and businesses that invest in qualified property. Businesses that grow plants through planting or grafting are also directly affected.
Key Provisions
- Businesses and taxpayers can deduct 100 percent of the cost of qualified property at the time the property is put into service (placed in use) after September 27, 2017 (Sec. 2(a)).
- The rule applies to specified plants that are planted or grafted after September 27, 2017 (Sec. 2(a)).
- Conforming changes are made to other sections of the tax code to align with this new rule (Sec. 2(b)).
What Changes
The tax code will allow a complete and permanent deduction of investment costs for qualified property in the year the property is placed in service, rather than deducting the cost gradually over time.
Important Definitions
The bill does not explicitly define "qualified property" or "specified plant" in the provided text.
Effective Date
The amendments take effect as if they were included in section 13201 of Public Law 115-97 (Sec. 2(c)).
II
118TH CONGRESS
1ST SESSION
S. 1117
To amend the Internal Revenue Code of 1986 to permanently allow a tax
deduction at the time an investment in qualified property is made.
IN THE SENATE OF THE UNITED STATES
MARCH 30, 2023
Mr. LANKFORD (for himself, Mr. RISCH, Mr. RUBIO, Mr. BARRASSO, Mr.
BRAUN, Mrs. BLACKBURN, Mr. YOUNG, Mr. DAINES, Mr. BOOZMAN, Mr.
THUNE, and Mr. SCOTT of South Carolina) 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.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Accelerate Long-term
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Investment Growth Now Act’’ or the ‘‘ALIGN Act’’.
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•S 1117 IS
SEC. 2. PERMANENT FULL EXPENSING FOR QUALIFIED
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PROPERTY.
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(a) IN GENERAL.—Paragraph (6) of section 168(k)
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of the Internal Revenue Code of 1986 is amended to read
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as follows:
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‘‘(6) APPLICABLE PERCENTAGE.—For purposes
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of this subsection, the term ‘applicable percentage’
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means, in the case of property placed in service (or,
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in the case of a specified plant described in para-
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graph (5), a plant which is planted or grafted) after
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September 27, 2017, 100 percent.’’.
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(b) CONFORMING AMENDMENTS.—
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(1) Section 168(k) of the Internal Revenue
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Code of 1986 is amended—
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(A) in paragraph (2)—
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(i) in subparagraph (A)—
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(I) in clause (i)(V), by inserting
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‘‘and’’ at the end,
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(II) in clause (ii), by striking
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‘‘clause (ii) of subparagraph (E),
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and’’ and inserting ‘‘clause (i) of sub-
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paragraph (E).’’, and
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(III) by striking clause (iii),
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(ii) in subparagraph (B)—
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(I) in clause (i)—
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•S 1117 IS
(aa) by striking subclauses
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(II) and (III), and
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(bb) by redesignating sub-
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clauses (IV) through (VI) as sub-
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clauses (II) through (IV), respec-
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tively,
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(II) by striking clause (ii), and
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(III) by redesignating clauses
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(iii) and (iv) as clauses (ii) and (iii),
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respectively,
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(iii) in subparagraph (C)—
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(I) in clause (i), by striking ‘‘and
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subclauses (II) and (III) of subpara-
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graph (B)(i)’’, and
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(II) in clause (ii), by striking
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‘‘subparagraph (B)(iii)’’ and inserting
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‘‘subparagraph (B)(ii)’’, and
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(iv) in subparagraph (E)—
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(I) by striking clause (i), and
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(II) by redesignating clauses (ii)
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and (iii) as clauses (i) and (ii), respec-
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tively, and
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(B) in paragraph (5)(A), by striking
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‘‘planted before January 1, 2027, or is grafted
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before such date to a plant that has already
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•S 1117 IS
been planted,’’ and inserting ‘‘planted or graft-
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ed’’.
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(2) Section 460(c)(6)(B) of such Code is
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amended by striking ‘‘which’’ and all that follows
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through the period and inserting ‘‘which has a recov-
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ery period of 7 years or less.’’.
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(c) EFFECTIVE DATE.—The amendments made by
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this section shall take effect as if included in section
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13201 of Public Law 115–97.
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Æ
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