What This Bill Does
This bill amends the tax code to allow businesses to deduct the full cost of qualified property (assets a business buys and uses) at the time they make the investment. The bill makes this tax deduction permanent rather than temporary. The bill is called the "Accelerate Long-term Investment Growth Now Act" or "ALIGN Act."
Who It Affects
Businesses that invest in qualified property are directly affected by this bill.
Key Provisions
• The tax deduction for qualified property placed in service after September 27, 2017 is set to 100 percent, meaning businesses can deduct the entire cost immediately (Sec. 2(a))
• Specified plants (plants that are planted or grafted) after September 27, 2017 qualify for the same 100 percent deduction treatment (Sec. 2(a))
• Property with a recovery period of 7 years or less qualifies for this permanent deduction (Sec. 2(b)(2))
What Changes
The bill removes time limits on when businesses must have placed property in service to receive the full 100 percent deduction. It also removes a previous deadline for specified plants that required them to be planted or grafted before January 1, 2027.
Important Definitions
"Qualified property" is not explicitly defined in the bill text provided.
Effective Date
The amendments take effect as if included in section 13201 of Public Law 115-97 (Sec. 2(c)).
I
118TH CONGRESS
1ST SESSION H. R. 2406
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 HOUSE OF REPRESENTATIVES
MARCH 30, 2023
Mr. ARRINGTON (for himself, Mr. BUCHANAN, Mrs. MILLER of West Virginia,
Mr. FITZPATRICK, Ms. TENNEY, Mr. SMITH of Nebraska, Mr. FER-
GUSON, Mrs. STEEL, Mr. ESTES, Mr. KUSTOFF, Mr. MOORE of Utah,
Mr. HERN, Mr. FEENSTRA, and Mr. LAHOOD) introduced the following
bill; which was referred to the Committee on Ways and Means
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-
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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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•HR 2406 IH
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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•HR 2406 IH
(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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•HR 2406 IH
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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