Read theMandate

Provide for reconciliation pursuant to title II of H. Con. Res. 14Section 70307 › Proposal

The break is clawed back if the use changes within ten years

To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70307, Sec. 70307. Written by .

The break is clawed back if the use changes within ten years

The document says “shallWho acts: Secretary of the TreasuryHow: statuteSec. 70307 in the PDF
What the document says

“If, at any time during the 10-year period beginning on the date that any qualified production property is placed in service by the taxpayer, such property ceases to be used as described in paragraph (2)(A)(ii)”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70307

The section provides that where within ten years of being placed in service the property stops being used as an integral part of a qualified production activity and is used in another productive use, section 1245 of the Internal Revenue Code of 1986 applies as if the property had been disposed of at that time, with a floor on the amount taken into account, and the taxpayer's basis and depreciation allowance are adjusted accordingly.

What the document actually says

“If, at any time during the 10-year period beginning on the date that any qualified production property is placed in service by the taxpayer, such property ceases to be used as described in paragraph (2)(A)(ii)”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70307
That sentence, in plain words

The clock runs for ten years from the day the building is put to use. If it stops being used in production, the rule below bites.

What this is about

The building is treated as if it had been sold. Tax is then owed on the break already taken. Its value on the books is adjusted.

No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.

Share this page

How to Read This Page

The quotation is the document's own words, exactly as printed, and we check the page number against the Act itself before publishing. The paragraph underneath is our summary, not the document's words. So is the plain English version, which is why it sits beside the quotation rather than replacing it.

All proposals in this section →