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 “shall”Who 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)”
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)”
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.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70307, 139 Stat. 198 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“The break is clawed back if the use changes within ten years,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70307, Sec. 70307. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70307-recapture/ (retrieved October 10, 2026).
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