This part lets a business write off the full cost of certain property at once. The rate is set at 100 percent with no end date. A business may elect a lower rate for the first year after January 19, 2025. The change reaches property bought after that date.
“Section 168(k)(2)(A) is amended by adding "and" at the end of clause (i), by striking ", and" at the end of clause (ii) and inserting a period, and by striking clause (iii).”
The section strikes clause (iii) of section 168(k)(2)(A) of the Internal Revenue Code of 1986 and makes matching strikes and redesignations in subparagraphs (B) and (E) of section 168(k)(2), replaces the planting and grafting dates in section 168(k)(5)(A) with the words planted or grafted, and makes conforming cross reference changes in section 168(k)(2) and section 460(c)(6)(B).
What the document actually says
“Section 168(k)(2)(A) is amended by adding "and" at the end of clause (i), by striking ", and" at the end of clause (ii) and inserting a period, and by striking clause (iii).”
That sentence, in plain words
One clause is taken out of a tax rule. Punctuation in two others is fixed to match.
What this is about
Similar strikes are made in nearby rules. Dates that wound the break down are removed. So the break carries on with no end year.
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.
“in paragraph (1)(A), by striking "the applicable percentage" and inserting "100 percent", and”
The section strikes the words the applicable percentage in section 168(k)(1)(A) of the Internal Revenue Code of 1986 and inserts 100 percent, makes the same change in section 168(k)(5)(A)(i), and strikes paragraphs (6) and (8) of section 168(k).
What the document actually says
“in paragraph (1)(A), by striking "the applicable percentage" and inserting "100 percent", and”
That sentence, in plain words
The words the applicable percentage are taken out. The words 100 percent are put in.
What this is about
The old wording pointed to a sliding scale. The new wording fixes the rate. The same change is made for certain plants.
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.
The document says “can”Who acts: Secretary of the TreasuryHow: statuteSec. 70301 in the PDF
What the document says
“In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (1)(A) shall be applied--”
The section rewrites section 168(k)(10) of the Internal Revenue Code of 1986 so that a taxpayer may elect, for the first taxable year ending after January 19, 2025, to apply 40 percent in place of 100 percent, or 60 percent for property described in subparagraph (B) or (C) of paragraph (2). A specified plant planted or grafted in that year may likewise be taken at 40 percent.
What the document actually says
“In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (1)(A) shall be applied--”
That sentence, in plain words
A business may choose a lower rate. That choice is open for the first tax year ending after January 19, 2025.
What this is about
The lower rate is 40 percent for most property. It is 60 percent for some longer lived property. Plants may be taken at 40 percent.
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.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70301 in the PDF
What the document says
“Except as otherwise provided in this subsection, the amendments made by this section shall apply to property acquired after January 19, 2025.”
The section applies its amendments to property acquired after January 19, 2025, applies them to specified plants planted or grafted after that date, and applies the transitional election to taxable years ending after that date.
What the document actually says
“Except as otherwise provided in this subsection, the amendments made by this section shall apply to property acquired after January 19, 2025.”
That sentence, in plain words
The changes reach property bought after January 19, 2025. Some parts of the section are treated apart.
What this is about
Plants count from the day they are planted or grafted. The choice of a lower rate runs by tax year. All three dates are the same.
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.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70301 in the PDF
What the document says
“property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition.”
The section provides that for the purposes of the effective date, property is not treated as acquired after the date a written binding contract for the acquisition was entered into.
What the document actually says
“property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition.”
That sentence, in plain words
Property counts as bought when the contract was signed. It does not count as bought any later than that.
What this is about
The contract must be written and binding. So a deal signed before the cut-off date misses the change. Delivery later does not help.
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.
Each distinct thing the section does: strike the provisions that ended the allowance, set the rate at 100 percent, allow a transitional election of a reduced rate, fix the effective dates, and set how the acquisition date is worked out.
The redesignations and conforming cross reference changes that follow from the strikes, which move existing text without changing what it requires.
The section works by amending section 168(k) and section 460(c)(6)(B) of the Internal Revenue Code of 1986, which are not indexed here, so what the allowance covers cannot be checked against anything on this site.
