Section 1 Short title
This Act may be cited as the “Jumpstarting Our Business Sector Act of 2013”.
Jumpstarting Our Business Sector Act of 2013
A BILL
To amend the Internal Revenue Code of 1986 to provide individual and corporate income tax relief and to extend 100 percent bonus depreciation, and for other purposes.
Sec. 2 Corporate income tax rates reduced to zero
Regular tax— Subsection (b) of section 11 of the Internal Revenue Code of 1986 is amended to read as follows:
“(b) Amount of tax—The amount of the tax imposed by subsection (a) shall be 0 percent of taxable income.”
Alternative minimum tax— Section 55(b)(1)(B)(i) of such Code is amended by striking “20 percent” and inserting “0 percent”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2013.
Sec. 3 Exclusion for net capital gain
In general— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting before section 101 the following new section:
“100. Exclusion for net capital gain
“Gross income shall not include net capital gain.”
Conforming amendments—
Section 1 of such Code is amended by striking subsection (h).
Subchapter P of chapter 1 of such Code is amended by striking part I.
The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the first item the following new item:
The table of parts for subchapter P of chapter 1 of such Code is amended by striking the item relating to part I.
Effective date— The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
Sec. 4 3-year extension of bonus depreciation and 100 percent expensing for certain business assets
In general—
Bonus depreciation— Paragraph (2) of section 168(k) of the Internal Revenue Code of 1986 is amended—
by striking “January 1, 2015” in subparagraph (A)(iv) and inserting “January 1, 2018”, and
by striking “January 1, 2014” each place it appears and inserting “January 1, 2017”.
100 percent expensing— Paragraph (5) of section 168(k) is amended to read as follows:
“(5) Temporary 100 percent bonus depreciation—Paragraph (1)(A) shall be applied by substituting “100 percent” for “50 percent” in the case of qualified property—
“(A) which is acquired by the taxpayer (under rules similar to the rules of clauses (ii) and (iii) of paragraph (2)(A))—
“(i) after September 8, 2010, and before January 1, 2012, or
“(ii) after December 31, 2012, and before January 1, 2018, and
“(B) which is placed in service by the taxpayer—
“(i) before January 1, 2012 (January 1, 2013, in the case of property described in subparagraph (2)(B) or (2)(C)), or
“(ii) in the case of property described in subparagraph (A)(ii), before January 1, 2017 (January 1, 2018, in the case of property described in subparagraph (2)(B) or (2)(C)).”
Special rules relating to election To accelerate AMT credit in lieu of bonus depreciation—
In general— Subclause (II) of section 168(k)(4)(D)(iii) of such Code is amended by striking “2014” and inserting “2017” .
Round 4 extension property— Paragraph (4) of section 168(k) of such Code is amended by adding at the end the following new subparagraph:
“(K) Special rules for round 4 extension property
“(i) In general—In the case of round 4 extension property, this paragraph shall be applied without regard to—
“(I) the limitation described in subparagraph (B)(i) thereof, and
“(II) the business credit increase amount under subparagraph (E)(iii) thereof.
“(ii) Taxpayers previously electing acceleration—In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, a taxpayer who made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, a taxpayer who made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010, or a taxpayer who made the election under subparagraph (J)(iii) for its first taxable year ending after December 31, 2012—
“(I) the taxpayer may elect not to have this paragraph apply to round 4 extension property, but
“(II) if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer the bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is round 4 extension property.
“(iii) Taxpayers not previously electing acceleration—In the case of a taxpayer who neither made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, nor made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, nor made the election under subparagraph (I)(iii) for any taxable year ending after December 31, 2010, nor made the election under subparagraph (J)(iii) for its first taxable year ending after December 31, 2012—
“(I) the taxpayer may elect to have this paragraph apply to its first 3 taxable years ending after December 31, 2013, and each subsequent taxable year, and
“(II) if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is round 4 extension property.
“(iv) Round 4 extension property—For purposes of this subparagraph, the term round 4 extension property means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 4(a)(1) of the Jumpstarting Our Business Sector Act of 2013 (and the application of such extension to this paragraph pursuant to the amendment made by section 4(b)(1) of such Act).”
Conforming amendments—
The heading for subsection (k) of section 168 of such Code is amended by striking “January 1, 2014” and inserting “January 1, 2017”.
The heading for clause (ii) of section 168(k)(2)(B) of such Code is amended by striking “pre-January 1, 2014” and inserting “pre-January 1, 2017”.
Subparagraph (C) of section 168(n)(2) of such Code is amended by striking “January 1, 2014” and inserting “January 1, 2017”.
Subparagraph (D) of section 1400L(b)(2) of such Code is amended by striking “January 1, 2014” and inserting “January 1, 2017”.
Subparagraph (B) of section 1400N(d)(3) of such Code is amended by striking “January 1, 2014” and inserting “January 1, 2017”.
Effective date— The amendments made by this section shall apply to property placed in service after December 31, 2013, in taxable years ending after such date.
Sec. 5 Repeal of estate and gift taxes
In general— Subtitle B of the Internal Revenue Code of 1986 (relating to estate, gift, and generation-skipping taxes ) is hereby repealed.
Effective date— The repeal made by subsection (a) shall apply to estates of decedents dying, gifts made, and generation-skipping transfers made after the date of the enactment of this Act.