Section 1 Short title
This Act may be cited as the “Mandated Expenses Tax Relief Act”.
Mandated Expenses Tax Relief Act
A BILL
To amend the Internal Revenue Code of 1986 to provide for expensing of property used to comply with Federal laws and regulations.
Sec. 2 Expensing of property used to comply with Federal laws and regulations
In general— Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 179E the following new section:
“179F. Election to expense property used to comply with Federal laws and regulations
“(a) In general—A taxpayer may elect to treat the cost of any Federal compliance property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the Federal compliance property is placed in service.
“(b) Federal compliance property—For purposes of this section, the term “Federal compliance property” means any property—
“(1) which is of a character with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and
“(2) which is used by the taxpayer to comply with any Federal law or regulation.
“(c) Election
“(1) In general—An election under this section for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year. Such election shall specify the Federal compliance property to which the election applies and shall be made in such manner as the Secretary may provide.
“(2) Election irrevocable—Any election made under this section may not be revoked except with the consent of the Secretary.”
Conforming amendments—
Section 312(k)(3)(B) of such Code is amended by striking “or 179E” each place it appears in the heading and text and inserting “179E, or 179F”.
Paragraphs (2)(C) and (3)(C) of section 1245(a) of such Code are each amended by inserting “179F,” after “179E,”.
The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 179E the following new item:
Effective date— The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.