United States 118th Congress Status: In Committee 1 R cosponsors

HR 9069 — Renewing Investment in American Workers and Supply Chains Act

Last action — Referred to the House Committee on Ways and Means.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 118th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

To amend the Internal Revenue Code of 1986 to modify the depreciation of nonresidential real property and residential rental property.

Bill Text

Sections of law this bill changes

1 section in 1 law

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-121).

Normal taxes and surtaxes · 26 U.S.C. ch. 1 1 section
  • § 168 Accelerated cost recovery system Amends

    26 U.S.C. § 168 — at 168(e)(3)(F), 168(k)(2)(A)(i)(I), and 168(c)

    The law today

    (a) General rule Except as otherwise provided in this section, the depreciation deduction provided by section 167(a) for any tangible property shall be determined by using— (1) the applicable depreciation method, (2) the applicable recovery period, and (3) the applicable convention. (b) Applicable depreciation method For purposes of this section— (1) In general Except as provided in paragraphs (2) and (3), the applicable depreciation method is— (A) the 200 percent declining balance method, (B) switching to the straight line method for the 1st taxable year for which using the straight line method with respect to the adjusted basis as of the beginning of such year will yield a larger allowance. (2) 150 percent declining balance method in certain cases Paragraph (1) shall be applied by substituting “150 percent” for “200 percent” in the case of— (A) any 15-year or 20-year property not referred to in paragraph (3), (B) any property (other than property described in paragraph (3)) which is a qualified smart electric meter or qualified smart electric grid system, or (C) any property (other than property described in paragraph (3)) with respect to which the taxpayer elects under paragraph (5) to have the provisions of this paragraph apply. (3) Property to which straight line method applies The applicable depreciation method shall be the straight line method in the case of the following property: (A) Nonresidential real property. (B) Residential rental property. (C) Any railroad grading or tunnel bore. (D) Property with respect to which the taxpayer elects under paragraph (5) to have the provisions of this paragraph apply. (E) Property described in subsection (e)(3)(D)(ii). (F) Water utility property described in subsection (e)(5). (G) Qualified improvement property described in subsection (e)(6). (4) Salvage value treated as zero Salvage value shall be treated as zero. (5) Election An election under paragraph (2)(D) 1 or (3)(D) may be made with respect to 1 or more classes of property for any taxable year and once made with respect to any class shall apply to all property in such class placed in service during such taxable year. Such an election, once made, shall be irrevocable. (c) Applicable recovery period For purposes of this section, the applicable recovery period shall be determined in accordance with the following table: In the case of: The applicable recovery period is: 3-year property 3 years   5-year property 5 years   7-year property 7 years   10-year property 10 years   15-year property 15 years   20-year property 20 years   Water utility property 25 years   Residential rental property 27.5 years   Nonresidential real property 39 years. Any railroad grading or tunnel bore 50 years. (d) Applicable convention For purposes of this section— (1) In general Except as otherwise provided in this subsection, the applicable convention is the half-year convention. (2) Real property In the case of— (A) nonresidential real property, (B) residential rental property, and (C) any railroad grading or tunnel bore, the applicable convention is the mid-month convention. (3) Special rule where substantial property placed in service during last 3 months of taxable year (A) In general Except as provided in regulations, if during any taxable year— (i) the aggregate bases of property to which this section applies placed in service during the last 3 months of the taxable year, exceed (ii) 40 percent of the aggregate bases of property to which this section applies placed in service during such taxable year, the applicable convention for all property to which this section applies placed in service during such taxable year shall be the mid-quarter convention. (B) Certain property not taken into account For purposes of subparagraph (A), there shall not be taken into account— (i) any nonresidential real property, residential rental property, and railroad grading or tunnel bore, and (ii) any other property placed in service and disposed of during the...

    102 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

How this bill changes current law

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The bill modifies the depreciation rules for nonresidential real property and residential rental property under the Internal Revenue Code.

  • Section 168(e)(3)(F)

    ``(F) 15-year property.--The term `15-year property' means-- → ``(F) 20-year property.--The term `20-year property' means--

    The classification of property for depreciation is changed from 15 years to 20 years for nonresidential real property and residential rental property.

  • Section 168(k)(2)(A)(i)(I)

    the nonresidential real property; and → (other than nonresidential real property and residential rental property),

    Bonus depreciation is explicitly excluded for nonresidential real property and residential rental property.

  • Section 168(c)

    the row relating to residential rental property,

    The depreciation table will no longer include residential rental property.

  • Section 168(c)

    the row relating to nonresidential real property.

    The depreciation table will no longer include nonresidential real property.

  • Section 168

    ``(n) Neutral Cost Recovery for Nonresidential Real Property and Residential Rental Property.--

    A new section is added to provide a neutral cost recovery method for depreciation based on economic factors.

  • Section 168(n)(1)

    The deduction otherwise provided under section 167(a) with respect to nonresidential real property and residential rental property for any taxable year shall be equal to the product of such amount (determined without regard to this subsection) multiplied by the applicable neutral cost recovery ratio with respect to such property for such taxable year.

    Establishes a new calculation for deductions for nonresidential real property and residential rental property based on an applicable neutral cost recovery ratio.

  • Section 168(n)(2)

    ``(2) Neutral cost recovery ratio.--For purposes of paragraph (1), the term `applicable neutral cost recovery ratio' means, with respect to any property for any taxable year, the product (not less than 1 and rounded to the nearest 0.001) of--

    Defines how to calculate the neutral cost recovery ratio for depreciation purposes.

  • Section 168(n)(3)

    ``(3) Application to property placed in service before date of enactment.--In the case of nonresidential real property or residential rental property which is placed in service before the date of enactment of this subsection...

    Clarifies how the new depreciation rules will apply to property placed in service before the enactment of the bill.

  • Section 168(n)(4)

    ``(4) Additional deduction not to affect basis or recapture.--

    Ensures that any additional deduction for neutral cost recovery does not affect the adjusted basis of the property.

Action History

  1. Referred to the House Committee on Ways and Means.

  2. Introduced in House

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 546 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (546)

546 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation labor
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Frequently asked questions

What does HR 9069 do?
To amend the Internal Revenue Code of 1986 to modify the depreciation of nonresidential real property and residential rental property.
Who sponsors HR 9069?
HR 9069 is sponsored by Hern, Kevin (Republican).
What is the current status of HR 9069?
This bill died with 118th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 9069?
Track HR 9069 free on One Click Politics — get push/email alerts when it moves.

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