SEC. 70301. Full expensing for certain business property.
(a) Made permanent.—
(1) IN GENERAL.—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).
(2) PROPERTY WITH LONGER PRODUCTION PERIODS.—Section 168(k)(2)(B) is amended—
(A) in clause (i), by striking subclauses (II) and (III) and redesignating subclauses (IV), (V), and (VI), as subclauses (II), (III), and (IV), respectively, and
(B) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively.
(3) SELF-CONSTRUCTED PROPERTY.—Section 168(k)(2)(E) is amended by striking clause (i) and redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively.
(4) CERTAIN PLANTS.—Section 168(k)(5)(A) is amended by striking “planted before January 1, 2027, or is grafted before such date to a plant that has already been planted,” in the matter preceding clause (i) and inserting “planted or grafted”.
(5) CONFORMING AMENDMENTS.—
(A) Section 168(k)(2)(A)(ii) is amended by striking “clause (ii) of subparagraph (E)” and inserting “clause (i) of subparagraph (E)”.
(B) Section 168(k)(2)(C)(i) is amended by striking “and subclauses (II) and (III) of subparagraph (B)(i)”.
(C) Section 168(k)(2)(C)(ii) is amended by striking “subparagraph (B)(iii)” and inserting “subparagraph (B)(ii)”.
(D) Section 460(c)(6)(B) is amended by striking “which” and all that follows through the period and inserting “which has a recovery period of 7 years or less.”.
(b) 100 percent expensing.—
(1) IN GENERAL.—Section 168(k) is amended—
(A) in paragraph (1)(A), by striking “the applicable percentage” and inserting “100 percent”, and
(B) by striking paragraphs (6) and (8).
(2) CERTAIN PLANTS.—Section 168(k)(5)(A)(i) is amended by striking “the applicable percentage” and inserting “100 percent”.
(3) TRANSITIONAL ELECTION OF REDUCED PERCENTAGE.—Section 168(k)(10) is amended by striking subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting before subparagraph (C) (as so redesignated) the following new subparagraphs:
“(A) IN GENERAL.—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—
“(i) in the case of property which is not described in clause (ii), by substituting ‘40 percent’ for ‘100 percent’, or
“(ii) in the case of property which is described in subparagraph (B) or (C) of paragraph (2), by substituting ‘60 percent’ for ‘100 percent’.
“(B) SPECIFIED PLANTS.—In the case of any specified plant planted or grafted 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 (5)(A)(i) shall be applied by substituting ‘40 percent’ for ‘100 percent’.”.
(c) Effective date.—
(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to property acquired after January 19, 2025.
(2) SPECIFIED PLANTS.—Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants which are planted or grafted after January 19, 2025.
(3) TRANSITIONAL ELECTION OF REDUCED PERCENTAGE.—The amendment made by subsection (b)(3) shall apply to taxable years ending after January 19, 2025.
(4) ACQUISITION DATE DETERMINATION.—For purposes of paragraph (1), property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition.