PART I—TEMPORARY INVESTMENT INCENTIVES
SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.
(a) Extension of Special Allowance.—
(1) In general.—
Paragraph (2) of section 168(k) is amended—
(A) by striking "January 1, 2010" and inserting "January 1, 2011", and
(B) by striking "January 1, 2009" each place it appears and inserting "January 1, 2010". (2) Conforming amendments.— (A) The heading for subsection (k) of section 168 is amended by striking "January 1, 2009" and inserting "January 1, 2010". (B) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking "pre-january 1, 2009" and inserting "pre-january 1, 2010". (C) Subparagraph (B) of section 168(l)(5) is amended by striking "January 1, 2009" and inserting "January 1, 2010". (D) Subparagraph (C) of section 168(n)(2) is amended by striking "January 1, 2009" and inserting "January 1, 2010". (E) Subparagraph (B) of section 1400N(d)(3) is amended by striking "January 1, 2009" and inserting "January 1, 2010". (3) Technical amendments.— (A) Subparagraph (D) of section 168(k)(4) is amended— (i) by striking "and" at the end of clause (i), (ii) by redesignating clause (ii) as clause (iii), and (iii) by inserting after clause (i) the following new clause:
"(ii) `April 1, 2008' shall be substituted for `January 1, 2008' in subparagraph (A)(iii)(I) thereof, and". (B) Subparagraph (A) of section 6211(b)(4) is amended by inserting "168(k)(4)," after "53(e),".
(b) Extension of Election to Accelerate the Amt and Research Credits in Lieu of Bonus Depreciation.— (1) In general.— Section 168(k)(4) (relating to election to accelerate the AMT and research credits in lieu of bonus depreciation) is amended— (A) by striking "2009" and inserting "2010"in subparagraph (D)(iii) (as redesignated by subsection (a)(3)), and (B) by adding at the end the following new subparagraph:
"(H) Special rules for extension property.—
"(i) 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— "(I) the taxpayer may elect not to have this paragraph apply to extension property, but "(II) if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer a separate bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is extension property and to eligible qualified property which is not extension property. "(ii) Taxpayers not previously electing acceleration.—In the case of a taxpayer who did not make the election under subparagraph (A) for its first taxable year ending after March 31, 2008— "(I) the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2008, 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 extension property. "(iii) Extension property.—For purposes of this subparagraph, the term `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 1201(a) of the American Recovery and Reinvestment Tax Act of 2009 (and the application of such extension to this paragraph pursuant to the amendment made by section 1201(b)(1) of such Act).".
(2) Technical amendment.—
Section 6211(b)(4)(A) is amended by inserting "168(k)(4)," after "53(e),".
(c) Effective Dates.—
(1) In general.—
Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years ending after such date. (2) Technical amendments.— The amendments made by subsections (a)(3) and (b)(2) shall apply to taxable years ending after March 31, 2008.
SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS.
(a) In General.—
Paragraph (7) of section 179(b) is amended—
(1) by striking "2008" and inserting "2008, or 2009", and
(2) by striking "2008" in the heading thereof and inserting "2008, and 2009".
(b) Effective Date.—
The amendments made by this section shall apply to taxable years beginning after December 31, 2008.
PART II—SMALL BUSINESS PROVISIONS
SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES.
(a) In General.—Subparagraph (H) of section 172(b)(1) is amended to read as follows: