Page 60 - Tax Reform

131 STAT. 2110 PUBLIC LAW 115–97—DEC. 22, 2017

(2) APPLICATION OF STRAIGHT LINE METHOD TO QUALIFIED
IMPROVEMENT PROPERTY.—Paragraph (3) of section 168(b) is
amended—
(A) by striking subparagraphs (G), (H), and (I), and
(B) by inserting after subparagraph (F) the following
new subparagraph:
‘‘(G) Qualified improvement property described in sub-
section (e)(6).’’.
(3) ALTERNATIVE DEPRECIATION SYSTEM.—
(A) ELECTING REAL PROPERTY TRADE OR BUSINESS.—
26 USC 168. Subsection (g) of section 168 is amended—
(i) in paragraph (1)—
(I) in subparagraph (D), by striking ‘‘and’’ at
the end,
(II) in subparagraph (E), by inserting ‘‘and’’
at the end, and
(III) by inserting after subparagraph (E) the
following new subparagraph:
‘‘(F) any property described in paragraph (8),’’, and
(ii) by adding at the end the following new para-
graph:
‘‘(8) ELECTING REAL PROPERTY TRADE OR BUSINESS.—The
property described in this paragraph shall consist of any non-
residential real property, residential rental property, and quali-
fied improvement property held by an electing real property
trade or business (as defined in 163(j)(7)(B)).’’.
(B) QUALIFIED IMPROVEMENT PROPERTY.—The table
contained in subparagraph (B) of section 168(g)(3) is
amended—
(i) by inserting after the item relating to subpara-
graph (D)(ii) the following new item:
‘‘(D)(v) ........................................................................................................ 20’’
, and
(ii) by striking the item relating to subparagraph
(E)(iv) and all that follows through the item relating
to subparagraph (E)(ix) and inserting the following:
‘‘(E)(iv) ....................................................................................................... 20
(E)(v) .......................................................................................................... 30
(E)(vi) ......................................................................................................... 35’’.
(C) APPLICABLE RECOVERY PERIOD FOR RESIDENTIAL
RENTAL PROPERTY.—The table contained in subparagraph
(C) of section 168(g)(2) is amended by striking clauses
(iii) and (iv) and inserting the following:
‘‘(iii) Residential rental property ............................................................. 30 years
(iv) Nonresidential real property ............................................................. 40 years
(v) Any railroad grading or tunnel bore or water utility property ....... 50 years’’.
(4) CONFORMING AMENDMENTS.—
(A) Clause (i) of section 168(k)(2)(A) is amended—
(i) in subclause (II), by inserting ‘‘or’’ after the
comma,
(ii) in subclause (III), by striking ‘‘or’’ at the end,
and
(iii) by striking subclause (IV).
(B) Section 168 is amended—
(i) in subsection (e), as amended by paragraph
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(1)(B), by adding at the end the following:
‘‘(6) QUALIFIED IMPROVEMENT PROPERTY.—