Page 61 - Tax Reform

PUBLIC LAW 115–97—DEC. 22, 2017 131 STAT. 2111

‘‘(A) IN GENERAL.—The term ‘qualified improvement
property’ means any improvement to an interior portion
of a building which is nonresidential real property if such
improvement is placed in service after the date such
building was first placed in service.
‘‘(B) CERTAIN IMPROVEMENTS NOT INCLUDED.—Such
term shall not include any improvement for which the
expenditure is attributable to—
‘‘(i) the enlargement of the building,
‘‘(ii) any elevator or escalator, or
‘‘(iii) the internal structural framework of the
building.’’, and
(ii) in subsection (k), by striking paragraph (3).
(b) EFFECTIVE DATE.— 26 USC 168 note.
(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, 2017.
(2) AMENDMENTS RELATED TO ELECTING REAL PROPERTY
TRADE OR BUSINESS.—The amendments made by subsection
(a)(3)(A) shall apply to taxable years beginning after December
31, 2017.
SEC. 13205. USE OF ALTERNATIVE DEPRECIATION SYSTEM FOR
ELECTING FARMING BUSINESSES.
(a) IN GENERAL.—Section 168(g)(1), as amended by section
13204, is amended by striking ‘‘and’’ at the end of subparagraph 26 USC 168.
(E), by inserting ‘‘and’’ at the end of subparagraph (F), and by
inserting after subparagraph (F) the following new subparagraph:
‘‘(G) any property with a recovery period of 10 years
or more which is held by an electing farming business
(as defined in section 163(j)(7)(C)),’’.
(b) EFFECTIVE DATE.—The amendments made by this section 26 USC 168 note.
shall apply to taxable years beginning after December 31, 2017.
SEC. 13206. AMORTIZATION OF RESEARCH AND EXPERIMENTAL
EXPENDITURES.
(a) IN GENERAL.—Section 174 is amended to read as follows:
‘‘SEC. 174. AMORTIZATION OF RESEARCH AND EXPERIMENTAL
EXPENDITURES.
‘‘(a) IN GENERAL.—In the case of a taxpayer’s specified research
or experimental expenditures for any taxable year—
‘‘(1) except as provided in paragraph (2), no deduction shall
be allowed for such expenditures, and
‘‘(2) the taxpayer shall—
‘‘(A) charge such expenditures to capital account, and
‘‘(B) be allowed an amortization deduction of such
expenditures ratably over the 5-year period (15-year period
in the case of any specified research or experimental
expenditures which are attributable to foreign research
(within the meaning of section 41(d)(4)(F))) beginning with
the midpoint of the taxable year in which such expenditures
are paid or incurred.
‘‘(b) SPECIFIED RESEARCH OR EXPERIMENTAL EXPENDITURES.—
For purposes of this section, the term ‘specified research or experi-
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mental expenditures’ means, with respect to any taxable year,
research or experimental expenditures which are paid or incurred