26 U.S.C. § 1397A

§ 1397A. Increase in expensing under section 179

144 words · amended 3 times

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Added in 1993 by the Omnibus Budget Reconciliation Act of 1993. Last changed December 27, 2020 by the Consolidated Appropriations Act, 2021.

Every change, newest first (4)

December 27, 2020Consolidated Appropriations Act, 2021
December 21, 2000Public Law 106-554
August 5, 1997Taxpayer Relief Act of 1997
August 10, 1993Omnibus Budget Reconciliation Act of 1993 · added this section

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

(a) General rule
(b) Recapture
(c) Termination

(a) General rule

In the case of an enterprise zone business, for purposes of section 179—

(1)

the limitation under section 179(b)(1) shall be increased by the lesser of—

(A)

$35,000, or

(B)

the cost of section 179 property which is qualified zone property placed in service during the taxable year, and

(2)

the amount taken into account under section 179(b)(2) with respect to any section 179 property which is qualified zone property shall be 50 percent of the cost thereof.

(b) Recapture

Rules similar to the rules under section 179(d)(10) shall apply with respect to any qualified zone property which ceases to be used in an empowerment zone by an enterprise zone business.

This section shall not apply to any property placed in service in taxable years beginning after December 31, 2020.