PUBLIC LAW 108–27—MAY 28, 2003
117 STAT. 757
(B) Clause (ii) of section 168(k)(2)(B) is amended by striking ‘‘PRE-SEPTEMBER 11, 2004’’ in the heading and inserting ‘‘PRE-JANUARY 1, 2005’’. (2) ACQUISITION DATE.—Clause (iii) of section 168(k)(2)(A) is amended by striking ‘‘September 11, 2004’’ each place it appears and inserting ‘‘January 1, 2005’’. (3) ELECTION.—Clause (iii) of section 168(k)(2)(C) is amended by adding at the end the following: ‘‘The preceding sentence shall be applied separately with respect to property treated as qualified property by paragraph (4) and other qualified property.’’. (c) CONFORMING AMENDMENTS.— (1) The subsection heading for section 168(k) is amended by striking ‘‘SEPTEMBER 11, 2004’’ and inserting ‘‘JANUARY 1, 2005’’. (2) The heading for clause (i) of section 1400L(b)(2)(C) is amended by striking ‘‘30-PERCENT ADDITIONAL ALLOWANCE PROPERTY’’ and inserting ‘‘BONUS DEPRECIATION PROPERTY UNDER SECTION 168(k)’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years ending after May 5, 2003.
26 USC 168.
Applicability.
Applicability. 26 USC 168 note.
SEC. 202. INCREASED EXPENSING FOR SMALL BUSINESS.
(a) IN GENERAL.—Paragraph (1) of section 179(b) (relating to dollar limitation) is amended to read as follows: ‘‘(1) DOLLAR LIMITATION.—The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $25,000 ($100,000 in the case of taxable years beginning after 2002 and before 2006).’’. (b) INCREASE IN QUALIFYING INVESTMENT AT WHICH PHASEOUT BEGINS.—Paragraph (2) of section 179(b) (relating to reduction in limitation) is amended by inserting ‘‘($400,000 in the case of taxable years beginning after 2002 and before 2006)’’ after ‘‘$200,000’’. (c) OFF-THE-SHELF COMPUTER SOFTWARE.—Paragraph (1) of section 179(d) (defining section 179 property) is amended to read as follows: ‘‘(1) SECTION 179 PROPERTY.—For purposes of this section, the term ‘section 179 property’ means property— ‘‘(A) which is— ‘‘(i) tangible property (to which section 168 applies), or ‘‘(ii) computer software (as defined in section 197(e)(3)(B)) which is described in section 197(e)(3)(A)(i), to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2006, ‘‘(B) which is section 1245 property (as defined in section 1245(a)(3)), and ‘‘(C) which is acquired by purchase for use in the active conduct of a trade or business. Such term shall not include any property described in section 50(b) and shall not include air conditioning or heating units.’’. (d) ADJUSTMENT OF DOLLAR LIMIT AND PHASEOUT THRESHOLD FOR INFLATION.—Subsection (b) of section 179 (relating to limitations) is amended by adding at the end the following new paragraph: ‘‘(5) INFLATION ADJUSTMENTS.—
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