Page 49

131 STAT. 2101 PUBLIC LAW 115–97—DEC. 22, 2017 (1) by striking ‘‘100/70th’’ and inserting ‘‘100/50th’’ in subparagraph (B), and (2) in the flush sentence at the end— (A) by striking ‘‘100/80th’’ and inserting ‘‘100/65th’’, and (B) by striking ‘‘100/70th’’ and inserting ‘‘100/50th’’. (f) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. PART II—SMALL BUSINESS REFORMS SEC. 13101. MODIFICATIONS OF RULES FOR EXPENSING DEPRECIABLE BUSINESS ASSETS. (a) INCREASE IN LIMITATION.— (1) DOLLAR LIMITATION.—Section 179(b)(1) is amended by striking ‘‘$500,000’’ and inserting ‘‘$1,000,000’’. (2) REDUCTION IN LIMITATION.—Section 179(b)(2) is amended by striking ‘‘$2,000,000’’ and inserting ‘‘$2,500,000’’. (3) INFLATION ADJUSTMENTS.— (A) IN GENERAL.—Subparagraph (A) of section 179(b)(6), as amended by section 11002(d), is amended— (i) by striking ‘‘2015’’ and inserting ‘‘2018’’, and (ii) in clause (ii), by striking ‘‘calendar year 2014’’ and inserting ‘‘calendar year 2017’’. (B) SPORT UTILITY VEHICLES.—Section 179(b)(6) is amended— (i) in subparagraph (A), by striking ‘‘paragraphs (1) and (2)’’ and inserting ‘‘paragraphs (1), (2), and (5)(A)’’, and (ii) in subparagraph (B), by inserting ‘‘($100 in the case of any increase in the amount under para- graph (5)(A))’’ after ‘‘$10,000’’. (b) SECTION 179 PROPERTY TO INCLUDE QUALIFIED REAL PROP- ERTY.— (1) IN GENERAL.—Subparagraph (B) of section 179(d)(1) is amended to read as follows: ‘‘(B) which is— ‘‘(i) section 1245 property (as defined in section 1245(a)(3)), or ‘‘(ii) at the election of the taxpayer, qualified real property (as defined in subsection (f)), and’’. (2) QUALIFIED REAL PROPERTY DEFINED.—Subsection (f) of section 179 is amended to read as follows: ‘‘(f) QUALIFIED REAL PROPERTY.—For purposes of this section, the term ‘qualified real property’ means— ‘‘(1) any qualified improvement property described in sec- tion 168(e)(6), and ‘‘(2) any of the following improvements to nonresidential real property placed in service after the date such property was first placed in service: ‘‘(A) Roofs. ‘‘(B) Heating, ventilation, and air-conditioning prop- erty. ‘‘(C) Fire protection and alarm systems. ‘‘(D) Security systems.’’. 26 USC 179. 26 USC 243 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00049 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS