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131 STAT. 2111 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(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.— (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 (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 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- mental expenditures’ means, with respect to any taxable year, research or experimental expenditures which are paid or incurred 26 USC 168 note. 26 USC 168. 26 USC 168 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00059 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS