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139 STAT. 189 PUBLIC LAW 119–21—JULY 4, 2025 (2) PROPERTY WITH LONGER PRODUCTION PERIODS.—Section 168(k)(2)(B) is amended— (A) in clause (i), by striking subclauses (II) and (III) and redesignating subclauses (IV), (V), and (VI), as sub- clauses (II), (III), and (IV), respectively, and (B) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (3) SELF-CONSTRUCTED PROPERTY.—Section 168(k)(2)(E) is amended by striking clause (i) and redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively. (4) CERTAIN PLANTS.—Section 168(k)(5)(A) is amended by striking ‘‘planted before January 1, 2027, or is grafted before such date to a plant that has already been planted,’’ in the matter preceding clause (i) and inserting ‘‘planted or grafted’’. (5) CONFORMING AMENDMENTS.— (A) Section 168(k)(2)(A)(ii) is amended by striking ‘‘clause (ii) of subparagraph (E)’’ and inserting ‘‘clause (i) of subparagraph (E)’’. (B) Section 168(k)(2)(C)(i) is amended by striking ‘‘and subclauses (II) and (III) of subparagraph (B)(i)’’. (C) Section 168(k)(2)(C)(ii) is amended by striking ‘‘subparagraph (B)(iii)’’ and inserting ‘‘subparagraph (B)(ii)’’. (D) Section 460(c)(6)(B) is amended by striking ‘‘which’’ and all that follows through the period and inserting ‘‘which has a recovery period of 7 years or less.’’. (b) 100 PERCENT EXPENSING.— (1) IN GENERAL.—Section 168(k) is amended— (A) in paragraph (1)(A), by striking ‘‘the applicable percentage’’ and inserting ‘‘100 percent’’, and (B) by striking paragraphs (6) and (8). (2) CERTAIN PLANTS.—Section 168(k)(5)(A)(i) is amended by striking ‘‘the applicable percentage’’ and inserting ‘‘100 per- cent’’. (3) TRANSITIONAL ELECTION OF REDUCED PERCENTAGE.— Section 168(k)(10) is amended by striking subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting before subparagraph (C) (as so redesignated) the following new subparagraphs: ‘‘(A) IN GENERAL.—In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, para- graph (1)(A) shall be applied— ‘‘(i) in the case of property which is not described in clause (ii), by substituting ‘40 percent’ for ‘100 per- cent’, or ‘‘(ii) in the case of property which is described in subparagraph (B) or (C) of paragraph (2), by sub- stituting ‘60 percent’ for ‘100 percent’. ‘‘(B) SPECIFIED PLANTS.—In the case of any specified plant planted or grafted by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (5)(A)(i) shall be applied by substituting ‘40 percent’ for ‘100 percent’.’’. (c) EFFECTIVE DATE.— 26 USC 168 note. Time period.