To amend the Internal Revenue Code of 1986 to modify the depreciation of property used in the generation of electricity.

May 10, 2001

Mr. HERGER (for himself, Mr. JEFFERSON, and Mr. ENGLISH) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to modify the depreciation of property used in the generation of electricity.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. DEPRECIATION OF PROPERTY USED IN THE GENERATION OF ELECTRICITY.

(a) DEPRECIATION OF PROPERTY USED IN THE GENERATION OF ELECTRICITY-

(1) IN GENERAL- Subparagraph (C) of section 168(e)(3) of the Internal Revenue Code of 1986 (relating to 7-year property) is amended by striking `and' at the end of clause (i), by redesignating clause (ii) as clause (iii), and by inserting after clause (i) the following new clause:

`(ii) any property used in the generation of electricity, and'.

(2) 10-YEAR CLASS LIFE- The table contained in section 168(g)(3)(B) of such Code is amended by inserting below the item relating to subparagraph (C)(i) the following new item:

`(C)(ii)

--10'.

(b) DEFINITION OF PROPERTY USED IN THE GENERATION OF ELECTRICITY- Subsection (i) of section 168 of such Code is amended by adding at the end the following new paragraph:

`(15) PROPERTY USED IN THE GENERATION OF ELECTRICITY- The term `property used in the generation of electricity' means property used in nuclear power production of electricity for sale, property used in hydraulic power production of electricity for sale, property used in steam power production of electricity for sale, and property used in combustion turbine production of electricity for sale. Such term shall not include any property which, without regard to this paragraph, has a class life of less than 10 years.'

(c) EFFECTIVE DATE- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

END