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HR3967119th CongressWALLET

CREATE JOBS Act

Sponsored By: Representative Grothman, Glenn [R-WI-6]

Introduced

Summary

Permanently allows 100% first-year expensing for qualified property. This bill would make full bonus depreciation permanent and also changes how buildings and research costs are recovered for tax purposes.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Bigger write-offs for rental and commercial buildings

If enacted, owners of residential rental and commercial buildings would multiply each year’s depreciation by a neutral cost recovery ratio. The ratio uses GDP price deflators and a 1.03^n factor and is never less than 1. You could elect to opt out for a property, but that choice would be irrevocable. The extra deduction would not raise your tax basis or affect recapture. The rule would apply to property placed in service before, on, or after enactment for tax years ending on or after that date.

Permanent 100% expensing for business assets

This bill would let businesses deduct 100% of qualified property in the year it is placed in service. The 100% write-off would apply to property placed in service after September 27, 2017. For certain plants, the planting or grafting date limit would be removed, so more plantings could qualify. This would take effect as if it had been part of the 2017 tax law.

New options and limits for R&D costs

This bill would let businesses deduct qualifying research and experimental costs in the year paid. You could not also deduct the same dollars you claim as the research credit, unless you elect the reduced credit on your return. You could choose instead to amortize certain capitalizable R&D over at least 60 months, starting when benefits begin. These rules would apply to amounts paid or incurred in tax years beginning after December 31, 2021.

Tighter tax rule for long-term contracts

This bill would narrow a tax rule tied to long-term contracts. Only property with a recovery period of 7 years or less would meet that test. If you used the prior rule for longer-lived property, you could lose that treatment. The change would apply as if it had been part of the 2017 tax law.

Sponsors & CoSponsors

Sponsor

Grothman, Glenn [R-WI-6]

WI • R

Cosponsors

  • Rep. Mann, Tracey [R-KS-1]

    KS • R

    Sponsored 6/12/2025

  • Rep. Rose, John W. [R-TN-6]

    TN • R

    Sponsored 6/12/2025

  • Rep. Rulli, Michael A. [R-OH-6]

    OH • R

    Sponsored 6/12/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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