CREATE JOBS Act

Summary

Makes several permanent and retroactive tax changes to speed business investment and simplify treatment of certain costs. It permanently sets bonus depreciation at 100% for qualifying property (treating that change as if it were included in the 2017 tax law), restores immediate expensing for research and experimental (R&E) costs instead of requiring amortization, and creates a new inflation-indexed multiplier that increases routine depreciation deductions for residential and nonresidential real property. The bill also includes technical changes limiting certain long‑term contract property to assets with a 7‑year recovery period or less, allows taxpayers to opt out of the new depreciation multiplier for specific property, requires parallel adjustment for minimum tax/AMT calculations, and makes varied effective dates (including retroactive and transition rules).

• Permanently sets bonus depreciation at 100% for qualifying property placed in service after Sept. 27, 2017.
• Removes the previous phaseout/cutoff for certain planted or grafted property.
• Creates an inflation-indexed multiplier that increases routine depreciation for residential and nonresidential real property.
• Allows taxpayers to irrevocably elect out of the new inflation adjustment for specific property.
• Treats research & experimental (R&E) expenditures as immediately deductible (no required amortization) for taxable years beginning after Dec. 31, 2021.
• Requires the AMT/minimum tax deduction for adjusted property to be changed by the same neutral cost recovery ratio.
• Additional depreciation from the new neutral adjustment does not reduce adjusted basis and does not trigger depreciation recapture.
• Adds a limit to which property may be referenced for certain percentage-of-completion rules (7-year recovery period or less).
• Contains retroactive and transition rules; some changes are treated as if enacted in the 2017 tax law, which may affect prior-year filings and state conformity.