CREATE JOBS Act

Summary

Makes three major permanent tax changes: permanently allows 100% bonus (additional) depreciation for qualified property placed in service after September 27, 2017; creates a new inflation-plus-growth index to accelerate depreciation deductions for residential rental and nonresidential real property (with an irrevocable opt-out available); and reverses the post-2021 amortization rule for research and experimental (R&E) expenditures so such costs are currently deductible when paid or incurred. The bill also adds conforming changes to related tax rules (including alternative minimum tax treatment and rules for pass‑through entities) and specifies several retroactive or targeted effective dates.

• Permanently sets bonus depreciation at 100% for qualified property placed in service after Sept 27, 2017.
• Creates a new index (GDP deflator + 3% per year) to inflate depreciation deductions for residential and nonresidential real property.
• Gives taxpayers an irrevocable election to opt out of the real property indexation rule.
• Restores immediate expensing of research & experimental (R&E) costs by repealing the post-2021 amortization requirement.
• Applies the real property indexation to regular tax and to alternative minimum tax deductions.
• Specifies that additional depreciation from the indexation does not change basis or trigger recapture under sections 1245/1250.
• Includes multiple conforming edits across the Internal Revenue Code to reflect these changes.
• Effective dates vary: bonus depreciation is treated retroactively for property after 9/27/2017; R&E expensing applies to amounts paid/incurred in tax years after 12/31/2021; indexation applies to taxable years ending on/after enactment.