H.R. 2872

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to require adjusted financial statement income to be reduced by the amount of certain deductions relating to repair and maintenance of certain public utility property.

IN THE HOUSE OF REPRESENTATIVES · April 10, 2025 · Sponsor: Mrs. Miller of West Virginia · Committee: Committee on Ways and Means

H.R. 2872
- SEC. 1. Short title
- SEC. 2. Reduction of adjusted financial statement income with respect to applicable public utility repair and maintenance of public utility property

SEC. 1. Short title

This Act may be cited as the or the .

SEC. 2. Reduction of adjusted financial statement income with respect to applicable public utility repair and maintenance of public utility property

(a) In general
- of the Internal Revenue Code of 1986 is amended to read as follows: Section 56A(c)(13)
  - (13) Depreciation
    - (A) In general
      - Adjusted financial statement income shall be—
        
        (i) reduced by—
        
        depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and
        
        applicable public utility repair and maintenance deductions allowed under section 162 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and
        
        (ii) appropriately adjusted—
        
        to disregard any amount of depreciation expense that is taken into account on the taxpayer’s applicable financial statement with respect to such property, and
        
        to take into account any other item specified by the Secretary in order to provide that such property is accounted for in the same manner as it is accounted for under this chapter.
    - (B) Applicable public utility repair and maintenance deductions
      - For purposes of this paragraph, the term means repair and maintenance deductions allowed to a taxpayer with respect to expenditures which are— applicable public utility repair and maintenance deductions
        
        (i) incurred by such taxpayer with respect to any property described in section 168(i)(10) which is owned by such taxpayer, and
        
        (ii) taken into account as a depreciation expense on the taxpayer’s applicable financial statement with respect to such property.
(b) Effective date
- The amendments made by this section shall apply to taxable years beginning after December 31, 2024.