Extension of special depreciation allowance for certain property

(a) In general Section 168(k) is amended— (1) in paragraph (2)— (A) by striking January 1, 2027 each place it appears and inserting January 1, 2030, and (B) in subparagraph (B)— (i) in clause (i)(II), by striking January 1, 2028 and inserting January 1, 2031, and (ii) in the heading of clause (ii), by striking pre-January 1, 2027 basis and inserting pre-January 1, 2030 basis, (2) in paragraph (5)(A), by striking January 1, 2027 and inserting January 1, 2030, and (3) in paragraph (6)— (A) in subparagraph (A)— (i) by inserting in the case of property acquired by the taxpayer before January 20, 2025, after Except as otherwise provided in this paragraph,, and (ii) by striking and at the end of clause (iv), by striking the period at the end of clause (v) and inserting, and, and by adding at the end the following new clause: (vi) in the case of property placed in service after December 31, 2026, 0 percent., (B) in subparagraph (B)— (i) by striking In the case of property described and inserting In the case of property acquired by the taxpayer before January 20, 2025 and described, and (ii) by striking and at the end of clause (iv), by striking the period at the end of clause (v) and inserting, and, and by adding at the end the following new clause: (vi) in the case of property placed in service after December 31, 2027, 0 percent., (C) in subparagraph (C), by inserting and at the end of clause (iii), by striking clauses (iv) and (v), and by adding at the end the following new clause: (iv) in the case of a plant which is planted or grafted after January 19, 2025, and before January 1, 2030, 100 percent., and (D) by adding at the end the following new subparagraph: (D) Rule for property acquired after January 19, 2025 (i) In general In the case of property acquired by the taxpayer after January 19, 2025 and placed in service after such date and before January 1, 2030 (January 1, 2031, in the case of property described in subparagraph (B) or (C) of paragraph (2)), the term applicable percentage means 100 percent. (ii) Acquisition date determination For purposes of clause (i), property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition.. (b) Conforming amendment Section 460(c)(6)(B) is amended by striking which and all that follows through the period and inserting which has a recovery period of 7 years or less.. (c) Effective dates (1) In general Except as provided by paragraph (2), the amendments made by this section shall apply to property acquired after January 19, 2025 and placed in service after such date. (2) Specified plants The amendments made by this section shall apply to specified plants planted or grafted after January 19, 2025.