CREATE JOBS Act

Permanent Full Expensing: Under Section 2, the bill changes the applicable percentage for qualified property to 100 percent for property placed in service after September 27, 2017. This allows for a full deduction at the time an investment in qualified property is made.

Research and Experimental Expenditures: According to Section 4, a taxpayer may treat research or experimental expenditures paid or incurred during the taxable year in connection with their trade or business as expenses rather than capitalizing them. This allows these expenditures to be allowed as a deduction.

Depreciation Adjustment: Section 3 introduces a "neutral cost recovery ratio" for residential rental property and nonresidential real property. This ratio is calculated using the gross domestic product deflator and can provide a specific adjustment for the deduction of such property in taxable years following the year it was placed in service.

Election Irrevocability: In Section 3, the bill specifies that a taxpayer may elect not to have the neutral cost recovery depreciation adjustment apply to their property, but once that election is made, it is irrevocable.

Research Expenditure Limitations: Section 4(e) states that the treatment of research and experimental expenditures as expenses will only apply to the extent that the amount of the expenditure is reasonable under the circumstances.