text: SECTION 1. SMALL BUSINESS EXPENSING PROVISIONS MADE PERMANENT.
  
      (a) Increase in Small Business Expensing Made Permanent.--
              (1) In general.--Subsection (b) of section 179 of the 
          Internal Revenue Code of 1986 (relating to limitations) is 
          amended--
                      (A) by striking ``$25,000 ($125,000 in the case of 
                  taxable years beginning after 2006 and before 2011)'' 
                  in paragraph (1) and inserting ``$500,000'', and
                      (B) by striking ``$200,000 ($500,000 in the case of 
                  taxable years beginning after 2006 and before 2011)'' 
                  in paragraph (2) and inserting ``$1,000,000''.
              (2) Conforming amendment.--Section 179(b) of such Code is 
          amended by striking paragraph (7).
      (b) Expensing for Computer Software Made Permanent.--Clause (ii) of 
  section 179(d)(1)(A) of such Code is amended by striking ``and which is 
  placed in service in a taxable year beginning after 2002 and before 
  2011,''.
      (c) Inflation Adjustment.--
              (1) So much of subparagraph (A) of section 179(b)(5) of 
          such Code as precedes clause (i) thereof is amended to read as 
          follows:
                      ``(A) In general.--In the case of any taxable year 
                  beginning in a calendar year after 2009, the $500,000 
                  and $1,00,000 amounts in paragraphs (1) and (2) shall 
                  each be increased by an amount equal to--''.
              (2) Section 179(b)(5)(A)(ii) of such Code is amended by 
          striking ``2006'' and inserting ``2008''.
      (d) Effective Date.--The amendments made by this section shall 
  apply to taxable years ending after the date of the enactment of this 
  Act.
  
  SEC. 2. DEDUCTION FOR PURCHASE OF DOMESTICALLY MANUFACTURED 
                AUTOMOBILES.
  
      (a) In General.--Part VII of subchapter B of chapter 1 of the 
  Internal Revenue Code of 1986 (relating to additional itemized 
  deductions for individuals) is amended by redesignating section 224 as 
  section 225 and by inserting after section 223 the following new 
  section:
  
  ``SEC. 224. DEDUCTION FOR PURCHASE OF DOMESTICALLY MANUFACTURED 
                AUTOMOBILES.
  
      ``(a) Allowance of Deduction.--In the case of an individual, there 
  shall be allowed as a deduction an amount equal to the cost of any 
  qualified automobile placed in service by the taxpayer during the 
  taxable year.
      ``(b) Limitation Per Vehicle.--The amount of the deduction allowed 
  under subsection (a) for any vehicle shall not exceed $10,000.
      ``(c) Qualified Automobile.--For purposes of this section--
              ``(1) In general.--The term `qualified automobile' means 
          any motor vehicle--
                      ``(A) the final assembly of which is in the United 
                  States by a manufacturer,
                      ``(B) the original use of which commences with the 
                  taxpayer, and
                      ``(C) which is acquired for use by the taxpayer and 
                  not for resale.
              ``(2) Motor vehicle.--For purposes of paragraph (1), the 
          term `motor vehicle' means any vehicle which is manufactured 
          primarily for use on public streets, roads, and highways (not 
          including a vehicle operated exclusively on a rail or rails) 
          and which has at least 4 wheels.
      ``(d) Special Rules.--
              ``(1) Basis reduction.--The basis of any property for which 
          a deduction is allowable under subsection (a) shall be reduced 
          by the amount of such deduction.
              ``(2) Recapture.--The Secretary shall, by regulations, 
          provide for recapturing the benefit of any deduction allowable 
          under subsection (a) with respect to any property which ceases 
          to be property eligible for such deduction.
              ``(3) Property used outside united states, etc., not 
          qualified.--No deduction shall be allowed under subsection (a) 
          with respect to any property referred to in section 50(b) or 
          with respect to the portion of the cost of any property taken 
          into account under section 179.
              ``(4) Property used in trade or business.--No deduction 
          shall be allowed under subsection (a) with respect to any 
          property of a character which is subject to the allowance under 
          section 167 (relating to allowance for depreciation, etc.).
      ``(e) Denial of Double Benefit.--No deduction shall be allowed 
  under subsection (a) for any expense for which a deduction or credit is 
  allowed under any other provision of this chapter.
      ``(f) Termination.--This section shall not apply to any taxable 
  year beginning after December 31, 2010.''.
      (b) Clerical Amendment.--The table of sections for part VII of 
  subchapter B of chapter 1 of such Code is amended by striking the last 
  item and inserting the following new items:
  
  ``Sec. 224. Deduction for purchase of domestically manufactured 
                              automobiles.
  ``Sec. 225. Cross reference.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to property placed in service in taxable years ending after the 
  date of the enactment of this Act.
target: Amends the Internal Revenue Code to: (1) increase and make permanent the expensing allowance for depreciable business assets; and (2) allow a tax deduction, up to $10,000, for the purchase of a motor vehicle manufactured in the United States. Terminates such tax deduction after 2010.
feat_title: To amend the Internal Revenue Code of 1986 to make permanent the deduction for expensing certain depreciable business assets and to allow a deduction for the original purchase of domestically manufactured automobiles.