Code section · 2004
American Jobs Creation Act of 2004, Section 337
Pub. L. 108-357, Section 337 (Oct. 22, 2004)
U.S. statute
Audio summary
A short audio walkthrough of this rule: what it says and why it matters for your study.
What it holds
Section 337 made conforming and technical changes to IRC 168(k)(2) and 168(k)(4). It also added a special placed-in-service rule for certain aircraft. No general bonus rate was changed.
Why it matters for your study: This law kept the 168(k) bonus framework internally consistent for qualified property. It shows how Congress fine-tunes the rules alongside broader tax legislation.
Where this comes from
The American Jobs Creation Act of 2004 was a large tax bill. Most of it dealt with corporate tax rules, the foreign sales corporation issues, and manufacturing deductions. Section 337 was a small piece.
Bonus depreciation under Section 168(k) had been created in 2002. By 2004, Congress was already making technical corrections to keep the rules clean. Section 337 adjusted internal cross-references in 168(k)(2) and 168(k)(4) and added a rule for certain aircraft that needed a different placed-in-service window.
What it says
Section 337 made conforming amendments rather than policy changes. It updated language in 168(k)(2) and 168(k)(4) to fix references made by earlier law.
It also added a special rule for certain commercial aircraft. That rule extended the placed-in-service window for aircraft that had been ordered before the bonus window opened but would not be delivered in time under the original deadline. No general rate change. No new category of qualifying property.
How it shows up in a study
This statute is part of the historical record of how 168(k) evolved. Studies that cover property placed in service in 2003 and 2004 operate under the rules as amended by this law.
For most cost segregation work, Section 337 is background context. It confirms that the bonus framework was actively maintained and that Congress cared about keeping the rules precise.
What it does not mean
This law did not change the bonus rate. Property that qualified under the pre-2004 rules kept qualifying. Property that did not qualify was not newly admitted.
It also does not affect property placed in service after the original bonus window closed. The AJCA changes were narrow and technical.
Primary source
Read the official text for yourself, or share it with your advisor.
- Category
- Bonus depreciation & expensing
- Applies to
- All property types
- Status
- Vetted
This page explains a tax authority in plain words. It is not tax advice for your situation. The way this authority applies to your property is reviewed by a licensed tax professional. Citation is provided so you or your advisor can read the primary source.