To amend the Internal Revenue Code of 1986 to allow taxpayers using the income forecast method of depreciation to treat costs contingent on income in the same manner as fixed costs to the extent determined by reference to the estimated income under such method, and for other purposes.

Amends Internal Revenue Code provisions concerning depreciation under the income forecast method to provide that in the case of property for which the depreciation deduction is determined using such method, a taxpayer may determine the adjusted basis of such property solely for depreciation purposes by including the estimated income-contingent costs with respect to such property in such basis for the taxable year in which such property is placed in service.