Page:United States Statutes at Large Volume 114 Part 5.djvu/636

 114 STAT. 2763A-596 PUBLIC LAW 106-554—APPENDIX G "SEC. 1400G. RENEWAL COMMUNITY BUSINESS DEFINED. "For purposes of this subchapter, the term 'renewal community business' means any entity or proprietorship which would be a qualified business entity or qualified proprietorship under section 1397C if references to renewal communities were substituted for references to empowerment zones in such section. "PART III—ADDITIONAL INCENTIVES "Sec. 1400H. Renewal community employment credit. "Sec. 14001. Commercial revitalization deduction. "Sec. 1400J. Increase in expensing under section 179. "SEC. 1400H. RENEWAL COMMUNITY EMPLOYMENT CREDIT. "(a) IN GENERAL. —Subject to the modification in subsection (b), a renewal community shall be treated as an empowerment zone for purposes of section 1396 with respect to wages paid or incurred after December 31, 2001. "(b) MODIFICATION.—In applying section 1396 with respect to renewal communities— "(1) the applicable percentage shall be 15 percent, and "(2) subsection (c) thereof shall be applied by substituting '$10,000' for '$15,000' each place it appears. "SEC. 14001. COMMERCIAL REVITALIZATION DEDUCTION. "(a) GENERAL RULE. — At the election of the taxpayer, either— "(1) one-half of any qualified revitalization expenditures chargeable to capital account with respect to any qualified revitalization building shall be allowable as a deduction for the taxable year in which the building is placed in service, or "(2) a deduction for all such expenditures shall be allowable ratably over the 120-month period beginning with the month in which the building is placed in service. " (b) QUALIFIED REVITALI2ATION BUILDINGS AND EXPENDI- TURES. — For purposes of this section— "(1) QUALIFIED REVITALIZATION BUILDING.—The term 'qualified revitalization building' means any building (and its structural components) if— "(A) the building is placed in service by the taxpayer in a renewal community and the original use of the building begins with the taxpayer, or "(B) in the case of such building not described in subparagraph (A), such building— "(i) is substantially rehabilitated (within the meaning of section 47(c)(1)(C)) by the taxpayer, and "(ii) is placed in service by the taxpayer after the rehabilitation in a renewal community. " (2) QUALIFIED REVITALIZATION EXPENDITURE.— "(A) IN GENERAL.—The term 'qualified revitalization expenditure' means any amount properly chargeable to capital account for property for which depreciation is allowable under section 168 (without regard to this section) and which is— "(i) nonresidential real property (as defined in section 168(e)), or

�