Page:United States Statutes at Large Volume 114 Part 5.djvu/638

 114 STAT. 2763A-598 PUBLIC LAW 106-554—APPENDIX G (B)(ii) thereof)) by the governmental unit of which such agency is a part, and "(B) such agency notifies the chief executive officer (or its equivalent) of the local jurisdiction within which the building is located of such allocation and provides such individual a reasonable opportunity to comment on the allocation. "(2) QUALIFIED ALLOCATION PLAN.— For purposes of this subsection, the term 'qualified allocation plan' means any plan— "(A) which sets forth selection criteria to be used to determine priorities of the commercial revitalization agency which are appropriate to local conditions, "(B) which considers— "(i) the degree to which a project contributes to the implementation of a strategic plan that is devised for a renewal community through a citizen participation process, "(ii) the amount of any increase in permanent, full-time employment by reason of any project, and "(iii) the active involvement of residents and nonprofit groups within the renewal community, and "(C) which provides a procedure that the agency (or its agent) will follow in monitoring compliance with this section. " (f) SPECLVL RULES. — "(1) DEDUCTION IN LIEU OF DEPRECL^TION.—The deduction provided by this section for qualified revitalization expenditures shall— "(A) with respect to the deduction determined under subsection (a)(1), be in lieu of any depreciation deduction otherwise allowable on account of one-half of such expenditures, and "(B) with respect to the deduction determined under subsection (a)(2), be in lieu of any depreciation deduction otherwise allowable on account of all of such expenditures. "(2) BASIS ADJUSTMENT, ETC. —For purposes of sections 1016 and 1250, the deduction under this section shall be treated in the same manner as a depreciation deduction. For purposes of section 1250(b)(5), the straight line method of adjustment shall be determined without regard to this section. "(3) SUBSTANTIAL REHABILITATIONS TREATED AS SEPARATE BUILDINGS. —^A substantial rehabilitation (within the meaning of section 47(c)(1)(C)) of a building shall be treated as a separate building for purposes of subsection (a). "(4) CLARIFICATION OF ALLOWANCE OF DEDUCTION UNDER MINIMUM TAX. —Notwithstanding section 56(a)(1), the deduction under this section shall be allowed in determining alternative minimum taxable income under section 55. "(g) TERMINATION.— Th is section shall not apply to any building placed in service after December 31, 2009. "SEC. 1400J. INCREASE IN EXPENSING UNDER SECTION 179. "(a) IN GENERAL.— For purposes of section 1397A— "(1) a renewal community shall be treated as an empowerment zone.

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