Page:United States Statutes at Large Volume 117.djvu/777

 117 STAT. 758

26 USC 179.

Applicability. 26 USC 179 note.

PUBLIC LAW 108–27—MAY 28, 2003

‘‘(A) IN GENERAL.—In the case of any taxable year beginning in a calendar year after 2003 and before 2006, the $100,000 and $400,000 amounts in paragraphs (1) and (2) shall each be increased by an amount equal to— ‘‘(i) such dollar amount, multiplied by ‘‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting ‘calendar year 2002’ for ‘calendar year 1992’ in subparagraph (B) thereof. ‘‘(B) ROUNDING.— ‘‘(i) DOLLAR LIMITATION.—If the amount in paragraph (1) as increased under subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000. ‘‘(ii) PHASEOUT AMOUNT.—If the amount in paragraph (2) as increased under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.’’. (e) REVOCATION OF ELECTION.—Paragraph (2) of section 179(c) (relating to election irrevocable) is amended by adding at the end the following new sentence: ‘‘Any such election or specification with respect to any taxable year beginning after 2002 and before 2006 may be revoked by the taxpayer with respect to any property, and such revocation, once made, shall be irrevocable.’’. (f) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

TITLE III—REDUCTION IN TAXES ON DIVIDENDS AND CAPITAL GAINS SEC. 301. REDUCTION IN CAPITAL GAINS RATES FOR INDIVIDUALS; REPEAL OF 5-YEAR HOLDING PERIOD REQUIREMENT.

(a) IN GENERAL.— (1) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by striking ‘‘10 percent’’ and inserting ‘‘5 percent (0 percent in the case of taxable years beginning after 2007)’’. (2) The following sections are each amended by striking ‘‘20 percent’’ and inserting ‘‘15 percent’’: (A) Section 1(h)(1)(C). (B) Section 55(b)(3)(C). (C) Section 1445(e)(1). (D) The second sentence of section 7518(g)(6)(A). (E) The second sentence of section 607(h)(6)(A) of the Merchant Marine Act, 1936. (b) CONFORMING AMENDMENTS.— (1) Section 1(h) is amended— (A) by striking paragraphs (2) and (9), (B) by redesignating paragraphs (3) through (8) as paragraphs (2) through (7), respectively, and (C) by redesignating paragraphs (10), (11), and (12) as paragraphs (8), (9), and (10), respectively. (2) Paragraph (3) of section 55(b) is amended by striking ‘‘In the case of taxable years beginning after December 31, 2000, rules similar to the rules of section 1(h)(2) shall apply for purposes of subparagraphs (B) and (C).’’.

46 USC app. 1177.

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