Page:United States Statutes at Large Volume 119.djvu/1031

 PUBLIC LAW 109–58—AUG. 8, 2005 SEC.

1323.

TEMPORARY EXPENSING FOR REFINING OF LIQUID FUELS.

EQUIPMENT

119 STAT. 1013 USED

IN

(a) IN GENERAL.—Part VI of subchapter B of chapter 1 is amended by inserting after section 179B the following new section: ‘‘SEC. 179C. ELECTION TO EXPENSE CERTAIN REFINERIES.

‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may elect to treat 50 percent of the cost of any qualified refinery property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the qualified refinery property is placed in service. ‘‘(b) ELECTION.— ‘‘(1) IN GENERAL.—An election under this section for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may by regulations prescribe. ‘‘(2) ELECTION IRREVOCABLE.—Any election made under this section may not be revoked except with the consent of the Secretary. ‘‘(c) QUALIFIED REFINERY PROPERTY.— ‘‘(1) IN GENERAL.—The term ‘qualified refinery property’ means any portion of a qualified refinery— ‘‘(A) the original use of which commences with the taxpayer, ‘‘(B) which is placed in service by the taxpayer after the date of the enactment of this section and before January 1, 2012, ‘‘(C) in the case any portion of a qualified refinery (other than a qualified refinery which is separate from any existing refinery), which meets the requirements of subsection (e), ‘‘(D) which meets all applicable environmental laws in effect on the date such portion was placed in service, ‘‘(E) no written binding contract for the construction of which was in effect on or before June 14, 2005, and ‘‘(F)(i) the construction of which is subject to a written binding construction contract entered into before January 1, 2008, ‘‘(ii) which is placed in service before January 1, 2008, or ‘‘(iii) in the case of self-constructed property, the construction of which began after June 14, 2005, and before January 1, 2008. ‘‘(2) SPECIAL RULE FOR SALE-LEASEBACKS.—For purposes of paragraph (1)(A), if property is— ‘‘(A) originally placed in service after the date of the enactment of this section by a person, and ‘‘(B) sold and leased back by such person within 3 months after the date such property was originally placed in service, such property shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback referred to in subparagraph (B). ‘‘(3) EFFECT OF WAIVER UNDER CLEAN AIR ACT.—A waiver under the Clean Air Act shall not be taken into account in

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