Page:United States Statutes at Large Volume 119.djvu/1033

 PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 1015

(2) Section 263(a)(1) is amended by striking ‘‘or’’ at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting ‘‘, or’’, and by inserting after subparagraph (I) the following new subparagraph: ‘‘(J) expenditures for which a deduction is allowed under section 179C.’’. (3) Section 312(k)(3)(B) is amended by striking ‘‘179 179A, or 179B’’ each place it appears in the heading and text and inserting ‘‘179, 179A, 179B, or 179C’’. (4) The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 179B the following new item: ‘‘Sec. 179C. Election to expense certain refineries.’’.

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to properties placed in service after the date of the enactment of this Act.

26 USC 179C note.

SEC. 1324. PASS THROUGH TO OWNERS OF DEDUCTION FOR CAPITAL COSTS INCURRED BY SMALL REFINER COOPERATIVES IN COMPLYING WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS.

(a) IN GENERAL.—Section 179B (relating to deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations) is amended by adding at the end the following new subsection: ‘‘(e) ELECTION TO ALLOCATE DEDUCTION TO COOPERATIVE OWNER.— ‘‘(1) IN GENERAL.—If— ‘‘(A) a small business refiner to which subsection (a) applies is an organization to which part I of subchapter T applies, and ‘‘(B) one or more persons directly holding an ownership interest in the refiner are organizations to which part I of subchapter T apply, the refiner may elect to allocate all or a portion of the deduction allowable under subsection (a) to such persons. Such allocation shall be equal to the person’s ratable share of the total amount allocated, determined on the basis of the person’s ownership interest in the taxpayer. The taxable income of the refiner shall not be reduced under section 1382 by reason of any amount to which the preceding sentence applies. ‘‘(2) FORM AND EFFECT OF ELECTION.—An election under paragraph (1) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. ‘‘(3) WRITTEN NOTICE TO OWNERS.—If any portion of the deduction available under subsection (a) is allocated to owners under paragraph (1), the cooperative shall provide any owner receiving an allocation written notice of the amount of the allocation. Such notice shall be provided before the date on which the return described in paragraph (2) is due.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall take effect as if included in the amendment made by section 338(a) of the American Jobs Creation Act of 2004.

VerDate 14-DEC-2004

08:19 Oct 26, 2006

Jkt 039194

PO 00001

Frm 01013

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.119

Deadline. 26 USC 179B note.

APPS06

PsN: PUBL001

�