Page:United States Statutes at Large Volume 119.djvu/1038

 119 STAT. 1020

PUBLIC LAW 109–58—AUG. 8, 2005

for any taxable year shall be determined by dividing the aggregate refinery runs for the taxable year by the number of days in the taxable year.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.

26 USC 613A note.

SEC.

26 USC 167 note.

1329.

AMORTIZATION OF EXPENDITURES.

GEOLOGICAL

AND

GEOPHYSICAL

(a) IN GENERAL.—Section 167 (relating to depreciation) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: ‘‘(h) AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.— ‘‘(1) IN GENERAL.—Any geological and geophysical expenses paid or incurred in connection with the exploration for, or development of, oil or gas within the United States (as defined in section 638) shall be allowed as a deduction ratably over the 24-month period beginning on the date that such expense was paid or incurred. ‘‘(2) HALF-YEAR CONVENTION.—For purposes of paragraph (1), any payment paid or incurred during the taxable year shall be treated as paid or incurred on the mid-point of such taxable year. ‘‘(3) EXCLUSIVE METHOD.—Except as provided in this subsection, no depreciation or amortization deduction shall be allowed with respect to such payments. ‘‘(4) TREATMENT UPON ABANDONMENT.—If any property with respect to which geological and geophysical expenses are paid or incurred is retired or abandoned during the 24-month period described in paragraph (1), no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this subsection shall continue with respect to such payment.’’. (b) CONFORMING AMENDMENT.—Section 263A(c)(3) is amended by inserting ‘‘167(h),’’ after ‘‘under section’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.

Subtitle C—Conservation and Energy Efficiency Provisions SEC. 1331. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

(a) IN GENERAL.—Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations), as amended by this Act, is amended by inserting after section 179C the following new section: ‘‘SEC. 179D. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

‘‘(a) IN GENERAL.—There shall be allowed as a deduction an amount equal to the cost of energy efficient commercial building property placed in service during the taxable year. ‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—The deduction under subsection (a) with respect to any building for any taxable year shall not exceed the excess (if any) of—

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