Page:United States Statutes at Large Volume 119.djvu/2600

 119 STAT. 2582

PUBLIC LAW 109–135—DEC. 21, 2005

unused State housing credit ceiling under section 42(h)(3)(C) for any calendar year, any increase in the State housing credit ceiling under subparagraph (A) shall be treated as an amount described in clause (ii) of such section. ‘‘(2) ADDITIONAL HOUSING CREDIT DOLLAR AMOUNT FOR TEXAS AND FLORIDA.—For purposes of section 42, in the case of calendar year 2006, the State housing credit ceiling of Texas and Florida shall each be increased by $3,500,000. ‘‘(3) DIFFICULT DEVELOPMENT AREA.— ‘‘(A) IN GENERAL.—For purposes of section 42, in the case of property placed in service during 2006, 2007, or 2008, the Gulf Opportunity Zone, the Rita GO Zone, and the Wilma GO Zone— ‘‘(i) shall be treated as difficult development areas designated under subclause (I) of section 42(d)(5)(C)(iii), and ‘‘(ii) shall not be taken into account for purposes of applying the limitation under subclause (II) of such section. ‘‘(B) APPLICATION.—Subparagraph (A) shall apply only to— ‘‘(i) housing credit dollar amounts allocated during the period beginning on January 1, 2006, and ending on December 31, 2008, and ‘‘(ii) buildings placed in service during such period to the extent that paragraph (1) of section 42(h) does not apply to any building by reason of paragraph (4) thereof, but only with respect to bonds issued after December 31, 2005. ‘‘(4) SPECIAL RULE FOR APPLYING INCOME TESTS.—In the case of property placed in service— ‘‘(A) during 2006, 2007, or 2008, ‘‘(B) in the Gulf Opportunity Zone, and ‘‘(C) in a nonmetropolitan area (as defined in section 42(d)(5)(C)(iv)(IV)), section 42 shall be applied by substituting ‘national nonmetropolitan median gross income (determined under rules similar to the rules of section 142(d)(2)(B))’ for ‘area median gross income’ in subparagraphs (A) and (B) of section 42(g)(1). ‘‘(5) DEFINITIONS.—Any term used in this subsection which is also used in section 42 shall have the same meaning as when used in such section. ‘‘(d) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED ON OR AFTER AUGUST 28, 2005.— ‘‘(1) ADDITIONAL ALLOWANCE.—In the case of any qualified Gulf Opportunity Zone property— ‘‘(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 50 percent of the adjusted basis of such property, and ‘‘(B) the adjusted basis of the qualified Gulf Opportunity Zone property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year. ‘‘(2) QUALIFIED GULF OPPORTUNITY ZONE PROPERTY.—For purposes of this subsection—

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