Page:United States Statutes at Large Volume 119.djvu/2602

 119 STAT. 2584

Applicability.

VerDate 14-DEC-2004

07:21 Oct 30, 2006

PUBLIC LAW 109–135—DEC. 21, 2005

‘‘(A) the dollar amount in effect under section 179(b)(1) for the taxable year shall be increased by the lesser of— ‘‘(i) $100,000, or ‘‘(ii) the cost of qualified section 179 Gulf Opportunity Zone property placed in service during the taxable year, and ‘‘(B) the dollar amount in effect under section 179(b)(2) for the taxable year shall be increased by the lesser of— ‘‘(i) $600,000, or ‘‘(ii) the cost of qualified section 179 Gulf Opportunity Zone property placed in service during the taxable year. ‘‘(2) QUALIFIED SECTION 179 GULF OPPORTUNITY ZONE PROPERTY.—For purposes of this subsection, the term ‘qualified section 179 Gulf Opportunity Zone property’ means section 179 property (as defined in section 179(d)) which is qualified Gulf Opportunity Zone property (as defined in subsection (d)(2)). ‘‘(3) COORDINATION WITH EMPOWERMENT ZONES AND RENEWAL COMMUNITIES.—For purposes of sections 1397A and 1400J, qualified section 179 Gulf Opportunity Zone property shall not be treated as qualified zone property or qualified renewal property, unless the taxpayer elects not to take such qualified section 179 Gulf Opportunity Zone property into account for purposes of this subsection. ‘‘(4) RECAPTURE.—For purposes of this subsection, rules similar to the rules under section 179(d)(10) shall apply with respect to any qualified section 179 Gulf Opportunity Zone property which ceases to be qualified section 179 Gulf Opportunity Zone property. ‘‘(f) EXPENSING FOR CERTAIN DEMOLITION AND CLEAN-UP COSTS.— ‘‘(1) IN GENERAL.—A taxpayer may elect to treat 50 percent of any qualified Gulf Opportunity Zone clean-up cost 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 such cost is paid or incurred. ‘‘(2) QUALIFIED GULF OPPORTUNITY ZONE CLEAN-UP COST.— For purposes of this subsection, the term ‘qualified Gulf Opportunity Zone clean-up cost’ means any amount paid or incurred during the period beginning on August 28, 2005, and ending on December 31, 2007, for the removal of debris from, or the demolition of structures on, real property which is located in the Gulf Opportunity Zone and which is— ‘‘(A) held by the taxpayer for use in a trade or business or for the production of income, or ‘‘(B) property described in section 1221(a)(1) in the hands of the taxpayer. For purposes of the preceding sentence, amounts paid or incurred shall be taken into account only to the extent that such amount would (but for paragraph (1)) be chargeable to capital account. ‘‘(g) EXTENSION OF EXPENSING FOR ENVIRONMENTAL REMEDIATION COSTS.—With respect to any qualified environmental remediation expenditure (as defined in section 198(b)) paid or incurred on or after August 28, 2005, in connection with a qualified contaminated site located in the Gulf Opportunity Zone, section 198

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