Page:United States Statutes at Large Volume 120.djvu/2965

 120 STAT. 2934

PUBLIC LAW 109–432—DEC. 20, 2006

SEC. 102. EXTENSION AND MODIFICATION OF NEW MARKETS TAX CREDIT.

(a) EXTENSION.—Section 45D(f)(1)(D) is amended by striking ‘‘and 2007’’ and inserting ‘‘, 2007, and 2008’’. (b) REGULATIONS REGARDING NON-METROPOLITAN COUNTIES.— Section 45D(i) is amended by striking ‘‘and’’ at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ‘‘, and’’, and by adding at the end the following new paragraph: ‘‘(6) which ensure that non-metropolitan counties receive a proportional allocation of qualified equity investments.’’. (c) EFFECTIVE DATE.—The amendments made by this section shall take effect on the date of the enactment of this Act.

26 USC 45D.

26 USC 45D note.

SEC. 103. ELECTION TO DEDUCT STATE AND LOCAL GENERAL SALES TAXES.

26 USC 164 note.

(a) IN GENERAL.—Section 164(b)(5)(I) is amended by striking ‘‘2006’’ and inserting ‘‘2008’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2005. SEC. 104. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

26 USC 41 note.

26 USC 41 note.

26 USC 41 note.

VerDate 14-DEC-2004

09:16 Jul 13, 2007

(a) EXTENSION.— (1) IN GENERAL.—Section 41(h)(1)(B) is amended by striking ‘‘2005’’ and inserting ‘‘2007’’. (2) CONFORMING AMENDMENT.—Section 45C(b)(1)(D) is amended by striking ‘‘2005’’ and inserting ‘‘2007’’. (3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to amounts paid or incurred after December 31, 2005. (b) INCREASE IN RATES OF ALTERNATIVE INCREMENTAL CREDIT.— (1) IN GENERAL.—Subparagraph (A) of section 41(c)(4) (relating to election of alternative incremental credit) is amended— (A) by striking ‘‘2.65 percent’’ and inserting ‘‘3 percent’’, (B) by striking ‘‘3.2 percent’’ and inserting ‘‘4 percent’’, and (C) by striking ‘‘3.75 percent’’ and inserting ‘‘5 percent’’. (2) EFFECTIVE DATE.—Except as provided in paragraph (3), the amendments made by this subsection shall apply to taxable years ending after December 31, 2006. (3) TRANSITION RULE.— (A) IN GENERAL.—In the case of a specified transitional taxable year for which an election under section 41(c)(4) of the Internal Revenue Code of 1986 applies, the credit determined under section 41(a)(1) of such Code shall be equal to the sum of— (i) the applicable 2006 percentage multiplied by the amount determined under section 41(c)(4)(A) of such Code (as in effect for taxable years ending on December 31, 2006), plus (ii) the applicable 2007 percentage multiplied by the amount determined under section 41(c)(4)(A) of such Code (as in effect for taxable years ending on January 1, 2007). (B) DEFINITIONS.—For purposes of subparagraph (A)—

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