Page:United States Statutes at Large Volume 124.djvu/2582

 124 STAT. 2556 PUBLIC LAW 111–240—SEPT. 27, 2010 (2) Subclause (II) of section 38(c)(3)(A)(ii) of such Code is amended by inserting ‘‘, the eligible small business credits,’’ after ‘‘the New York Liberty Zone business employee credit’’. (3) Subclause (II) of section 38(c)(4)(A)(ii) of such Code is amended by inserting ‘‘the eligible small business credits and’’ before ‘‘the specified credits’’. (d) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to credits determined in taxable years beginning after December 31, 2009, and to carrybacks of such credits. SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX. (a) IN GENERAL.—Subparagraph (B) of section 1374(d)(7) of the Internal Revenue Code of 1986 is amended to read as follows: ‘‘(B) SPECIAL RULES FOR 2009, 2010, AND 2011.—No tax shall be imposed on the net recognized built-in gain of an S corporation— ‘‘(i) in the case of any taxable year beginning in 2009 or 2010, if the 7th taxable year in the recognition period preceded such taxable year, or ‘‘(ii) in the case of any taxable year beginning in 2011, if the 5th year in the recognition period pre- ceded such taxable year. The preceding sentence shall be applied separately with respect to any asset to which paragraph (8) applies.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2010. PART II—ENCOURAGING INVESTMENT SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; CERTAIN REAL PROPERTY TREATED AS SECTION 179 PROPERTY. (a) INCREASED LIMITATIONS.—Subsection (b) of section 179 of the Internal Revenue Code of 1986 is amended— (1) by striking ‘‘shall not exceed’’ and all that follows in paragraph (1) and inserting ‘‘shall not exceed— ‘‘(A) $250,000 in the case of taxable years beginning after 2007 and before 2010, ‘‘(B) $500,000 in the case of taxable years beginning in 2010 or 2011, and ‘‘(C) $25,000 in the case of taxable years beginning after 2011.’’, and (2) by striking ‘‘exceeds’’ and all that follows in paragraph (2) and inserting ‘‘exceeds— ‘‘(A) $800,000 in the case of taxable years beginning after 2007 and before 2010, ‘‘(B) $2,000,000 in the case of taxable years beginning in 2010 or 2011, and ‘‘(C) $200,000 in the case of taxable years beginning after 2011.’’. (b) INCLUSION OF CERTAIN REAL PROPERTY.—Section 179 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: ‘‘(f) SPECIAL RULES FOR QUALIFIED REAL PROPERTY.— ‘‘(1) IN GENERAL.—If a taxpayer elects the application of this subsection for any taxable year beginning in 2010 or 2011, 26 USC 179. 26 USC 1374. Applicability. 26 USC 1374. 26 USC 38 note. 26 USC 38.