PUBLIC LAW 109–135—DEC. 21, 2005
119 STAT. 2583
‘‘(A) IN GENERAL.—The term ‘qualified Gulf Opportunity Zone property’ means property— ‘‘(i)(I) which is described in section 168(k)(2)(A)(i), or ‘‘(II) which is nonresidential real property or residential rental property, ‘‘(ii) substantially all of the use of which is in the Gulf Opportunity Zone and is in the active conduct of a trade or business by the taxpayer in such Zone, ‘‘(iii) the original use of which in the Gulf Opportunity Zone commences with the taxpayer on or after August 28, 2005, ‘‘(iv) which is acquired by the taxpayer by purchase (as defined in section 179(d)) on or after August 28, 2005, but only if no written binding contract for the acquisition was in effect before August 28, 2005, and ‘‘(v) which is placed in service by the taxpayer on or before December 31, 2007 (December 31, 2008, in the case of nonresidential real property and residential rental property). ‘‘(B) EXCEPTIONS.— ‘‘(i) ALTERNATIVE DEPRECIATION PROPERTY.—Such term shall not include any property described in section 168(k)(2)(D)(i). ‘‘(ii) TAX-EXEMPT BOND-FINANCED PROPERTY.—Such term shall not include any property any portion of which is financed with the proceeds of any obligation the interest on which is exempt from tax under section 103. ‘‘(iii) QUALIFIED REVITALIZATION BUILDINGS.—Such term shall not include any qualified revitalization building with respect to which the taxpayer has elected the application of paragraph (1) or (2) of section 1400I(a). ‘‘(iv) ELECTION OUT.—If a taxpayer makes an election under this clause with respect to any class of property for any taxable year, this subsection shall not apply to all property in such class placed in service during such taxable year. ‘‘(3) SPECIAL RULES.—For purposes of this subsection, rules similar to the rules of subparagraph (E) of section 168(k)(2) shall apply, except that such subparagraph shall be applied— ‘‘(A) by substituting ‘August 27, 2005’ for ‘September 10, 2001’ each place it appears therein, ‘‘(B) by substituting ‘January 1, 2008’ for ‘January 1, 2005’ in clause (i) thereof, and ‘‘(C) by substituting ‘qualified Gulf Opportunity Zone property’ for ‘qualified property’ in clause (iv) thereof. ‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX.—For purposes of this subsection, rules similar to the rules of section 168(k)(2)(G) shall apply. ‘‘(5) RECAPTURE.—For purposes of this subsection, rules similar to the rules under section 179(d)(10) shall apply with respect to any qualified Gulf Opportunity Zone property which ceases to be qualified Gulf Opportunity Zone property. ‘‘(e) INCREASE IN EXPENSING UNDER SECTION 179.— ‘‘(1) IN GENERAL.—For purposes of section 179—
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