118 STAT. 1429 PUBLIC LAW 108–357—OCT. 22, 2004 (3) Clause (i) of section 222(b)(2)(C) is amended by inserting ‘‘199,’’ before ‘‘911’’. (4) Paragraph (1) of section 246(b) is amended by inserting ‘‘199,’’ after ‘‘172,’’. (5) Clause (iii) of section 469(i)(3)(F) is amended by inserting ‘‘199,’’ before ‘‘219,’’. (6) Subsection (a) of section 613 is amended by inserting ‘‘and without the deduction under section 199’’ after ‘‘without allowances for depletion’’. (7) Subsection (a) of section 1402 is amended by striking ‘‘and’’ at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ‘‘, and’’, and by inserting after paragraph (15) the following new paragraph: ‘‘(16) the deduction provided by section 199 shall not be allowed.’’. (8) The table of sections for part VI of subchapter B of chapter 1 is amended by adding at the end the following new item: ‘‘Sec. 199. Income attributable to domestic production activities.’’. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2004. TITLE II—BUSINESS TAX INCENTIVES Subtitle A—Small Business Expensing SEC. 201. 2 YEAR EXTENSION OF INCREASED EXPENSING FOR SMALL BUSINESS. Subsections (b), (c), and (d) of section 179 are each amended by striking ‘‘2006’’ each place it appears and inserting ‘‘2008’’. Subtitle B—Depreciation SEC. 211. RECOVERY PERIOD FOR DEPRECIATION OF CERTAIN LEASE HOLD IMPROVEMENTS AND RESTAURANT PROPERTY. (a) 15 YEAR RECOVERY PERIOD.—Subparagraph (E) of section 168(e)(3) (relating to classification of certain property) is amended by striking ‘‘and’’ at the end of clause (ii), by striking the period at the end of clause (iii) and inserting a comma, and by adding at the end the following new clauses: ‘‘(iv) any qualified leasehold improvement property placed in service before January 1, 2006, and ‘‘(v) any qualified restaurant property placed in service before January 1, 2006.’’. (b) QUALIFIED LEASEHOLD IMPROVEMENT PROPERTY.—Sub section (e) of section 168 is amended by adding at the end the following new paragraph: ‘‘(6) QUALIFIED LEASEHOLD IMPROVEMENT PROPERTY.—The term ‘qualified leasehold improvement property’ has the meaning given such term in section 168(k)(3) except that the following special rules shall apply: ‘‘(A) IMPROVEMENTS MADE BY LESSOR.—In the case of an improvement made by the person who was the lessor of such improvement when such improvement was placed 26 USC 56 note.
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