12 2 STA T . 2 905PUBLIC LA W 110 – 2 8 9 —J UL Y3 0 , 2008 amount a l lo c at ed to s uc h l i mitation f o r all p re - cedin g ta x a b le y ears .‘ ‘ ( iii )BUSINE SS CR E D I T INCRE A SEA MO UNT. —F or purposes of this paragraph , the term ‘business credit increase amount ’ means the amount e q ual to the por- tion of the credit allo w able under section 38 (deter- mined without regard to subsection (c) thereof) for the first taxable year ending after M arch 3 1 , 20 08, which is allocable to business credit carryforwards to such taxable year which are— ‘‘( I ) from taxable years beginning before J anuary 1, 200 6 , and ‘‘(II) properly allocable (determined under the rules of section 38(d)) to the research credit deter- mined under section 4 1(a). ‘‘(i v ) A M T CREDIT INCREASE AMOUNT.—For pur- poses of this paragraph, the term ‘AMT credit increase amount’ means the amount equal to the portion of the minimum tax credit under section 5 3(b) for the first taxable year ending after March 31, 2008, deter- mined by ta k ing into account only the ad j usted min- imum tax for taxable years beginning before January 1, 2006. For purposes of the preceding sentence, credits shall be treated as allowed on a first-in, first-out basis. ‘‘(F) C REDIT RE F UNDA BL E.—For purposes of section 6401(b), the aggregate increase in the credits allowable under part I V of subchapter A for any taxable year resulting from the application of this paragraph shall be treated as allowed under subpart C of such part (and not any other subpart). ‘‘( G ) O T H ER RULES.— ‘‘(i) E LECTION.—Any election under this paragraph (including any allocation under subparagraph (E)) may be revoked only with the consent of the S ecretary. ‘‘(ii) P ARTNERSHI P S W ITH ELECTIN G PARTNERS.—In the case of a corporation making an election under subparagraph (A) and which is a partner in a partner- ship, for purposes of determining such corporation’s distributive share of partnership items under section 7 02— ‘‘(I) paragraph (1) shall not apply to any eligible qualified property, and ‘‘(II) the applicable depreciation method used under this section with respect to such property shall be the straight line method. ‘‘(iii) SPECIAL RULE FOR PASSENGER AIRCRAFT.— In the case of any passenger aircraft, the written binding contract limitation under paragraph (2)(A)(iii)(I) shall not apply for purposes of subpara- graphs (C)(i)(I) and ( D ).’’. (b) APPLICATION TO CERTAIN AUTOMOTI V E PARTNERSHIPS.— (1) IN GENERAL.—If an applicable partnership elects the application of this subsection— (A) the partnership shall be treated as having made a payment against the tax imposed by chapter 1 of the Internal R evenue Code of 1 9 86 for any applicable taxable
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