12 2 STA T .39 2 6PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 200 81,20 10, anyow n er-fi nan c in gp ro v i d ed in connec t ion wit h the repair or recon s tr u ction of such residence sha l l b e treated as a q ualified rehabilitation loan .‘ ‘ ( ii )LIM I TA TI ON . —T he aggregate owner-financing to which clause (i) applies shall not e x ceed the lesser of— ‘‘( I ) the cost of such repair or reconstruction, or ‘‘(II) $ 1 5 0,000. ‘‘( C ) FED E R A L L Y DE C LARED DI S ASTER.—For purposes of this paragraph, the ter m ‘federally declared disaster ’ has the meaning given such term by section 1 6 5(h)( 3 )(C)(i). ‘‘( D ) E LECTION
DENIAL O F DO UB LE BENEFIT.— ‘‘(i) ELECTION.— A n election under this paragraph may not be revo k ed except with the consent of the S ecretary. ‘‘(ii) DENIAL OF DOUBLE BENEFIT.—If a taxpayer elects the application of this paragraph, paragraph (11) shall not apply with respect to the purchase or financing of any residence by such taxpayer.’’. (b) EFFECTI V E DATE.—The amendment made by subsection (a) shall apply to disasters occurring after December 31, 200 7 . SEC.710 .S P EC IALD EP R ECIA T I ON ALLO W ANCE F OR QU ALIFIED DIS - ASTER PROPERT Y . (a) IN G ENERAL.—Section 16 8 , as amended by this Act, is amended by adding at the end the following new subsection
‘‘(n) S P ECIAL ALLO W ANCE FOR Q UALIFIED DISASTER ASSISTANCE P ROPERTY.— ‘‘(1) IN G ENERAL.—In the case of any qualified disaster assistance property— ‘‘(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 50 percent of the ad j usted basis of the qualified disaster assistance property, and ‘‘( B ) the adjusted basis of the qualified disaster assist- ance property shall be reduced by the amount of such deduction before computing the amount otherwise allow- able as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year. ‘‘(2) QUALIFIED DISASTER ASSISTANCE PROPERTY.—For pur- poses of this subsection— ‘‘(A) IN GENERAL.—The term ‘qualified disaster assist- ance property’ means any property— ‘‘(i)(I) which is described in subsection (k)(2)(A)(i), or ‘‘(II) which is nonresidential real property or resi- dential rental property, ‘‘(ii) substantially all of the use of which is— ‘‘(I) in a disaster area with respect to a feder- ally declared disaster occurring before J anuary 1, 2010, and ‘‘(II) in the active conduct of a trade or busi- ness by the taxpayer in such disaster area, ‘‘(iii) which— 26USC1 6 8. 26USC1 43note .
�
