118 STAT. 1480 PUBLIC LAW 108–357—OCT. 22, 2004 (2) PLACED IN SERVICE DATE.—Clause (iv) of section 168(k)(2)(A) is amended by striking ‘‘subparagraph (B)’’ and inserting ‘‘subparagraphs (B) and (C)’’. (b) CONFORMING AMENDMENTS.— (1) Section 168(k)(2)(B) is amended by adding at the end the following new clause: ‘‘(iv) APPLICATION OF SUBPARAGRAPH.—This subparagraph shall not apply to any property which is described in subparagraph (C).’’. (2) Section 168(k)(4)(A)(ii) is amended by striking ‘‘para graph (2)(C)’’ and inserting ‘‘paragraph (2)(D)’’. (3) Section 168(k)(4)(B)(iii) is amended by inserting ‘‘and paragraph (2)(C)’’ after ‘‘of this paragraph)’’. (4) Section 168(k)(4)(C) is amended by striking ‘‘subpara graphs (B) and (D)’’ and inserting ‘‘subparagraphs (B), (C), and (E)’’. (5) Section 168(k)(4)(D) is amended by striking ‘‘Paragraph (2)(E)’’ and inserting ‘‘Paragraph (2)(F)’’. (c) EFFECTIVE DATE.—The amendments made by this section shall take effect as if included in the amendments made by section 101 of the Job Creation and Worker Assistance Act of 2002. SEC. 337. MODIFICATION OF PLACED IN SERVICE RULE FOR BONUS DEPRECIATION PROPERTY. (a) IN GENERAL.—Subclause (II) of section 168(k)(2)(E)(iii) (relating to syndication), as amended by the Working Families Tax Relief Act of 2004 and as redesignated by this Act, is amended by inserting before the comma at the end the following: ‘‘(or, in the case of multiple units of property subject to the same lease, within 3 months after the date the final unit is placed in service, so long as the period between the time the first unit is placed in service and the time the last unit is placed in service does not exceed 12 months)’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to property sold after June 4, 2004. SEC. 338. EXPENSING OF CAPITAL COSTS INCURRED IN COMPLYING WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS. (a) IN GENERAL.—Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by inserting after section 179A the following new section: ‘‘SEC. 179B. DEDUCTION FOR CAPITAL COSTS INCURRED IN COM PLYING WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS. ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of a small busi ness refiner (as defined in section 45H(c)(1)) which elects the application of this section, there shall be allowed as a deduction an amount equal to 75 percent of qualified capital costs (as defined in section 45H(c)(2)) which are paid or incurred by the taxpayer during the taxable year. ‘‘(b) REDUCED PERCENTAGE.—In the case of a small business refiner with average daily domestic refinery runs for the 1 year period ending on December 31, 2002, in excess of 155,000 barrels, the number of percentage points described in subsection (a) shall be reduced (not below zero) by the product of such number (before 26 USC 168 note. 26 USC 168 note.
�
