118 STAT. 1550 PUBLIC LAW 108–357—OCT. 22, 2004 (c) ALTERNATIVE SYSTEM.—The table contained in section 168(g)(3)(B) (relating to special rule for certain property assigned to classes) is amended by inserting after the item relating to subparagraph (C)(ii) the following new item: ‘‘(C)(iii) .................................................................................................................... 22’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to property placed in service after December 31, 2004. SEC. 707. EXTENSION OF ENHANCED OIL RECOVERY CREDIT TO CER TAIN ALASKA FACILITIES. (a) IN GENERAL.—Section 43(c)(1) (defining qualified enhanced oil recovery costs) is amended by adding at the end the following new subparagraph: ‘‘(D) Any amount which is paid or incurred during the taxable year to construct a gas treatment plant which— ‘‘(i) is located in the area of the United States (within the meaning of section 638(1)) lying north of 64 degrees North latitude, ‘‘(ii) prepares Alaska natural gas for transportation through a pipeline with a capacity of at least 2,000,000,000,000 Btu of natural gas per day, and ‘‘(iii) produces carbon dioxide which is injected into hydrocarbon bearing geological formations.’’. (b) ALASKA NATURAL GAS.—Section 43(c) is amended by adding at the end the following new paragraph: ‘‘(5) ALASKA NATURAL GAS.—For purposes of paragraph (1)(D)— ‘‘(1) IN GENERAL.—The term ‘Alaska natural gas’ means natural gas entering the Alaska natural gas pipeline (as defined in section 168(i)(16) (determined without regard to subpara graph (B) thereof)) which is produced from a well— ‘‘(A) located in the area of the State of Alaska lying north of 64 degrees North latitude, determined by excluding the area of the Alaska National Wildlife Refuge (including the continental shelf thereof within the meaning of section 638(1)), and ‘‘(B) pursuant to the applicable State and Federal pollu tion prevention, control, and permit requirements from such area (including the continental shelf thereof within the meaning of section 638(1)). ‘‘(2) NATURAL GAS.—The term ‘natural gas’ has the meaning given such term by section 613A(e)(2).’’. (c) EFFECTIVE DATE.—The amendment made by this section shall apply to costs paid or incurred in taxable years beginning after December 31, 2004. SEC. 708. METHOD OF ACCOUNTING FOR NAVAL SHIPBUILDERS. (a) IN GENERAL.—In the case of a qualified naval ship contract, the taxable income of such contract during the 5 taxable year period beginning with the taxable year in which the contract commence ment date occurs shall be determined under a method identical to the method used in the case of a qualified ship contract (as defined in section 10203(b)(2)(B) of the Revenue Act of 1987). (b) RECAPTURE OF TAX BENEFIT.—In the case of a qualified naval ship contract to which subsection (a) applies, the taxpayer’s tax imposed by chapter 1 of the Internal Revenue Code of 1986 for the first taxable year following the 5 taxable year period 26 USC 460 note. 26 USC 43 note. 26 USC 168 note.
�
