12 2 STA T .39 23 PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 200 8sent en c es hal ln o ta p pl y to so mu cho f the stan d a r d deduct i on as is determined under section 63( c ) ( 1 )( D ) .’ ’. (c) INCREAS E I N L I M I T ATI O NONIN D I V ID U A L LOSS P ER C AS - UALT Y . — Para g raph (1) of section 16 5 (h) is amended b y stri k ing ‘ ‘ $ 1 0 0’’ and inserting ‘‘$500 ($100 for ta x able years beginning after December 31 ,2 00 9 )’’. (d) EF FECTIVE DATES.— (1) IN G ENERAL.—Except as pro v ided by paragraph (2), the amendments made by this section shall apply to disasters declared in taxable years beginning after December 31, 200 7 . (2) INCREASE IN LIMITATION ON INDIVIDUAL LOSS P ER CAS- UALTY.— T he amendment made by subsection (c) shall apply to taxable years beginning after December 31, 200 8 . SEC.70 7.E XP E N S I N GOFQUAL IFIE D DISAS T E R EXPENSES. (a) IN G ENERAL.—Part V I of subchapter B of chapter 1 is amended by inserting after section 198 the follo w ing new section
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‘SEC. 198 A. EXPENSING OF QUALIFIED DISASTER EXPENSES. ‘‘(a) IN GENERAL.— A taxpayer may elect to treat any q ualified disaster expenses which are paid or incurred by the taxpayer as an expense which is not chargeable to capital account. Any expense which is so treated shall be allowed as a deduction for the taxable year in which it is paid or incurred. ‘‘(b) Q UALIFIED DISASTER E X PENSE.— F or purposes of this sec- tion, the term ‘qualified disaster expense’ means any expenditure— ‘‘(1) which is paid or incurred in connection with a trade or business or with business-related property, ‘‘(2) which is— ‘‘(A) for the abatement or control of ha z ardous sub- stances that were released on account of a federally declared disaster occurring before J anuary 1, 2010, ‘‘(B) for the removal of debris from, or the demolition of structures on, real property which is business-related property damaged or destroyed as a result of a federally declared disaster occurring before such date, or ‘‘(C) for the repair of business-related property dam- aged as a result of a federally declared disaster occurring before such date, and ‘‘(3) which is otherwise chargeable to capital account. ‘‘(c) O T H ER DEFINITIONS.—For purposes of this section— ‘‘(1) BUSINESS-RELATED PROPERTY.—The term ‘business- related property’ means property— ‘‘(A) held by the taxpayer for use in a trade or business or for the production of income, or ‘‘(B) described in section 1221(a)(1) in the hands of the taxpayer. ‘‘(2) FEDERALLY DECLARED DISASTER.—The term ‘federally declared disaster’ has the meaning given such term by section 165(h)(3)(C)(i). ‘‘(d) DEDUCTION R ECAPTURED AS ORDINARY INCOME ON S ALE, ETC.—Solely for purposes of section 12 4 5, in the case of property to which a qualified disaster expense would have been capitalized but for this section— ‘‘(1) the deduction allowed by this section for such expense shall be treated as a deduction for depreciation, and 26USC5 6 note. 26 USC 1 65.
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