124 STAT. 2557 PUBLIC LAW 111–240—SEPT. 27, 2010 the term ‘section 179 property’ shall include any qualified real property which is— ‘‘(A) of a character subject to an allowance for deprecia- tion, ‘‘(B) acquired by purchase for use in the active conduct of a trade or business, and ‘‘(C) not described in the last sentence of subsection (d)(1). ‘‘(2) QUALIFIED REAL PROPERTY.—For purposes of this sub- section, the term ‘qualified real property’ means— ‘‘(A) qualified leasehold improvement property described in section 168(e)(6), ‘‘(B) qualified restaurant property described in section 168(e)(7) (without regard to the dates specified in subpara- graph (A)(i) thereof), and ‘‘(C) qualified retail improvement property described in section 168(e)(8) (without regard to subparagraph (E) thereof). ‘‘(3) LIMITATION.—For purposes of applying the limitation under subsection (b)(1)(B), not more than $250,000 of the aggre- gate cost which is taken into account under subsection (a) for any taxable year may be attributable to qualified real prop- erty. ‘‘(4) CARRYOVER LIMITATION.— ‘‘(A) IN GENERAL.—Notwithstanding subsection (b)(3)(B), no amount attributable to qualified real property may be carried over to a taxable year beginning after 2011. ‘‘(B) TREATMENT OF DISALLOWED AMOUNTS.—Except as provided in subparagraph (C), to the extent that any amount is not allowed to be carried over to a taxable year beginning after 2011 by reason of subparagraph (A), this title shall be applied as if no election under this section had been made with respect to such amount. ‘‘(C) AMOUNTS CARRIED OVER FROM 2010.—If subpara- graph (B) applies to any amount (or portion of an amount) which is carried over from a taxable year other than the taxpayer’s last taxable year beginning in 2011, such amount (or portion of an amount) shall be treated for purposes of this title as attributable to property placed in service on the first day of the taxpayer’s last taxable year beginning in 2011. ‘‘(D) ALLOCATION OF AMOUNTS.—For purposes of applying this paragraph and subsection (b)(3)(B) to any taxable year, the amount which is disallowed under sub- section (b)(3)(A) for such taxable year which is attributed to qualified real property shall be the amount which bears the same ratio to the total amount so disallowed as— ‘‘(i) the aggregate amount attributable to qualified real property placed in service during such taxable year, increased by the portion of any amount carried over to such taxable year from a prior taxable year which is attributable to such property, bears to ‘‘(ii) the total amount of section 179 property placed in service during such taxable year, increased by the aggregate amount carried over to such taxable year from any prior taxable year. Applicability.
