§ 179B. Deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 2004

   Pub. L. 108–357 title III § 338(a) · 118 Stat. 1418

   Enacted · 26 U.S.C. § 179B

   Added Pub. L. 108–357, title III, § 338(a), Oct. 22, 2004, 118 Stat. 1480

   Source evidence

   Code source credit
   Added Pub. L. 108–357, title III, § 338(a), Oct. 22, 2004, 118 Stat. 1480

   Enacted provision · exact public law section
   (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 COMPLYING WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS. “(a) Allowance of Deduction.— In the case of a small business 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 the application of this subsection) and the ratio of such excess to 50,000 barrels. “(c) Basis Reduction.— “(1) In general.— For purposes of this title, the basis of any property shall be reduced by the portion of the cost of such property taken into account under subsection (a). “(2) Ordinary income recapture.— For purposes of section 1245, the amount of the deduction allowable under subsection (a) with respect to any property which is of a character subject to the allowance for depreciation shall be treated as a deduction allowed for depreciation under section 167.” . “(d) Coordination With Other Provisions.— Section 280B shall not apply to amounts which are treated as expenses under this section.” .

   Effective date note
   Amendment by Pub. L. 110–172 effective as if included in the provision of the American Jobs Creation Act of 2004, Pub. L. 108–357, to which such amendment relates, see section 7(e) of Pub. L. 110–172, set out as a note under section 1092 of this title.

2. 2005

   Energy Tax Incentives Act of 2005

   Pub. L. 109–58 title XIII § 1324(a) · 119 Stat. 594

   Added · 26 U.S.C. § 179B(e)

   Pub. L. 109–58 added subsec. (e)

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 109–58 added subsec. (e).

   Enacted provision · exact public law section
   (a) In General.— Section 179B (relating to deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations) is amended by adding at the end the following new subsection: “(e) Election to Allocate Deduction to Cooperative Owner.— “(1) In general.— If— “(A) a small business refiner to which subsection (a) applies is an organization to which part I of subchapter T applies, and “(B) one or more persons directly holding an ownership interest in the refiner are organizations to which part I of subchapter T apply, the refiner may elect to allocate all or a portion of the deduction allowable under subsection (a) to such persons. Such allocation shall be equal to the person’s ratable share of the total amount allocated, determined on the basis of the person’s ownership interest in the taxpayer. The taxable income of the refiner shall not be reduced under section 1382 by reason of any amount to which the preceding sentence applies. “(2) Form and effect of election.— An election under paragraph (1) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. “(3) Written notice to owners.— If any portion of the deduction available under subsection (a) is allocated to owners under paragraph (1), the cooperative shall provide any owner receiving an allocation written notice of the amount of the allocation. Deadline. Such notice shall be provided before the date on which the return described in paragraph (2) is due.” .

3. 2007

   Tax Technical Corrections Act of 2007

   Pub. L. 110–172 § 7(a)(3)(A) · 121 Stat. 2473

   1. Substituted · 26 U.S.C. § 179B(a)

      Pub. L. 110–172 substituted “qualified costs” for “qualified capital costs”

   2. Inserted · 26 U.S.C. § 179B(a)

      Pub. L. 110–172 inserted “and which are properly chargeable to capital account” before period at end

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 110–172 substituted “qualified costs” for “qualified capital costs” and inserted “and which are properly chargeable to capital account” before period at end.

   Enacted provision · exact public law section
   (A) Subsections (b)(1)(A), (c)(2), (e)(1), and (e)(2) of section 45H (as amended by paragraph (1)) and section 179B(a) are each amended by striking “qualified capital costs” and inserting “qualified costs”.

   Effective date note
   Amendment by Pub. L. 110–172 effective as if included in the provision of the American Jobs Creation Act of 2004, Pub. L. 108–357, to which such amendment relates, see section 7(e) of Pub. L. 110–172, set out as a note under section 1092 of this title.

4 of 4 references resolved to an enrolled provision