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Internal Revenue Code, § 179. Election To Expense Certain Depreciable Business Assets

I.R.C. § 179(a) Treatment As Expenses
A taxpayer may elect to treat the cost of any section 179 property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the section 179 property is placed in service.
I.R.C. § 179(b) Limitations
I.R.C. § 179(b)(1) Dollar Limitation
The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $1,000,000.
I.R.C. § 179(b)(2) Reduction In Limitation
The limitation under paragraph (1) for any taxable year shall be reduced (but not below zero) by the amount by which the cost of section 179 property placed in service during such taxable year exceeds $2,500,000.
I.R.C. § 179(b)(3) Limitation Based On Income From Trade Or Business
I.R.C. § 179(b)(3)(A) In General
The amount allowed as a deduction under subsection (a) for any taxable year (determined after the application of paragraphs (1) and (2)) shall not exceed the aggregate amount of taxable income of the taxpayer for such taxable year which is derived from the active conduct by the taxpayer of any trade or business during such taxable year.
I.R.C. § 179(b)(3)(B) Carryover Of Disallowed Deduction
The amount allowable as a deduction under subsection (a) for any taxable year shall be increased by the lesser of—
I.R.C. § 179(b)(3)(B)(i)
the aggregate amount disallowed under subparagraph (A) for all prior taxable years (to the extent not previously allowed as a deduction by reason of this subparagraph), or
I.R.C. § 179(b)(3)(B)(ii)
the excess (if any) of—
I.R.C. § 179(b)(3)(B)(ii)(I)
the limitation of paragraphs (1) and (2) (or if lesser, the aggregate amount of taxable income referred to in subparagraph (A)), over
I.R.C. § 179(b)(3)(B)(ii)(II)
the amount allowable as a deduction under subsection (a) for such taxable year without regard to this subparagraph.
I.R.C. § 179(b)(3)(C) Computation Of Taxable Income
For purposes of this paragraph, taxable income derived from the conduct of a trade or business shall be computed without regard to the deduction allowable under this section.
I.R.C. § 179(b)(4) Married Individuals Filing Separately
In the case of a husband and wife filing separate returns for the taxable year—
I.R.C. § 179(b)(4)(A)
such individuals shall be treated as 1 taxpayer for purposes of paragraphs (1) and (2), and
I.R.C. § 179(b)(4)(B)
unless such individuals elect otherwise, 50 percent of the cost which may be taken into account under subsection (a) for such taxable year (before application of paragraph (3)) shall be allocated to each such individual.
I.R.C. § 179(b)(5) Limitation On Cost Taken Into Account For Certain Passenger Vehicles
I.R.C. § 179(b)(5)(A) In General
The cost of any sport utility vehicle for any taxable year which may be taken into account under this section shall not exceed $25,000.
I.R.C. § 179(b)(5)(B) Sport Utility Vehicle
For purposes of subparagraph (A)
I.R.C. § 179(b)(5)(B)(i) In General
The term “sport utility vehicle” means any 4-wheeled vehicle—
I.R.C. § 179(b)(5)(B)(i)(I)
which is primarily designed or which can be used to carry passengers over public streets, roads, or highways (except any vehicle operated exclusively on a rail or rails),
I.R.C. § 179(b)(5)(B)(i)(II)
which is not subject to section 280F, and
I.R.C. § 179(b)(5)(B)(i)(III)
which is rated at not more than 14,000 pounds gross vehicle weight.
I.R.C. § 179(b)(5)(B)(ii) Certain Vehicles Excluded
Such term does not include any vehicle which—
I.R.C. § 179(b)(5)(B)(ii)(I)
is designed to have a seating capacity of more than 9 persons behind the driver's seat,
I.R.C. § 179(b)(5)(B)(ii)(II)
is equipped with a cargo area of at least 6 feet in interior length which is an open area or is designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment, or
I.R.C. § 179(b)(5)(B)(ii)(III)
has an integral enclosure, fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.
I.R.C. § 179(b)(6) INFLATION ADJUSTMENT
I.R.C. § 179(b)(6)(A) In General
In the case of any taxable year beginning after 2018, the dollar amounts in paragraphs (1), (2), and (5)(A) shall each be increased by an amount equal to—
I.R.C. § 179(b)(6)(A)(i)
such dollar amount, multiplied by
I.R.C. § 179(b)(6)(A)(ii)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2017” for “calendar year 2016” in subparagraph (A)(ii) thereof.
I.R.C. § 179(b)(6)(B) Rounding
The amount of any increase under subparagraph (A) shall be rounded to the nearest multiple of $10,000 ($100 in the case of any increase in the amount under paragraph (5)(A)).
I.R.C. § 179(c) Election
I.R.C. § 179(c)(1) In General
An election under this section for any taxable year shall—
I.R.C. § 179(c)(1)(A)
specify the items of section 179 property to which the election applies and the portion of the cost of each of such items which is to be taken into account under subsection (a), and
I.R.C. § 179(c)(1)(B)
be made on the taxpayer's return of the tax imposed by this chapter for the taxable year.
Such election shall be made in such manner as the Secretary may by regulations prescribe.
I.R.C. § 179(c)(2) Election
Any election made under this section, and any specification contained in any such election, may be revoked by the taxpayer with respect to any property, and such revocation, once made, shall be irrevocable.
I.R.C. § 179(d) Definitions And Special Rules
I.R.C. § 179(d)(1) Section 179 Property
For purposes of this section, the term “section 179 property” means property—
I.R.C. § 179(d)(1)(A)
which is—
I.R.C. § 179(d)(1)(A)(i)
tangible property (to which section 168 applies), or
I.R.C. § 179(d)(1)(A)(ii)
computer software (as defined in section 197(e)(3)(B)) which is described in section 197(e)(3)(A)(i) and to which section 167 applies,
I.R.C. § 179(d)(1)(B)
which is—
I.R.C. § 179(d)(1)(B)(i)
section 1245 property (as defined in section 1245(a)(3)), or
I.R.C. § 179(d)(1)(B)(ii)
at the election of the taxpayer, qualified real property (as defined in subsection (e)), and
I.R.C. § 179(d)(1)(C)
which is acquired by purchase for use in the active conduct of a trade or business.
Such term shall not include any property described in section 50(b) (other than paragraph (2) thereof).
I.R.C. § 179(d)(2) Purchase Defined
For purposes of paragraph (1), the term “purchase” means any acquisition of property, but only if—
I.R.C. § 179(d)(2)(A)
the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267(b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants),
I.R.C. § 179(d)(2)(B)
the property is not acquired by one component member of a controlled group from another component member of the same controlled group, and
I.R.C. § 179(d)(2)(C)
the basis of the property in the hands of the person acquiring it is not determined—
I.R.C. § 179(d)(2)(C)(i)
in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or
I.R.C. § 179(d)(2)(C)(ii)
under section 1014(a) (relating to property acquired from a decedent).
I.R.C. § 179(d)(3) Cost
For purposes of this section, the cost of property does not include so much of the basis of such property as is determined by reference to the basis of other property held at any time by the person acquiring such property.
I.R.C. § 179(d)(4) Section Not To Apply To Estates And Trusts
This section shall not apply to estates and trusts.
I.R.C. § 179(d)(5) Section Not To Apply To Certain Noncorporate Lessors
This section shall not apply to any section 179 property which is purchased by a person who is not a corporation and with respect to which such person is the lessor unless—
I.R.C. § 179(d)(5)(A)
the property subject to the lease has been manufactured or produced by the lessor, or
I.R.C. § 179(d)(5)(B)
the term of the lease (taking into account options to renew) is less than 50 percent of the class life of the property (as defined in section 168(i)(1)), and for the period consisting of the first 12 months after the date on which the property is transferred to the lessee the sum of the deductions with respect to such property which are allowable to the lessor solely by reason of section 162 (other than rents and reimbursed amounts with respect to such property) exceeds 15 percent of the rental income produced by such property.
I.R.C. § 179(d)(6) Dollar Limitation Of Controlled Group
For purposes of subsection (b) of this section—
I.R.C. § 179(d)(6)(A)
all component members of a controlled group shall be treated as one taxpayer, and
I.R.C. § 179(d)(6)(B)
the Secretary shall apportion the dollar limitation contained in subsection (b)(1) among the component members of such controlled group in such manner as he shall by regulations prescribe.
I.R.C. § 179(d)(7) Controlled Group Defined
For purposes of paragraphs (2) and (6), the term “controlled group" has the meaning assigned to it by section 1563(a), except that, for such purposes, the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” each place it appears in section 1563(a)(1).
I.R.C. § 179(d)(8) Treatment Of Partnerships And S Corporations
In the case of a partnership, the limitations of subsection (b) shall apply with respect to the partnership and with respect to each partner. A similar rule shall apply in the case of an S corporation and its shareholders.
I.R.C. § 179(d)(9) Coordination With Section 38
No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).
I.R.C. § 179(d)(10) Recapture In Certain Cases
The Secretary shall, by regulations, provide for recapturing the benefit under any deduction allowable under subsection (a) with respect to any property which is not used predominantly in a trade or business at any time.
I.R.C. § 179(e) Qualified Real Property
For purposes of this section, the term “qualified real property” means—
I.R.C. § 179(e)(1)
any qualified improvement property described in section 168(e)(6), and
I.R.C. § 179(e)(2)
any of the following improvements to nonresidential real property placed in service after the date such property was first placed in service:
I.R.C. § 179(e)(2)(B)
Heating, ventilation, and air-conditioning property.
I.R.C. § 179(e)(2)(C)
Fire protection and alarm systems.
I.R.C. § 179(e)(2)(D)
Security systems.
(Added by Pub. L. 85-866, title II, Sec. 204(a), Sept. 2, 1958, 72 Stat. 1679, and amended by Pub. L. 87-834, Sec. 13(c)(2), Oct. 16, 1962, 76 Stat. 1034; Pub. L. 91-172, title IV, Sec. 401(f), Dec. 30, 1969, 83 Stat. 603; Pub. L. 94-455, title II, Sec. 213(a), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1547, 1834; Pub. L. 97-34, title II, Sec. 202(a), Aug. 13, 1981, 95 Stat. 219; Pub. L. 97-354, Sec. 3(f), Oct. 19, 1982, 96 Stat. 1689; Pub. L. 97-448, title I, Sec. 102(aa), Jan. 12, 1983, 96 Stat. 2369; Pub. L. 98-369, div. A, title I, Sec. 13, July 18, 1984, 98 Stat. 505; Pub. L. 99-514, title II, Sec. 201(d)(3), 202, Oct. 22, 1986, 100 Stat. 2139, 2142; Pub. L. 100-647, title I, Sec. 1002(a)(19), (b)(1), Nov. 10, 1988, 102 Stat. 3356, 3357; Pub. L. 101-508, title XI, Sec. 11813(b)(11), Nov. 5, 1990, 104 Stat. 1388-554; Pub. L. 103-66, title XIII, Sec. 13116(a), Aug. 10, 1993; Pub. L. 104-188, title I, Sec. 1111(a), 1702(h)(10), (19), Aug. 20, 1996, 110 Stat. 1755; Pub. L. 108-27, title II, Sec. 202, May 28, 2003, 117 Stat. 752; Pub. L. 108-357, title II, IX, Sec. 201, 910(a), Oct. 22, 2004, 118 Stat. 1418; Pub. L. 109-222, title I, Sec. 101, May 17, 2006, 120 Stat. 345; Pub. L. 110-28, title VIII, Sec. 8212, May 25, 2007, 121 Stat. 112; Pub. L. 110-185, Sec. 102(a), Feb. 13, 2008, 122 Stat. 613; Pub. L. 110-343, div. C, title VII, Sec. 711(a), Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-5, div. B, title I, Sec. 1202, Feb. 17, 2009, 123 Stat. 115; Pub. L. 111-147, Sec. 201, Mar. 18, 2010, 124 Stat. 71; Pub. L. 111-240, title II, Sec. 2021, Sept. 27, 2010, 124 Stat. 2504; Pub. L. 111-312, title IV, VII, Sec. 402, 737(b), Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title III, Sec. 315, Jan. 2, 2013, 112 Stat. 2313; Pub. L. 113-295, Div. A, title I, Sec. 172(d), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-113, Div. Q, title I, Sec. 124, Dec. 18, 2015; Pub. L. 115-97, title I, Sec. 11002(d)(1)(R), Sec. 13101, Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-141, Div. U, title IV, Sec. 401(b)(15), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018--Subsec. (d)(1)(B)(ii). Pub. L. 115-141, Div. U, Sec. 401(b)(15)(B), amended clause (ii) by substituting “subsection (e)” for “subsection (f)”.
Subsec. (e)-(f). Pub. L. 115-141, Div. U, Sec. 401(b)(15)(A), struck subsec. (e) and redesignated subsec. (f) as subsec. (e). Before being struck, subsec. (e) read as follows:
“(e) Special Rules For Qualified Disaster Assistance Property
“(1) In General.—For purposes of this section—
“(A) the dollar amount in effect under subsection (b)(1) for the taxable year shall be increased by the lesser of—
“(i) $100,000, or
“(ii) the cost of qualified section 179 disaster assistance property placed in service during the taxable year, and
“(B) the dollar amount in effect under subsection (b)(2) for the taxable year shall be increased by the lesser of—
“(i) $600,000, or
“(ii) the cost of qualified section 179 disaster assistance property placed in service during the taxable year.
”(2) Qualifed Section 179 Disaster Assistance Property.—For purposes of this subsection, the term “qualified section 179 disaster assistance property” means section 179 property (as dened in subsection (d)) which is qualified disaster assistance property (as defined in section 168(n)(2)).
“(3) Coordination With Empowerment Zones And Renewal Communities.—For purposes of sections 1397A and 1400J, qualified section 179 disaster assistance property shall not be treated as qualified zone property or qualified renewal property, unless the taxpayer elects not to take such qualified section 179 disaster assistance property into account for purposes of this subsection.
“(4) Recapture.—For purposes of this subsection, rules similar to the rules under subsection (d)(10) shall apply with respect to any qualified section 179 disaster assistance property which ceases to be qualified section 179 disaster assistance property.”
2017--Subsec. (b)(1). Pub. L. 115-97, Sec. 13101(a)(1), amended par. (1) by substituting “$1,000,000” for “$500,000”.
Subsec. (b)(2). Pub. L. 115-97, Sec. 13101(a)(2), amended par. (2) by substituting “$2,500,000” for “$2,000,000”.
Subsec. (b)(6)(A). Pub. L. 115-97, Sec. 11002(d)(1)(R), amended subpar. (A) by substituting “for ‘calendar year 2016' in subparagraph (A)(ii)” for “for ‘calendar year 1992' in subparagraph (B)”.
Subsec. (b)(6)(A). Pub. L. 115-97, Sec. 13101(a)(3)(A)(i), amended subpar. (A) by substituting “2018” for “2015”.
Subsec. (b)(6)(A). Pub. L. 115-97, Sec. 13101(a)(3)(B)(i), amended subpar. (A) by substituting “paragraphs (1), (2), and (5)(A)” for “paragraphs (1) and (2)”.
Subsec. (b)(6)(A)(ii). Pub. L. 115-97, Sec. 13101(a)(3)(A)(ii), amended clause (ii) by substituting “calendar year 2017” for “calendar year 2014”.
Subsec. (b)(6)(B). Pub. L. 115-97, Sec. 13101(a)(3)(B)(ii), amended subpar. (B) by inserting ‘‘($100 in the case of any increase in the amount under paragraph (5)(A))’’ after ‘‘$10,000’’.
Subsec. (d)(1). Pub. L. 115-97, Sec. 13101(c), amended par. (1) by inserting ‘‘(other than paragraph (2) thereof)’’ after ‘‘section 50(b)’’.
Subsec. (d)(1)(B). Pub. L. 115-97, Sec. 13101(b)(1), amended subpar. (B). Before amendment, it read as follows:
“(B) which is section 1245 property (as defined in section 1245(a)(3)), and”
Subsec. (f). Pub. L. 115-97, Sec. 13101(b)(2), amended subsec. (f). Before amendment, it read as follows:
“(f) Special Rules For Qualified Real Property
“(1) In General.—If a taxpayer elects the application of this subsection for any taxable year, the term “section 179 property” shall include any qualified real property which is—
“(A) of a character subject to an allowance for depreciation,
“(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 subsection, 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), and
“(C) qualified retail improvement property described in section 168(e)(8).”
2015--Subsec. (b)(1). Pub. L. 114-113, Div. Q, Sec. 124(a)(1), amended par. (1) by substituting “shall not exceed $500,000.” for “shall not exceed—(A) $250,000 in the case of taxable years beginning after 2007 and before 2010, (B) $500,000 in the case of taxable years beginning after 2009 and before 2015, and (C) $25,000 in the case of taxable years beginning after 2014.”
Subsec. (b)(2). Pub. L. 114-113, Div. Q, Sec. 124(a)(2), amended par. (2) by substituting “exceeds $2,000,000.” for “exceeds—(A) $800,000 in the case of taxable years beginning after 2007 and before 2010, (B) $2,000,000 in the case of taxable years beginning after 2009 and before 2015, and (C) $200,000 in the case of taxable years beginning after 2014.”
Subsec. (b)(6). Pub. L. 114-113, Div. Q, Sec. 124(f), added par. (6).
Subsec. (c)(2). Pub. L. 114-113, Div. Q, Sec. 124(d)(2), amended the heading for par. (2) by striking “IRREVOCABLE”.
Subsec. (c)(2). Pub. L. 114-113, Div. Q, Sec. 124(d)(1), amended par. (2) by striking “may not be revoked except with the consent of the Secretary. Any such election or specification with respect to any taxable year beginning after 2002 and before 2015”.
Subsec. (d)(1). Pub. L. 114-113, Div. Q, Sec. 124(e), amended par. (1) by striking “and shall not include air conditioning or heating units”.
Subsec. (d)(1)(A)(ii). Pub. L. 114-113, Div. Q, Sec. 124(b), amended clause (ii) by substituting “to which section 167 applies” for “, to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2015”.
Subsec. (f)(1). Pub. L. 114-113, Div. Q, Sec. 124(c)(1)(A), amended par. (1) by substituting “2016” for “2015”.
Subsec. (f)(1). Pub. L. 114-113, Div. Q, Sec. 124(c)(2)(A), amended par. (1) by striking ‘‘beginning after 2009 and before 2016’’.
Subsec. (f)(3). Pub. L. 114-113, Div. Q, Sec. 124(c)(2)(B), struck par. (3). Before being struck, it read as follows:
“(3) Limitation.—For purposes of applying the limitation under subsection (b)(1)(B), not more than $250,000 of the aggregate cost which is taken into account under subsection (a) for any taxable year may be attributable to qualified real property.”
Subsec. (f)(4). Pub. L. 114-113, Div. Q, Sec. 124(c)(1)(B), amended par. (4) by substituting “2015” for “2014” each place it appeared.
Subsec. (f)(4)(C). Pub. L. 114-113, Div. Q, Sec. 124(c)(1)(C), amended the heading of subpar. (C) by substituting “2013, AND 2014” for “AND 2013”.
Subsec. (f)(4). Pub. L. 114-113, Div. Q, Sec. 124(c)(2)(B), struck par. (4). Before being struck, it read as follows:
“(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 2015.
“(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 2015 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, 2011, 2012, 2013, And 2014.—If subparagraph (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 2015, 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 2015. For the last taxable year beginning in 2015, the amount determined under subsection (b)(3)(A) for such taxable year shall be determined without regard to this paragraph.
“(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 subsection (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.
“For purposes of the preceding sentence, only section 179 property with respect to which an election was made under subsection (c)(1) (determined without regard to subparagraph (B) of this paragraph) shall be taken into account.
2014--Subsec. (b)(1)(B). Pub. L. 113-295, Div. A, Sec. 127(a)(1)(A), amended subpar. (B) by substituting “beginning after 2009 and before 2015” for “beginning in 2010, 2011, 2012, or 2013”.
Subsec. (b)(1)(C). Pub. L. 113-295, Div. A, Sec. 127(a)(1)(B), amended subpar. (C) by substituting “2014” for “2013”.
Subsec. (b)(2)(B). Pub. L. 113-295, Div. A, Sec. 127(a)(2)(A), amended subpar. (B) by substituting “beginning after 2009 and before 2015” for “beginning in 2010, 2011, 2012, or 2013”.
Subsec. (b)(2)(C). Pub. L. 113-295, Div. A, Sec. 127(a)(2)(B), amended subpar. (C) by substituting “2014” for “2013”.
Subsec. (c)(2). Pub. L. 113-295, Div. A, Sec. 127(c), amended par. (2) by substituting “2015” for “2014”.
Subsec. (d)(1)(A)(ii). Pub. L. 113-295, Div. A, Sec. 127(b), amended clause (ii) by substituting “2015” for “2014”.
Subsec. (f)(1). Pub. L. 113-295, Div. A, Sec. 127(d)(1), amended par. (1) by substituting “beginning after 2009 and before 2015” for “beginning in 2010, 2011, 2012, or 2013”.
Subsec. (f)(4). Pub. L. 113-295, Div. A, Sec. 127(d)(2)(A), amended par. (4) by substituting “2014” for “2013” each place it appeared.
Subsec. (f)(4)(C). Pub. L. 113-295, Div. A, Sec. 127(d)(2)(B), amended the heading of subpar. (C) by substituting “2011, 2012, and 2013” for “2011 And 2012”.
2013--Subsec. (b)(1)(B)-(D). Pub. L. 112-240, Sec. 315(a)(1), amended par. (1) by substituting “2010, 2011, 2012, or 2013, and” for “2010 or 2011,” in subpar. (B); by striking subpar. (C); by redesignating subpar. (D) as subpar. (C); and by substituting “2013” for “2012” in subpar. (C), as redesignated. Before being struck, subpar. (C) read as follows:
“(C) $125,000 in the case of taxable years beginning in 2012, and”.
Subsec. (b)(2)(B)-(D). Pub. L. 112-240, Sec. 315(a)(2), amended par. (2) by substituting “2010, 2011, 2012, or 2013, and” for “2010 or 2011,” in subpar. (B); by striking subpar. (C); by redesignating subpar. (D) and subpar. (C); and by substituting “2013” for “2012” in subpar. (C), as redesignated. Before being struck, subpar. (C) read as follows:
“(C) $500,000 in the case of taxable years beginning in 2012, and”.
Subsec. (b)(6). Pub. L. 112-240, Sec. 315(a)(3), struck par. (6). Before being struck, it read as follows:
“(6) Inflation Adjustment.—
“(A) In General.—In the case of any taxable year beginning in calendar year 2012, the $125,000 and $500,000 amounts in paragraphs (1)(C) and (2)(C) shall each be increased by an amount equal to—
“(i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 2006” for “calendar year 1992” in subparagraph (B) thereof.
“(B) Rounding.—
“(i) Dollar Limitation.—If the amount in paragraph (1) as increased under subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000.
“(ii) Phaseout Amount.— If the amount in paragraph (2) as increased under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.”
Subsec. (c)(2). Pub. L. 112-240, Sec. 315(c), amended par. (2) by substituting “2014” for “2013”.
Subsec. (d)(1)(A)(ii). Pub. L. 112-240, Sec. 315(b), amended clause (ii) by substituting “2014” for “2013”.
Subsec. (f)(1). Pub. L. 112-240, Sec. 315(d)(1), amended par. (1) by substituting “2010, 2011, 2012, or 2013” for “2010 or 2011”.
Subsec. (f)(4). Pub. L. 112-240, Sec. 315(d)(2)(A), amended par. (4) by substituting “2013” for “2011” each place it appeared.
Subsec. (f)(4)(C). Pub. L. 112-240, Sec. 315(d)(2)(B), amended subpar. (C) by substituting “2010, 2011 And 2012” for “2010” in the heading and by adding the sentence at the end.
2010--Subsec. (b)(1)(B)-(D). Pub. L. 111-312, Sec. 402(a), amended par. (1) by striking “and” at the end of subpar. (B); by striking subpar. (C); and by adding new subpar. (C) and (D). Before being struck, subpar. (C) read as follows:
“(C) $25,000 in the case of taxable years beginning after 2011.”
Subsec. (b)(2)(B)-(D). Pub. L. 111-312, Sec. 402(b), amended par. (2) by striking “and” at the end of subpar. (B); by striking subpar. (C); and by adding new subpar. (C) and (D). Before being struck, subpar. (C) read as follows:
“(C) $200,000 in the case of taxable years beginning after 2011.”
Subsec. (b)(6). Pub. L. 111-312, Sec. 402(c), amended subsec. (b) by adding par. (6).
Subsec. (c)(2). Pub. L. 111-312, Sec. 402(e), amended par. (2) by substituting “2013” for “2012”.
Subsec. (d)(1)(A)(ii). Pub. L. 111-312, Sec. 402(d), amended clause (ii) by substituting “2013” for “2012”.
Subsec. (f)(2)(B). Pub. L. 111-312, Sec. 737(b)(3)(A), amended subpar. (B) by striking “(without regard to the dates specified in subparagraph (A)(i) thereof)” after “section 168(e)(7)”.
Subsec. (f)(2)(C). Pub. L. 111-312, Sec. 737(b)(3)(B), amended subpar. (C) by striking “(without regard to subparagraph (E) thereof)” after “section 168(e)(8)”.
Subsec. (b)(1). Pub. L. 111-240, Sec. 2021(a)(1), amended par. (1) by substituting “shall not exceed—(A) $250,000 in the case of taxable years beginning after 2007 and before 2010, (B) $500,000 in the case of taxable years beginning in 2010 or 2011, and (C) $25,000 in the case of taxable years beginning after 2011.” for “shall not exceed $25,000 ($250,000 in the case of taxable years beginning after 2007 and before 2011).”.
Subsec. (b)(2). Pub. L. 111-240, Sec. 2021(a)(2), amended par. (2) by substituting “exceeds--(A) $800,000 in the case of taxable years beginning after 2007 and before 2010, (B) $2,000,000 in the case of taxable years beginning in 2010 or 2011, and (C) $200,000 in the case of taxable years beginning after 2011.” for “exceeds $200,000 ($800,000 in the case of taxable years beginning after 2007 and before 2011).”.
Subsec. (c)(2). Pub. L. 111-240, Sec. 2021(c), amended par. (2) by substituting “2012” for “2011”.
Subsec. (d)(1)(A)(ii). Pub. L. 111-240, Sec. 2021(d), amended clause (ii) by substituting “2012” for “2011”.
Subsec. (f). Pub. L. 111-240, Sec. 2021(b), added subsec. (f).
Subsec. (b)(1). Pub. L. 111-147, Sec. 201(a)(1), amended par. (1) by substituting “($250,000 in the case of taxable years beginning after 2007 and before 2011)” for “($125,000 in the case of taxable years beginning after 2006 and before 2011)”.
Subsec. (b)(2). Pub. L. 111-147, Sec. 201(a)(2), amended par. (2) by substituting “($800,000 in the case of taxable years beginning after 2007 and before 2011)” for “($500,000 in the case of taxable years beginning after 2006 and before 2011)”.
Subsec. (b)(5)-(7). Pub. L. 111-147, Sec. 201(a)(3)-(4), amended subsec. (b) by striking par. (5) and (7) and by redesignating par. (6) as par. (5). Before being struck, par. (5) and (7) read as follows:
“(5) Inflation Adjustments
“(A) In General.— In the case of any taxable year beginning in a calendar year after 2007 and before 2011, the $125,000 and $500,000 amounts in paragraphs (1) and (2) shall each be increased by an amount equal to—
“(i) such dollar amount, multiplied by
“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 2006” for “calendar year 1992” in subparagraph (B) thereof.
“(B) Rounding
“(i) Dollar Limitation.— If the amount in paragraph (1) as increased under subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000.
“(ii) Phaseout Amount.— If the amount in paragraph (2) as increased under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.”
“(7) Increase In Limitations For 2008, And 2009.—In the case of any taxable year beginning in 2008, or 2009—
“(A)the dollar limitation under paragraph (1) shall be $250,000,
“(B)the dollar limitation under paragraph (2) shall be $800,000, and
“(C)the amounts described in subparagraphs (A) and (B) shall not be adjusted under paragraph (5).”
2009--Subsec. (b)(7). Pub. L. 111-5, Div. B, Sec. 1202(a), amended par. (7) by substituting “2008, AND 2009” for “2008” in the heading and by substituting “2008, or 2009” for “2008”.
2008--Subsec. (e). Pub. L. 110-343, Div. C, Sec. 711(a), added subsec. (e).
Subsec. (b)(7). Pub. L. 110-185, Sec. 102(a), amended subsec. (b) by adding par. (7).
2007--Subsec. (b)(1). Pub. L. 110-28, Sec. 8212(a), amended par. (1) by substituting “2011” for “2010”.
Subsec. (b)(1). Pub. L. 110-28, Sec. 8212(b)(1), amended par. (1) by substituting “$125,000 in the case of taxable years beginning after 2006” for “$100,000 in the case of taxable years beginning after 2002”.
Subsec. (b)(2). Pub. L. 110-28, Sec. 8212(a), amended par. (2) by substituting “2011" for “2010”.
Subsec. (b)(2). Pub. L. 110-28, Sec. 8212(b)(2), amended par. (2) by substituting “$500,000 in the case of taxable years beginning after 2006” for “$400,000 in the case of taxable years beginning after 2002”.
Subsec. (b)(5). Pub. L. 110-28, Sec. 8212(a), amended par. (5) by substituting “2011" for “2010”.
Subsec. (b)(5)(A). Pub. L. 110-28, Sec. 8212(c)(1), amended subpar. (A) by substituting “2007” for “2003” and by substituting “$125,000 and $500,000” for “$100,000 and $400,000”.
Subsec. (b)(5)(A)(ii). Pub. L. 110-28V, Sec. 8212(c)(2), amended clause (ii) by substituting “2006” for “2002”.
Subsec. (c)(2). Pub. L. 110-28, Sec. 8212(a), amended par. (2) by substituting “2011" for “2010”.
Subsec. (d)(1)(A)(ii). Pub. L. 110-28, Sec. 8212(a), amended clause (ii) by substituting “2011” for “2010”.
2006--Subsec. (b)(1). Pub. L. 109-222, Sec. 101, amended par. (1) by substituting “2010” for “2008”.
Subsec. (b)(2). Pub. L. 109-222, Sec. 101, amended par. (2) by substituting “2010” for “2008”.
Subsec. (b)(5). Pub. L. 109-222, Sec. 101, amended par. (5) by substituting “2010” for “2008”.
Subsec. (c)(2). Pub. L. 109-222, Sec. 101, amended par. (2) by substituting “2010” for “2008”.
Subsec. (d)(1)(A)(ii). Pub. L. 109-222, Sec. 101, amended clause (ii) by substituting “2010” for “2008”.
2004--Subsec. (b)-(d). Pub. L. 108-357, Sec. 201, amended subsec. (b), (c), (d) by substituting “2008” for “2006” each place it appeared.
Subsec. (b)(6). Pub. L. 108-357, Sec. 910(a), amended subsec. (b) by adding par. (6).
2003--Subsec. (b)(1). Pub. L. 108-27, Sec. 202(a), amended par. (1). Prior to amendment, it read as follows:
“(1) Dollar limitation
“The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed the following applicable amount:
 
 If the taxable year                                    The applicable    begins in:                                             amount is:    1997..................................................... 18,000    1998..................................................... 18,500    1999..................................................... 19,000    2000..................................................... 20,000    2001 or 2002............................................. 24,000    2003 or thereafter....................................... 25,000.”
Subsec. (b)(2). Pub. L. 108-27, Sec. 202(b), amended par. (2) by inserting “($400,000 in the case of taxable years beginning after 2002 and before 2006)” after “$200,000”.
Subsec. (b)(5). Pub. L. 108-27, Sec. 202(d), added par. 5.
Subsec. (c)(2). Pub. L. 108-27, Sec. 202(e), amended par. (2) by adding the sentence at the end.
Subsec. (d)(1). Pub. L. 108-27, Sec. 202(c), amended par. (1). Prior to amendment it read as follows:
“(1) Section 179 property
“For purposes of this section, the term “section 179 property” means any tangible property (to which section 168 applies) which is section 1245 (as defined in section 1245(a)(3)) property and which is acquired by purchase for use in the active conduct of a trade or business. ‘Such term shall not include any property described in section 50(b) and shall not include air conditioning or heating units.”
1996--Subsec. (b)(1). Pub. L. 104-188, Sec. 1111(a) amended par. (1) generally, which prior to amendment read as follows:
‘(1) Dollar limitation
‘The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $17,500.
Subsec. (d)(1). Pub. L. 104-188, Sec. 1702(h)(10) substituted ‘a trade or business’ for ‘in a trade or business’.
Subsec. (d)(1). Pub. L. 104-188, Sec. 1702(h)(19) added a new sentence at the end of par. (1).
1993--Subsec. (b)(1). Pub. L. 103-66, Sec. 13116(a), amended par. (1) by substituting “$17,500” for “$10,000”.
1990--Subsec. (d)(1). Pub. L. 101-508, Sec. 11813(b)(11)(A), substituted ‘section 1245 property (as defined in section 1245(a)(3))’ for ‘section 38 property’.
Subsec. (d)(5). Pub. L. 101-508, Sec. 11813(b)(11)(B), amended par. (5) generally. Prior to amendment, par. (5) read as follows: ‘This section shall not apply to any section 179 property purchased by any person described in section 46(e)(3) unless the credit under section 38 is allowable with respect to such person for such property (determined without regard to this section).’
1988--Subsec. (b)(3). Pub. L. 100-647, Sec. 1002(b)(1), amended par. (3) generally. Prior to amendment, par. (3) read as follows:
‘(A) In general. - The aggregate cost of section 179 property taken into account under subsection (a) for any taxable year shall not exceed the aggregate amount of taxable income of the taxpayer for such taxable year which is derived from the active conduct by the taxpayer of any trade or business during such taxable year.
‘(B) Carryover of unused cost. - The amount of any cost which (but for subparagraph (A)) would have been allowed as a deduction under subsection (a) for any taxable year shall be carried to the succeeding taxable year and added to the amount allowable as a deduction under subsection (a) for such succeeding taxable year.
‘(C) Computation of taxable income. - For purposes of this paragraph, taxable income derived from the conduct of a trade or business shall be computed without regard to the cost of any section 179 property.’
Subsec. (d)(1). Pub. L. 100-647, Sec. 1002(a)(19), substituted ‘tangible property (to which section 168 applies)’ for ‘recovery property’.
1986--Subsec. (b). Pub. L. 99-514, Sec. 202(a), in amending subsec. (b) generally, substituted ‘Limitations’ for ‘Dollar limitation’ in heading, in par. (1) substituted as heading ‘Dollar limitation’ for ‘In general’ and in text ‘shall not exceed $10,000’ for ‘shall not exceed the following applicable amount:’ and a table specifying amounts for specific years, added pars. (2) to (4), and struck out former par. (2) which read as follows: ‘In the case of a husband and wife filing separate returns for a taxable year, the applicable amount under paragraph (1) shall be equal to 50 percent of the amount otherwise determined under paragraph (1).’
Subsec. (d)(1). Pub. L. 99-514, Sec. 202(b), inserted ‘in the active conduct of’.
Subsec. (d)(8). Pub. L. 99-514, Sec. 201(d)(3), substituted ‘Treatment of’ for ‘Dollar limitation in case of’ in heading and amended text generally. Prior to amendment, text read as follows: ‘In the case of a partnership, the dollar limitation contained in subsection (b)(1) shall apply with respect to the partnership and with respect to each partner. A similar rule shall apply in the case of an S corporation and its shareholders.’
Subsec. (d)(10). Pub. L. 99-514, Sec. 202(c), struck out ‘before the close of the second taxable year following the taxable year in which it is placed in service by the taxpayer’ after ‘at any time’.
1984--Subsec. (b)(1). Pub. L. 98-369 amended table by dropping items setting applicable amounts of $0 for 1981 and $5,000 for 1982, substituting an applicable amount of $5,000 for 1983, 1984, 1985, 1986, and 1987 for former table items which had set applicable amounts of $5,000 for 1983, $7,500 for 1984, $7,500 for 1985, and $10,000 for 1986 or thereafter, and added items setting applicable amounts of $7,500 for 1988 or 1989, and $10,000 for 1990 or thereafter.
1983--Subsec. (d)(10). Pub. L. 97-448 added par. (10).
1982--Subsec. (d)(8). Pub. L. 97-354 substituted ‘partnerships and S corporations’ for ‘partnerships’ in heading, and inserted ‘A similar rule shall apply in the case of an S corporation and its shareholders.’
1981--Pub. L. 97-34 amended section generally, changing its content from provisions that formerly made available an additional first-year depreciation allowance for small businesses to provisions allowing a taxpayer to elect to treat the cost of section 179 property as an expense which is not chargeable to capital account, with any cost so treated to be allowed as a deduction for the taxable year in which the section 179 property is placed in service.
1976--Subsecs. (c)(1), (2), (d)(6)(B). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (d)(8), (9). Pub. L. 94-455, Sec. 213(a), added par. (8) and redesignated former par. (8) as par. (9).
Subsec. (e). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ‘or his delegate’ after ‘Secretary’.
1969--Subsec. (d). Pub. L. 91-172 substituted reference to component members of a controlled group for reference to members of an affiliated group in pars. (2)(B) and (b), and substituted definition of controlled group for definition of affiliated group in par. (7).
1962--Subsec. (d)(5). Pub. L. 87-834, Sec. 13(c)(2)(A), substituted ‘section 167(h)’ for ‘section 167(g)’.
Subsec. (d)(8). Pub. L. 87-834, Sec. 13(c)(2)(B), substituted ‘section 167(g)’ for ‘section 167(f)’.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-141, Div. U, Sec. 401(b)(15), effective for property placed in service on or after the date of the enactment of this Act [Enacted: Mar. 23, 2018].
Sec. 401(e) of Pub. L. 115-141, Div. U, provided the following savings provision:
“(e) General Savings Provision With Respect To Deadwood Provisions.—If—
“(1) any provision amended or repealed by the amendments made by subsection (b) or (d) applied to—
“(A) any transaction occurring before the date of the enactment of this Act,
“(B) any property acquired before such date of enactment, or
“(C) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(2) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by such subsection) affect the liability for tax for periods ending after such date of enactment,
“nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendment by Pub. L. 115-97, Sec. 11002(d)(1)(R), effective for taxable years beginning after December 31, 2017.
Amendments by Pub. L. 115-97, Sec. 13101, effective for property placed in service in taxable years beginning after December 31, 2017.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendments by Pub. L. 114-113, Div. Q, Sec. 124(a), (b), (c)(1), (d), and (f), effective for taxable years beginning after December 31, 2014.
Amendments by Pub. L. 114-113, Div. Q, Sec. 124(c)(2) and (e), effective for taxable years beginning after December 31, 2015.
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendments by Pub. L. 113-295, Div. A, Sec. 127, effective for taxable years beginning after December 31, 2013.
EFFECTIVE DATE OF 2013 AMENDMENTS
Amendments by section 315 of Pub. L. 112-240 effective for taxable years beginning after December 31, 2011.
EFFECTIVE DATE OF 2010 AMENDMENTS
Amendments by section 402 of Pub. L. 111-312 effective for taxable years beginning after December 31, 2011.
Amendments by section 737(b)(3) of Pub. L. 111-312 effective for property placed in service after December 31, 2009.
Amendments by section 2021(a) and (b) of Pub. L. 111-240 effective for property placed in service after December 31, 2009, in taxable years beginning after such date.
Amendments by section 2021(c) and (d) of Pub. L. 111-240 effective for taxable years beginning after December 31, 2010.
Amendments by section 201 of Pub. L. 111-147 effective for taxable years beginning after December 31, 2009.
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by section 1202(a) of Pub. L. 111-5, Div. B, effective for taxable years beginning after December 31, 2008.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendment by Div. C, Sec. 711(a) of Pub. L. 110-343 effective for property placed in service after December 31, 2007, with respect to disasters declared after such date.
Amendment by section 102(a) of Pub. L. 110-185 effective for taxable years beginning after December 31, 2007.
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by section 8212 of Pub. L. 110-28 effective for taxable years beginning after December 31, 2006.
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendments by section 101 of Pub. L. 109-222 effective on the date of the enactment of this Act [Enacted: May 17, 2006].
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendments by section 201 of Pub. L. 108-357 effective on the date of the enactment of this Act [Enacted: Oct. 22, 2004].
Amendment by section 910(a) of Pub. L. 108-357 effective for property placed in service after the date of the enactment of this Act [Enacted: Oct. 22, 2004].
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendments by section 202 of Pub. L. 108-27 effective for taxable years beginning after December 31, 2002.
EFFECTIVE DATE OF 1996 AMENDMENTS
Amendment by section 1111(a) of Pub. L. 104-188 effective for taxable years beginning after December 31, 1996.
Amendment by section 1702(h) of Pub. L. 104-188 effective as if included in the related provision of the Revenue Reconciliation Act of 1990, except as otherwise expressly provided.
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendment by Pub. L. 103-66, Sec. 13116(a) applicable to taxable years beginning after December 31, 1992.
EFFECTIVE DATE OF 1990 AMENDMENTS
Amendment by Pub. L. 101-508 applicable to property placed in service after Dec. 31, 1990, but not applicable to any transition property (as defined in section 49(e) of this title), any property with respect to which qualified progress expenditures were previously taken into account under section 46(d) of this title, and any property described in section 46(b)(2)(C) of this title, as such sections were in effect on Nov. 4, 1990, see section 11813(c) of Pub. L. 101-508, set out as a note under section 29 of this title.
EFFECTIVE DATE OF 1988 AMENDMENTS
Amendment by Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by section 201(d)(3) of Pub. L. 99-514 applicable to property placed in service after Dec. 31, 1986, in taxable years ending after such date, with exceptions, see sections 203 and 204 of Pub. L. 99-514, set out as a note under section 168 of this title.
Amendment by section 201(d)(3) of Pub. L. 99-514 not applicable to any property placed in service before Jan. 1, 1994, if such property placed in service as part of specified rehabilitations, and not applicable to certain additional rehabilitations, see section 251(d)(2), (3) of Pub. L. 99-514, set out as a note under section 46 of this title.
EFFECTIVE DATE OF 1984 AMENDMENTS
Amendment by Pub. L. 98-369 applicable to taxable years ending after Dec. 31, 1983, see section 18(a) of Pub. L. 98-369, set out as a note under section 48 of this title.
EFFECTIVE DATE OF 1983 AMENDMENTS
Amendment by Pub. L. 97-448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 109 of Pub. L. 97-448, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1982 AMENDMENTS
Amendment by Pub. L. 97-354 applicable to taxable years beginning after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as an Effective Date note under section 1361 of this title.
EFFECTIVE DATE OF 1981 AMENDMENTS
Amendment by Pub. L. 97-34 applicable to property placed in service after Dec. 31, 1980, in taxable years ending after that date, see section 209(a) of Pub. L. 97-34, set out as an Effective Date note under section 168 of this title.
EFFECTIVE DATE OF 1976 AMENDMENTS
Amendment by section 213(a) of Pub. L. 94-455 applicable in the case of partnership taxable years beginning after Dec. 31, 1975, see section 213(f) of Pub. L. 94-455, set out as an Effective Date note under section 709 of this title.
EFFECTIVE DATE OF 1969 AMENDMENTS
Amendment by Pub. L. 91-172 applicable with respect to taxable years ending on or after Dec. 31, 1970, see section 401(h)(3) of Pub. L. 91-172, set out as a note under section 1561 of this title.
EFFECTIVE DATE OF 1962 AMENDMENTS
Amendment by Pub. L. 87-834 applicable to taxable years beginning after Dec. 31, 1961, and ending after Oct. 16, 1962, see section 13(g) of Pub. L. 87-834, set out as an Effective Date note under section 1245 of this title.
EFFECTIVE DATE
Section 204(c) of Pub. L. 85-866 provided that: ‘The amendments made by this section (enacting this section) shall apply with respect to taxable years ending after June 30, 1958.’
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L. 101-508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101-508, set out as a note under section 29 of this title.