I.R.C. § 179B(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 costs (as
defined in section 45H(c)(2)
which are paid or incurred by the taxpayer during the taxable year and which are
properly chargeable to capital account.
I.R.C. § 179B(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.
I.R.C. § 179B(c) Basis Reduction
I.R.C. § 179B(c)(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).
I.R.C. § 179B(c)(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
I.R.C. § 179B(d) Coordination With Other Provisions
shall not apply to amounts which are treated as expenses under this section.
I.R.C. § 179B(e) Election To Allocate Deduction To Cooperative Owner
I.R.C. § 179B(e)(1) In General
I.R.C. § 179B(e)(1)(A)
a small business refiner to which subsection (a) applies is an organization to which part I of subchapter T applies, and
I.R.C. § 179B(e)(1)(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
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
by reason of any amount to which the preceding sentence applies.
I.R.C. § 179B(e)(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.
I.R.C. § 179B(e)(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. Such notice shall be provided before the date on
which the return described in paragraph (2) is due.
(Added by Pub. L. 108-357, title III, Sec. 338(a), Oct. 22, 2004, 118 Stat. 1418; amended by Pub. L. 109-58, title XIII, Sec. 1324(a), Aug. 8, 2005, 119 Stat. 594; Pub. L 110-172, Sec. 7(a)(3)(A), 7(a)(3)(C), Dec. 29, 2007, 121 Stat. 2473.)
2007 - Subsec. (a). Pub. L. 110-172, Sec. 7(a)(3)(A), amended subsec. (a) by substituting “qualified costs”
for “qualified capital costs”.
Subsec. (a). Pub. L. 110-172, Sec. 7(a)(3)(C), amended subsec. (a) by inserting “and which are properly chargeable to capital
account” before the period at the end.
2005 - Subsec. (e). Pub. L. 109-58, Sec. 1324(a), added subsec. (e).
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Sec. 7(a)(c) of Pub. L. 110-172 effective as if included in the provisions of the American Jobs Creation Act of 2004
[Pub. L. 108-357, Sec. 339] to which they relate.
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Sec. 1324(a) of Pub. L. 109-58 effective as if included in the amendment made by section 338(a) of the American
Jobs Creation Act of 2004 [Pub. L. 108-357].
Effective for expenses paid or incurred after December 31, 2002, in taxable years
ending after such date.