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USC Title 26 enacted through 2008

§ 1400I. Commercial revitalization deduction

General rule
At the election of the taxpayer, either -
one-half of any qualified revitalization expenditures chargeable to capital account with respect to any qualified revitalization building shall be allowable as a deduction for the taxable year in which the building is placed in service, or
a deduction for all such expenditures shall be allowable ratably over the 120-month period beginning with the month in which the building is placed in service.
Qualified revitalization buildings and expenditures
For purposes of this section -
Qualified revitalization building
The term "qualified revitalization building" means any building (and its structural components) if -
the building is placed in service by the taxpayer in a renewal community and the original use of the building begins with the taxpayer, or
in the case of such building not described in subparagraph (A), such building -
is substantially rehabilitated (within the meaning of section 47(c)(1)(C)) by the taxpayer, and
is placed in service by the taxpayer after the rehabilitation in a renewal community.
Qualified revitalization expenditure
In general
The term "qualified revitalization expenditure" means any amount properly chargeable to capital account for property for which depreciation is allowable under section 168 (without regard to this section) and which is -
nonresidential real property (as defined in section 168(e)), or
section 1250 property (as defined in section 1250(c)) which is functionally related and subordinate to property described in clause (i).
Certain expenditures not included
Acquisition cost
In the case of a building described in paragraph (1)(B), the cost of acquiring the building or interest therein shall be treated as a qualified revitalization expenditure only to the extent that such cost does not exceed 30 percent of the aggregate qualified revitalization expenditures (determined without regard to such cost) with respect to such building.
The term "qualified revitalization expenditure" does not include any expenditure which the taxpayer may take into account in computing any credit allowable under this title unless the taxpayer elects to take the expenditure into account only for purposes of this section.
Dollar limitation
The aggregate amount which may be treated as qualified revitalization expenditures with respect to any qualified revitalization building shall not exceed the lesser of -
$10,000,000, or
the commercial revitalization expenditure amount allocated to such building under this section by the commercial revitalization agency for the State in which the building is located.
Commercial revitalization expenditure amount
In general
The aggregate commercial revitalization expenditure amount which a commercial revitalization agency may allocate for any calendar year is the amount of the State commercial revitalization expenditure ceiling determined under this paragraph for such calendar year for such agency.
State commercial revitalization expenditure ceiling
The State commercial revitalization expenditure ceiling applicable to any State -
for each calendar year after 2001 and before 2010 is $12,000,000 for each renewal community in the State, and
for each calendar year thereafter is zero.
Commercial revitalization agency
For purposes of this section, the term "commercial revitalization agency" means any agency authorized by a State to carry out this section.
Time and manner of allocations
Allocations under this section shall be made at the same time and in the same manner as under paragraphs (1) and (7) of section 42(h).
Responsibilities of commercial revitalization agencies
Plans for allocation
Notwithstanding any other provision of this section, the commercial revitalization expenditure amount with respect to any building shall be zero unless -
such amount was allocated pursuant to a qualified allocation plan of the commercial revitalization agency which is approved (in accordance with rules similar to the rules of section 147(f)(2) (other than subparagraph (B)(ii) thereof)) by the governmental unit of which such agency is a part, and
such agency notifies the chief executive officer (or its equivalent) of the local jurisdiction within which the building is located of such allocation and provides such individual a reasonable opportunity to comment on the allocation.
Qualified allocation plan
For purposes of this subsection, the term "qualified allocation plan" means any plan -
which sets forth selection criteria to be used to determine priorities of the commercial revitalization agency which are appropriate to local conditions,
which considers -
the degree to which a project contributes to the implementation of a strategic plan that is devised for a renewal community through a citizen participation process,
the amount of any increase in permanent, full-time employment by reason of any project, and
the active involvement of residents and nonprofit groups within the renewal community, and
which provides a procedure that the agency (or its agent) will follow in monitoring compliance with this section.
Special rules
Deduction in lieu of depreciation
The deduction provided by this section for qualified revitalization expenditures shall -
with respect to the deduction determined under subsection (a)(1), be in lieu of any depreciation deduction otherwise allowable on account of one-half of such expenditures, and
with respect to the deduction determined under subsection (a)(2), be in lieu of any depreciation deduction otherwise allowable on account of all of such expenditures.
Basis adjustment, etc.
For purposes of sections 1016 and 1250, the deduction under this section shall be treated in the same manner as a depreciation deduction. For purposes of section 1250(b)(5), the straight line method of adjustment shall be determined without regard to this section.
Substantial rehabilitations treated as separate buildings
A substantial rehabilitation (within the meaning of section 47(c)(1)(C)) of a building shall be treated as a separate building for purposes of subsection (a).
Clarification of allowance of deduction under minimum tax
Notwithstanding section 56(a)(1), the deduction under this section shall be allowed in determining alternative minimum taxable income under section 55.
This section shall not apply to any building placed in service after December 31, 2009.

Tax Code (Internal Revenue Code) Section Index

U.S. GAAP by Codification Topic
105 GAAP Hierarchy
105 GAAP History

205 Presentation of Financial Statements
205-20 Discontinued Operations
210 Balance Sheet
210-20 Offsetting
220 Comprehensive Income
225 Income Statement
225-20 Extraordinary and Unusual Items
230 Statement of Cash Flows
250 Accounting Changes and Error Corrections
260 Earnings per Share
270 Interim Reporting

310 Impairment of a Loan
320 Investment Securities
320 Other-Than-Temporary Impairments, FSP FAS 115-2
320-10-05 Overview of Investments in Other Entities
320-10-35 Reclassification of Investments in Securities
323-10 Equity Method Investments
323-30 Investments in Partnerships and Joint Ventures
325-20 Cost Method Investments
330 Inventory

340-20 Capitalized Advertising Costs
350-20 Goodwill
350-30 Intangibles Other than Goodwill
350-40 Internal-Use Software
350-50 Website Development Costs
360 Property, Plant and Equipment
360-20 Real Estate Sales

410 Asset Retirement and Environmental Obligations
420 Exit or Disposal Cost Obligations
450 Contingencies
450-20 Loss Contingencies
450-30 Gain Contingencies
480 Redeemable Financial Instruments

505-20 Stock Dividends, Stock Splits
505-30 Treasury Stock

605 SEC Staff Accounting Bulletin, Topic 13
605-25 Revenue Recognition - Multiple Element Arrangements

715-30 Defined Benefit Plans - Pension
718 Share-Based Payment
730 Research and Development
730-20 Research and Development Arrangements

805 Business Combinations
810 Consolidation
810 Noncontrolling Interests
810 Consolidation of Variable Interest Entities, SFAS 167

815 Derivatives and Hedging Overview

820 Fair Value Measurements
820 Fair value when the markets are not active, FSP FAS 157-4
825 Fair Value Option

830 Foreign Currency Matters
830-20 Foreign Currency Transactions
830-30 Translation of Financial Statements
835 Interest
835-20 Capitalization of Interest
835-30 Imputation of Interest

840 Leases
840-20 Operating Leases
840-30 Capital Leases
840-40 Sale-Leaseback Transactions
845 Nonmonetary Transactions

855 Subsequent Events
860-20 Sale of Financial Assets, SFAS 166
860-50 Servicing Assets and Liabilities, SFAS 156

985-20 Costs of software to be sold

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Tax Code (Internal Revenue Code) Section Index

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