[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3868 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3868

  To increase and expand expensing under section 179 of the Internal 
Revenue Code of 1986 for property in hurricane disaster areas declared 
                                in 2005.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 22, 2005

Mr. Doolittle introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To increase and expand expensing under section 179 of the Internal 
Revenue Code of 1986 for property in hurricane disaster areas declared 
                                in 2005.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gulf Region Economic Assistance Tax 
Relief Act''.

SEC. 2. EXPANSION AND INCREASE IN SECTION 179 EXPENSING FOR PROPERTY IN 
              HURRICANE DISASTER AREAS DECLARED IN 2005.

    (a) In General.--In the case of qualified hurricane recovery 
property, section 179 of the Internal Revenue Code of 1986 shall be 
applied with the following adjustments:
            (1) Increased dollar limitation; waiver of reduction.--The 
        limitations of paragraphs (1) and (2) of section 179(b) of such 
        Code shall be applied--
                    (A) separately to qualified hurricane recovery 
                property and any other property, and
                    (B) in the case of qualified hurricane recovery 
                property,
                            (i) such paragraph (1) shall be applied by 
                        substituting ``$10,000,000'' for ``$100,000'', 
                        and
                            (ii) such paragraph (2) shall not apply.
            (2) Inclusion of real property, etc.--Paragraph (1) of 
        section 179(d) of such Code shall be applied without regard to 
        subparagraph (B) thereof.
    (b) Qualified Hurricane Recovery Property.--For purposes of this 
section--
            (1) In general.--The term ``qualified hurricane recovery 
        property'' means any property--
                    (A) placed in service by the taxpayer during the 
                period beginning on the date of the enactment of this 
                Act and ending on December 31, 2006, in a hurricane 
                recovery area, and
                    (B) substantially all of the use of which is in 
                such area and is in the active conduct of a trade or 
                business by the taxpayer in such area.
            (2) Hurricane recovery area.--The term ``hurricane recovery 
        area'' means any area determined by the President during 2005 
        to warrant individual or individual and public assistance from 
        the Federal Government under the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act by reason of a hurricane.
    (c) Recapture.--Rules similar to the rules of section 179(d)(10) of 
such Code shall apply with respect to qualified hurricane recovery 
property which ceases to be used in a hurricane recovery area.
                                 <all>