‘‘(i)(I) which is described in section 
168(k)(2)(A)(i), or 
‘‘(II) which is nonresidential real 
property or residential rental property, 
‘‘(ii) substantially all of the use of 
which is in the Gulf Opportunity Zone and 
is in the active conduct of a trade or busi-
ness by the taxpayer in such Zone, 
‘‘(iii) the original use of which in the 
Gulf Opportunity Zone commences with 
the taxpayer on or after August 28, 2005, 
‘‘(iv) which is acquired by the tax-
payer by purchase (as defined in section 
179(d)) on or after August 28, 2005, but 
only if no written binding contract for the 
acquisition was in effect before August 28, 
2005, and 
‘‘(v) which is placed in service by the 
taxpayer on or before December 31, 2007 
(December 31, 2008, in the case of non-
residential real property and residential 
rental property). 
‘‘(B) EXCEPTIONS.— 
‘‘(i) 
ALTERNATIVE
DEPRECIATION 
PROPERTY.—Such term shall not include
any 
property 
described 
in 
section 
168(k)(2)(D)(i). 
‘‘(ii) TAX-EXEMPT
BOND-FINANCED 
PROPERTY.—Such term shall not include 
any property any portion of which is fi-
nanced with the proceeds of any obligation 
the interest on which is exempt from tax 
under section 103. 
‘‘(iii) 
QUALIFIED
REVITALIZATION 
BUILDINGS.—Such term shall not include 
any qualified revitalization building with 
respect to which the taxpayer has elected 
the application of paragraph (1) or (2) of 
section 1400I(a). 
‘‘(iv) ELECTION OUT.—If a taxpayer 
makes an election under this clause with 
respect to any class of property for any 
taxable year, this subsection shall not 
apply to all property in such class placed 
in service during such taxable year. 
‘‘(3) SPECIAL
RULES.—For purposes of this 
subsection, rules similar to the rules of subpara-
graph (E) of section 168(k)(2) shall apply, except 
that such subparagraph shall be applied—
‘‘(A) by substituting ‘August 27, 2005’ for 
‘September 10, 2001’ each place it appears 
therein, 
‘‘(B) by substituting ‘January 1, 2008’ for 
‘January 1, 2005’ in clause (i) thereof, and 
‘‘(C) by substituting ‘qualified Gulf Oppor-
tunity Zone property’ for ‘qualified property’ in 
clause (iv) thereof. 
‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MIN-
IMUM TAX.—For purposes of this subsection, rules 
similar to the rules of section 168(k)(2)(G) shall 
apply. 
‘‘(5) RECAPTURE.—For purposes of this sub-
section, rules similar to the rules under section 
179(d)(10) shall apply with respect to any qualified 
Gulf Opportunity Zone property which ceases to be 
qualified Gulf Opportunity Zone property. 
‘‘(e) INCREASE
IN EXPENSING UNDER SECTION 
179.— 
‘‘(1) IN
GENERAL.—For purposes of section 
179— 
‘‘(A) the dollar amount in effect under sec-
tion 179(b)(1) for the taxable year shall be in-
creased by the lesser of— 
‘‘(i) $100,000, or
‘‘(ii) the cost of qualified section 179 
Gulf Opportunity Zone property placed in 
service during the taxable year, and 
‘‘(B) the the dollar amount in effect under 
section 179(b)(2) for the taxable year shall be 
increased by the lesser of— 
‘‘(i) $600,000, or 
‘‘(ii) the cost of qualified section 179 
Gulf Opportunity Zone property placed in 
service during the taxable year. 
‘‘(2) QUALIFIED
SECTION
179
GULF
OPPOR-
TUNITY ZONE PROPERTY.—For purposes of this sub-
section, the term ‘qualified section 179 Gulf Oppor-
tunity Zone property’ means section 179 property 
(as defined in section 179(d)) which is qualified Gulf 
Opportunity Zone property (as defined in subsection 
(d)(2)). 
‘‘(3) 
COORDINATION
WITH
EMPOWERMENT 
ZONES AND RENEWAL COMMUNITIES.—For purposes 
of sections 1397A and 1400J, qualified section 179 
Gulf Opportunity Zone property shall not be treated 
as qualified zone property or qualified renewal prop-
erty, unless the taxpayer elects not to take such 
qualified section 179 Gulf Opportunity Zone prop-
erty into account for purposes of this subsection.