I 
109TH CONGRESS 
1ST SESSION H. R. 4305 
To amend the Internal Revenue Code of 1986 to provide increased expensing 
for section 179 property in the Gulf Opportunity Zone. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 10, 2005 
Mrs. MUSGRAVE (for herself, Mr. FEENEY, Mr. GINGREY, Mr. KING of Iowa, 
Mr. GARRETT of New Jersey, Mr. JINDAL, Mr. DOOLITTLE, Mr. BAR-
RETT of South Carolina, Mr. WILSON of South Carolina, Mr. KLINE, Mr. 
COLE of Oklahoma, Mr. WESTMORELAND, Mr. ISSA, Mr. WELDON of 
Florida, Mr. FORTENBERRY, and Mr. HENSARLING) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
increased expensing for section 179 property in the Gulf 
Opportunity Zone. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. INCREASE IN EXPENSING UNDER SECTION 179 
FOR GULF OPPORTUNITY ZONE PROPERTY. 
(a) IN GENERAL.—Section 179 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection:
‘‘(e) INCREASE IN LIMITATION FOR GULF OPPOR-
TUNITY ZONE PROPERTY.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion— 
‘‘(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 
Gulf Opportunity Zone property placed in 
service during the taxable year, and 
‘‘(B) the 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 
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 
which is qualified Gulf Opportunity Zone property. 
‘‘(3) QUALIFIED
GULF
OPPORTUNITY
ZONE 
PROPERTY.— For purposes of this subsection—
‘‘(A) IN
GENERAL.—The term ‘qualified 
Gulf Opportunity Zone property’ means prop-
erty— 
‘‘(i) which is described in section 
168(k)(2)(A)(i), 
‘‘(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 sub-
section (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. 
‘‘(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) 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. 
‘‘(4) GULF
OPPORTUNITY
ZONE; HURRICANE 
KATRINA
DISASTER
AREA.—For purposes of this 
subsection— 
‘‘(A) GULF
OPPORTUNITY
ZONE.—The 
term ‘Gulf Opportunity Zone’ means that por-
tion of the Hurricane Katrina disaster area de-
termined by the President to warrant individual 
or individual and public assistance from the 
Federal Government under the Robert T. Staf-
ford Disaster Relief and Emergency Assistance 
Act by reason of Hurricane Katrina. 
‘‘(B) 
HURRICANE
KATRINA
DISASTER 
AREA.—The term ‘Hurricane Katrina disaster
area’ means an area with respect to which a 
major disaster has been declared by the Presi-
dent before September 14, 2005, under section 
401 of such Act by reason of Hurricane 
Katrina. 
‘‘(5) 
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. 
‘‘(6) RECAPTURE.—For purposes of this sub-
section, rules similar to the rules under subsection 
(d)(10) shall apply with respect to any qualified sec-
tion 179 Gulf Opportunity Zone property which 
ceases to be qualified section 179 Gulf Opportunity 
Zone property.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to property placed in service 
after August 28, 2005. 
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