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issue) was (or is to be) used to provide any property
described in section 144(c)(6)(B).
‘‘(c) LOW-INCOME HOUSING CREDIT.—
‘‘(1) ADDITIONAL
HOUSING
CREDIT
DOLLAR
AMOUNT FOR GULF OPPORTUNITY ZONE.—
‘‘(A) IN GENERAL.—For purposes of section
42, in the case of calendar years 2006, 2007, and
2008, the State housing credit ceiling of each
State, any portion of which is located in the
Gulf Opportunity Zone, shall be increased by the
lesser of—
‘‘(i) the aggregate housing credit dollar
amount allocated by the State housing cred-
it agency of such State to buildings located
in the Gulf Opportunity Zone for such cal-
endar year, or
‘‘(ii) the Gulf Opportunity housing
amount for such State for such calendar
year.
‘‘(B) 
GULF
OPPORTUNITY
HOUSING
AMOUNT.—For purposes of subparagraph (A),
the term ‘Gulf Opportunity housing amount’
means, for any calendar year, the amount equal
to the product of $18.00 multiplied by the por-
tion of the State population which is in the Gulf
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Opportunity Zone (as determined on the basis of
the most recent census estimate of resident popu-
lation released by the Bureau of Census before
August 28, 2005).
‘‘(C) ALLOCATIONS
TREATED
AS
MADE
FIRST FROM ADDITIONAL ALLOCATION AMOUNT
FOR PURPOSES OF DETERMINING CARRYOVER.—
For purposes of determining the unused State
housing credit ceiling under section 42(h)(3)(C)
for any calendar year, any increase in the State
housing credit ceiling under subparagraph (A)
shall be treated as an amount described in clause
(ii) of such section.
‘‘(2) ADDITIONAL
HOUSING
CREDIT
DOLLAR
AMOUNT FOR TEXAS AND FLORIDA.—For purposes of
section 42, in the case of calendar year 2006, the
State housing credit ceiling of Texas and Florida
shall each be increased by $3,500,000.
‘‘(3) DIFFICULT DEVELOPMENT AREA.—
‘‘(A) IN GENERAL.—For purposes of section
42, in the case of property placed in service dur-
ing 2006, 2007, or 2008, the Gulf Opportunity
Zone, the Rita GO Zone, and the Wilma GO
Zone—
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‘‘(i) shall be treated as difficult devel-
opment areas designated under subclause (I)
of section 42(d)(5)(C)(iii), and
‘‘(ii) shall not be taken into account
for purposes of applying the limitation
under subclause (II) of such section.
‘‘(B) 
APPLICATION.—Subparagraph 
(A)
shall apply only to—
‘‘(i) housing credit dollar amounts al-
located during the period beginning on Jan-
uary 1, 2006, and ending on December 31,
2008, and
‘‘(ii) buildings placed in service during
such period to the extent that paragraph (1)
of section 42(h) does not apply to any
building by reason of paragraph (4) thereof,
but only with respect to bonds issued after
December 31, 2005.
‘‘(4) SPECIAL
RULE
FOR
APPLYING
INCOME
TESTS.—In the case of property placed in service—
‘‘(A) during 2006, 2007, or 2008,
‘‘(B) in the Gulf Opportunity Zone, and
‘‘(C) in a nonmetropolitan area (as defined
in section 42(d)(5)(C)(iv)(IV)),
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section 42 shall be applied by substituting ‘national
nonmetropolitan median gross income (determined
under 
rules 
similar 
to 
the 
rules 
of 
section
142(d)(2)(B))’ for ‘area median gross income’ in sub-
paragraphs (A) and (B) of section 42(g)(1).
‘‘(5) DEFINITIONS.—Any term used in this sub-
section which is also used in section 42 shall have the
same meaning as when used in such section.
‘‘(d) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY
ACQUIRED ON OR AFTER AUGUST 28, 2005.—
‘‘(1) ADDITIONAL ALLOWANCE.—In the case of
any qualified Gulf Opportunity Zone property—
‘‘(A) the depreciation deduction provided by
section 167(a) for the taxable year in which such
property is placed in service shall include an al-
lowance equal to 50 percent of the adjusted basis
of such property, and
‘‘(B) the adjusted basis of the qualified Gulf
Opportunity Zone property shall be reduced by
the amount of such deduction before computing
the amount otherwise allowable as a depreciation
deduction under this chapter for such taxable
year and any subsequent taxable year.
‘‘(2) QUALIFIED GULF OPPORTUNITY ZONE PROP-
ERTY.—For purposes of this subsection—
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‘‘(A) IN
GENERAL.—The term ‘qualified
Gulf 
Opportunity 
Zone 
property’ 
means
property—
‘‘(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 nonresi-
dential real property and residential rental
property).