‘‘(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. 
‘‘(4) RECAPTURE.—For purposes of this sub-
section, rules similar to the rules under section 
179(d)(10) shall apply with respect to any qualified
section 179 Gulf Opportunity Zone property which 
ceases to be qualified section 179 Gulf Opportunity 
Zone property. 
‘‘(f) EXPENSING
FOR CERTAIN DEMOLITION
AND 
CLEAN-UP COSTS.— 
‘‘(1) IN GENERAL.—A taxpayer may elect to 
treat 50 percent of any qualified Gulf Opportunity 
Zone clean-up cost as an expense which is not 
chargeable to capital account. Any cost so treated 
shall be allowed as a deduction for the taxable year 
in which such cost is paid or incurred. 
‘‘(2) QUALIFIED
GULF
OPPORTUNITY
ZONE 
CLEAN-UP COST.—For purposes of this subsection, 
the term ‘qualified Gulf Opportunity Zone clean-up 
cost’ means any amount paid or incurred during the 
period beginning on August 28, 2005, and ending on 
December 31, 2007, for the removal of debris from, 
or the demolition of structures on, real property 
which is located in the Gulf Opportunity Zone and 
which is— 
‘‘(A) held by the taxpayer for use in a 
trade or business or for the production of in-
come, or 
‘‘(B) 
property 
described 
in 
section 
1221(a)(1) in the hands of the taxpayer.
For purposes of the preceding sentence, amounts 
paid or incurred shall be taken into account only to 
the extent that such amount would (but for para-
graph (1)) be chargeable to capital account. 
‘‘(g) EXTENSION
OF EXPENSING
FOR ENVIRON-
MENTAL REMEDIATION COSTS.—With respect to any 
qualified environmental remediation expenditure (as de-
fined in section 198(b)) paid or incurred on or after Au-
gust 28, 2005, in connection with a qualified contaminated 
site located in the Gulf Opportunity Zone, section 198 (re-
lating to expensing of environmental remediation costs) 
shall be applied— 
‘‘(1) in the case of expenditures paid or in-
curred on or after August 28, 2005, and before Jan-
uary 1, 2008, by substituting ‘December 31, 2007’ 
for the date contained in section 198(h), and 
‘‘(2) except as provided in section 198(d)(2), by 
treating petroleum products (as defined in section 
4612(a)(3)) as a hazardous substance. 
‘‘(h) INCREASE IN REHABILITATION CREDIT.—In the 
case of qualified rehabilitation expenditures (as defined in 
section 47(c)) paid or incurred during the period begin-
ning on August 28, 2005, and ending on December 31, 
2008, with respect to any qualified rehabilitated building 
or certified historic structure (as defined in section 47(c))
located in the Gulf Opportunity Zone, subsection (a) of 
section 47 (relating to rehabilitation credit) shall be ap-
plied— 
‘‘(1) by substituting ‘13 percent’ for ‘10 per-
cent’ in paragraph (1) thereof, and 
‘‘(2) by substituting ‘26 percent’ for ‘20 per-
cent’ in paragraph (2) thereof. 
‘‘(i) SPECIAL RULES
FOR SMALL TIMBER PRO-
DUCERS.— 
‘‘(1) INCREASED
EXPENSING
FOR
QUALIFIED 
TIMBER PROPERTY.—In the case of qualified timber 
property any portion of which is located in the Gulf 
Opportunity Zone or in that portion of the Rita GO 
Zone which is not part of the Gulf Opportunity 
Zone, the limitation under subparagraph (B) of sec-
tion 194(b)(1) shall be increased by the lesser of— 
‘‘(A) the limitation which would (but for 
this subsection) apply under such subpara-
graph, or 
‘‘(B) the amount of reforestation expendi-
tures (as defined in section 194(c)(3)) paid or 
incurred by the taxpayer with respect to such 
qualified timber property during the specified 
portion of the taxable year.