ALLOWANCE OF DEDUCTION FOR ELIMINATING ARCHITECTURAL AND TRANSPORTATION BARRIERS FOR THE HANDICAPPED.

SEC. 2122. ALLOWANCE OF DEDUCTION FOR ELIMINATING ARCHITECTURAL AND TRANSPORTATION BARRIERS FOR THE HANDICAPPED. (a) In General.— Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by adding at the end thereof the following new section: “SEC. 190. EXPENDITURES TO REMOVE ARCHITECTURAL AND TRANSPORTATION BARRIERS TO THE HANDICAPPED AND ELDERLY. “(a) Treatment as Expenses.— “(1) In General.— A taxpayer may elect to treat qualified architectural and transportation barrier removal expenses which are paid or incurred by him during the taxable year as expenses which are not chargeable to capital account. The expenditures so treated shall be allowed as a deduction. “(2) Election.— An election under paragraph (1) shall be made at such time and in such manner as the Secretary prescribes by regulations. “(b) Definitions.— For purposes of this section— “(1) Architectural and transportation barrier removal expenses.— The term ‘architectural and transportation barrier removal expenses’ means an expenditure for the purpose of making any facility or public transportation vehicle owned or leased by the taxpayer for use in connection with his trade or business more accessible to, and usable by, handicapped and elderly individuals. “(2) Qualified architectural and transportation barrier removal expense.— The term ‘qualified architectural and transportation barrier removal expense’ means, with respect to any such facility or public transportation vehicle, an architectural or transportation barrier removal expense with respect to which the taxpayer establishes, to the satisfaction of the Secretary, that the resulting removal of any such barrier meets the standards promulgated by the Secretary with the concurrence of the Archi-90 STAT. 1915tectural and Transportation Barriers Compliance Board and set forth in regulations prescribed by the Secretary. “(3) Handicapped individual.— The term ‘handicapped individual’ means any individual who has a physical or mental disability (including, but not limited to, blindness or deafness) which for such individual constitutes or results in a functional limitation to employment, or who has any physical or mental impairment (including, but not limited to, a sight or hearing impairment) which substantially limits one or more major life activities of such individual. “(c) Limitation.— The deduction allowed by subsection(a) for any taxable year shall not exceed $25,000. “(d) Regulations.— The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section within 180 days after the date of the enactment of the Tax Reform Act of 1976.” (b) Technical and Conforming Amendments.— (1) The table of sections for such part VI is amended by adding at the end thereof the following new item: “Sec. 190. Expenditures to remove architectural and transportation barriers to the handicapped and elderly.” (2) Section 263(a)(1) (relating to capital expenditures) is amended— (A) by striking out “or” at the end of subparagraph (D) thereof, (B) by striking out the period at the end of subsection (E) thereof and inserting in lieu thereof a comma and the word “or”, and (C) by adding at the end thereof the following new subparagraph: “(F) expenditures for removal of architectural and transportation barriers to the handicapped and elderly which the taxpayer elects to deduct under section 190.” (3) Section 1245(a) (relating to gain from dispositions of certain depreciable property) is amended— (A) by striking out “or 188” each place it appears in paragraphs (2) and (3)(D) and inserting in lieu thereof “188, or 190” (B) by striking out “or 185” in paragraph (2)(D) and inserting in lieu thereof “185, or 190”; and (C) by adding at the end of paragraph (2) the following new sentence: “For purposes of this section, any deduction allowable under section 190 shall be treated as if it were a deduction allowable for amortization.” (4) Section 1250 (b)(3) (relating to depreciation adjustments) is amended by striking out “or 188” and inserting in lieu thereof “188, or 190”. (c) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 1976, and before January 1, 1980.