PHASEOUT OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.

SEC. 103. PHASEOUT OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS. (a) In General.—Section 68 is amended by adding at the end the following new subsections: “(f) Phaseout of Limitation.— “(1) In general.—In the case of taxable years beginning after December 31, 2005, and before January 1, 2010, the reduction under subsection (a) shall be equal to the applicable 115 STAT. 45fraction of the amount which would (but for this subsection) be the amount of such reduction. “(2) Applicable fraction.—For purposes of paragraph (1), the applicable fraction shall be determined in accordance with the following table: “For taxable years beginning in calendar year— The applicable fraction is— 2006 and 2007 ⅔ 2008 and 2009 ⅓. “(g) Termination.—This section shall not apply to any taxable year beginning after December 31,2009.”. (b) Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2005.