MODIFICATION OF DEPRECIATION ALLOWANCE FOR AIRCRAFT.

SEC. 336. MODIFICATION OF DEPRECIATION ALLOWANCE FOR AIRCRAFT.(a) Aircraft Treated as Qualified Property.—(1) In general.—Paragraph (2) of section 168(k) is amended by redesignating subparagraphs (C) through (F) as subparagraphs (D) through (G), respectively, and by inserting after subparagraph (B) the following new subparagraph:“(C) Certain aircraft.—The term ‘qualified property’ includes property—“(i) which meets the requirements of clauses (ii) and (iii) of subparagraph (A),“(ii) which is an aircraft which is not a transportation property (as defined in subparagraph (B)(iii)) other than for agricultural or firefighting purposes, “(iii) which is purchased and on which such purchaser, at the time of the contract for purchase, has made a nonrefundable deposit of the lesser of—“(I) 10 percent of the cost, or “(II) $100,000, and“(iv) which has—“(I) an estimated production period exceeding 4 months, and “(II) a cost exceeding $200,000.”.118 STAT. 1480(2) Placed in service date.—Clause (iv) of section 168(k)(2)(A) is amended by striking “subparagraph (B)” and inserting “subparagraphs (B) and (C)”.(b) Conforming Amendments.—(1) Section 168(k)(2)(B) is amended by adding at the end the following new clause:“(iv) Application of subparagraph.—This subparagraph shall not apply to any property which is described in subparagraph (C).”.(2) Section 168(k)(4)(A)(ii) is amended by striking “paragraph (2)(C)” and inserting “paragraph (2)(D)”.(3) Section 168(k)(4)(B)(iii) is amended by inserting “and paragraph (2)(C)” after “of this paragraph)”.(4) Section 168(k)(4)(C) is amended by striking “subparagraphs (B) and (D)” and inserting “subparagraphs (B), (C), and (E)”.(5) Section 168(k)(4)(D) is amended by striking “Paragraph (2)(E)” and inserting “Paragraph (2)(F)”.(c) Effective Date.—The amendments made by this section shall take effect as if included in the amendments made by section 101 of the Job Creation and Worker Assistance Act of 2002.