Sec. 1324. PASS THROUGH TO OWNERS OF DEDUCTION FOR CAPITAL COSTS INCURRED BY SMALL REFINER COOPERATIVES IN COMPLYING WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS

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## SEC. 1324 PASS THROUGH TO OWNERS OF DEDUCTION FOR CAPITAL COSTS INCURRED BY SMALL REFINER COOPERATIVES IN COMPLYING WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS ###

(a)In General Section 179B (relating to deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations) is amended by adding at the end the following new subsection: > > ### “(e) Election to Allocate Deduction to Cooperative Owner > > > #### “(1) In general > > If— > > > ##### “(A) > > a small business refiner to which subsection

(a)applies is an organization to which part I of subchapter T applies, and > > > ##### “(B) > > one or more persons directly holding an ownership interest in the refiner are organizations to which part I of subchapter T apply, > > the refiner may elect to allocate all or a portion of the deduction allowable under subsection

(a)to such persons. Such allocation shall be equal to the person's ratable share of the total amount allocated, determined on the basis of the person's ownership interest in the taxpayer. The taxable income of the refiner shall not be reduced under section 1382 by reason of any amount to which the preceding sentence applies. > > > #### “(2) Form and effect of election > > An election under paragraph

(1)for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. > > > #### “(3) Written notice to owners > > If any portion of the deduction available under subsection

(a)is allocated to owners under paragraph (1), the cooperative shall provide any owner receiving an allocation written notice of the amount of the allocation. Such notice shall be provided before the date on which the return described in paragraph

(2)is due.” > . ###

(b)Effective Date The amendment made by this section shall take effect as if included in the amendment made by section 338(a) of the American Jobs Creation Act of 2004.