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139 STAT. 198 PUBLIC LAW 119–21—JULY 4, 2025 ‘‘(II) in the case of the amount in paragraph (5)(A), ‘calendar year 2017’ for ‘calendar year 2016’.’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2024. SEC. 70307. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED PRODUCTION PROPERTY. (a) IN GENERAL.—Section 168 is amended by adding at the end the following new subsection: ‘‘(n) SPECIAL ALLOWANCE FOR QUALIFIED PRODUCTION PROP- ERTY.— ‘‘(1) IN GENERAL.—In the case of any qualified production property of a taxpayer making an election under this sub- section— ‘‘(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 100 percent of the adjusted basis of the qualified production property, and ‘‘(B) the adjusted basis of the qualified production prop- erty shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year. ‘‘(2) QUALIFIED PRODUCTION PROPERTY.—For purposes of this subsection— ‘‘(A) IN GENERAL.—The term ‘qualified production prop- erty’ means that portion of any nonresidential real prop- erty— ‘‘(i) to which this section applies, ‘‘(ii) which is used by the taxpayer as an integral part of a qualified production activity, ‘‘(iii) which is placed in service in the United States or any possession of the United States, ‘‘(iv) the original use of which commences with the taxpayer, ‘‘(v) the construction of which begins after January 19, 2025, and before January 1, 2029, ‘‘(vi) which is designated by the taxpayer in the election made under this subsection, and ‘‘(vii) which is placed in service before January 1, 2031. For purposes of clause (ii), in the case of property with respect to which the taxpayer is a lessor, property used by a lessee shall not be considered to be used by the taxpayer as part of a qualified production activity. ‘‘(B) SPECIAL RULE FOR CERTAIN PROPERTY NOT PRE- VIOUSLY USED IN QUALIFIED PRODUCTION ACTIVITIES.— ‘‘(i) IN GENERAL.—In the case of property acquired by the taxpayer during the period described in subpara- graph (A)(v), the requirements of clauses (iv) and (v) of subparagraph (A) shall be treated as satisfied if— ‘‘(I) such property was not used in a qualified production activity (determined without regard to the second sentence of subparagraph (D)) by any Time period. Definition. Reduction. 26 USC 179 note.