SECTION 1. PURPOSE

This revenue procedure provides procedures by which a taxpayer may elect not to treat qualified New York Liberty Zone (Liberty Zone) leasehold improvement property as 5-year property for purposes of § 168 of the Internal Revenue Code.

This revenue procedure also modifies section 2.01 of the APPENDIX of Rev. Proc. 2002–9, 2002–1 C.B. 327 (as modified by Rev. Proc. 2004–11, 2004–1 C.B. 311, modified and clarified by Announcement 2002–17, 2002–1 C.B. 561, modified and amplified by Rev. Proc. 2002–19, 2002–1 C.B. 696, and amplified, clarified, and modified by Rev. Proc. 2002–54, 2002–2 C.B. 432), to conform with the election not to treat qualified Liberty Zone

leasehold improvement property as 5-year property. Also, because personal property is not eligible for the rehabilitation credit under § 47, section 2.01 of the Appendix of Rev. Proc. 2002–9 is modified to exclude a change in depreciation involving property for which the rehabilitation credit was claimed and that a taxpayer is reclassifying generally to personal property.