SECTION 3. MODIFICATION OF

SECTION 3.19 OF REV. PROC. 2006–53

To reflect the statutory changes made to section 179 by § 8212 of the Act, section 3.19 of Rev. Proc. 2006–53 is modified to read as follows:

.19 Election to Expense Certain Depre- ciable Assets. For taxable years begin

ning in 2007, under § 179(b)(1) the aggregate cost of any § 179 property a taxpayer may elect to treat as an expense cannot exceed $125,000. Under § 179(b)(2) the $125,000 limitation is reduced (but not below zero) by the amount by which the cost of § 179 property placed in service during the 2007 taxable year exceeds $500,000. For taxable years beginning after 2007 and before 2011, the $125,000 amount under § 179(b)(1) and $500,000 amount under § 179(b)(2) will be adjusted for inflation.