SECTION 7. CHANGES RELATING

TO PARTIALLY QUALIFYING PROPERTY

.01 Energy Savings Percentages . A taxpayer may apply section 2.05 of Notice 2006–52 by substituting “10” for “16 ² /3” in section 2.05(1) of such notice. If a taxpayer makes this substitution, the taxpayer must apply sections 2.03 and 2.04 of Notice 2006–52 by substituting “20” for “16 ² /3” in sections 2.03(1)(a) and 2.04(1) of such notice. If § 179D is extended beyond December 31, 2008, the Internal Revenue Service and the Treasury Department expect, in the absence of other changes to § 179D, that the substitute percentages set forth in this section will be the only percentages used in determining whether property placed in service after December 31, 2008, is partially qualifying property.

.02 Limitation on Deduction for Par- tially Qualifying Property .

(1) In General . If property installed on or in a building is treated as partially qualifying property under sections 2.03, 2.04, and 2.05 of Notice 2006–52, the deduction for the cost of such property shall not exceed the greatest of the following amounts:

(a) The sum of the deductions allowable under sections 2.03 and 2.04 of such notice;

(b) The sum of the deductions allowable under sections 2.04 and 2.05 of such notice; or

(c) The sum of the deductions allowable under sections 2.03 and 2.05 of such notice.

(2) Application to Multiple Taxpayers . If two or more taxpayers install property on or in the same building and the deduction for the cost of the property is subject to the limitation in section 7.02(1) of this notice, the aggregate amount of the § 179D deductions allowed to all such taxpayers with respect to the building shall not exceed the amount determined under section 7.02(1) of this notice.