activity means any business activity which is not a passive business activity. (3) Business activity The term business activity means any activity (within the meaning of section 469) which involves the conduct of any trade or business. (e) Capital percentage For purposes of this section— (1) In general Except as otherwise provided in this section, the term capital percentage means 30 percent. (2) Increased percentage for capital-intensive business activities In the case of a taxpayer who elects the application of this paragraph with respect to any active business activity (other than a specified service activity), the capital percentage shall be equal to the applicable percentage (as defined in subsection (f)) for each taxable year with respect to which such election applies. Any election made under this paragraph shall apply to the taxable year for which such election is made and each of the 4 subsequent taxable years. Such election shall be made not later than the due date (including extensions) for the return of tax for the taxable year for which such election is made, and, once made, may not be revoked. (3) Treatment of specified service activities (A) In general In the case of any active business activity which is a specified service activity— (i) the capital percentage shall be 0 percent, and (ii) subsection (b)(2)(B) shall be applied by substituting 0 percent for 30 percent . (B) Exception for capital-intensive specified service activities If— (i) the taxpayer elects the application of this subparagraph with respect to such activity for any taxable year, and (ii) the applicable percentage (as defined in subsection (f)) with respect to such activity for such taxable year is at least 10 percent, then subparagraph (A) shall not apply and the capital percentage with respect to such activity shall be equal to such applicable percentage. (C) Specified service activity The term specified service activity means any activity involving the performance of services described in section 1202(e)(3)(A), including