(vii), and (viii), as so amended, as clauses (iv), (v), and (vi), respectively, and (B) by striking paragraphs (6), (7), and (8). (3) Application of straight line method to qualified improvement property Paragraph (3) of section 168(b) is amended— (A) by striking subparagraphs (G), (H), and (I), and (B) by inserting after subparagraph (F) the following new subparagraph: (G) Qualified improvement property described in subsection (e)(6). . (4) Alternative Depreciation System (A) Electing real property trade or business Subsection (g) of section 168 is amended— (i) in paragraph (1)— (I) in subparagraph (D), by striking and at the end, (II) in subparagraph (E), by inserting and at the end, and (III) by inserting after subparagraph (E) the following new subparagraph: (F) any property described in paragraph (8), , and (ii) by adding at the end the following new paragraph: (8) Electing real property trade or business The property described in this paragraph shall consist of any nonresidential real property, residential rental property, and qualified improvement property held by an electing real property trade or business (as defined in 163(j)(7)(B)). . (B) Qualified improvement property The table contained in subparagraph (B) of section 168(g)(3) is amended— (i) by inserting after the item relating to subparagraph (D)(ii) the following new item: (D)(v) 20 . , and (ii) by striking the item relating to subparagraph (E)(iv) and all that follows through the item relating to subparagraph (E)(ix) and inserting the following: (E)(iv) 20 (E)(v) 30 (E)(vi) 35 . (C) Applicable recovery period for residential rental property The table contained in subparagraph (C) of section 168(g)(2) is amended by striking clauses (iii) and (iv) and inserting the following: (iii) Residential rental property 30 years (iv) Nonresidential real property 40 years (v) Any railroad grading or tunnel bore or water utility property 50 years . (5) Conforming amendments (A) Clause (i) of section 168(k)(2)(A) is amended— (i) in subclause (II), by inserting