Internal Revenue Code:Sec. 46. Amount of credit
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Contents |
Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart E - Rules for Computing Investment Credit
Statute
Sec. 46. Amount of credit
For purposes of section 38, the amount of the investment credit
determined under this section for any taxable year shall be the sum
of -
(1) the rehabilitation credit,
(2) the energy credit.
(3) the qualifying advanced coal project credit, and
(4) the qualifying gasification project credit.
Sources
(Added Pub. L. 87-834, Sec. 2(b), Oct. 16, 1962, 76 Stat. 963;
amended Pub. L. 88-272, title II, Sec. 201(d)(4), Feb. 26, 1964, 78
Stat. 32; Pub. L. 89-384, Sec. 1(c)(1), Apr. 8, 1966, 80 Stat. 102;
Pub. L. 89-389, Sec. 2(b)(5), Apr. 14, 1966, 80 Stat. 114; Pub. L.
89-800, Sec. 3, Nov. 8, 1966, 80 Stat. 1514; Pub. L. 90-225, Sec.
2(a), Dec. 27, 1967, 81 Stat. 731; Pub. L. 91-172, title III, Sec.
301(b)(4), title IV, Sec. 401(e)(1), title VII, Sec. 703(b), Dec.
30, 1969, 83 Stat. 585, 603, 666; Pub. L. 92-178, title I, Sec.
102(a)(1), (b), 105(a)-(c), 106(a)-(c), 107(a)(1), 108(a), Dec. 10,
1971, 85 Stat. 499, 503, 506, 507; Pub. L. 93-406, title II, Sec.
2001(g)(2)(B), 2002(g)(2), 2005(c)(4), Sept. 2, 1974, 88 Stat. 957,
968, 991; Pub. L. 94-12, title III, Sec. 301(a), (b)(1)-(3),
302(a), (b)(1), Mar. 29, 1975, 89 Stat. 36, 37, 40, 43; Pub. L.
94-455, title V, Sec. 503(b)(4), title VIII, Sec. 802(a),
(b)(1)-(5), 803(a), (b)(1), 805(a), title XVI, Sec. 1607(b)(1)(B),
title XVII, Sec. 1701(b), 1703, title XIX, Sec. 1901(a)(4),
(b)(1)(C), 1906(b)(13)(A), title XXI, Sec. 2112(a)(2), Oct. 4,
1976, 90 Stat. 1562, 1580-1583, 1596, 1756, 1759, 1761, 1764, 1790,
1834, 1905; Pub. L. 95-600, title I, Sec. 141(e), (f)(2), title
III, Sec. 311(a), (c), 312(a), (b), (c)(2), 313(a), 316(a), (b)(1),
(2), title VII, Sec. 703(a)(1), (2), (j)(9), Nov. 6, 1978, 92 Stat.
2794, 2795, 2824-2826, 2829, 2939, 2941; Pub. L. 95-618, title II,
Sec. 241(a), title III, Sec. 301(a), (c)(1), Nov. 9, 1978, 92 Stat.
3192, 3194, 3199; Pub. L. 96-222, title I, Sec. 101(a)(7)(A),
(L)(iii)(I), (v)(I), (M)(i), 103(a)(2)(A), (B)(i)-(iii), (3),
(4)(A), 107(a)(3)(A), Apr. 1, 1980, 94 Stat. 197, 200, 201, 208,
209, 223; Pub. L. 96-223, title II, Sec. 221(a), 222(e)(2),
223(b)(1), Apr. 2, 1980, 94 Stat. 260, 263, 266; Pub. L. 97-34,
title II, Sec. 207(c)(1), 211(a)(1), (b), (d), (e)(1), (2), (f)(1),
212(a)(1), (2), title III, Sec. 302(c)(3), (d)(1), 332(a), Aug. 13,
1981, 95 Stat. 225, 227-229, 235, 236, 272, 274, 296; Pub. L.
97-248, title II, Sec. 201(d)(8)(A), formerly Sec. 201(c)(8)(A),
Sec. 205(b), 265(b)(2)(A)(i), Sept. 3, 1982, 96 Stat. 420, 430,
547, renumbered Sec. 201(d)(8)(A), Pub. L. 97-448, title III, Sec.
306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat. 2400; Pub. L. 97-354, Sec.
5(a)(4)-(6), Oct. 19, 1982, 96 Stat. 1692; Pub. L. 97-424, title V,
Sec. 541(b), 546(b), Jan. 6, 1983, 96 Stat. 2192, 2199; Pub. L.
97-448, title I, Sec. 102(e)(1), (f)(5), title II, Sec. 202(f),
Jan. 12, 1983, 96 Stat. 2370, 2372, 2396; Pub. L. 98-21, title I,
Sec. 122(c)(1), Apr. 20, 1983, 97 Stat. 87; Pub. L. 98-369, div.
A, title I, Sec. 16(a), 31(f), 113(b)(2)(B), title IV, Sec. 431(a),
(b)(1), (d)(1)-(3), 474(o)(1)-(7), title VII, Sec. 713(c)(1)(C),
July 18, 1984, 98 Stat. 505, 521, 637, 805, 807, 810, 834-836, 957;
Pub. L. 99-514, title II, Sec. 201(d)(7)(B), 251(a), title IV, Sec.
421(a), (b), title XVIII, Sec. 1802(a)(6), (8), 1844(a), (b)(3),
(5), 1847(b)(11), 1848(a), Oct. 22, 1986, 100 Stat. 2141, 2183,
2229, 2789, 2855, 2857; Pub. L. 100-647, title I, Sec. 1002(a)(4),
(15), (17), (25), 1009(a)(1), 1013(a)(44), title IV, Sec. 4006,
Nov. 10, 1988, 102 Stat. 3353, 3355, 3356, 3445, 3545, 3652; Pub.
L. 101-239, title VII, Sec. 7106, 7814(d), Dec. 19, 1989, 103 Stat.
2306, 2413; Pub. L. 101-508, title XI, Sec. 11406, 11813(a), Nov.
5, 1990, 104 Stat. 1388-474, 1388-536.)
Miscellaneous
AMENDMENTS
2005 - Energy Policy Act of 2005, PL109-058, Sec.1307(a), amended
by inserting new paragraphs (3) and (4).
2004 - Pub. L. 108-357, Sec 322(d). Section 46 (relating to
amount of credit) is amended-- by adding ``and'' at the end of
paragraph (1), by striking ``, and'' at the end of paragraph (2)
and inserting a period, and by striking paragraph (3).
1990 - Pub. L. 101-508, Sec. 11813(a), amended section generally,
substituting present provisions for provisions relating to amount
of investment credit, determination of percentages, qualified
investments and qualified progress expenditures, limitations with
respect to certain persons, a limitation in the case of certain
regulated companies, a 50 percent credit in the case of certain
vessels, and special rule for cooperatives.
Subsec. (b)(2)(A). Pub. L. 101-508, Sec. 11406, substituted
''Dec. 31, 1991'' for ''Sept. 30, 1990'' in table items (viii) C.
and (ix) B.
1989 - Subsec. (b)(2)(A). Pub. L. 101-239, Sec. 7106, substituted
''Sept. 30, 1990'' for ''Dec. 31, 1989'' in table items (viii) C.,
(ix) B., and (x).
Pub. L. 101-239, Sec. 7814(d), made technical correction to
language of Pub. L. 100-647, Sec. 4006, see 1988 Amendment note
below.
1988 - Subsec. (b)(2)(A). Pub. L. 100-647, Sec. 4006, as amended
by Pub. L. 101-239, Sec. 7814(d), substituted ''1989'' for ''1988''
in table items (viii) C., (ix) B., and (x).
Subsec. (c)(5)(B). Pub. L. 100-647, Sec. 1013(a)(44), substituted
''private activity bonds'' for ''industrial development bonds'' in
heading, and in text substituted ''a private activity bond (within
the meaning of section 141)'' for ''an industrial development bond
(within the meaning of section 103(b)(2))''.
Subsec. (c)(7). Pub. L. 100-647, Sec. 1002(a)(17), substituted
''property to which section 168 applies'' for ''recovery property''
in heading, substituted ''property to which section 168 applies''
for ''recovery property'' and ''168(e)'' for ''168(c)'' in subpar.
(A), substituted ''168(e)'' for ''168(c)'' in subpar. (B), and
inserted ''(as in effect on the day before the date of the
enactment of the Tax Reform Act of 1986)'' after ''section
168(f)(3)(B)'' in concluding provisions.
Subsec. (d)(1)(B)(i). Pub. L. 100-647, Sec. 1002(a)(25)(A),
substituted ''property to which section 168 applies'' for
''recovery property (within the meaning of section 168)''.
Subsec. (d)(1)(B)(ii). Pub. L. 100-647, Sec. 1002(a)(25)(B),
substituted ''to which section 168 does not apply'' for ''which is
not recovery property (within the meaning of section 168)''.
Subsec. (e)(3). Pub. L. 100-647, Sec. 1002(a)(15), substituted
''property to which section 168 applies'' for ''recovery property
(within the meaning of section 168)'', ''class life'' for ''present
class life'', and ''168(i)(1)'' for ''168(g)(2)''.
Subsec. (e)(4)(B). Pub. L. 100-647, Sec. 1002(a)(4)(A),
substituted ''168(i)(3)'' for ''168(j)(6)''.
Subsec. (e)(4)(C). Pub. L. 100-647, Sec. 1009(a)(1), inserted
provisions at end which provided that any such election shall
terminate effective with respect to the 1st taxable year of the
organization making such election which begins after 1986, and
which defined ''regular investment tax credit property''.
Subsec. (e)(4)(D). Pub. L. 100-647, Sec. 1002(a)(4)(B),
substituted ''paragraphs (5) and (6) of section 168(h)'' for
''paragraphs (8) and (9) of section 168(j)''.
Subsec. (e)(4)(E). Pub. L. 100-647, Sec. 1002(a)(4)(C), (D),
substituted ''168(h)'' for ''168(j)'' and ''168(h)(2)'' for
''168(j)(4)''.
1986 - Subsec. (b)(2)(A). Pub. L. 99-514, Sec. 1847(b)(11),
substituted ''48(l)(3)(A)(viii)'' for ''48(l)(3)(A)(vii)'' in table
item (ii).
Pub. L. 99-514, Sec. 421(a), inserted table items (viii) to (xi).
Subsec. (b)(2)(E). Pub. L. 99-514, Sec. 421(b), added subpar.
(E).
Subsec. (b)(4). Pub. L. 99-514, Sec. 251(a), in amending par. (4)
generally, substituted in subpar. (A) definition of
''rehabilitation percentage'' for former table specifying specific
rehabilitation percentages, reenacted subpar. (B), and struck out
subpar. (C) which related to definitions.
Subsec. (c)(8)(D)(v). Pub. L. 99-514, Sec. 1844(a), substituted
''this subparagraph'' for ''clause (i)''.
Pub. L. 99-514, Sec. 201(d)(7)(B), substituted ''section
465(b)(3)(C)'' for ''section 168(e)(4)''.
Subsec. (c)(9)(A). Pub. L. 99-514, Sec. 1844(b)(3), substituted
''an increase in the credit base for'' for ''additional qualified
investment in''.
Subsec. (c)(9)(C)(i). Pub. L. 99-514, Sec. 1844(b)(5),
substituted ''any increase in a taxpayer's credit base for any
property by reason of this paragraph shall be taken into account as
if it were property placed in service by the taxpayer in the
taxable year in which the property referred to in subparagraph (A)
was first placed in service'' for ''any increase in a taxpayer's
qualified investment in property by reason of this paragraph shall
be deemed to be additional qualified investment made by the
taxpayer in the year in which the property referred to in
subparagraph (A) was first placed in service''.
Subsec. (e)(4)(D), (E). Pub. L. 99-514, Sec. 1802(a)(6), (8),
added subpars. (D) and (E).
Subsec. (f)(9). Pub. L. 99-514, Sec. 1848(a), struck out par. (9)
which related to a special rule for additional credit.
1984 - Subsec. (a). Pub. L. 98-369, Sec. 474(o)(1), amended
subsec. (a) generally, so as to contain provisions relating to
amount of investment credit, which formerly constituted only par.
(2)(A)(i), (ii), and (iv) of subsec. (a).
Subsec. (a)(4). Pub. L. 98-369, Sec. 713(c)(1)(C), substituted
''premature distributions to key employees'' for ''premature
distributions to owner-employees''.
Subsec. (b). Pub. L. 98-369, Sec. 474(o)(1), amended subsec. (b)
generally, substituting provisions relating to determination of
percentages for purposes of subsec. (a), for provisions relating to
carryback and carryover of unused credits.
Subsec. (c)(7)(A). Pub. L. 98-369, Sec. 13(b)(2)(B), inserted
''recovery'' before first reference to ''property''.
Subsec. (c)(8). Pub. L. 98-369, Sec. 431(a), substituted
''Certain nonrecourse financing excluded from credit base'' for
''Limitation to amount at risk'' in heading.
Subsec. (c)(8)(A). Pub. L. 98-369, Sec. 431(a), substituted
provisions reducing the credit base of any property to which this
paragraph applies by the nonqualified nonrecourse financing with
respect to such property for provisions relating to limitation of
the basis to the amount at risk in the case of new or used section
38 property placed in service during the taxable year by a taxpayer
described in section 465(a)(1) and used in connection with an
activity with respect to which any loss was subject to limitation
under section 465.
Subsec. (c)(8)(B). Pub. L. 98-369, Sec. 431(a), substituted
provisions relating to the property to which this paragraph applies
for provisions defining ''at risk'' and stating the circumstances
under which a taxpayer would be considered to be at risk for
purposes of this paragraph.
Subsec. (c)(8)(C). Pub. L. 98-369, Sec. 431(a), substituted
provisions defining ''credit base'' for provisions relating to a
special rule for partnerships and subchapter S corporations.
Subsec. (c)(8)(D). Pub. L. 98-369, Sec. 431(a), substituted
provisions defining ''nonqualified nonrecourse financing'' for
provisions defining ''qualified person''.
Subsec. (c)(8)(D)(i)(I). Pub. L. 98-369, Sec. 16(a), repealed
amendments made by Pub. L. 97-34, Sec. 302(c). See 1981 Amendment
note below.
Subsec. (c)(8)(E). Pub. L. 98-369, Sec. 431(a), substituted
provisions relating to the application of this paragraph to
partnerships and subchapter S corporations for provisions defining
''related person''.
Subsec. (c)(8)(F)(i). Pub. L. 98-369, Sec. 431(d)(1), substituted
provisions that subpar. (A) shall not apply with respect to
qualified energy property for provisions that subpar. (A) would not
apply to amounts borrowed with respect to qualified energy property
(other than amounts described in subpar. (B)).
Subsec. (c)(8)(F)(ii)(II). Pub. L. 98-369, Sec. 474(o)(2),
substituted ''subsection (b)(2)'' for ''section 46(a)(2)(C)''.
Subsec. (c)(8)(F)(ii)(III). Pub. L. 98-369, Sec. 431(d)(2),
substituted provisions that qualified energy property means energy
property to which (but for this subpar.) subpar. (A) applies and
not more than 75 percent of the basis of which is attributable to
nonqualified nonrecourse financing for provisions that qualified
energy property meant energy property to which (but for this
subpar.) subpar. (A) applied and with respect to which the taxpayer
was at risk (within the meaning of section 465(b) without regard to
par. (5) thereof) in an amount equal to at least 25 percent of the
basis of the property.
Subsec. (c)(8)(F)(ii)(IV). Pub. L. 98-369, Sec. 431(d)(3),
substituted ''nonqualified nonrecourse financing'' for
''nonrecourse financing (other than financing described in section
46(c)(8)(B)(ii))''.
Subsec. (c)(9). Pub. L. 98-369, Sec. 431(b)(1), substituted
provisions relating to subsequent decreases in nonqualified
nonrecourse financing with respect to the property for provisions
relating to subsequent increases in the taxpayer's amount at risk
with respect to the property.
Subsec. (e)(1). Pub. L. 98-369, Sec. 474(o)(3)(A), struck out
''and the $25,000 amount specified under subparagraphs (A) and (B)
of subsection (a)(3)'', and substituted ''such qualified
investment'' for ''such items'', in provisions following subpar.
(B).
Subsec. (e)(2). Pub. L. 98-369, Sec. 474(o)(3)(B), substituted
''qualified investment'' for ''the items described therein'' in
introductory provisions.
Subsec. (e)(4). Pub. L. 98-369, Sec. 31(b), added par. (4).
Subsec. (f)(1). Pub. L. 98-369, Sec. 474(o)(4)(A), substituted
''no credit determined under subsection (a) shall be allowed by
section 38'' for ''no credit shall be allowed by section 38'' in
introductory provisions.
Subsec. (f)(1)(A), (B). Pub. L. 98-369, Sec. 474(o)(4)(B),
substituted ''the credit determined under subsection (a) and
allowable by section 38'' for ''the credit allowable by section
38''.
Subsec. (f)(2). Pub. L. 98-369, Sec. 474(o)(4)(A), substituted
''no credit determined under subsection (a) shall be allowed by
section 38'' for ''no credit shall be allowed by section 38'' in
introductory provisions.
Subsec. (f)(2)(A), (B). Pub. L. 98-369, Sec. 474(o)(4)(B),
substituted ''the credit determined under subsection (a) and
allowable by section 38'' for ''the credit allowable by section
38''.
Subsec. (f)(4)(B). Pub. L. 98-369, Sec. 474(o)(4)(C), substituted
''the credit determined under subsection (a) and allowed by section
38'' for ''the credit allowed by section 38'' in introductory
provisions.
Subsec. (f)(8). Pub. L. 98-369, Sec. 474(o)(5), substituted ''the
credit determined under subsection (a) and allowable under section
38'' for ''the credit allowable under section 38'' in two places,
and ''(within the meaning of the first sentence of subsection
(c)(3)(B))'' for ''(within the meaning of subsection (a)(7)(C))''.
Subsec. (g)(2). Pub. L. 98-369, Sec. 474(o)(6), substituted ''the
limitation of section 38(c)'' for ''the limitation of subsection
(a)(3)''.
Subsec. (h)(1). Pub. L. 98-369, Sec. 474(o)(7), substituted ''the
credit determined under subsection (a) and allowable to the
organization under section 38'' for ''the credit allowable to the
organization under section 38'' and ''the limitation contained in
section 38(c)'' for ''the limitation contained in subsection
(a)(3)''.
1983 - Subsec. (a)(2)(C)(i). Pub. L. 97-424, Sec. 546(b), added
section VII to the table.
Subsec. (a)(2)(C)(iii)(I). Pub. L. 97-448, Sec. 202(f),
substituted ''before January 1, 1983, all engineering studies in
connection with the commencement of the construction of the project
have been completed and all environmental and construction permits
required under Federal, State, or local law in connection with the
commencement of the construction of the project have been applied
for, and'' for ''before January 1, 1983, the taxpayer has completed
all engineering studies in connection with the commencement of the
construction of the project, and has applied for all environmental
and construction permits required under Federal, State, or local
law in connection with the commencement of the construction of the
project, and''.
Subsec. (a)(2)(F)(iii)(II). Pub. L. 97-448, Sec. 102(f)(5)(A),
substituted ''a qualified rehabilitated building'' for ''any
building''.
Subsec. (a)(2)(F)(iii)(III). Pub. L. 97-448, Sec. 102(f)(5)(B),
substituted ''means a qualified rehabilitated building which meets
the requirements of section 48(g)(3)'' for ''has the meaning given
to such term by section 48(g)(3)''.
Subsec. (a)(4)(B). Pub. L. 98-21 substituted ''relating to credit
for the elderly and the permanently and totally disabled'' for
''relating to credit for the elderly''.
Subsec. (c)(7). Pub. L. 97-448, Sec. 102(e)(1), substituted ''in
the case of property other than 3-year property (within the meaning
of section 168(c))'' for ''in the case of 15-year public utility,
10-year, or 5-year property (within the meaning of section
168(c))'' in subpar. (A) and, in provisions following subpar. (B),
substituted ''shall be treated as property which is not 3-year
property'' for ''shall be treated as 5-year property''.
Subsec. (f)(10). Pub. L. 97-424, Sec. 541(b), added par. (10).
1982 - Subsec. (a)(3)(B). Pub. L. 97-248, Sec. 205(b)(1),
substituted ''85 percent'' for ''the following percentage'',
substituted a period for the colon, and struck out table of
percentages at end of subpar. (B).
Subsec. (a)(4). Pub. L. 97-354, Sec. 5(a)(4), substituted
''section 1374 (relating to tax on certain capital gains of S
corporations)'' for ''section 1378 (relating to tax on certain
capital gains of subchapter S corporations)''.
Pub. L. 97-248, Sec. 201(d)(8)(A), formerly 201(c)(8)(A),
265(b)(2)(A), substituted ''(relating to corporate minimum tax)''
for ''(relating to minimum tax for tax preferences)'' after
''section 56'', and inserted ''section 72(q)(1) (relating to
5-percent tax on premature distributions under annuity
contracts),'' after ''owner-employees)''.
Subsec. (a)(7). Pub. L. 97-248, Sec. 205(b)(2), redesignated par.
(9) as (7), and, in par. (7)(B), as so redesignated, substituted
reference to 85 percent for former reference to the percentage
determined under subsec. (a)(3)(B) in cl. (i), struck out former
cl. (ii), which provided that pars. (7) and (8) would not apply in
certain instances, and redesignated former cl. (iii) as (ii).
Former par. (7), which provided for alternative limitations in the
case of certain utilities, was struck out.
Subsec. (a)(8). Pub. L. 97-248, Sec. 205(b)(2)(A), struck out
par. (8) which provided for alternative limitations in the case of
certain railroads and airlines.
Subsec. (a)(9). Pub. L. 97-248, Sec. 205(b)(2)(A), redesignated
par. (9) as (7).
Subsec. (c)(8)(C). Pub. L. 97-354, Sec. 5(a)(5), substituted ''S
corporation'' for ''electing small business corporation (within the
meaning of section 1371(b))''.
Subsec. (e)(3). Pub. L. 97-354, Sec. 5(a)(6), substituted ''an S
corporation'' for ''an electing small business corporation (as
defined in section 1371)''.
1981 - Subsec. (a)(2)(A)(iv). Pub. L. 97-34, Sec. 212(a)(1),
added cl. (iv).
Subsec. (a)(2)(E). Pub. L. 97-34, Sec. 332(a), substituted
''December 31, 1982'' for ''December 31, 1983'' in cls. (i) and
(ii) and added cl. (iii).
Subsec. (a)(2)(F). Pub. L. 97-34, Sec. 212(a)(2), added subpar.
(F).
Subsec. (b)(1). Pub. L. 97-34, Sec. 207(c)(1), inserted provision
after subpar. (D) directing that, in the case of an unused credit
for an unused credit year ending after Dec. 31, 1973, this
paragraph be applied by substituting ''15'' for ''7'' in subpar.
(B) and by substituting ''18'' for ''10'' and ''17'' for ''9'' in
second sentence.
Subsec. (c)(2). Pub. L. 97-34, Sec. 211(e)(1), inserted
references in provisions preceding table to exceptions provided in
paragraphs (3), (6), and (7).
Subsec. (c)(6)(A). Pub. L. 97-34, Sec. 211(e)(2), substituted
''Notwithstanding paragraph (2) or (3)'' for ''Notwithstanding
paragraph (2)'' and inserted ''or which is recovery property
(within the meaning of section 168),'' after ''3 years or more,''.
Subsec. (c)(7). Pub. L. 97-34, Sec. 211(a)(1), added par. (7).
Subsec. (c)(8). Pub. L. 97-34, Sec. 211(f)(1), added par. (8).
Subsec. (c)(8)(D)(i)(I). Pub. L. 97-34, Sec. 302(c)(3), (d)(1),
provided that, applicable to taxable years beginning after Dec. 31,
1984, subsection (c)(8)(D)(i)(I) of this section (relating to
limitation to amount at risk) is amended by striking out ''clause
(i), (ii), or (iii) of subparagraph (A) or subparagraph (B) of
section 128(c)(2)'' and inserting in lieu thereof ''subparagraph
(A) or (B) of section 128(c)(1)''. Section 16(a) of Pub. L. 98-369,
repealed section 302(c) of Pub. L. 97-34, and provided that this
title shall be applied and administered as if section 302(c), and
the amendments made by section 302(c), had not been enacted.
Subsec. (c)(9). Pub. L. 97-34, Sec. 211(f)(1), added par. (9).
Subsec. (d)(1). Pub. L. 97-34, Sec. 211(b)(1), designated
existing provisions as subpar. (A), substituted ''an amount equal
to the aggregate of the applicable percentage of each qualified
progress expenditure for the taxable year'' for ''an amount equal
to his aggregate qualified progress expenditures for the taxable
year'' in subpar. (A) as so designated, and added subpar. (B).
Subsec. (d)(2)(A)(ii). Pub. L. 97-34, Sec. 211(b)(2), struck out
''having a useful life of 7 years or more'' after ''it is
reasonable to believe will be new section 38 property''.
Subsec. (e)(3). Pub. L. 97-34, Sec. 211(d), in provisions
following subpar. (B), inserted provision that, for purposes of
subpar. (B), in the case of any recovery property (within the
meaning of section 168), the useful life be the present class life
for such property (as defined in section 168(g)(2)).
1980 - Subsec. (a)(2)(A). Pub. L. 96-222, Sec.
101(a)(7)(L)(iii)(I), substituted ''employee plan'' for ''ESOP''.
Subsec. (a)(2)(C). Pub. L. 96-223, Sec. 221(a), revised
provisions relating to energy percentage by substituting a tabular
format embracing separate coverage for solar, wind, or geothermal
property, ocean thermal property, qualified hydroelectric
generating property, and biomass property using percentages varying
between 10 and 15 percent and covering periods from Oct. 1, 1978,
to Dec. 31, 1985, with longer periods for certain long-term
projects and certain hydroelectric generating property for
provisions that had set the energy percentage at 10 percent for the
period beginning Oct. 1, 1978, and ending Dec. 31, 1982, and zero
with respect to any other period.
Subsec. (a)(2)(D). Pub. L. 96-223, Sec. 222(e)(2), inserted
provision that in the case of any qualified hydroelectric
generating property which is a fish passageway, the special rule
for certain energy property embraced in the first sentence would
not apply to any period after 1979 for which the energy percentage
for such property is greater than zero.
Subsec. (a)(2)(E). Pub. L. 96-222, Sec. 101(a)(7)(L)(v)(I),
(M)(i), substituted in heading ''employee plan'' for ''ESOP'' and
in cls. (i) and (ii) inserted ''and ending on'' before ''December
31, 1983''.
Subsec. (a)(9). Pub. L. 96-222, Sec. 103(a)(2)(B)(i),
redesignated par. (10) as (9). A former par. (9) was previously
repealed by section 312(b)(2) of Pub. L. 95-600.
Subsec. (a)(9)(A). Pub. L. 96-223, Sec. 223(b)(1)(A), inserted
''and'' at end of cl. (i), substituted a period for ''(other than
solar wind energy property), and'' at end of cl. (ii), and struck
out cl. (iii) which had provided for the application of so much of
the credit allowed by section 38 as was attributable to the
application of the energy percentage to solar or wind energy
property.
Subsec. (a)(9)(B). Pub. L. 96-223. Sec. 223(b)(1)(B), struck out
''other than solar or wind energy property'' after ''energy
property'' in heading.
Pub. L. 96-222, Sec. 103(a)(2)(B)(ii), (iii), substituted
''paragraph (3)(B) shall be applied by substituting '100 percent'
for the percentage determined under the table contained in such
paragraph'' for ''paragraph (3)(C) shall be applied by substituting
'100 percent' for '50 percent' '' in cl. (i) and ''(7) and (8)''
for ''(7), (8), and (9)'' in cl. (ii).
Subsec. (a)(9)(C). Pub. L. 96-223, Sec. 223(b)(1)(C), struck out
subpar. (C) which related to a refundable credit for solar or wind
energy property.
Subsec. (a)(10). Pub. L. 96-222, Sec. 103(a)(2)(B)(i),
redesignated par. (10) as (9).
Subsec. (c)(5)(B). Pub. L. 96-222, Sec. 103(a)(3), inserted
provisions requiring that this subparagraph not apply for purposes
of applying the energy percentage.
Subsec. (e)(3). Pub. L. 96-222, Sec. 103(a)(4)(A), inserted
provisions requiring that this paragraph not apply with respect to
any property which is treated as section 38 property by reason of
section 48(a)(1)(E).
Subsec. (f)(1), (2). Pub. L. 95-600, Sec. 312(c)(2), as amended
by Pub. L. 96-222, Sec. 103(a)(2)(A), substituted '' 'described in
section 50 (as in effect before its repeal by the Revenue Act of
1978)' '' for '' 'described in section 50' ''.
Subsec. (f)(8). Pub. L. 96-222, Sec. 107(a)(3)(A), substituted
''subsection (a)(7)(C)'' for ''subsection (a)(7)(D)''.
Subsec. (f)(9). Pub. L. 96-222, Sec. 101(a)(7)(A), substituted in
provisions preceding subpar. (A) ''subparagraph (E) of subsection
(a)(2)'' for ''subparagraph (B) of subsection (a)(2)'' and in
subpar. (A) ''a tax credit employee stock ownership plan which
meets the requirements of section 409A'' for ''an employee
ownership plan which meets the requirements of section 301(d) of
the Tax Reduction Act of 1975''.
1978 - Subsec. (a)(2). Pub. L. 95-618, Sec. 301(a)(1), among
other changes, inserted provisions relating to an alternative
energy property tax credit which would pay for a certain percentage
of the cost of equipment which uses sources of energy other than
oil and gas and of associated pollution control, handling, and
preparation equipment.
Subsec. (a)(2)(B). Pub. L. 95-600, Sec. 311(a), made 10 percent
limitation on investment tax credit permanent.
Subsec. (a)(2)(E). Pub. L. 95-600, Sec. 141(e), (f)(2),
substituted ''December 31, 1983'' for ''and ending on December 31,
1980'' wherever appearing, ''section 48(n)(1)(B)'' for ''section
301(e) of the Tax Reduction Act of 1975'' and ''section 409A'' for
''section 301(d) of the Tax Reduction Act of 1975''.
Subsec. (a)(3). Pub. L. 95-600, Sec. 312(a), increased the
present 50 percent tax liability limitation to 90 percent, to be
phased in at an additional 10 percentage points per year beginning
with taxable years which end in 1979.
Subsec. (a)(7). Pub. L. 95-600, Sec. 312(b)(1), in subpar. (A)
substituted ''the taxable year ending in 1979'' for ''a taxable
year ending after calendar year 1974 and before calendar year
1981'', ''subparagraph (B)'' for ''subparagraph (C)'', and ''for
'60 percent' the taxpayer's'' for ''for 50 percent his'' and
inserted ''the application of this paragraph results in a
percentage higher than 60 percent,'' before ''then subparagraph
(B)''; in subpar. (B) substituted ''70 percent'' for ''50 percent
plus the tentative percentage for such year''; struck out former
subpar. (C), which related to the determination of the tentative
percentage, and redesignated former subpar. (D) as (C).
Subsec. (a)(8). Pub. L. 95-600, Sec. 312(b)(2), in subpar. (A)
substituted ''the taxable year ending in 1979'' for ''a taxable
year ending after calendar year 1976, and before calendar year
1983'', ''subparagraph (B)'' for ''subparagraph (C)'', and ''for
'60 percent' ('70 percent' in the case of a taxable year ending in
1980) the taxpayer's'' for ''for 50 percent his'' and inserted
reference to airline property and ''the application of this
paragraph results in a percentage higher than 60 percent (70
percent in the case of a taxable year ending in 1980),'' before
''then subparagraph (B)''; in subpar. (B) inserted reference to
airline property and substituted ''90 percent (80 percent in the
case of a taxable year ending in 1980)'' for ''50 percent plus the
tentative percentage for such year''; in subpar. (C) table struck
out tentative percentage of 50 for 1977 or 1978, 20 for 1981, and
10 for 1982; and added subpar. (E).
Subsec. (a)(9). Pub. L. 95-600, Sec. 312(b)(2), struck out par.
(9) which related to the alternative limitation in the case of
certain airlines.
Subsec. (a)(10). Pub. L. 95-618, Sec. 301(c)(1), added par. (10).
Subsec. (c)(3)(A). Pub. L. 95-618, Sec. 301(a)(2)(A), substituted
''For the period beginning on January 1, 1981, in the case of any
property'' for ''To the extent that subsection (a)(2)(C) applies to
property'' and inserted provisions that the preceding sentence not
apply for purposes of applying the energy percentage. See
Codification note above.
Pub. L. 95-600, Sec. 311(c)(1), substituted ''To the extent that
the credit allowed by section 38 with respect to any public utility
property is determined at the rate of 7 percent'' for ''For the
period beginning on January 1, 1981''. See Codification note above.
Subsec. (c)(5). Pub. L. 95-600, Sec. 313(a), increased the
investment credit available to pollution control facilities which a
taxpayer has elected to amortize over a five-year period to a full
investment credit from a one-half investment credit.
Subsec. (c)(6). Pub. L. 95-618, Sec. 241(a), added par. (6).
Subsec. (e)(1)(C). Pub. L. 95-600, Sec. 316(b)(1), struck out
subpar. (C) which related to a cooperative organization described
in section 1381(a).
Subsec. (e)(2)(C). Pub. L. 95-600, Sec. 316(b)(2), struck out
subpar. (C) which related to a cooperative organization.
Subsec. (f)(1), (2). Pub. L. 95-600, Sec. 312(c)(2), struck out
''described in section 50'' after ''with respect to any
property''. See 1980 Amendment note above.
Subsec. (f)(8). Pub. L. 95-618, Sec. 301(a)(2)(B), substituted
'', the Tax Reform Act of 1976, and the Energy Tax Act of 1978''
for ''and the Tax Reform Act of 1976''. See Codification note
above.
Pub. L. 95-600, Sec. 311(c)(2), 703(a)(1), substituted
''subsection (a)(7)(D)'' for ''subsection (a)(6)(D)'' and inserted
reference to the Revenue Act of 1978. See Codification note above.
Subsec. (g)(5). Pub. L. 95-600, Sec. 703(a)(2), substituted
''Merchant Marine Act, 1936'' for ''Merchant Marine Act, 1970''.
Subsec. (h). Pub. L. 95-600, Sec. 316(a), added subsec. (h).
1976 - Subsec. (a)(1). Pub. L. 94-455, Sec. 802(a)(2), added par.
(1) and struck out former par. (1) which related to the percentage
of allowable credit under section 38.
Subsec. (a)(2). Pub. L. 94-455, Sec. 802(a)(2), added par. (2).
Former par. (2) redesignated (3).
Subsec. (a)(3). Pub. L. 94-455, Sec. 802(a)(1), redesignated
former par. (2) as (3). Former par. (3) redesignated (4).
Subsec. (a)(4). Pub. L. 94-455, Sec. 503(b)(4), 802(a)(1),
(b)(1), 1901(a)(4)(A), (b)(1)(C), as amended by Pub. L. 95-600,
Sec. 703(j)(9), redesignated former par. (3) as (4), and in par.
(4) as so redesignated, redesignated former subpar. (C) as (B) and
substituted in provisions preceding subpar. (A) ''paragraph (3)''
for ''paragraph (2)'', in subpar. (B) as so redesignated ''credit
for the elderly'' for ''retirement income'', and in provisions
following subpar. (B) ''section 408(f)'' for ''section 408(e)''.
Former par. (4) redesignated (5).
Subsec. (a)(5). Pub. L. 94-455, Sec. 802(a)(1), (b)(1),
redesignated former par. (4) as (5) and substituted ''paragraph
(3)'' for ''paragraph (2)''. Former par. (5) redesignated (6).
Subsec. (a)(6). Pub. L. 94-455, Sec. 802(a)(1), (b)(1),
1906(b)(13)(A), redesignated former par. (5) as (6) and substituted
''paragraph (3)'' for ''paragraph (2)'' and struck out ''or his
delegate'' after ''Secretary''. Former par. (6) redesignated (7).
Subsec. (a)(7). Pub. L. 94-455, Sec. 802(a)(1), (b)(1),
redesignated former par. (6) as (7) and substituted ''paragraph
(3)'' for ''paragraph (2)''.
Subsec. (a)(8). Pub. L. 94-455, Sec. 1701(b), added par. (8).
Subsec. (a)(9). Pub. L. 94-455, Sec. 1703, added par. (9).
Subsec. (b). Pub. L. 94-455, Sec. 802(b)(2), among other changes,
inserted requirement that tax credits carried over are applied
first to the tax liability for that year, after which tax credits
earned currently are then applied.
Subsec. (c)(3)(A). Pub. L. 94-455, Sec. 802(b)(3), substituted
''subsection (a)(2)(C)'' for ''subsection (a)(1)(C)''.
Subsec. (c)(3)(B)(iii). Pub. L. 94-455, Sec. 1901(a)(4)(B),
substituted ''47 U.S.C. 222(a)(5)'' for ''47 U.S.C., sec.
222(a)(5)''.
Subsec. (c)(5). Pub. L. 94-455, Sec. 2112(a)(2), added par. (5).
Subsec. (d)(4)(D), (6). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out ''or his delegate'' after ''Secretary''.
Subsec. (e)(1)(C). Pub. L. 94-455, Sec. 802(b)(4), substituted
''subsection (a)(3)'' for ''subsection (a)(2)''.
Subsec. (e)(2). Pub. L. 94-455, Sec. 1607(b)(1)(B), substituted
in subpar. (B) ''857(b)(2)(B)'' for ''857(b)(2)(C)'' and inserted
in provisions following subpar. (C) reference to determine without
regard to any deduction for capital gains dividends (as defined in
section 857(b)(3)(C)) and by excluding any net capital gain.
Subsec. (f)(1)(B), (2), (3). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out ''or his delegate'' after ''Secretary''.
Subsec. (f)(4)(A). Pub. L. 94-455, Sec. 803(b)(1)(A), (B),
substituted ''paragraphs (1), (2), and (9)'' for ''paragraphs (1)
and (2)'' and ''paragraph (1), (2), or (9)'' for ''paragraph (1) or
(2)'' wherever appearing.
Subsec. (f)(4)(B)(ii). Pub. L. 94-455, Sec. 803(b)(1)(C),
substituted ''paragraph (2) or the election described in paragraph
(9),'' for ''paragraph (2),''.
Subsec. (f)(7). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
''or his delegate'' after ''Secretary''.
Subsec. (f)(8). Pub. L. 94-455, Sec. 802(b)(5), 1906(b)(13)(A),
inserted reference to the Tax Reform Act of 1976 and struck out
''or his delegate'' after ''Secretary''.
Subsec. (f)(9). Pub. L. 94-455, Sec. 803(a), added par. (9).
Subsec. (g). Pub. L. 94-455, Sec. 805(a), added subsec. (g).
1975 - Subsec. (a)(1). Pub. L. 94-12, Sec. 301(a), designated
existing provisions as subpar. (A), substituted ''Except as
otherwise provided in this paragraph, in the case of a property
described in subparagraph (D), the'' for ''The'', ''10 percent''
for ''7 percent'', and ''(as determined under subsections (c) and
(d))'' for ''(as defined in subsection (c))'' in subpar. (A) as so
designated, and added subpars. (B), (C), and (D).
Subsec. (a)(6). Pub. L. 94-12, Sec. 301(b)(2), added par. (6).
Subsec. (c)(3)(A). Pub. L. 94-12, Sec. 301(b)(1), substituted
''To the extent that subsection (a)(1)(C) applies to property which
is public utility property, the'' for ''In the case of section 38
property which is public utility property, the''.
Subsec. (c)(4). Pub. L. 94-12, Sec. 302(b)(1), added par. (4).
Subsecs. (d), (e). Pub. L. 94-12, Sec. 302(a), added subsec. (d)
and redesignated former subsec. (d) as (e). Former subsec. (e)
redesignated (f) and amended.
Subsec. (f). Pub. L. 94-12, Sec. 301(b)(3), 302(a), redesignated
former subsec. (e) as (f) and in subsec. (f) as so redesignated
added par. (8).
1974 - Subsec. (a)(3). Pub. L. 93-406 inserted reference to
section 402(e) (relating to tax on lump sum distributions), section
72(m)(5)(B) (relating to 10 percent tax on premature distributions
to owner-employees), and section 408(e) (relating to additional tax
on income from certain retirement accounts).
1971 - Subsec. (b)(1). Pub. L. 92-178, Sec. 106(b), inserted
concluding sentence ''In the case of an unused credit for an unused
credit year ending before January 1, 1971, which is an investment
credit carryover to a taxable year beginning after December 31,
1970 (determined without regard to this sentence), this paragraph
shall be applied by substituting '10 taxable years' for '7 taxable
years' in subparagraph (B) and by substituting '13 taxable years'
for '10 taxable years' and '12 taxable years' for '9 taxable years'
in the preceding sentence.''
Subsec. (b)(3). Pub. L. 92-178, Sec. 106(a), added par. (3).
Subsec. (b)(5). Pub. L. 92-178, Sec. 106(c)(1), substituted
''Certain taxable years ending in 1969, 1970, or 1971'' for
''Taxable years beginning after December 31, 1968, and ending after
April 18, 1969'' in heading; substituted ''ending after April 18,
1969, and before January 1, 1972,'' for ''ending after April 18,
1969,''; and provided that ''In the case of a taxable year ending
after August 15, 1971, and before January 1, 1972, the percentage
contained in the preceding sentence shall be increased by 6
percentage points for each month (or portion thereof) in the
taxable year after August 15, 1971''.
Subsec. (b)(6). Pub. L. 92-178, Sec. 106(c)(2), substituted
''ending after April 18, 1969, and before January 1, 1971,'' for
''ending after April 18, 1969,'' and ''following the 7th taxable
year after the unused credit year'' for ''following the last
taxable year for which such portion may be added under paragraph
(1)'', respectively.
Subsec. (c)(2). Pub. L. 92-178, Sec. 102(a)(1), (b), substituted
''3 years'', ''5 years'', and ''7 years'' for ''4 years'' (once),
''6 years'' (twice), and ''8 years'' (twice), respectively in
tables of first sentence and substituted in second sentence
''subpart'' for ''paragraph'' and ''useful life of any property
shall be the useful life used in computing the allowance for
depreciation under section 167 for the taxable year in which the
property is placed in service'' for ''useful life of any property
shall be determined as of the time such property is placed in
service by the taxpayer''.
Subsec. (c)(3)(A). Pub. L. 92-178, Sec. 105(a), substituted the
fraction of '' 4/7'' for '' 3/7''.
Subsec. (c)(3)(B). Pub. L. 92-178, Sec. 105(b)(1), (2), struck
out cl. (iii) provisions respecting telephone service, redesignated
cl. (iv) as (iii), included in cl. (iii) provision of former cl.
(iii) respecting telephone service, included other communication
services (other than international telegraph service), and defined
term ''public utility property'' to also mean communication
property of type used by persons engaged in providing telephone or
microwave communication services to which cl. (iii) applies, if
such property is used predominantly for communication purposes,
respectively.
Subsec. (c)(3)(C). Pub. L. 92-178, Sec. 105(b)(3), added subpar.
(C).
Subsec. (c)(4). Pub. L. 92-178, Sec. 107(a)(1), struck out
provisions respecting reduction in basis or cost of certain
replacement property.
Subsec. (d)(3). Pub. L. 92-178, Sec. 108(a), added par. (3).
Subsec. (e). Pub. L. 92-178, Sec. 105(c), added subsec. (e).
1969 - Subsec. (a)(3). Pub. L. 91-172, Sec. 301(b)(4), inserted
''section 56 (relating to minimum tax for tax preference),''.
Subsec. (a)(5). Pub. L. 91-172, Sec. 401(e)(1), reenacted
subsection with minor changes and substituted reference to section
1563(a) for reference to section 1504.
Subsec. (b)(5), (6). Pub. L. 91-172, Sec. 703(b), added pars. (5)
and (6).
1967 - Subsec. (b). Pub. L. 90-225 struck out par. (3) which
provided that to the extent that the excess described in par. (1)
of this subsection arises by reason of net operating loss
carryback, subpar. (A) of par. (1) of this subsection shall not
apply.
1966 - Subsec. (a)(2). Pub. L. 89-800, Sec. 3(a), inserted ''for
taxable years ending on or before the last day of the suspension
period (as defined in section 48(j)),'' at beginning of subpar.
(B), and added subpar. (C) and provisions following subpar. (C)
covering the application of subpar. (C) and the reduction of the
amount otherwise determined under par. (2) by the credit allowable
but for the application of section 48(h)(1).
Subsec. (a)(3). Pub. L. 89-389 inserted reference to tax imposed
for the taxable year by section 1378 (relating to tax on certain
capital gains of subchapter S corporations) in the list of taxes
not to be considered tax imposed by this chapter for purposes of
par. (3).
Pub. L. 89-384 added any additional tax imposed for the taxable
year by section 1351 (relating to recoveries of foreign
expropriation losses) to the list of taxes not to be considered a
tax imposed by this chapter for purposes of par. (3).
Subsec. (b)(1). Pub. L. 89-800, Sec. 3(b), substituted ''7
taxable years'' for ''5 taxable years'' in subpar. (B) and ''10
taxable years'' and ''other 9 taxable years'' for ''8 taxable
years'' and ''other 7 taxable years'' respectively in text
following subpar. (B).
1964 - Subsec. (a)(3)(B) to (D). Pub. L. 88-272 struck out
subpar. (B) relating to section 34, and redesignated subpars. (C)
and (D) as (B) and (C), respectively.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11813(a) of Pub. L. 101-508 applicable to
property placed in service after Dec. 31, 1990, but not applicable
to any transition property (as defined in section 49(e) of this
title), any property with respect to which qualified progress
expenditures were previously taken into account under section 46(d)
of this title, and any property described in section 46(b)(2)(C) of
this title, as such sections were in effect on Nov. 4, 1990, see
section 11813(c) of Pub. L. 101-508, set out as a note under
section 29 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by section 7814(d) of Pub. L. 101-239 effective, except
as otherwise provided, as if included in the provision of the
Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100-647,
to which such amendment relates, see section 7817 of Pub. L.
101-239, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by sections 1002(a)(4), (15), (17), (25), 1009(a)(1),
and 1013(a)(44) of Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 201(d)(7)(B) of Pub. L. 99-514 applicable to
property placed in service after Dec. 31, 1986, in taxable years
ending after such date, with exceptions, see sections 203 and 204
of Pub. L. 99-514, set out as a note under section 168 of this
title.
Section 251(d) of Pub. L. 99-514, as amended by Pub. L. 100-647,
title I, Sec. 1002(k), Nov. 10, 1988, 102 Stat. 3371, provided
that:
''(1) In general. - Except as otherwise provided in this
subsection, the amendments made by this section (amending this
section and section 48 of this title) shall apply to property
placed in service after December 31, 1986, in taxable years ending
after such date.
''(2) General transitional rule. - The amendments made by this
section and section 201 (amending this section and sections 48,
167, 168, 178, 179, 280F, 291, 312, 465, 467, 514, 751, 1245, 4162,
6111, and 7701 of this title) shall not apply to any property
placed in service before January 1, 1994, if such property is
placed in service as part of -
''(A) a rehabilitation which was completed pursuant to a
written contract which was binding on March 1, 1986, or
''(B) a rehabilitation incurred in connection with property
(including any leasehold interest) acquired before March 2, 1986,
or acquired on or after such date pursuant to a written contract
that was binding on March 1, 1986, if -
''(i) parts 1 and 2 of the Historic Preservation
Certification Application were filed with the Department of the
Interior (or its designee) before March 2, 1986, or
''(ii) the lesser of $1,000,000 or 5 percent of the cost of
the rehabilitation is incurred before March 2, 1986, or is
required to be incurred pursuant to a written contract which
was binding on March 1, 1986.
''(3) Certain additional rehabilitations. - The amendments made
by this section and section 201 (amending this section and sections
48, 167, 168, 178, 179, 280F, 291, 312, 465, 467, 514, 751, 1245,
4162, 6111, and 7701 of this title) shall not apply to -
''(A) the rehabilitation of 8 bathhouses within the Hot Springs
National Park or of buildings in the Central Avenue Historic
District at such Park,
''(B) the rehabilitation of the Upper Pontalba Building in New
Orleans, Louisiana,
''(C) the rehabilitation of at least 60 buildings listed on the
National Register at the Frankford Arsenal,
''(D) the rehabilitation of De Baliveriere Arcade, St. Louis
Centre, and Drake Apartments in Missouri,
''(E) the rehabilitation of The Tides in Bristol, Rhode Island,
''(F) the rehabilitation and renovation of the Outlet Company
building and garage in Providence, Rhode Island,
''(G) the rehabilitation of 10 structures in Harrisburg,
Pennsylvania, with respect to which the Harristown Development
Corporation was designated redeveloper and received an option to
acquire title to the entire project site for $1 on June 27, 1984,
''(H) the rehabilitation of a project involving the renovation
of 3 historic structures on the Minneapolis riverfront, with
respect to which the developer of the project entered into a
redevelopment agreement with a municipality dated January 4,
1985, and industrial development bonds were sold in 3 separate
issues in May, July, and October 1985,
''(I) the rehabilitation of a bank's main office facilities of
approximately 120,000 square feet, in connection with which the
bank's board of directors authorized a $3,300,000 expenditure for
the renovation and retrofit on March 20, 1984,
''(J) the rehabilitation of 10 warehouse buildings built
between 1906 and 1910 and purchased under a contract dated
February 17, 1986,
''(K) the rehabilitation of a facility which is customarily
used for conventions and sporting events if an analysis of
operations and recommendations of utilization of such facility
was prepared by a certified public accounting firm pursuant to an
engagement authorized on March 6, 1984, and presented on June 11,
1984, to officials of the city in which such facility is located,
''(L) Mount Vernon Mills in Columbia, South Carolina,
''(M) the Barbara Jordan II Apartments,
''(N) the rehabilitation of the Federal Building and Post
Office, 120 Hanover Street, Manchester, New Hampshire,
''(O) the rehabilitation of the Charleston Waterfront project
in South Carolina,
''(P) the Hayes Mansion in San Jose, California,
''(Q) the renovation of a facility owned by the National
Railroad Passenger Corporation ('Amtrak') for which project
Amtrak engaged a development team by letter agreement dated
August 23, 1985, as modified by letter agreement dated September
9, 1985,
''(R) the rehabilitation of a structure or its components which
is listed in the National Register of Historic Places, is located
in Allegheny County, Pennsylvania, will be substantially
rehabilitated (as defined in section 48(g)(1)(C) prior to
amendment by this Act), prior to December 31, 1989; and was
previously utilized as a market and an auto dealership,
''(S) The Bellevue Stratford Hotel in Philadelphia,
Pennsylvania,
''(T) the Dixon Mill Housing project in Jersey City, New
Jersey,
''(U) Motor Square Garden,
''(V) the Blackstone Apartments, and the Shriver-Johnson
building, in Sioux Falls, South Dakota,
''(W) the Holy Name Academy in Spokane, Washington,
''(X) the Nike/Clemson Mill in Exeter, New Hampshire,
''(Y) the Central Bank Building in Grand Rapids, Michigan, and
''(Z) the Heritage Hotel, in the City of Marquette, Michigan.
''(4) Additional rehabilitations. - The amendments made by this
section and section 201 (amending sections 46, 48, 167, 168, 178,
179, 280F, 291, 312, 465, 467, 514, 751, 1245, 4162, 6111, and 7701
of this title) shall not apply to -
''(A) the Fort Worth Town Square Project in Texas,
''(B) the American Youth Hostel in New York, New York,
''(C) The Riverwest Loft Development (including all three
phases, two of which do not involve rehabilitations),
''(D) the Gaslamp Quarter Historic District in California,
''(E) the Eberhardt & Ober Brewery, in Pennsylvania,
''(F) the Captain's Walk Limited Partnership-Harris Place
Development, in Connecticut,
''(G) the Velvet Mills in Connecticut,
''(H) the Roycroft Inn, in New York,
''(I) Old Main Village, in Mankato, Minnesota,
''(J) the Washburn-Crosby A Mill, in Minneapolis, Minnesota,
''(K) the Marble Arcade office building in Lakeland, Florida,
''(L) the Willard Hotel, in Washington, D.C.,
''(M) the H. P. Lau Building in Lincoln, Nebraska,
''(N) the Starks Building, in Louisville, Kentucky,
''(O) the Bellevue High School, in Bellevue, Kentucky,
''(P) the Major Hampden Smith House, in Owensboro, Kentucky,
''(Q) the Doe Run Inn, in Brandenburg, Kentucky,
''(R) the State National Bank, in Frankfort, Kentucky,
''(S) the Captain Jack House, in Fleming, Kentucky,
''(T) the Elizabeth Arlinghaus House, in Covington, Kentucky,
''(U) Limerick Shamrock, in Louisville, Kentucky,
''(V) the Robert Mills Project, in South Carolina,
''(W) the 620 Project, consisting of 3 buildings, in Kentucky,
''(X) the Warrior Hotel, Ltd., the first two floors of the
Martin Hotel, and the 105,000 square foot warehouse constructed
in 1910, all in Sioux City, Iowa,
''(Y) the waterpark condominium residential project, to the
extent of $2 million of expenditures,
''(Z) the Bigelow-Hartford Carpet Mill in Enfield, Connecticut,
''(AA) properties abutting 125th street in New York County from
7th Avenue west to Morningside and the pier area on the Hudson
River at the end of such 125th Street,
''(BB) the City of Los Angeles Central Library project pursuant
to an agreement dated December 28, 1983,
''(CC) the Warehouse Row project in Chattanooga, Tennessee,
''(DD) any project described in section 204(a)(1)(F) of this
Act (26 U.S.C. 168 note),
''(EE) the Wood Street Commons project in Pittsburgh,
Pennsylvania,
''(FF) any project described in section 803(d)(6) of this Act
(26 U.S.C. 263A note),
''(GG) Union Station, Indianapolis, Indiana,
''(HH) the Mattress Factory project in Pittsburgh,
Pennsylvania,
''(II) Union Station in Providence, Rhode Island,
''(JJ) South Pack Plaza, Asheville, North Carolina,
''(KK) Old Louisville Trust Project, Louisville, Kentucky,
''(LL) Stewarts Rehabilitation Project, Louisville, Kentucky,
''(MM) Bernheim Officenter, Louisville, Kentucky,
''(NN) Springville Mill Project, Rockville, Connecticut, and
''(OO) the D.J. Stewart Company Building, State and Main
Streets, Rockford, Illinois.
''(5) Reduction in credit for property under transitional rules.
- In the case of property placed in service after December 31,
1986, and to which the amendments made by this section (amending
this section and sections 47 and 48 of this title) do not apply,
subparagraph (A) of section 46(b)(4) of the Internal Revenue Code
of 1954 (now 1986) (as in effect before the enactment of this Act)
shall be applied -
''(A) by substituting '10 percent' for '15 percent', and
''(B) by substituting '13 percent' for '20 percent'.
''(6) Expensing of rehabilitation expenses for the frankford
arsenal. - In the case of any expenditures paid or incurred in
connection with improvements (including repairs and maintenance) of
the Frankford Arsenal pursuant to a contract and partnership
agreement during the 8-year period specified in the contract or
agreement, all such expenditures to be made during the period 1986
through and including 1993 shall -
''(A) be treated as made (and allowable as a deduction) during
1986,
''(B) be treated as qualified rehabilitation expenditures made
during 1986, and
''(C) be allocated in accordance with the partnership agreement
regardless of when the interest in the partnership was acquired,
except that -
''(i) if the taxpayer is not the original holder of such
interest, no person (other than the taxpayer) had claimed any
benefits by reason of this paragraph,
''(ii) no interest under section 6611 of the 1986 Code on any
refund of income taxes which is solely attributable to this
paragraph shall be paid for the period -
''(I) beginning on the date which is 45 days after the
later of April 15, 1987, or the date on which the return for
such taxes was filed, and
''(II) ending on the date the taxpayer acquired the
interest in the partnership, and
''(iii) if the expenditures to be made under this provision
are not paid or incurred before January 1, 1994, then the tax
imposed by chapter 1 of such Code for the taxpayer's last
taxable year beginning in 1993 shall be increased by the amount
of the tax benefits by reason of this paragraph which are
attributable to the expenditures not so paid or incurred.
''(7) Special rule. - In the case of the rehabilitation of the
Willard Hotel in Washington, D.C., section 205(c)(1)(B)(ii) of the
Tax Equity and Fiscal Responsibility Act of 1982 (section
205(c)(1)(B)(ii) of Pub. L. 97-248, set out as a note under section
196 of this title) shall be applied by substituting '1987' for
'1986'.''
Section 421(c) of Pub. L. 99-514 provided that: ''The amendments
made by this section (amending this section) shall apply to periods
beginning after December 31, 1985, under rules similar to rules
under section 48(m) of the Internal Revenue Code of 1986.''
Amendment by sections 1802(a)(6), (8), 1844(a), (b)(3), (5),
1847(b)(11), 1848(a) of Pub. L. 99-514 effective, except as
otherwise provided, as if included in the provisions of the Tax
Reform Act of 1984, Pub. L. 98-369, div. A, to which such
amendment relates, see section 1881 of Pub. L. 99-514, set out as a
note under section 48 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 16 of Pub. L. 98-369 applicable to taxable
years ending after Dec. 31, 1983, see section 18(a) of Pub. L.
98-369, set out as a note under section 48 of this title.
Amendment by section 31(f) of Pub. L. 98-369 effective, except as
otherwise provided in section 31(g) of Pub. L. 98-369, as to
property placed in service by the taxpayer after Nov. 5, 1983, in
taxable years ending after such date and to property placed in
service by the taxpayer on or before Nov. 5, 1983, if the lease to
the organization described in section 593 of this title is entered
into after Nov. 5, 1983, see section 31(g)(1), (14) of Pub. L.
98-369, set out as a note under section 168 of this title.
Amendment by section 113(b)(2)(B) of Pub. L. 98-369 applicable as
if included in the amendments by sections 201(a), 211(a)(1), and
211(f)(1) of Pub. L. 97-34, which amended this section and enacted
section 168 of this title, see section 113(c)(2)(B) of Pub. L.
98-369, set out as a note under section 168 of this title.
Section 431(e) of Pub. L. 98-369 provided:
''(1) In general. - The amendments made by this section (amending
this section and sections 47 and 48 of this title) shall apply to
property placed in service after the date of the enactment of this
Act (July 18, 1984) in taxable years ending after such date; except
that such amendments shall not apply to any property to which the
amendments made by section 211(f) of the Economic Recovery Tax Act
of 1981 (section 211(f) of Pub. L. 97-34, amending sections 46 and
47 of this title) do not apply.
''(2) Amendments may be elected retroactively. - At the election
of the taxpayer, the amendments made by this section shall apply as
if included in the amendments made by section 211(f) of the
Economic Recovery Tax Act of 1981. Any election made under the
preceding sentence shall apply to all property of the taxpayer to
which the amendments made by such section 211(f) apply and shall be
made at such time and in such manner as the Secretary of the
Treasury or his delegate may by regulations prescribe.''
Amendment by section 474(o)(1)-(7) of Pub. L. 98-369 applicable
to taxable years beginning after Dec. 31, 1983, and to carrybacks
from such years, see section 475(a) of Pub. L. 98-369, set out as a
note under section 21 of this title.
Amendment by section 713 of Pub. L. 98-369 effective as if
included in the provision of the Tax Equity and Fiscal
Responsibility Act of 1982, Pub. L. 97-248, to which such amendment
relates, see section 715 of Pub. L. 98-369, set out as a note under
section 31 of this title.
EFFECTIVE DATE OF 1983 AMENDMENTS
Amendment by section 122(c)(1) of Pub. L. 98-21 applicable to
taxable years beginning after Dec. 31, 1983, except that if an
individual's annuity starting date was deferred under section
105(d)(6) of this title as in effect on the day before Apr. 20,
1983, such deferral shall end on the first day of such individual's
first taxable year beginning after Dec. 31, 1983, see section
122(d) of Pub. L. 98-21, set out as a note under section 22 of this
title.
Amendment by title I of Pub. L. 97-448 effective, except as
otherwise provided, as if it had been included in the provision of
the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such
amendment relates, see section 109 of Pub. L. 97-448, set out as a
note under section 1 of this title.
Amendment by section 202(f) of Pub. L. 97-448 effective, except
as otherwise provided, as if it had been included in the provision
of the Crude Oil Windfall Profit Tax Act of 1980, Pub. L. 96-223,
to which such amendment relates, see section 203(a) of Pub. L.
97-448, set out as a note under section 6652 of this title.
Section 541(c) of Pub. L. 97-424, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) General rule. - The amendments made by subsections (a) and
(b) (amending this section and sections 167 and 168 of this title)
shall apply to taxable years beginning after December 31, 1979.
''(2) Special rule for periods beginning before march 1, 1980. -
''(A) In general. - Subject to the provisions of paragraphs (3)
and (4), notwithstanding the provisions of sections 167(l) and
46(f) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954)
and of any regulations prescribed by the Secretary of the
Treasury (or his delegate) under such sections, the use for
ratemaking purposes or for reflecting operating results in the
taxpayer's regulated books of account, for any period before
March 1, 1980, of -
''(i) any estimates or projections relating to the amounts of
the taxpayer's tax expense, depreciation expense, deferred tax
reserve, credit allowable under section 38 of such code, or
rate base, or
''(ii) any adjustments to the taxpayer's rate of return,
shall not be treated as inconsistent with the requirements of
subparagraph (G) of such section 167(l)(3) nor inconsistent with
the requirements of paragraph (1) or (2) of such section 46(f),
where such estimates or projections, or such rate of return
adjustments, were included in a qualified order.
''(B) Qualified order defined. - For purposes of this
subsection, the term ''qualified order'' means an order -
''(i) by a public utility commission which was entered before
March 13, 1980,
''(ii) which used the estimates, projections, or rate of
return adjustments referred to in subparagraph (A) to determine
the amount of the rates to be collected by the taxpayer or the
amount of a refund with respect to rates previously collected,
and
''(iii) which ordered such rates to be collected or refunds
to be made (whether or not such order actually was implemented
or enforced).
''(3) Limitations on application of paragraph (2). -
''(A) Paragraph (2) not to apply to amounts actually flowed
through. - Paragraph (2) shall not apply to the amount of any -
''(i) rate reduction, or
''(ii) refund,
which was actually made pursuant to a qualified order.
''(B) Taxpayer must enter into closing agreement before
paragraph (2) applies. - Paragraph (2) shall not apply to any
taxpayer unless, before the later of -
''(i) July 1, 1983, or
''(ii) 6 months after the refunds or rate reductions are
actually made pursuant to a qualified order.
the taxpayer enters into a closing agreement (within the meaning
of section 7121 of the Internal Revenue Code of 1986) which
provides for the payment by the taxpayer of the amount of which
paragraph (2) does not apply by reason of subparagraph (A).
''(4) Special rules relating to payment of refunds or interest by
the united states or the taxpayer. -
''(A) Refund defined. - For purposes of this subsection, the
term ''refund'' shall include any credit allowed by the taxpayer
under a qualified order but shall not include interest payable
with respect to any refund (or credit) under such order.
''(B) No interest payable by united states. - No interest shall
be payable under section 6611 of the Internal Revenue Code of
1986 on any overpayment of tax which is attributable to the
application of paragraph (2).
''(C) Payments may be made in two equal installments. -
''(i) In general. - The taxpayer may make any payment
required by reason of paragraph (3) in 2 equal installments,
the first installment being due on the last date on which a
taxpayer may enter into a closing agreement under paragraph
(3)(B), and the second payment being due 1 year after the last
date for the first payment.
''(ii) Interest payments. - For purposes of section 6601 of
such Code, the last date prescribed for payment with respect to
any payment required by reason of paragraph (3) shall be the
last date on which such payment is due under clause (i).
''(5) No inference. - The application of subparagraph (G) of
section 167(l)(3) of the Internal Revenue Code of 1986, and the
application of paragraphs (1) and (2) of section 46(f) of such
Code, to taxable years beginning before January 1, 1980, shall be
determined without any inference drawn from the amendments made by
subsections (a) and (b) of this section (amending this section and
sections 167 and 168 of this title) or from the rules contained in
paragraphs (2), (3), and (4). Nothing in the preceding sentence
shall be construed to limit the relief provided by paragraphs (2),
(3), and (4).''
EFFECTIVE DATE OF 1982 AMENDMENTS
Amendment by Pub. L. 97-354 applicable to taxable years beginning
after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as
an Effective Date note under section 1361 of this title.
Amendment by section 201(d)(8)(A), formerly section 201(c)(8)(A),
of Pub. L. 97-248, applicable to taxable years beginning after Dec.
31, 1982, see section 201(e)(1) of Pub. L. 97-248, set out as a
note under section 5 of this title.
Section 205(c)(2) of Pub. L. 97-248 provided that: ''The
amendments made by subsection (b) (amending this section) shall
apply to taxable years beginning after December 31, 1982.''
Amendment by section 265(b)(2)(A)(i) of Pub. L. 97-248 applicable
to distributions after Dec. 31, 1982, see section 265(c)(2) of Pub.
L. 97-248, set out as a note under section 72 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 207(c)(1) of Pub. L. 97-34 applicable to
unused credit years ending after Dec. 31, 1973, see section
209(c)(2)(A) of Pub. L. 97-34, set out as an Effective Date note
under section 168 of this title.
Section 211(i) of Pub. L. 97-34 provided that:
''(1) In general. - Except as provided in this subsection, the
amendments made by this section (amending this section and sections
47 and 48 of this title) shall apply to property placed in service
after December 31, 1980.
''(2) Progress expenditures. - The amendments made by subsection
(b) (amending this section) shall apply to progress expenditures
made after December 31, 1980.
''(3) Petroleum storage facilities. - The amendments made by
subsection (c) (amending this section) shall apply to periods after
December 31, 1980, under rules similar to the rules under section
48(m).
''(4) Noncorporate lessors. - The amendments made by subsection
(d) (amending this section) shall apply to leases entered into
after June 25, 1981.
''(5) At risk rules. -
''(A) In general. - The amendment made by subsection (f)
(amending this section and section 47 of this title) shall not
apply to -
''(i) property placed in service by the taxpayer on or before
February 18, 1981, and
''(ii) property placed in service by the taxpayer after
February 18, 1981, where such property is acquired by the
taxpayer pursuant to a binding contract entered into on or
before that date.
''(B) Binding contract. - For purposes of subparagraph (A)(ii),
property acquired pursuant to a binding contract shall, under
regulations prescribed by the Secretary, include property
acquired in a manner so that it would have qualified as
pretermination property under section 49(b) (as in effect before
its repeal by the Revenue Act of 1978) (Pub. L. 95-600).
''(6) Leased rolling stock. - The amendment made by subsection
(h) (amending section 48 of this title) shall apply to taxable
years beginning after December 31, 1980.''
Section 212(e) of Pub. L. 97-34, as amended by Pub. L. 97-448,
title I, Sec. 102(f)(1), Jan. 12, 1983, 96 Stat. 2371; Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) In general. - Except as provided in paragraph (2), the
amendments made by this section (amending this section and sections
48, 57, 167, 280B, 642, 1016, 1082, 1245, and 1250 of this title
and repealing section 191 of this title) shall apply to
expenditures incurred after December 31, 1981, in taxable years
ending after such date.
''(2) Transitional rule. - The amendments made by this section
shall not apply with respect to any rehabilitation of a building if
-
''(A) the physical work on such rehabilitation began before
January 1, 1982, and
''(B) such building does not meet the requirements of paragraph
(1) of section 48(g) of the Internal Revenue Code of 1986
(formerly I.R.C. 1954) (as amended by this Act (Pub. L.
97-34)).''
Section 332(c)(1) of Pub. L. 97-34 provided that: ''The
amendments made by subsection (a) (amending this section) shall be
effective on the date of enactment of this Act (Aug. 13, 1981).''
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by section 222(e)(2) of Pub. L. 96-223 applicable to
periods after Dec. 31, 1979, under rules similar to the rules of
section 48(m) of this title, see section 222(j)(1) of Pub. L.
96-223, set out as a note under section 48 of this title.
Section 223(b)(3) of Pub. L. 96-223 provided that: ''The
amendments made by this subsection (amending this section and
section 6401 of this title) shall apply to qualified investment for
taxable years beginning after December 31, 1979.''
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by section 141(e), (f)(2) of Pub. L. 95-600 effective
with respect to qualified investment for taxable years beginning
after Dec. 31, 1978, see section 141(g)(1) of Pub. L. 95-600, set
out as an Effective Date note under section 409 of this title.
Section 312(d) of Pub. L. 95-600 provided that: ''The amendments
made by this section (amending this section and sections 48 and 167
of this title and repealing sections 49 and 50 of this title) shall
apply to taxable years ending after December 31, 1978.''
Section 313(b) of Pub. L. 95-600 provided that:
''The amendment made by subsection (a) (amending this section)
shall apply to -
''(1) property acquired by the taxpayer after December 31,
1978, and
''(2) property the construction, reconstruction, or erection of
which was completed by the taxpayer after December 31, 1978 (but
only to the extent of the basis thereof attributable to
construction, reconstruction, or erection after such date).''
Section 316(c) of Pub. L. 95-600 provided that: ''The amendments
made by this section (amending this section and section 1388 of
this title) shall apply to taxable years ending after October 31,
1978.''
Section 703(r) of Pub. L. 95-600 provided that: ''Except as
otherwise provided, the amendments made by this section (amending
this section and sections 48, 103, 447, 453, 501, 801, 911, 995,
996, 999, 1033, 1212, 1375, 1402, 1561, 4041, 4911, 6104, 6427,
6501, 6504, 6511, 7609 of this title and sections 402, 405, 410,
and 411 of Title 42, The Public Health and Welfare, enacting
provisions set out as notes under sections 103, 311, 443, 501, and
4973 of this title, and amending provisions set out as notes under
section 120, 311, 907, 995, 2011, 2501, and 4940 of this title)
shall take effect on October 4, 1976.''
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 503(b)(4) of Pub. L. 94-455 applicable to
taxable years beginning after Dec. 31, 1975, see section 508 of
Pub. L. 94-455, set out as a note under section 3 of this title.
Section 802(c) of Pub. L. 94-455 provided that: ''The amendments
made by this section (amending this section and section 48 of this
title and provisions set out below) shall apply to taxable years
beginning after December 31, 1975.''
Section 803(j) of Pub. L. 94-455 provided that:
''(1) General rule. - Except as provided in paragraph (2), the
amendments made by this section (see Tables for classification of
section 803 of Pub. L. 94-455) shall apply for taxable years
beginning after December 31, 1974.
''(2) Exceptions. -
''(A) Section 301(e) of the Tax Reduction Act of 1975 (set
out below), as added by subsection (d), shall apply for taxable
years beginning after December 31, 1976.
''(B) The amendments made by subsections (a) and (b)(1) shall
apply for taxable years beginning after December 31, 1975.
''(C) The amendments made by subsections (b)(4) and (f) shall
apply for years beginning after December 31, 1975.''
Section 805(b) of Pub. L. 94-455, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) In general. - Except as provided in subparagraph (B), the
amendment made by subsection (a) (amending this section) shall
apply to taxable years beginning after December 31, 1975, in the
case of property placed in service after such date.
''(2) Section 46(g)(4). - Section 46(g)(4) of the Internal
Revenue Code of 1986 (formerly I.R.C. 1954) (as added by
subsection (a)) shall apply to taxable years beginning after
December 31, 1975.''
Amendment by section 1607(b)(1)(B) of Pub. L. 94-455 applicable
to taxable years ending after Oct. 4, 1976, with certain
exceptions, see section 1608(c) of Pub. L. 94-455, set out as a
note under section 857 of this title.
Amendment by section 1901(a)(4)(A), (B), (b)(1)(C) of Pub. L.
94-455 applicable with respect to taxable years beginning after
Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as a
note under section 2 of this title.
Section 2112(d)(1) of Pub. L. 94-455 provided that: ''The
amendments made by subsection (a) (amending this section and
section 48 of this title) shall apply to -
''(A) property acquired by the taxpayer after December 31,
1976, and
''(B) property the construction, reconstruction, or erection of
which was completed by the taxpayer after December 31, 1976, (but
only to the extent of the basis thereof attributable to
construction, reconstruction, or erection after such date), in
taxable years beginning after such date.''
EFFECTIVE DATE OF 1975 AMENDMENT
Section 301(b)(4) of Pub. L. 94-12 provided that: ''The amendment
made by paragraph (1) of this subsection (amending this section)
shall apply to property placed in service after January 21, 1975,
in taxable years ending after January 21, 1975. The amendments made
by paragraphs (2) and (3) (amending this section) shall apply to
taxable years ending after December 31, 1974.''
Section 305(a) of Pub. L. 94-12 provided that: ''The amendments
made by section 302 (amending this section and sections 47, 48, and
50B of this title) shall apply to taxable years ending after
December 31, 1974.''
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by section 2001(g)(2)(B) of Pub. L. 93-406 applicable
to distributions made in taxable years beginning after Dec. 31,
1975, see section 2001(i)(5) of Pub. L. 93-406, set out as a note
under section 72 of this title.
Amendment by section 2002(g)(2) of Pub. L. 93-406 effective on
Jan. 1, 1975, see section 2002(i)(2) of Pub. L. 93-406, set out as
an Effective Date note under section 4973 of this title.
Amendment by section 2005(c)(4) of Pub. L. 93-406 applicable only
with respect to distributions or payments made after Dec. 31, 1973,
in taxable years beginning after Dec. 31, 1973, see section 2005(d)
of Pub. L. 93-406, set out as a note under section 402 of this
title.
EFFECTIVE DATE OF 1971 AMENDMENT
Section 102(d)(1), (2) of Pub. L. 92-178, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) The amendments made by subsections (a) and (b) (amending
this section and section 48 of this title) shall apply to property
described in section 50 of the Internal Revenue Code of 1986
(formerly I.R.C. 1954).
''(2) In redetermining qualified investment for purposes of
section 47(a) of the Internal Revenue Code of 1986 in the case of
any property which ceases to be section 38 property with respect to
the taxpayer after August 15, 1971, or which becomes public utility
property after such date, section 46(c)(2) of such Code shall be
applied as amended by subsection (a).''
Section 105(d) of Pub. L. 92-178, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''The
amendments made by this section (amending this section and enacting
provisions set out below) shall apply to property described in
section 50 of the Internal Revenue Code of 1986 (formerly I.R.C.
1954).''
Section 106(d) of Pub. L. 92-178 provided that: ''The amendments
made by subsections (a), (b), and (c)(2) (amending this section)
shall apply to taxable years beginning after December 31, 1970. The
amendments made by subsection (c)(1) (amending this section) shall
apply to taxable years ending after August 15, 1971.''
Section 107(a)(2) of Pub. L. 92-178 provided that: ''The repeals
made by paragraph (1) (amending this section and section 47 of this
title) shall apply to casualties and thefts occurring after August
15, 1971.''
Section 108(d) of Pub. L. 92-178 provided that: ''The amendments
made by subsections (a) and (b) (amending this section and section
48 of this title) shall apply to leases entered into after
September 22, 1971. The amendment made by subsection (c) (amending
section 48 of this title) shall apply to leases entered into after
November 8, 1971.''
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 301(b)(4) of Pub. L. 91-172 applicable to
taxable years ending after Dec. 31, 1969, see section 301(c) of
Pub. L. 91-172, set out as a note under section 5 of this title.
Amendment by section 401(e)(1) of Pub. L. 91-172 applicable with
respect to taxable years ending on or after Dec. 31, 1970, see
section 401(h)(3) of Pub. L. 91-172, set out as a note under
section 1561 of this title.
EFFECTIVE DATE OF 1967 AMENDMENT
Section 2(g) of Pub. L. 90-225 provided that: ''The amendments
made by this section (amending this section and sections 6411,
6501, 6511, 6601, and 6611 of this title) shall apply with respect
to investment credit carrybacks attributable to net operating loss
carrybacks from taxable years ending after July 31, 1967.''
EFFECTIVE DATE OF 1966 AMENDMENTS
Section 4 of Pub. L. 89-800 provided that: ''The amendments made
by this Act (amending this section and sections 48 and 167 of this
title) shall apply to taxable years ending after October 9, 1966,
except that the amendments made by section 3(b) (amending this
section) shall apply only if the fifth taxable year following the
unused credit year ends after December 31, 1966.''
Section 2(c) of Pub. L. 89-389 provided that: ''The amendments
made by this section (enacting section 1378 of this title and
amending this section and sections 1372, 1373, and 1375 of this
title) shall apply with respect to taxable years of electing small
business corporations beginning after the date of enactment of this
Act (Apr. 14, 1966), but such amendments shall not apply with
respect to sales or exchanges occurring before February 24, 1966.''
Amendment by Pub. L. 89-384 applicable with respect to amounts
received after December 31, 1964, in respect of foreign
expropriation losses (as defined in section 1351(b) of this title)
sustained after December 31, 1958, see section 2 of Pub. L. 89-384,
set out as an Effective Date note under section 1351 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272 applicable with respect to dividends
received after Dec. 31, 1964, in taxable years ending after such
date, see section 201(e) of Pub. L. 88-272, set out as a note under
section 22 of this title.
EFFECTIVE DATE
Section 2(h) of Pub. L. 87-834 provided that: ''The amendments
made by this section (enacting this section and sections 38, 47,
48, and 181 of this title, amending sections 381, 1016, 6501, 6511,
6601, and 6611 of this title, and renumbering former section 38 as
section 39 of this title) shall apply with respect to taxable years
ending after December 31, 1961.''
SAVINGS PROVISION
For provisions that nothing in amendment by section 11813(a) of
Pub. L. 101-508 be construed to affect treatment of certain
transactions occurring, property acquired, or items of income,
loss, deduction, or credit taken into account prior to Nov. 5,
1990, for purposes of determining liability for tax for periods
ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101-508,
set out as a note under section 29 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title
XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to
any plan, such plan amendment shall not be required to be made
before the first plan year beginning on or after Jan. 1, 1989, see
section 1140 of Pub. L. 99-514, as amended, set out as a note under
section 401 of this title.
CLARIFICATION OF EFFECT OF 1984 AMENDMENT ON INVESTMENT TAX CREDIT
Section 475(c) of Pub. L. 98-369 provided that: ''Nothing in the
amendments made by section 474(o) (amending this section and
sections 47 and 48 of this title) shall be construed as reducing
the amount of any credit allowable for qualified investment in
taxable years beginning before January 1, 1984.''
REGULATED PUBLIC UTILITIES; SPECIAL TRANSITIONAL RULE
Section 209(d)(2) of Pub. L. 97-34, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''If, by the
terms of the applicable rate order last entered before the date of
the enactment of this Act (Aug. 13, 1981) by a regulatory
commission having appropriate jurisdiction, a regulated public
utility would (but for this provision) fail to meet the
requirements of paragraph (1) or (2) of section 46(f) of the
Internal Revenue Code of 1986 (formerly I.R.C. 1954) with respect
to property for an accounting period ending after December 31,
1980, such regulated public utility shall not fail to meet such
requirements if, by the terms of its first rate order determining
cost of service with respect to such property which becomes
effective after the date of the enactment of this Act and on or
before January 1, 1983, such regulated public utility meets such
requirements. This provision shall not apply to any rate order
which, under the rules in effect before the date of the enactment
of this Act was inconsistent with the requirements of paragraph (1)
or (2) of section 46(f) of such Code (whichever would have been
applicable).''
PLAN REQUIREMENTS FOR TAXPAYERS ELECTING ADDITIONAL CREDITS
Section 301(d), (e), (f) of Pub. L. 94-12, as amended by Pub. L.
94-455, Sec. 802(b)(7), 803(c), (d), (e), relating to plan
requirements for taxpayers electing additional credit, was repealed
by Pub. L. 95-600, title I, Sec. 141(f)(1), Nov. 6, 1978, 92 Stat.
2795.
PUBLIC UTILITY PROPERTY SUBJECT TO SUBSEC. (E); PROVISIONS
RESPECTING TREATMENT OF INVESTMENT CREDIT BY FEDERAL REGULATORY
AGENCIES INAPPLICABLE
Section 105(e) of Pub. L. 92-178, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''Section
203(e) of the Revenue Act of 1964 (set out as note under section 38
of this title) shall not apply to public utility property to which
section 46(e) of the Internal Revenue Code of 1986 (formerly I.R.C.
1954) (as added by subsection (c)) (subsec. (e) of this section)
applies.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 38, 47, 48, 49, 50, 52,
111, 196 of this title.
