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.
 

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