Internal Revenue Code:Sec. 48. Energy credit
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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. 48. Energy credit
(a) Energy credit
(1) In general
For purposes of section 46, except as provided in paragraph
(1)(B) or (2)(B) of subsection (c), the energy credit for any
taxable year is the energy percentage of the basis of each energy
property placed in service during such taxable year.
(2) Energy percentage
(A) ) IN GENERAL- The energy percentage is--
(i) 30 percent in the case of--
(I) qualified fuel cell property,
(II) energy property described in paragraph (3)(A)(i) but
only with respect to periods ending before January 1, 2009,
and
(III) energy property described in paragraph (3)(A)(ii), and
(ii) in the case of any energy property to which clause (i) does
not apply, 10 percent.
(B) Coordination with rehabilitation credit
The energy percentage shall not apply to that portion of the
basis of any property which is attributable to qualified
rehabilitation expenditures.
(3) Energy property
For purposes of this subpart, the term ''energy property''
means any property -
(A) which is -
(i) equipment which uses solar energy to generate
electricity, to heat or cool (or provide hot water for use
in) a structure, or to provide solar process heat,
excepting property used to generate energy for the
purposes of heating a swimming pool,or
(ii) equipment which uses solar energy to illuminate
the inside of a structure using fiber-optic distributed
sunlight but only with respect to periods ending before
January 1, 2009, or
(iii) equipment used to produce, distribute, or use energy
derived from a geothermal deposit (within the meaning of
section 613(e)(2)), but only, in the case of electricity
generated by geothermal power, up to (but not including) the
electrical transmission stage, or
(iv) qualified fuel cell property or qualified microturbine property,
(B)(i) the construction, reconstruction, or erection of which
is completed by the taxpayer, or
(ii) which is acquired by the taxpayer if the original use of
such property commences with the taxpayer,
(C) with respect to which depreciation (or amortization in
lieu of depreciation) is allowable, and
(D) which meets the performance and quality standards (if
any) which -
(i) have been prescribed by the Secretary by regulations
(after consultation with the Secretary of Energy), and
(ii) are in effect at the time of the acquisition of the
property.
The term ''energy property'' shall not include any property which
is public utility property (as defined in section 46(f)(5) as in
effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990). Such term shall not include any
property which is part of a facility the production from which is
allowed as a credit under section 45 for the taxable year or any
prior taxable year.
(4) Special rule for property financed by subsidized energy
financing or industrial development bonds
(A) Reduction of basis
For purposes of applying the energy percentage to any
property, if such property is financed in whole or in part by -
(i) subsidized energy financing, or
(ii) the proceeds of a private activity bond (within the
meaning of section 141) the interest on which is exempt from
tax under section 103,
the amount taken into account as the basis of such property
shall not exceed the amount which (but for this subparagraph)
would be so taken into account multiplied by the fraction
determined under subparagraph (B).
(B) Determination of fraction
For purposes of subparagraph (A), the fraction determined
under this subparagraph is 1 reduced by a fraction -
(i) the numerator of which is that portion of the basis of
the property which is allocable to such financing or
proceeds, and
(ii) the denominator of which is the basis of the property.
(C) Subsidized energy financing
For purposes of subparagraph (A), the term ''subsidized
energy financing'' means financing provided under a Federal,
State, or local program a principal purpose of which is to
provide subsidized financing for projects designed to conserve
or produce energy.
(b) Certain progress expenditure rules made applicable
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall apply
for purposes of subsection (a).
(c) Qualified Fuel Cell Property; Qualified Microturbine Property-
For purposes of this subsection--
(1) QUALIFIED FUEL CELL PROPERTY-
(A) IN GENERAL- The term `qualified fuel cell property' means a
fuel cell power plant which--
(i) has a nameplate capacity of at least 0.5 kilowatt of electricity
using an electrochemical process, and
(ii) has an electricity-only generation efficiency greater than
30 percent.
(B) LIMITATION- In the case of qualified fuel cell property placed
in service during the taxable year, the credit otherwise determined
under paragraph (1) for such year with respect to such property
shall not exceed an amount equal to $500 for each 0.5 kilowatt of
capacity of such property.
(C) FUEL CELL POWER PLANT- The term `fuel cell power plant' means
an integrated system comprised of a fuel cell stack assembly and
associated balance of plant components which converts a fuel into
electricity using electrochemical means.
(D) SPECIAL RULE- The first sentence of the matter in subsection (a)(3)
which follows subparagraph (D) thereof shall not apply to qualified
fuel cell property which is used predominantly in the trade or
business of the furnishing or sale of telephone service, telegraph
service by means of domestic telegraph operations, or other telegraph
services (other than international telegraph services).
(E) TERMINATION- The term `qualified fuel cell property' shall not
include any property for any period after December 31, 2008.
(2) QUALIFIED MICROTURBINE PROPERTY-
(A) IN GENERAL- The term `qualified microturbine property' means a
stationary microturbine power plant which--
(i) has a nameplate capacity of less than 2,000 kilowatts, and
(ii) has an electricity-only generation efficiency of not less than
26 percent at International Standard Organization conditions.
(B) LIMITATION- In the case of qualified microturbine property placed
in service during the taxable year, the credit otherwise determined
under paragraph (1) for such year with respect to such property shall
not exceed an amount equal $200 for each kilowatt of capacity of such
property.
(C) STATIONARY MICROTURBINE POWER PLANT- The term `stationary microturbine
power plant' means an integrated system comprised of a gas turbine
engine, a combustor, a recuperator or regenerator, a generator or
alternator, and associated balance of plant components which converts
a fuel into electricity and thermal energy. Such term also includes
all secondary components located between the existing infrastructure
for fuel delivery and the existing infrastructure for power distribution,
including equipment and controls for meeting relevant power standards,
such as voltage, frequency, and power factors.
(D) SPECIAL RULE- The first sentence of the matter in subsection (a)(3)
which follows subparagraph (D) thereof shall not apply to qualified
microturbine property which is used predominantly in the trade or
business of the furnishing or sale of telephone service, telegraph
service by means of domestic telegraph operations, or other telegraph
services (other than international telegraph services).
(E) TERMINATION- The term `qualified microturbine property' shall not
include any property for any period after December 31, 2008.
Sources
(Added Pub. L. 87-834, Sec. 2(b), Oct. 16, 1962, 76 Stat. 967;
amended Pub. L. 88-272, title II, Sec. 203(a)(1), (3)(A), (b), (c),
Feb. 26, 1964, 78 Stat. 33, 34; Pub. L. 89-800, Sec. 1 Nov. 8,
1966, 80 Stat. 1508; Pub. L. 89-809, title II, Sec. 201(a), Nov.
13, 1966, 80 Stat. 1575; Pub. L. 90-26, Sec. 1, 2(a), 3, June 13,
1967, 81 Stat. 57, 58; Pub. L. 91-172, title I, Sec. 121(d)(2)(A),
title IV, Sec. 401(e)(2)-(4), Dec. 30, 1969, 83 Stat. 547, 603;
Pub. L. 92-178, title I, Sec. 102(a)(2), 103, 104(a)(1),
(b)-(f)(1), (g), 108(b), (c), Dec. 10, 1971, 85 Stat. 499-502, 507;
Pub. L. 94-12, title III, Sec. 301(c)(1), 302(c)(3), title VI, Sec.
604(a), Mar. 29, 1975, 89 Stat. 38, 44, 65; Pub. L. 94-455, title
VIII, Sec. 802(b)(6), 804(a), title X, Sec. 1051(h)(1), title XIX,
Sec. 1901(a)(5), (b)(11)(A), 1906(b)(13)(A), title XXI, Sec.
2112(a)(1), Oct. 4, 1976, 90 Stat. 1583, 1591, 1647, 1764, 1795,
1834, 1905; Pub. L. 95-473, Sec. 2(a)(2)(A), Oct. 17, 1978, 92
Stat. 1464; Pub. L. 95-600, title I, Sec. 141(b), title III, Sec.
312(c)(1)-(3), 314(a), (b), 315(a)-(c), title VII, Sec. 703(a)(3),
(4), Nov. 6, 1978, 92 Stat. 2791, 2826-2829, 2939; Pub. L. 95-618,
title III, Sec. 301(b), (d)(1), (2), Nov. 9, 1978, 92 Stat. 3195,
3199, 3200; Pub. L. 96-222, title I, Sec. 101(a)(7)(G), (H),
(L)(i)(I)-(IV), (ii)(III)-(VI), (iii)(II), (III), (v)(II)-(V),
(M)(ii), (iii), 103(a)(2)(A), (4)(B), 108(c)(6), Apr. 1, 1980, 94
Stat. 198-201, 208, 209, 228; Pub. L. 96-223, title II, Sec.
221(b), 222(a)-(e)(1), (f)-(i), 223(a)(1), (c)(1), Apr. 2, 1980, 94
Stat. 261-266; Pub. L. 96-451, title III, Sec. 302(a), Oct. 14,
1980, 94 Stat. 1991; Pub. L. 96-605, title I, Sec. 109(a), title
II, Sec. 223(a), Dec. 28, 1980, 94 Stat. 3525, 3528; Pub. L. 97-34,
title II, Sec. 211(a)(2), (c), (e)(3), (4), (h), 212(a)(3), (b),
(c), (d)(2)(A), 213(a), 214(a), (b), title III, Sec. 332(b), Aug.
13, 1981, 95 Stat. 227-229, 235, 236, 239, 240, 296; Pub. L.
97-248, title II, Sec. 205(a)(1), (4), (5)(A), 209(c), Sept. 3,
1982, 96 Stat. 427, 429, 447; Pub. L. 97-354, Sec. 3(d), 5(a)(7),
(8), Oct. 19, 1982, 96 Stat. 1689, 1692; Pub. L. 97-362, title I,
Sec. 104(a), Oct. 25, 1982, 96 Stat. 1729; Pub. L. 97-424, title V,
Sec. 546(a), Jan. 6, 1983, 96 Stat. 2198; Pub. L. 97-448, title I,
Sec. 102(e)(2)(A), (f)(2), (3), (6), title II, Sec. 202(c), title
III, Sec. 306(a)(3), Jan. 12, 1983, 96 Stat. 2371, 2372, 2396,
2400; Pub. L. 98-369, div. A, title I, Sec. 11, 31(b), (c),
111(e)(8), 113(a)(1), (b)(3), (4), 114(a), title IV, Sec. 431(c),
474(o)(10)-(18), title VII, Sec. 712(b), 721(x)(1), 735(c)(1),
title X, Sec. 1043(a), July 18, 1984, 98 Stat. 503, 517, 518, 633,
635, 637, 638, 808, 836, 837, 946, 971, 981, 1044; Pub. L. 99-121,
title I, Sec. 103(b)(5), Oct. 11, 1985, 99 Stat. 510; Pub. L.
99-514, title II, Sec. 251(b), (c), title VII, Sec. 701(e)(4)(C),
title VIII, Sec. 803(b)(2)(B), title XII, Sec. 1272(d)(5),
1275(c)(5), title XV, Sec. 1511(c)(3), title XVIII, Sec.
1802(a)(4)(C), (5)(B), (9)(A), (B), 1809(d)(2), (e), 1847(b)(6),
1879(j)(1), Oct. 22, 1986, 100 Stat. 2184, 2186, 2343, 2355, 2594,
2599, 2745, 2788, 2789, 2821, 2856, 2908; Pub. L. 100-647, title I,
Sec. 1002(a)(14), (16)(A), (20), (29), (30), 1013(a)(41), Nov. 10,
1988, 102 Stat. 3355-3357, 3544; Pub. L. 101-508, title XI, Sec.
11801(c)(6)(A), 11813(a), Nov. 5, 1990, 104 Stat. 1388-523,
1388-541; Pub. L. 102-227, title I, Sec. 106, Dec. 11, 1991, 105
Stat. 1687; Pub. L. 102-486, title XIX, Sec. 1916(a), Oct. 24,
1992, 106 Stat. 3024.)
References in Text
REFERENCES IN TEXT
The date of the enactment of the Revenue Reconciliation Act of
1990, referred to in subsec. (a)(3), (5), is the date of enactment
of Pub. L. 101-508, which was approved Nov. 5, 1990.
Miscellaneous
AMENDMENTS
2005 - Sec.1336(a), Energy Policy Act of 2005, amended Sec.48
(a)(3)(A)(defining energy property) by adding a new clause
(iii) "qualified fuel cell property or qualified microturbine
property; Sec.1336(b)amended Sec. 48 by adding a new
sub-section (c)"Qualified Fuel Cell Property; Qualified
Microturbine Property"; and Sec. 1337(a) amended Sec.48(a)(2)
(A) (relating to energy percentage). Sec1337(b)(c) amended
Sec.48(a)(3)(A) by adding and redesignating subclauses.
2004 - Subsec.710(e),Pub.L.108-357, amended Sec.48(a)(3)
by adding at the end the following new sentence:
``Such term shall not include any property which is part of a
facility the production from which is allowed as a credit under
section 45 for the taxable year or any prior taxable year.''.
2004 - Pub. L. 108-357, Sec. 322(d)(2). Section 48 is amended--
by striking subsection (b), by striking ``this subsection'' in
paragraph (5) of subsection (a) and inserting ``subsection (a)'',
and by redesignating such paragraph (5) as subsection (b), and
the heading for section 48 is amended by striking
``; reforestation credit''.
1992 - Subsec. (a)(2). Pub. L. 102-486 substituted ''The'' for
''Except as provided in subparagraph (B), the'' in subpar. (A),
redesignated subpar. (C) as (B), and struck out former subpar. (B)
which read as follows: ''(B) Termination. - Effective with respect
to periods after June 30, 1992, the energy percentage is zero. For
purposes of the preceding sentence, rules similar to the rules of
section 48(m) (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall apply.''
1991 - Subsec. (a)(2)(B). Pub. L. 102-227 substituted ''June 30,
1992'' for ''December 31, 1991''.
1990 - Pub. L. 101-508, Sec. 11813(a), amended section generally,
substituting section catchline for one which read: ''Definitions;
special rules'' and in text substituting present provisions for
provisions defining section 38 property, new section 38 property,
used section 38 property, provisions relating to certain leased
property, estates and trusts, special rules for qualified
rehabilitated buildings, credit for movie and television films,
treatment of energy property, application of certain transitional
rules, definitions of certain credits, definition of single purpose
agricultural or horticultural structure, basis adjustment to
section 38 property, certain section 501(d) organizations, special
rules relating to sound recordings, and a cross reference to
section 381 of this title.
Subsec. (a)(8). Pub. L. 101-508, Sec. 11801(c)(6)(A), struck out
par. (8) ''Amortized property'' which read as follows: ''Any
property with respect to which an election under section 167(k),
184, or 188 applies shall not be treated as section 38 property.''
1988 - Subsec. (a)(1). Pub. L. 100-647, Sec. 1002(a)(29), which
directed amendment of par. (1) by substituting ''property to which
section 168 applies'' for ''recovery property (within the meaning
of section 168)'' in penultimate sentence, was executed by making
the substitution for ''recovery property (within the meaning of
section 168'', which results in retaining remaining parenthetical
material and closing parenthesis.
Subsec. (a)(5)(A)(ii). Pub. L. 100-647, Sec. 1002(a)(14)(A)-(C),
substituted ''168(h)(2)(C)'' for ''168(j)(4)(C)'',
''168(h)(2)(A)(iii)'' for ''168(j)(4)(A)(iii)'', and
''168(h)(2)(B)'' for ''168(j)(4)(B)''.
Subsec. (a)(5)(B)(i). Pub. L. 100-647, Sec. 1002(a)(14)(D),
substituted ''168(i)(3)'' for ''168(j)(6)''.
Subsec. (a)(5)(B)(ii). Pub. L. 100-647, Sec. 1002(a)(14)(E),
substituted ''168(h)(1)(C)(ii)'' for ''168(j)(3)(C)(ii)''.
Subsec. (a)(5)(D). Pub. L. 100-647, Sec. 1002(a)(14)(F),
substituted ''paragraphs (5) and (6) of section 168(h)'' for
''paragraphs (8) and (9) of section 168(j)''.
Subsec. (a)(5)(E). Pub. L. 100-647, Sec. 1002(a)(14)(G), amended
subpar. (E) generally, substituting ''provision'' for
''provisions'' and ''168(h)'' for ''168(j)''.
Subsec. (l)(2)(C). Pub. L. 100-647, Sec. 1002(a)(30), substituted
''to which section 168 applies'' for ''which is recovery property
(within the meaning of section 168)''.
Subsec. (l)(11)(A)(ii). Pub. L. 100-647, Sec. 1013(a)(41),
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. (s). Pub. L. 100-647, Sec. 1002(a)(20), redesignated
subsec. (s), relating to cross reference, as (t).
Subsec. (s)(9). Pub. L. 100-647, Sec. 1002(a)(16)(A), added par.
(9).
Subsec. (t). Pub. L. 100-647, Sec. 1002(a)(20), redesignated
subsec. (s), relating to cross reference, as (t).
1986 - Subsec. (a)(2)(B)(vii). Pub. L. 99-514, Sec. 1272(d)(5),
1275(c)(5), struck out ''932,'' after ''931,'' and ''or which is
entitled to the benefits of section 934(b)'' after ''in effect
under section 936'', and substituted ''or 933'' for '', 933, or
934(c)''.
Subsec. (a)(4). Pub. L. 99-514, Sec. 1802(a)(9)(A), substituted
''514(b)'' for ''514(c)'' and ''514(a)'' for ''514(b)''.
Subsec. (a)(5)(B)(iii). Pub. L. 99-514, Sec. 1802(a)(5)(B),
struck out cl. (iii) which provided that (I) in the case of any
aircraft used under a qualifying lease (as defined in section
47(a)(7)(C)) and which is leased to a foreign person or entity
before January 1, 1990, clause (i) shall be applied by substituting
''3 years'' for ''6 months'' and that (II) for purposes of applying
section 47(a)(1) and (5)(B) there shall not be taken into account
any period of a lease to which subclause (I) applies.
Subsec. (a)(5)(D), (E). Pub. L. 99-514, Sec. 1802(a)(4)(C), added
subpar. (D) and redesignated former subpar. (D) as (E).
Subsec. (b)(1). Pub. L. 99-514, Sec. 1809(e)(1), inserted ''Such
term includes any section 38 property the reconstruction of which
is completed by the taxpayer, but only with respect to that portion
of the basis which is properly attributable to such
reconstruction.''
Subsec. (b)(2). Pub. L. 99-514, Sec. 1809(e)(2), in introductory
provisions substituted ''the first sentence of paragraph (1)'' for
''paragraph (1)'', in subpar. (B) substituted ''3 months after''
for ''3 months of'', in closing provisions substituted ''used under
the leaseback (or lease) referred to in subparagraph (B)'' for
''used under the lease'' and inserted ''The preceding sentence
shall not apply to any property if the lessee and lessor of such
property make an election under this sentence. Such an election,
once made, may be revoked only with the consent of the Secretary.''
Subsec. (d)(4)(D). Pub. L. 99-514, Sec. 701(e)(4)(C), inserted
''(as in effect on the day before the date of the enactment of the
Tax Reform Act of 1986)''.
Subsec. (d)(6)(C)(ii). Pub. L. 99-514, Sec. 1511(c)(3),
substituted ''the underpayment rate'' for ''the rate'' in closing
provisions.
Subsec. (g)(1). Pub. L. 99-514, Sec. 251(b), amended par. (1)
generally, restating in subpars. (A) to (D) provisions relating to
qualified rehabilitated buildings which had in subpar. (A) provided
general definition of qualified rehabilitated building, in subpar.
(B) directed that 30 years must have elapsed since construction, in
subpar. (C) provided general definition of substantially
rehabilitated with special rule for phased rehabilitation and
application of provision to lessees, and in subpar. (D) provided
that rehabilitation included reconstruction, and striking out
former subpar. (E) which had provided an alternative test for
definition of qualified rehabilitated building.
Subsec. (g)(2). Pub. L. 99-514, Sec. 251(b), amended par. (2)
generally, in subpar. (A) striking out reference to amounts
''incurred after December 31, 1981'' in introductory provision, and
in cl. (i) substituting subcls. (I) to (IV) for ''for real property
(or additions or improvements to real property) which have a
recovery period (within the meaning of section 168) of 19 (15 years
in the case of low-income housing) years,'', in subpar. (B), in cl.
(i), substituting provision relating to use of straight line
depreciation for provision relating to use of accelerated methods
of depreciation, redesignating former cl. (vi) as (v) and
substituting ''section 168(h)'' for ''section 168(j)'',
redesignating former cl. (v) as (vi) and substituting ''less than
the recovery period determined under section 168(c)'' for ''less
than 19 years (15 years in the case of low-income housing'',
restating subpar. (C) without change, and in subpar. (D)
substituting provisions defining nonresidential real property,
residential rental property and class life for provisions defining
low-income housing.
Subsec. (g)(2)(B)(vi)(I). Pub. L. 99-514, Sec. 1802(a)(9)(B),
substituted ''section 168(j)'' for ''section 168(j)(3)''.
Subsec. (g)(3). Pub. L. 99-514, Sec. 251(b), in amending par. (3)
generally, inserted introductory phrase ''For purposes of this
subsection - ''.
Subsec. (g)(4). Pub. L. 99-514, Sec. 251(b), in amending subsec.
(g) generally, reenacted par. (4) without change.
Subsec. (l)(5). Pub. L. 99-514, Sec. 1847(b)(6), substituted
''section 23(c)'' for ''section 44C(c)'' and ''section
23(c)(4)(A)(viii)'' for ''section 44C(c)(4)(A)(viii)''.
Subsec. (q)(3). Pub. L. 99-514, Sec. 251(c), struck out ''other
than a certified historic structure'' after ''qualified
rehabilitated building''.
Subsec. (q)(7). Pub. L. 99-514, Sec. 1809(d)(2), renumbered par.
(6), relating to special rule for qualified films, as (7).
Subsec. (r). Pub. L. 99-514, Sec. 1879(j)(1), added subsec. (r).
Former subsec. (r) redesignated (s).
Subsec. (s). Pub. L. 99-514, Sec. 1879(j)(1), redesignated former
subsec. (r) as (s).
Subsec. (s)(5). Pub. L. 99-514, Sec. 803(b)(2)(B), which directed
the general amendment of par. (5) of subsec. (r), was executed by
amending par. (5) of subsec. (s) to reflect the probable intent of
Congress and the intervening redesignation of subsec. (r) as (s) by
Pub. L. 99-514, Sec. 1879(j)(1), see note above. Prior to
amendment, par. (5) read as follows: ''For purposes of this
subsection, the term ''sound recording'' means any sound recording
described in section 280(c)(2).''
1985 - Subsec. (g)(2)(A)(i), (B)(v). Pub. L. 99-121 substituted
''19'' for ''18''.
1984 - Subsec. (a)(5). Pub. L. 98-369, Sec. 31(b), amended par.
(5) generally, to extend its scope to encompass property used by
foreign persons or entities and to create an exception for
short-term leases by substituting provisions covered by subpars.
(A) to (D) for former provisions which had directed that property
used by the United States, any State or political subdivision
thereof, any international organization, or any agency or
instrumentality of any of the foregoing not be treated as section
38 property, that for purposes of that prohibition the
International Telecommunications Satellite Consortium, the
International Maritime Satellite Organization, and any successor
organization of such Consortium or Organization not be treated as
an international organization, and that if any qualified
rehabilitated building were used by the governmental unit pursuant
to a lease, this paragraph would not apply to that portion of the
basis of such building attributable to qualified rehabilitation
expenditures.
Subsec. (b). Pub. L. 98-369, Sec. 114(a), amended subsec. (b)
generally, substituting a general definition of ''new section 38
property'' for definitions which made reference to property
constructed, reconstructed or erected after December 31, 1961, and
adding pars. (2) and (3).
Subsec. (c)(2)(A). Pub. L. 98-369, Sec. 11(a), substituted
''$125,000 ($150,000 for taxable years beginning after 1987)'' for
''$150,000 ($125,000 for taxable years beginning in 1981, 1982,
1983, or 1984)'' in first sentence, and ''$125,000 (or $150,000''
for ''$150,000 (or $125,000'' in two places in second sentence.
Subsec. (c)(2)(B). Pub. L. 98-369, Sec. 11(b), substituted
''$62,500 ($75,000 for taxable years beginning after 1987)'' for
''$75,000 ($62,500 for taxable years beginning in 1981, 1982, 1983,
or 1984)''.
Subsec. (c)(3)(B). Pub. L. 98-369, Sec. 474(o)(10), substituted
''section 39'' for ''section 46(b)''.
Subsec. (d)(1)(B). Pub. L. 98-369, Sec. 474(o)(11), substituted
''section 38(c)(3)(B)'' for ''section 46(a)(6)''.
Subsec. (d)(6). Pub. L. 98-369, Sec. 431(c), added par. (6).
Subsec. (f)(3). Pub. L. 98-369, Sec. 474(o)(12), struck out par.
(3) which provided that the $25,000 amount specified under
subparagraphs (A) and (B) of section 46(a)(3) applicable to an
estate or trust be reduced to an amount which bore the same ratio
to $25,000 as the amount of the qualified investment allocated to
the estate or trust under paragraph (1) to the entire amount of the
qualified investment.
Subsec. (g)(1)(E). Pub. L. 98-369, Sec. 1043(a), added subpar.
(E).
Subsec. (g)(2)(A)(i). Pub. L. 98-369, Sec. 111(e)(8)(A), (B),
substituted ''real property'' for ''property'' in two places, and
''18 (15 years in the case of low-income housing)'' for ''15''.
Subsec. (g)(2)(B)(i). Pub. L. 98-369, Sec. 31(c)(2), inserted
''The preceding sentence shall not apply to any expenditure to the
extent subsection (f)(12) or (j) of section 168 applies to such
expenditure.''
Subsec. (g)(2)(B)(v). Pub. L. 98-369, Sec. 111(e)(8)(C),
substituted ''18 years (15 years in the case of low-income
housing)'' for ''15 years''.
Subsec. (g)(2)(B)(vi). Pub. L. 98-369, Sec. 31(c)(1), added cl.
(vi).
Subsec. (g)(2)(D). Pub. L. 98-369, Sec. 111(e)(8)(D), added
subpar. (D).
Subsec. (k)(4). Pub. L. 98-369, Sec. 113(b)(3)(B), inserted ''or
at-risk rules'' after ''test'' in heading.
Subsec. (k)(4)(A). Pub. L. 98-369, Sec. 113(b)(3)(A), inserted
'', section 46(c)(8), or section 46(c)(9)''.
Subsec. (k)(4)(B). Pub. L. 98-369, Sec. 113(b)(3)(C), substituted
''used'' for ''issued''.
Subsec. (k)(5)(D)(i). Pub. L. 98-369, Sec. 721(x)(1), substituted
''S corporation'' for ''electing small business corporation''.
Subsec. (l)(1). Pub. L. 98-369, Sec. 474(o)(13), substituted
''section 46(b)(2)'' for ''section 46(a)(2)(C)''.
Subsec. (l)(16)(B)(i). Pub. L. 98-369, Sec. 735(c)(1),
substituted ''the chassis of which is an automobile bus chassis and
the body of which is an automobile bus body'' for ''the chassis and
body of which is exempt under section 4063(a)(6) from the tax
imposed by section 4061(a)''.
Subsec. (m). Pub. L. 98-369, Sec. 474(o)(14), substituted
''subsection (b)'' for ''subsection (a)(2)''.
Subsec. (n). Pub. L. 98-369, Sec. 474(o)(15), repealed subsec.
(n). For continuing applicability of par. (4) of subsec. (n), see
section 474(o)(15) of Pub. L. 98-369, set out in Effective Date of
1984 Amendment note below.
Subsec. (o)(3) to (8). Pub. L. 98-369, Sec. 474(o)(16),
redesignated par. (8) as (3) and struck out former pars. (3) to (7)
which defined ''employee plan credit'', ''basic employee plan
credit'', ''matching employee plan credit'', ''basic employee plan
percentage'', and ''matching employee plan percentage'',
respectively.
Subsec. (q)(1), (3). Pub. L. 98-369, Sec. 474(o)(17)(A),
substituted ''section 46(a)'' for ''section 46(a)(2)''.
Subsec. (q)(4)(A)(i). Pub. L. 98-369, Sec. 474(o)(17),
substituted ''section 46(a)'' for ''section 46(a)(2)'' and
''section 46(b)(1)'' for ''section 46(a)(2)(B)''.
Subsec. (q)(4)(B)(ii). Pub. L. 98-369, Sec. 474(o)(17)(B),
substituted ''section 46(b)(1)'' for ''section 46(a)(2)(B)''.
Subsec. (q)(6). Pub. L. 98-369, Sec. 712(b), added par. (6)
relating to adjustment in basis of interest in partnership or S
corporation.
Pub. L. 98-369, Sec. 113(b)(4), added par. (6) relating to
special rule for qualified films.
Subsec. (r). Pub. L. 98-369, Sec. 113(a)(1), added subsec. (r).
Former subsec. (r) redesignated (s).
Pub. L. 98-369, Sec. 474(o)(18), substituted ''section
381(c)(26)'' for ''section 381(c)(23)''.
Subsec. (s). Pub. L. 98-369, Sec. 113(a)(1), redesignated former
subsec. (r) as (s).
1983 - Subsec. (a)(1)(G). Pub. L. 97-448, Sec. 102(e)(2)(A),
inserted ''(not including a building and its structural components)
used in connection'' after ''storage facility''.
Subsec. (a)(10). Pub. L. 97-448, Sec. 202(c), amended directory
language of Pub. L. 96-223, Sec. 223(a)(1), to correct an error,
and did not involve any change in text. See 1980 Amendment note
below.
Subsec. (g)(1)(C)(i). Pub. L. 97-448, Sec. 102(f)(2), (6),
substituted ''the 24-month period selected by the taxpayer (at the
time and in the manner prescribed by regulation) and ending with or
within the taxable year'' for ''the 24-month period ending on the
last day of the taxable year'' in provisions preceding subcl. (I),
substituted ''adjusted basis of such building (and its structural
components)'' for ''adjusted basis of such property'' both in
subcl. (I) and in provision following subcl. (II), and, in
provisions following subcl. (II), substituted ''holding period of
the building'' for ''holding period of the property'' and inserted
provision that, for purposes of the preceding sentence, the
determination of the beginning of the holding period shall be made
without regard to any reconstruction by the taxpayer in connection
with the rehabilitation.
Subsec. (g)(5)(A). Pub. L. 97-448, Sec. 102(f)(3), substituted
''a credit is determined under section 46(a)(2)'' for ''a credit is
allowed under this section'' and ''the credit so determined'' for
''the credit so allowed''. See 1982 Amendment note for subsec.
(g)(5) below and see Effective Date of 1982 and 1983 Amendment
notes set out under sections 1 and 196 of this title.
Subsec. (l)(5). Pub. L. 97-424, Sec. 546(a)(3), substituted
reference to subpar. (N) for reference to subpar. (M) in provision
following subparagraphs.
Subsec. (l)(5)(M), (N). Pub. L. 97-424, Sec. 546(a)(1), (2),
added subpar. (M) and redesignated former subpar. (M) as (N).
Subsec. (q)(3). Pub. L. 97-448, Sec. 306(a)(3), substituted
''paragraphs (1) and (2) of this subsection and paragraph (5) of
subsection (d)'' for ''paragraphs (1) and (2)''.
1982 - Subsec. (b). Pub. L. 97-248, Sec. 209(c), inserted
provision that for purposes of determining whether section 38
property subject to a lease is new section 38 property, such
property shall be treated as originally placed in service not
earlier than the date such property is used under the lease, but
only if such property is leased within 3 months after such property
is placed in service.
Subsec. (c)(2)(D). Pub. L. 97-354 substituted ''Partnerships and
S corporations'' for ''Partnerships'' in subpar. heading, and
inserted ''A similar rule shall apply in the case of an S
corporation and its shareholders''.
Subsec. (d)(5). Pub. L. 97-248, Sec. 205(a)(4), added par. (5).
Subsec. (e). Pub. L. 97-354, Sec. 5(a)(7), struck out subsec. (e)
relating to apportionment among shareholders of qualified
investments by an electing small business corporation.
Subsec. (g)(5). Pub. L. 97-248, Sec. 205(a)(5)(A), struck out
par. (5) which, as amended by Sec. 102(f)(3) of Pub. L. 97-448, had
provided that for purposes of this subtitle, if a credit were
determined under section 46(a)(2) for any qualified rehabilitation
expenditure in connection with a qualified rehabilitated building
other than a certified historic structure, the increase in basis of
such property which would (but for this paragraph) have resulted
from such expenditure had to be reduced by the amount of the credit
so determined, that if during any taxable year there was a
recapture amount determined with respect to any qualified
rehabilitated building the basis of which was reduced under subpar.
(A), the basis of such building (immediately before the event
resulting in such recapture), had to be increased by an amount
equal to such recapture amount, and that for purposes of this
paragraph ''recapture amount'' was defined as any increase in tax
(or adjustment in carrybacks or carryovers) determined under
section 47(a)(5). See 1983 Amendment note for subsec. (g)(5) above
and see Effective Date of 1982 and 1983 Amendment notes set out
under sections 1 and 196 of this title.
Subsec. (k)(5)(D)(i). Pub. L. 97-354, Sec. 5(a)(8), substituted
''an S corporation'' for ''an electing small business corporation
(within the meaning of section 1371)''.
Subsec. (l)(7). Pub. L. 97-362, Sec. 104(a), temporarily
substituted the qualification that such term does not include
equipment for hydrogenation, refining, or other process subsequent
to retorting other than hydrogenation or other process which is
applied in the vicinity of the property from which the shale was
extracted and which is applied to bring the shale oil to a grade
and quality suitable for transportation to and processing in a
refinery, for the qualification that such equipment did not include
equipment for hydrogenation, refining, or other processes
subsequent to retorting. See Effective and Termination Dates of
1982 Amendment note below.
Subsecs. (q), (r). Pub. L. 97-248, Sec. 205(a)(1), added subsec.
(q) and redesignated former subsec. (q) as (r).
1981 - Subsec. (a)(1). Pub. L. 97-34, Sec. 211(e)(4), in
provisions following subpar. (G), substituted ''Such term includes
only recovery property (within the meaning of section 168 without
regard to any useful life) and any other property'' for ''Such term
includes only property''.
Subsec. (a)(1)(G). Pub. L. 97-34, Sec. 211(c), added subpar. (G).
Subsec. (a)(2)(B)(ii). Pub. L. 97-34, Sec. 211(h), designated
existing provisions as subcl. (I) and added subcl. (II).
Subsec. (a)(3)(D). Pub. L. 97-34, Sec. 212(c), added subpar. (D).
Subsec. (a)(4). Pub. L. 97-34, Sec. 214(a), inserted provision
that, if any qualified rehabilitated building is used by the
tax-exempt organization pursuant to a lease, this paragraph shall
not apply to that portion of the basis of such building which is
attributable to qualified rehabilitation expenditures.
Subsec. (a)(5). Pub. L. 97-34, Sec. 214(b), inserted provision
that, if any qualified rehabilitated building is used by the
governmental unit pursuant to a lease, this paragraph shall not
apply to that portion of the basis of such building which is
attributable to qualified rehabilitation expenditures.
Subsec. (a)(8). Pub. L. 97-34, Sec. 212(d)(2)(A), substituted
''or 188'' for ''188, or 191''.
Subsec. (a)(9). Pub. L. 97-34, Sec. 211(a)(2), struck out par.
(9) which set out a special rule for the depreciation of railroad
track.
Subsec. (c)(2)(A) to (C). Pub. L. 97-34, Sec. 213(a), amended
subpars. (A) to (C) generally raising in subpar. (A) the existing
$100,000 dollar limitation to $125,000 in 1981 and to $150,000 in
1985 and in subpar. (B) the existing $50,000 dollar limitation to
$62,500 in 1981 and to $75,000 in 1985.
Subsec. (g). Pub. L. 97-34, Sec. 212(b), in amending subsec. (c)
generally incorporated the concept of ''substantial
rehabilitation'' into par. (1)(A), substituted ''30 years'' for
''20 years'' as the requisite period in par. (1)(B), substituted a
definition of ''substantially rehabilitated'' for former provisions
that a major portion could be treated as a separate building in
certain cases in par. (1)(C), reenacted par. (1)(D) without change,
substituted ''December 31, 1981'' for ''October 31, 1978'' in
provisions of par. (2)(A) preceding cl. (i), substituted provisions
for a recovery period of 15 years for provisions that had provided
for a useful life of 5 years or more in cl. (i) of par. (2)(A),
reenacted cl. (ii) without change, substituted provisions that
accelerated methods of depreciation may not be used for provisions
relating to property otherwise section 38 property in cl. (i) of
par. (2)(B), reenacted cls. (ii) and (iii) without change, revised
the provisions of cl. (iv) relating to certified historic
structures, and added cl. (v) relating to expenditures of lessees,
added par. (3), redesignated former par. (3) as (4), and added par.
(5).
Subsec. (l)(2)(C). Pub. L. 97-34, Sec. 211(e)(3), inserted ''or
which is recovery property (within the meaning of section 168)''
after ''3 years or more''.
Subsec. (n)(1)(A)(i). Pub. L. 97-34, Sec. 332(b), substituted
''which does not exceed'' for ''equal to''.
Subsec. (o)(8). Pub. L. 97-34, Sec. 212(a)(3), added par. (8).
1980 - Subsec. (a)(1). Pub. L. 96-451 added subpar. (F) and
provision for treatment of the useful life of subpar. (F) property
as its normal growing period.
Subsec. (a)(2)(B)(xi). Pub. L. 96-223, Sec. 222(i)(2), added cl.
(xi).
Subsec. (a)(5). Pub. L. 96-605, Sec. 109(a), included the
International Maritime Satellite Organization or any successor
organization within organizations not to be treated as
international organizations.
Subsec. (a)(7)(B). 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. (a)(10)(A). Pub. L. 96-223, Sec. 223(a)(1), as amended by
Pub. L. 97-448, Sec. 202(c), provided that ''petroleum or petroleum
products'' does not include petroleum coke or petroleum pitch.
Subsec. (a)(10)(B). Pub. L. 96-222, Sec. 108(c)(6), substituted
''5'' for ''51''.
Subsec. (g)(2)(B)(i). Pub. L. 96-222, Sec. 103(a)(4)(B),
substituted ''subsections (a)(1)(E) and (l)'' for ''subsection
(a)(1)(E)''.
Subsec. (l)(1). Pub. L. 96-223, Sec. 221(b)(1), substituted ''For
any period for which the energy percentage determined under section
46(a)(2)(C) for any energy property is greater than zero'' for
''For the period beginning on October 1, 1978, and ending on
December 31, 1982'' in provisions preceding subpar. (A) and, in
subpars. (A) and (B), substituted ''such energy property'' and
''such property'' for ''any energy property''.
Subsec. (l)(2)(A). Pub. L. 96-223, Sec. 222(a), added cls. (vii),
(viii), and (ix).
Subsec. (l)(3)(A). Pub. L. 96-223, Sec. 222(b), (g)(2), struck
out ''(other than coke or coke gas)'' after ''solid fuel'' in cl.
(iii) and, in cl. (v), substituted provisions relating to equipment
which converts coal into a substitute for a petroleum or natural
gas derived feedstock for the manufacture of chemicals or other
products and equipment which converts coal into methanol, ammonia,
or hydroprocessed coal liquid or solid for provisions which had
related simply to equipment which used coal as feedstock for the
manufacture of chemicals or other products other than coke or coke
gas, added cl. (ix), and, following cl. (ix), inserted provision
that the equipment described in cl. (vii) includes equipment used
for the storage of fuel derived from garbage at the site at which
such fuel was produced from garbage.
Subsec. (l)(3)(B). Pub. L. 96-223, Sec. 222(i)(1)(A),
redesignated subpar. (C) as (B). Former subpar. (B), which excluded
public utility property from the terms ''alternative energy
property'', ''solar or wind energy property'', or ''recycling
equipment'', was struck out.
Subsec. (l)(3)(C), (D). Pub. L. 96-223, Sec. 222(i)(1)(A), (3),
redesignated subpar. (D) as (C) and inserted following cl. (ii)
provision that, for the purposes of the preceding sentence, in the
case of property which is alternative energy property solely by
reason of the amendments made by section 222(b) of the Crude Oil
Windfall Profit Tax Act of 1980, ''January 1, 1980'' was to be
substituted for ''October 1, 1978''. Former subpar. (C)
redesignated (B).
Subsec. (l)(4)(C). Pub. L. 96-223, Sec. 222(c), added subpar.
(C).
Subsec. (l)(5). Pub. L. 96-223, Sec. 222(d), added subpar. (L),
redesignated former subpar. (L) as (M), and inserted provision that
the Secretary shall not specify any property under subpar. (M)
unless he determines that such specification meets the requirements
of par. (9) of section 44C(c) for specification of items under
section 44C(c)(4)(A)(viii).
Subsec. (l)(11). Pub. L. 96-223, Sec. 221(b)(2), substituted
''one-half of the energy percentage determined under section
46(a)(2)(C)'' for ''5 percent''.
Pub. L. 96-223, Sec. 223(c)(1), completely revised par. (11) to
incorporate property financed by subsidized energy financing,
effective with regard to periods after Dec. 31, 1982. Prior to the
revision par. (11) read as follows: ''In the case of property which
is financed in whole or in part by the proceeds of an industrial
development bond (within the meaning of section 103(b)(2)) the
interest on which is exempt from tax under section 103, the energy
percentage shall be one-half of the energy percentage determined
under section 46(a)(2)(C).''
Subsec. (l)(13). Pub. L. 96-223, Sec. 222(e)(1), added par. (13).
Subsec. (l)(14). Pub. L. 96-223, Sec. 222(f), added par. (14).
Subsec. (l)(15). Pub. L. 96-223, Sec. 222(g)(1), added par. (15).
Subsec. (l)(16). Pub. L. 96-223, Sec. 222(h), added par. (16).
Subsec. (l)(17). Pub. L. 96-223, Sec. 222(i)(1)(B), added par.
(17).
Subsec. (n). Pub. L. 96-222, Sec. 101(a)(7)(G), (H),
(L)(i)(I)-(IV), (ii)(III)-(VI), (iii)(II), (v)(II)-(IV), (M)(ii),
amended subsec. (n) generally to reflect the renaming of an
investment tax credit ESOP to a tax credit employee stock ownership
plan and a leveraged employee stock ownership plan (commonly
referred to as an ESOP) to an employee stock ownership plan.
Subsec. (n)(6)(B)(i). Pub. L. 96-605, Sec. 223(a), substituted
''the date on which the securities are contributed to the plan''
for ''the due date for filing the return for the taxable year
(determined with regard to extensions)''.
Subsec. (o). Pub. L. 96-222, Sec. 101(a)(7)(L)(iii)(III),
(v)(IV), (V), (M)(iii), substituted ''employee plan'' for ''ESOP''
wherever appearing and inserted ''percentage'' after ''attributable
to the matching employee plan'' in par. (5).
1978 - Subsec. (a)(1)(A). Pub. L. 95-618, Sec. 301(d)(1),
inserted ''(other than an air conditioning or heating unit)'' after
''personal property''.
Subsec. (a)(1)(D). Pub. L. 95-600, Sec. 314(a), added par. (D).
Subsec. (a)(1)(E). Pub. L. 95-600, Sec. 315(a), added par. (E).
Subsec. (a)(2)(B)(ii). Pub. L. 95-473, Sec. 2(a)(2)(A),
substituted ''providing transportation subject to subchapter I of
chapter 105 of title 49'' for ''subject to part I of the Interstate
Commerce Act''.
Subsec. (a)(7)(A). Pub. L. 95-600, Sec. 312(c)(3), struck out
''(other than pretermination property)'' after ''Property''.
Subsec. (a)(7)(B). Pub. L. 95-600, Sec. 312(c)(2), struck out
''described in section 50'' after ''with respect to property''.
See 1980 Amendment note above.
Subsec. (a)(8). Pub. L. 95-600, Sec. 315(c), substituted ''188,
or 191'' for ''or 188''.
Subsec. (a)(10). Pub. L. 95-618, Sec. 301(d)(2), added par. (10).
Subsec. (d)(1)(B). Pub. L. 95-600, Sec. 703(a)(3), substituted
''section 46(a)(6)'' for ''section 46(a)(5)''.
Subsec. (d)(4)(D). Pub. L. 95-600, Sec. 703(a)(4), substituted
''section 57(c)(1)(B)'' for ''section 57(c)(2)''.
Subsec. (g). Pub. L. 95-600, Sec. 315(b), added subsec. (g).
Subsec. (h). Pub. L. 95-600, Sec. 312(c)(1), struck out subsec.
(h) which related to suspension of investment credit.
Subsec. (i). Pub. L. 95-600, Sec. 312(c)(1), struck out subsec.
(i) which related to an exemption from suspension of $20,000 of
investment.
Subsec. (j). Pub. L. 95-600, Sec. 312(c)(1), struck out subsec.
(j) which defined ''suspension period''.
Subsecs. (l), (m). Pub. L. 95-618, Sec. 301(b), added subsecs.
(l) and (m) and redesignated former subsec. (l) as (n).
Subsec. (n). Pub. L. 95-618, Sec. 301(b), redesignated former
subsec. (l) as (n).
Pub. L. 95-600, Sec. 141(b), added subsec. (n). Former subsec.
(n) redesignated (p).
Subsec. (o). Pub. L. 95-600, Sec. 141(b), added subsec. (o).
Subsecs. (p), (q). Pub. L. 95-600, Sec. 141(b), 314(b), added
subsec. (p). Former subsec. (n) redesignated (p) and subsequently
as (q).
1976 - Subsec. (a)(2)(B)(vi). Pub. L. 94-455, Sec. 1901(a)(5)(A),
substituted ''(43 U.S.C. 1331))'' for ''; 43 U.S.C., sec. 1331)''.
Subsec. (a)(2)(B)(vii). Pub. L. 94-455, Sec. 1051(h)(1),
substituted ''(other than a corporation which has an election in
effect under section 936 or which is entitled to the benefits of
section 934(b))'' for ''(other than a corporation entitled to the
benefits of section 931 or 934(b))''.
Subsec. (a)(2)(B)(viii). Pub. L. 94-455, Sec. 1901(a)(5)(B),
substituted ''47 U.S.C. 702'' for ''47 U.S.C., sec. 702''.
Subsec. (a)(8). Pub. L. 94-455, Sec. 1901(b)(11)(A), 2112(a)(1),
struck out ''169,'' after ''section 167(k),'', ''187,'' before ''or
188 applies'', and provisions relating to the limitation of the
applicability of this paragraph on property to which section 169
applies.
Subsecs. (c)(2)(A), (d)(1), (2)(A). Pub. L. 94-455, Sec.
1906(b)(13)(A), struck out ''or his delegate'' after ''Secretary''.
Subsec. (f). Pub. L. 94-455, Sec. 802(b)(6), substituted
''section 46(a)(3)'' for ''section 46(a)(2)''.
Subsec. (i)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
''or his delegate'' after ''Secretary''.
Subsecs. (k), (l). Pub. L. 94-455, Sec. 804(a), added subsec. (k)
and redesignated former subsec. (k) as subsec. (l).
1975 - Subsec. (a)(2)(B). Pub. L. 94-12, Sec. 604(a), substituted
''territorial waters within the northern portion of the Western
Hemisphere'' for ''territorial waters'' in cl. (x) and inserted
definition of ''northern portion of the Western Hemisphere''
following cl. (x).
Subsec. (c)(2)(A). Pub. L. 94-12 Sec. 301(c)(1)(A), substituted
''$100,000'' for ''$50,000''.
Subsec. (c)(2)(B). Pub. L. 94-12, Sec. 301(c)(1)(A), (B),
substituted ''$50,000'' for ''$25,000'' and ''$100,000'' for
''$50,000''.
Subsec. (c)(2)(C). Pub. L. 94-12, Sec. 301(c)(1)(A), substituted
''$100,000'' for ''$50,000''.
Subsec. (d)(1), (2)(A). Pub. L. 94-12, Sec. 302(c)(3),
substituted ''section 46(e)(1)'' for ''section 46(d)(1)''.
1971 - Subsec. (a)(1). Pub. L. 92-178, Sec. 102(a)(2),
substituted ''3 years'' for ''4 years'' in second sentence.
Subsec. (a)(1)(B)(ii), (iii). Pub. L. 92-178, Sec. 104(a)(1),
substituted ''research facility'' for ''research or storage
facility'' in cl. (ii) and added cl. (iii).
Subsec. (a)(2)(B). Pub. L. 92-178, Sec. 104(c)(2), (3), (d),
added cls. (viii) to (x), respectively.
Subsec. (a)(3)(C). Pub. L. 92-178, Sec. 104(b), added subpar.
(C).
Subsec. (a)(5). Pub. L. 92-178, Sec. 104(c)(1), inserted ''(other
than the International Telecommunications Satellite Consortium or
any successor organization)'' after ''international organization''.
Subsec. (a)(6). Pub. L. 92-178, Sec. 104(e), substituted
provisions for treatment of livestock (other than horses) acquired
by the taxpayer as section 38 property, with exception provision
for reduction of acquisition cost by amount equal to amount
realized on sale or other disposition under certain circumstances,
and for nontreatment of horses as section 38 property for former
provision that livestock shall not be treated as section 38
property.
Subsec. (a)(7) to (9). Pub. L. 92-178, Sec. 103, 104(f)(1), (g),
added pars. (7) to (9), respectively.
Subsec. (d). Pub. L. 92-178, Sec. 108(b) and (c), substituted
''section 46(d)(1)'' for ''section 46(d)''; and designated as par.
(1) the present first sentence, redesignated as subpars. (A) and
(B) provisions formerly designated cls. (1) and (2), again
substituted ''section 46(d)(1)'' for ''section 46(d)'' in par. (1)
and inserted ''(other than property described in paragraph (4))''
in par. (1), added pars. (2) and (4), incorporated provisions of
former second, third, and fourth sentences in provisions designated
as par. (3), substituted in par. (3) ''the lessee shall be treated
for all purposes of this subpart as having acquired a fractional
portion of such property equal to the fraction determined under
paragraph (2)(B) with respect to such property'' for ''the lessee
shall be treated for all purposes of this subpart as having
acquired such property'', and struck out former fifth and sixth
sentences respecting election regarding treatment of leases of
suspension period property and section 38 property. See Effective
Date of 1971 Amendment note below.
1969 - Subsec. (a)(4). Pub. L. 91-172, Sec. 121(d)(2)(A),
inserted provision relating to the percentage of the basis or cost
of debt-financed property that may be considered in computing
qualified investment under section 46(c) of this title.
Subsec. (c)(2)(C). Pub. L. 91-172, Sec. 401(e)(2), reenacted
subpar. (C) with minor changes and substituted reference to
controlled group for reference to affiliated group.
Subsec. (c)(3)(C). Pub. L. 91-172, Sec. 401(e)(3), substituted
definition of controlled group for definition of affiliated group.
Subsec. (d)(2). Pub. L. 91-172, Sec. 401(e)(4), substituted
reference to a component member of a controlled group for reference
to a member of an affiliated group.
1967 - Subsec. (a)(2)(B)(i). Pub. L. 90-26, Sec. 3, inserted ''or
is operated under contract with the United States'' after ''the
United States''.
Subsec. (h)(2). Pub. L. 90-26, Sec. 2(a), limited definition of
suspension period property to section 38 property where the
physical construction, reconstruction or erection was begun before
May 24, 1967, pursuant to an order placed during the suspension
period, subject to the proviso that in applying the definition to
property the physical construction, reconstruction or erection of
which was begun before May 24, 1967, only that portion of the basis
properly attributable to construction, reconstruction or erection
before May 24, 1967 be taken into account.
Subsec. (j). Pub. L. 90-26, Sec. 1, substituted ''March 9, 1967''
for ''December 31, 1967''.
1966 - Subsec. (a)(2)(B). Pub. L. 89-809 added cl. (vii).
Subsec. (d). Pub. L. 89-800, Sec. 1(b), inserted provisions
covering the treatment of suspension period property, and the
elections to be deemed made in connection therewith.
Subsecs. (h) to (k). Pub. L. 89-800, Sec. 1(a), added subsecs.
(h) to (j) and redesignated former subsec. (h) as (k).
1964 - Subsec. (a)(1)(C). Pub. L. 88-272, Sec. 203(c)(2), added
subpar. (C).
Subsec. (d). Pub. L. 88-272, Sec. 203(a)(3)(A), (b), substituted
''except as provided in paragraph (2)'' for ''if such property was
constructed by the lessor (or by a corporation which controls or is
controlled by the lessor within the meaning of section 368(c))'' in
par. (1), ''if such property is leased by a corporation which is a
member of an affiliated group (within the meaning of section
46(a)(5) to another corporation which is a member of the same
affiliated group'' for ''if paragraph (1) does not apply'' in par.
(2), and deleted provisions which stated that if a lessor made an
election under this subsection, subsec. (g) would not apply with
respect to such property, and deductions otherwise allowable under
section 162 to the lessee for amounts paid the lessor would be
adjusted consistent with subsec. (g).
Subsec. (g). Pub. L. 88-272, Sec. 203(a)(1), repealed subsec. (g)
which required that the basis of section 38 property be reduced by
7 percent of the qualified investment.
EFFECTIVE DATE OF 2005 AMENDMENT
Amendments by Energy Policy Act 2005, Sec.1336 and 1337,
shall apply to periods after December 31, 2005, in taxable
years ending after such date, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986
(as in effect on the day before the date of the enactment of
the Revenue Reconciliation Act of 1990).
EFFECTIVE DATE OF 1992 AMENDMENT
Section 1916(b) of Pub. L. 102-486 provided that: ''The
amendments made by this section (amending this section) shall take
effect on June 30, 1992.''
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 1988 AMENDMENT
Amendment by 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
If any interest costs incurred after Dec. 31, 1986, are
attributable to costs incurred before Jan. 1, 1987, the amendment
by section 803(b)(2)(B) of Pub. L. 99-514 is applicable to such
interest costs only to the extent such interest costs are
attributable to costs which were required to be capitalized under
section 263 of the Internal Revenue Code of 1954 and which would
have been taken into account in applying section 189 of the
Internal Revenue Code of 1954 (as in effect before its repeal by
section 803 of Pub. L. 99-514) or, if applicable, section 266 of
such Code, see section 7831(d)(2) of Pub. L. 101-239, set out as an
Effective Date note under section 263A of this title.
Amendment by section 251(b), (c) of Pub. L. 99-514 applicable to
property placed in service after Dec. 31, 1986, in taxable years
ending after such date, except as otherwise provided for certain
rehabilitations, see section 251(d) of Pub. L. 99-514, set out as a
note under section 46 of this title.
Amendment by section 701(e)(4)(C) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, with certain
exceptions and qualifications, see section 701(f) of Pub. L.
99-514, set out as an Effective Date note under section 55 of this
title.
Amendment by section 803(b)(2)(B) of Pub. L. 99-514 applicable to
costs incurred after Dec. 31, 1986, in taxable years ending after
such date, except as otherwise provided, see section 803(d) of Pub.
L. 99-514, set out as an Effective Date note under section 263A of
this title.
Amendment by sections 1272(d)(5) and 1275(c)(5) of Pub. L. 99-514
applicable to taxable years beginning after Dec. 31, 1986, with
certain exceptions and qualifications, see section 1277 of Pub. L.
99-514, set out as a note under section 931 of this title.
Amendment by section 1511(c)(3) of Pub. L. 99-514 applicable for
purposes of determining interest for periods after Dec. 31, 1986,
see section 1511(d) of Pub. L. 99-514, set out as a note under
section 47 of this title.
Section 1879(j)(2) of Pub. L. 99-514 provided that: ''The
amendments made by this subsection (amending this section) shall
apply to periods after December 31, 1978 (under rules similar to
the rules of section 48(m) of the Internal Revenue Code of 1954
(now 1986)), in taxable years ending after such date.''
Section 1881 of title XVIII of Pub. L. 99-514 provided that:
''Except as otherwise provided in this subtitle, any amendment made
by this subtitle (subtitle A (Sec. 1801-1881) of title XVIII of
Pub. L. 99-514, see Tables for classification) shall take effect as
if included in the provision of the Tax Reform Act of 1984 (Pub. L.
98-369, div. A) to which such amendment relates.''
EFFECTIVE DATE OF 1985 AMENDMENT
Amendment by Pub. L. 99-121 applicable with respect to property
placed in service by the taxpayer after May 8, 1985, with specified
exceptions, but amendment of subsec. (g)(2)(B)(v) not applicable to
leases entered into before May 22, 1985, if the lessee signed the
lease before May 17, 1985, see section 105(b)(1), (5) of Pub. L.
99-121, set out as a note under section 168 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Section 18 of Pub. L. 98-369 provided that:
''(a) General Rule. - The amendments made by this part (part I
(Sec. 11-18) of subtitle A of title I of div. A of Pub. L. 98-369,
amending this section and sections 41, 46, 57, 128, 168, 179, 265,
415, 854, 857, and 911 of this title, enacting provisions set out
as a note under section 168 of this title, and amending provisions
set out as notes under sections 128 and 168 of this title) shall
apply to taxable years ending after December 31, 1983.
''(b) Special Rule for Section 14. - The amendment made by
section 14 (amending section 41 of this title) shall not apply in
the case of a tax credit employee stock ownership plan if -
''(1) such plan was favorably approved on September 23, 1983,
by employees, and
''(2) not later than January 11, 1984, the employer of such
employees was 100 percent owned by such plan.''
Amendment by section 31(b), (c)(1) 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 May 23, 1983,
in taxable years ending after such date and to property placed in
service by the taxpayer on or before May 23, 1983, if the lease to
the tax-exempt entity is entered into after May 23, 1983, and
amendment by section 31(c)(2) of Pub. L. 98-369, to the extent it
relates to section 168(f)(12) of this title, effective as if it had
been included in the amendments to section 168 of this title by
section 216(a) of Pub. L. 97-248, see section 31(g)(1), (12) of
Pub. L. 98-369, set out as a note under section 168 of this title.
Amendment by section 111(e)(8) of Pub. L. 98-369 applicable with
respect to property placed in service by the taxpayer after Mar.
15, 1984, subject to certain exceptions, see section 111(g) of Pub.
L. 98-369, set out as a note under section 168 of this title.
Amendment by section 113(b)(3) of Pub. L. 98-369 applicable as if
included in the amendments made by sections 201(a), 211(a)(1), and
211(f)(1) of Pub. L. 97-34, which enacted section 168 and amended
section 46 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.
Amendment by section 113(b)(4) of Pub. L. 98-369 applicable as if
included in the amendments made by section 205(a)(1) of Pub. L.
97-248, see section 113(c)(2)(C) of Pub. L. 98-369, set out as a
note under section 168 of this title.
Section 113(c)(1) of Pub. L. 98-369 provided that: ''The
amendments made by subsection (a) (amending this section and
section 168 of this title) shall apply to property placed in
service after March 15, 1984, in taxable years ending after such
date.''
Section 114(b) of Pub. L. 98-369 provided that: ''The amendment
made by this section (amending this section) shall apply to
property originally placed in service after April 11, 1984
(determined without regard to such amendment).''
Amendment by section 431(c) of Pub. L. 98-369 applicable to
property placed in service after July 18, 1984, in taxable years
ending after such date, but not applicable to property to which
sections 46(c)(8), (9) and 47(d) of this title, as enacted by
section 211(f) of Pub. L. 97-34, do not apply, with the taxpayer
having an option to elect retroactive application of amendment by
Pub. L. 98-369, see section 431(e) of Pub. L. 98-369, set out as a
note under section 46 of this title.
Amendment by section 474(o)(10)-(18) 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.
Section 474(o)(15) of Pub. L. 98-369, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''Subsection (n) of section 48 (relating to requirements for
allowance of employee plan percentage) is hereby repealed; except
that paragraph (4) of section 48(n) of the Internal Revenue Code of
1986 (formerly I.R.C. 1954) (as in effect before its repeal by this
paragraph) shall continue to apply in the case of any recapture
under section 47(f) of such Code of a credit allowable for a
taxable year beginning before January 1, 1984.''
Amendment by section 712(b) 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.
Amendment by section 721(x)(1) of Pub. L. 98-369 effective as if
included in the Subchapter S Revision Act of 1982, Pub. L. 97-354,
see section 721(y)(1) of Pub. L. 98-369, set out as a note under
section 1361 of this title.
Amendment by section 735(c)(1) of Pub. L. 98-369 effective,
except as otherwise provided, as if included in the provisions of
the Highway Revenue Act of 1982, title V of Pub. L. 97-424, to
which such amendment relates, see section 736 of Pub. L. 98-369,
set out as a note under section 4051 of this title.
Section 1043(b) of Pub. L. 98-369 provided that: ''The amendments
made by this section (amending this section) shall apply to
expenditures incurred after December 31, 1983, in taxable years
ending after such date.''
EFFECTIVE DATE OF 1983 AMENDMENT
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(c) 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.
Amendment by section 306(a)(3) of Pub. L. 97-448 effective as if
included in the provisions of the Tax Equity and Fiscal
Responsibility Act of 1982, Pub. L. 97-248, to which such amendment
relates, see section 311(d) of Pub. L. 97-448, set out as a note
under section 31 of this title.
EFFECTIVE AND TERMINATION DATES OF 1982 AMENDMENTS
Section 104(b) of Pub. L. 97-362, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''The
amendment made by this section (amending this section) shall apply
to periods beginning after December 31, 1980, and before January 1,
1983, under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (formerly I.R.C. 1954).''
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 205(a)(1), (4), (5)(A) of Pub. L. 97-248,
applicable to periods after Dec. 31, 1982, under rules similar to
the rules of subsec. (m) of this section, with certain exceptions
and qualifications, see section 205(c)(1) of Pub. L. 97-248, set
out as an Effective Date note under section 196 of this title.
Amendment by section 209(c) of Pub. L. 97-248 applicable to
property placed in service after Dec. 31, 1983, but not to
qualified leased property described in section 168(f)(8)(D)(v) of
this title which is placed in service before Jan. 1, 1988, or is
placed in service after such date pursuant to a binding contract or
commitment entered into before April 1, 1983, and solely because of
conditions which, as determined by the Secretary of the Treasury or
his delegate, are not within the control of the lessor or lessee,
see sections 208(d)(5) and 209(d)(2) of Pub. L. 97-248, set out as
notes under section 168 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 213(b) of Pub. L. 97-34, as amended by Pub. L. 97-448,
title I, Sec. 102(g), Jan. 12, 1983, 96 Stat. 2372, provided that:
''The amendment made by this section (amending this section) shall
apply to taxable years beginning after December 31, 1980.''
Section 214(c) of Pub. L. 97-34 provided that: ''The amendments
made by this section (amending this section) shall apply to uses
after July 29, 1980, in taxable years ending after such date.''
Section 332(c)(2) of Pub. L. 97-34 provided that: ''The amendment
made by subsection (b) (amending this section) shall apply to
qualified investments made after December 31, 1981.''
Amendment by section 211(a)(2), (e)(3), (4) of Pub. L. 97-34
applicable to property placed in service after Dec. 31, 1980, see
section 211(i)(1) of Pub. L. 97-34, set out as a note under section
46 of this title.
Amendment by section 211(c) of Pub. L. 97-34 applicable to
periods after Dec. 31, 1980, under rules similar to the rules under
subsec. (m) of this section, see section 211(i)(3) of Pub. L.
97-34, set out as a note under section 46 of this title.
Amendment by section 211(h) of Pub. L. 97-34 applicable to
taxable years beginning after Dec. 31, 1980, see section 211(i)(6)
of Pub. L. 97-34, set out as a note under section 46 of this title.
Amendment by section 212(a)(3), (b), (c), (d)(2)(A) of Pub. L.
97-34 applicable to expenditures incurred after Dec. 31, 1981, in
taxable years ending after such date, see section 212(e) of Pub. L.
97-34, set out as a note under section 46 of this title.
EFFECTIVE DATE OF 1980 AMENDMENTS
Section 109(b) of Pub. L. 96-605 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years beginning after December 31, 1979.''
Section 223(b) of Pub. L. 96-605 provided that: ''The amendments
made by subsection (a) (amending this section) shall apply with
respect to taxable years beginning after December 31, 1980.''
Section 302(b) of Pub. L. 96-451 provided that: ''The amendments
made by this section (amending this section) shall apply with
respect to additions to capital account made after December 31,
1979.''
Section 222(j) of Pub. L. 96-223, as amended by 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 section
46 of this title) shall apply to periods after December 31, 1979,
under rules similar to the rules of section 48(m) of the Internal
Revenue Code of 1986 (formerly I.R.C. 1954).
''(2) Alumina electrolytic cells. - The amendments made by
subsection (d)(1) (amending this section) shall apply to periods
after September 30, 1978, under rules similar to the rules of
section 48(m) of such Code.''
Section 223(a)(2) of Pub. L. 96-223, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''The
amendment made by paragraph (1) (amending this section) shall apply
to periods after December 31, 1979, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986
(formerly I.R.C. 1954).''
Section 223(c)(2) of Pub. L. 96-223, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(A) In general. - Except as provided in subparagraph (B), the
amendment made by paragraph (1) (amending this section) shall apply
to periods after December 31, 1982, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986
(formerly I.R.C. 1954).''
''(B) Earlier application for certain property. - In the case of
property which is -
''(i) qualified hydroelectric generating property (described in
section 48(l)(2)(A)(vii) of such Code),
''(ii) cogeneration equipment (described in section
48(l)(2)(A)(viii) of such Code),
''(iii) qualified intercity buses (described in section
48(l)(2)(A)(ix) of such Code),
''(iv) ocean thermal property (described in section
48(l)(3)(A)(ix) of such Code), or
''(v) expanded energy credit property,
the amendment made by paragraph (1) shall apply to periods after
December 31, 1979, under rules similar to the rules of section
48(m) of the Internal Revenue Code of 1986.
''(C) Expanded energy credit property. - For purposes of
subparagraph (B), the term 'expanded energy credit property' means
-
''(i) property to which section 48(l)(3)(A) of such Code
applies because of the amendments made by paragraphs (1) and (2)
of section 222(b) (amending this section),
''(ii) property described in section 48(l)(4)(C) of such Code
(relating to solar process heat),
''(iii) property described in section 48(l)(5)(L) of such Code
(relating to alumina electrolytic cells), and
''(iv) property described in the last sentence of section
48(l)(3)(A) of such Code (relating to storage equipment for
refuse-derived fuel).
''(D) Financing taken into account. - For the purpose of applying
the provisions of section 48(l)(11) of such Code in the case of
property financed in whole or in part by subsidized energy
financing (within the meaning of section 48(l)(11)(C) of such
Code), no financing made before January 1, 1980, shall be taken
into account. The preceding sentence shall not apply to financing
provided from the proceeds of any tax exempt industrial development
bond (within the meaning of section 103(b)(2) of such Code).''
Amendment by Pub. L. 96-222 effective, except as otherwise
provided, as if it had been included in the provisions of the
Revenue Act of 1978, Pub. L. 95-600, to which such amendment
relates, see section 201 of Pub. L. 96-222, set out as a note under
section 32 of this title.
Section 108(c)(7) of Pub. L. 96-222 provided that: ''Any
amendment made by this subsection (amending sections 4071, 4221,
6416, and 6421 of this title) shall take effect as if included in
the provision of the Energy Tax Act of 1978 (See Short Title of
1978 Amendment note set out under section 1 of this title) to which
such amendment relates; except that the amendment made by paragraph
(6) (amending this section) shall take effect on the first day of
the first calendar month which begins more than 10 days after the
date of the enactment of this Act (Apr. 1, 1980).''
EFFECTIVE DATE OF 1978 AMENDMENTS
Section 301(d)(4) of Pub. L. 95-618 provided that:
''(A) In general. - The amendments made by this subsection
(amending this section and section 167 of this title) shall apply
to property which is placed in service after September 30, 1978.
''(B) Binding contracts. - The amendments made by this subsection
(amending this section and section 167 of this title) shall not
apply to property which is constructed, reconstructed, erected, or
acquired pursuant to a contract which, on October 1, 1978, and at
all times thereafter, was binding on the taxpayer.''
Amendment by section 141(b) 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.
Amendment by section 312(c)(1), (2), (3) of Pub. L. 95-600
applicable to taxable years ending after Dec. 31, 1978, see section
312(d) of Pub. L. 95-600, set out as a note under section 46 of
this title.
Section 314(c) of Pub. L. 95-600 provided that: ''The amendments
made by subsections (a) and (b) (amending this section) shall apply
to taxable years ending after August 15, 1971.''
Section 315(d) of Pub. L. 95-600 provided that: ''The amendments
made by this section (amending this section) shall apply to taxable
years ending after October 31, 1978; except that the amendment made
by subsection (c) shall only apply with respect to property placed
in service after such date.''
Amendment by section 703(a)(3), (4) of Pub. L. 95-600 effective
on Oct. 4, 1976, see section 703(r) of Pub. L. 95-600, set out as a
note under section 46 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 802(b)(6) of Pub. L. 94-455 applicable to
taxable years beginning after Dec. 31, 1975, see section 802(c) of
Pub. L. 94-455, set out as a note under section 46 of this title.
Section 804(e) 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. - The amendments made by subsections (a) and
(b) (amending this section and section 47 of this title) shall
apply to taxable years beginning after December 31, 1974.
''(2) Election may also apply to property described in section
50(a). - At the election of the taxpayer, made within 1 year
after the date of the enactment of this Act (Oct. 4, 1976) in
such manner as the Secretary of the Treasury or his delegate may
by regulations prescribe, the amendments made by subsections (a)
and (b) shall also apply to property which is property described
in section 50(a) of the Internal Revenue Code of 1986 (formerly
I.R.C. 1954) and which is placed in service in taxable years
beginning before January 1, 1975.''
Amendment by section 1051(h)(1) of Pub. L. 94-455 applicable to
taxable years beginning after Dec. 31, 1975 with certain
exceptions, see section 1051(i) of Pub. L. 94-455, set out as a
note under section 27 of this title.
Amendment by section 1901(a)(5), (b)(11)(A) 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.
Amendment by section 2112(a) of Pub. L. 94-455 applicable to
property acquired by the taxpayer after Dec. 31, 1976, and
property, the construction, reconstruction, or erection of which
was completed by the taxpayer after Dec. 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, see section 2112(d)(1) of Pub. L.
94-455, set out as a note under section 46 of this title.
EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENT
Section 301(c)(2) of Pub. L. 94-12, as amended by Pub. L. 94-455,
title VIII, Sec. 801, Oct. 4, 1976, 90 Stat. 1580; Pub. L. 95-600,
title III, Sec. 311(b), Nov. 6, 1978, 92 Stat. 2824, provided that:
''The amendments made by paragraph (1) (amending this section)
shall apply only to taxable years beginning after December 31,
1974.''
Amendment by section 302(c)(3) of Pub. L. 94-12 applicable to
taxable years ending after Dec. 31, 1974, see section 305(a) of
Pub. L. 94-12, set out as an Effective Date of 1975 Amendment note
under section 46 of this title.
Section 604(b) of Pub. L. 94-12, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) In general. - The amendments made by subsection (a)
(amending this section) shall apply to property, the
construction, reconstruction, or erection of which was completed
after March 18, 1975, or the acquisition of which by the taxpayer
occurred after such date.
''(2) Binding contract. - The amendments made by subsection (a)
(amending this section) shall not apply to property constructed,
reconstructed, erected, or acquired pursuant to a contract which
was on April 1, 1974, and at all times thereafter, binding on the
taxpayer.
''(3) Certain lease-back transactions, etc. - Where a person
who is a party to a binding contract described in paragraph (2)
transfers rights in such contract (or in the property to which
such contract relates) to another person but a party to such
contract retains a right to use the property under a lease with
such other person, then to the extent of the transferred rights
such other person shall, for purposes of paragraph (2), succeed
to the position of the transferor with respect to such binding
contract and such property. The preceding sentence shall apply,
in any case in which the lessor does not make an election under
section 48(d) of the Internal Revenue Code of 1986 (formerly
I.R.C. 1954), only if a party to such contract retains a right to
use the property under a long-term lease.''
EFFECTIVE DATE OF 1971 AMENDMENT
Section 104(h) 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 sections
169 and 1245 of this title) (other than by subsections (c)(1),
(c)(2), and (g) (amending this section)) shall apply to property
described in section 50 of the Internal Revenue Code of 1986
(formerly I.R.C. 1954). The amendments made by subsections (c)(1),
(c)(2), and (g) (amending this section) shall apply to taxable
years ending after December 31, 1961.''
Amendment by section 108(b), (c) of Pub. L. 92-178, applicable to
leases entered into after Sept. 22, 1971, and after Nov. 8, 1971,
respectively, see section 108(d) of Pub. L. 92-178, set out as a
note under section 46 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 121(d)(2)(A) of Pub. L. 91-172 applicable to
taxable years beginning after Dec. 31, 1969, see section 121(g) of
Pub. L. 91-172, set out as a note under section 511 of this title.
Amendment by section 401(e)(2)-(4) 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 4 of Pub. L. 90-26 provided that: ''The amendments made
by the first three sections of this Act (amending this section and
section 167 of this title) shall apply to taxable years ending
after March 9, 1967.''
EFFECTIVE DATE OF 1966 AMENDMENTS
Section 201(b) of Pub. L. 89-809, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''The
amendments made by subsection (a) (amending this section) shall
apply to taxable years ending after December 31, 1965, but only
with respect to property placed in service after such date. In
applying section 46(b) of the Internal Revenue Code of 1986
(formerly I.R.C. 1954) (relating to carryback and carryover of
unused credits), the amount of any investment credit carryback to
any taxable year ending on or before December 31, 1965, shall be
determined without regard to the amendments made by this section.''
Amendment by Pub. L. 89-800 applicable to taxable years ending
after Oct. 9, 1966, see section 4 of Pub. L. 89-800, set out as a
note under section 46 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 203(a)(4) of Pub. L. 88-272 provided that: ''Paragraphs
(1) (amending this section) and (3) (amending this section and
section 1016 of this title and repealing section 181 of this title)
of this subsection shall apply -
''(A) in the case of property placed in service after December
31, 1963, with respect to taxable years ending after such date,
and
''(B) in the case of property placed in service before January
1, 1964, with respect to taxable years beginning after December
31, 1963.''
Section 203(f) of Pub. L. 88-272 provided that:
''(1) The amendments made by subsection (b) (amending this
section) shall apply with respect to property possession of which
is transferred to a lessee on or after the date of enactment of
this Act (Feb. 26, 1964).
''(2) The amendments made by subsection (c) (amending this
section) shall apply with respect to taxable years ending after
June 30, 1963.
''(3) The amendments made by subsection (d) (amending section
1245 of this title) shall apply with respect to dispositions after
December 31, 1963, in taxable years ending after such date.''
EFFECTIVE DATE
Section applicable with respect to taxable years ending after
Dec. 31, 1961, see section 2(h) of Pub. L. 87-834, set out as a
note under section 46 of this title.
SAVINGS PROVISION
For provisions that nothing in amendment by 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.
Transfer of Functions.
TRANSFER OF FUNCTIONS
Functions, powers, and duties of Federal Aviation Agency and of
Administrator and other offices and officers thereof transferred by
Pub. L. 89-670, Oct. 15, 1966, 80 Stat. 931, to Secretary of
Transportation, with functions, powers, and duties of Secretary of
Transportation pertaining to aviation safety to be exercised by
Federal Aviation Administrator in Department of Transportation, see
section 106 of Title 49, Transportation.
Miscellaneous
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.
APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION
TO TREATY OBLIGATIONS OF UNITED STATES
For applicability of amendment by section 701(e)(4)(C) of Pub. L.
99-514 notwithstanding any treaty obligation of the United States
in effect on Oct. 22, 1986, with provision that for such purposes
any amendment by title I of Pub. L. 100-647 be treated as if it had
been included in the provision of Pub. L. 99-514 to which such
amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100-647,
set out as a note under section 861 of this title.
SPECIAL RULE
Section 1879(j)(3) of Pub. L. 99-514 provided that: ''If refund
or credit of any overpayment of tax resulting from the application
of this subsection (amending this section) is prevented at any time
before the close of the date which is 1 year after the date of the
enactment of this Act (Oct. 22, 1986) by operation of any law or
rule of law (including res judicata), refund or credit of such
overpayment (to the extent attributable to the application of the
amendments made by this subsection (amending this section)) may,
nevertheless, be made or allowed if claim therefor is filed before
the close of such 1-year period.''
CLARIFICATION OF EFFECT OF 1984 AMENDMENT ON INVESTMENT TAX CREDIT
For provision that nothing in the amendments made by section
474(o) of Pub. L. 98-369, which amended this section, be construed
as reducing the investment tax credit in taxable years beginning
before Jan. 1, 1984, see section 475(c) of Pub. L. 98-369, set out
as a note under section 46 of this title.
ALTERNATIVE METHODS OF COMPUTING CREDIT FOR PAST PERIODS
Section 804(c) of Pub. L. 94-455, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) General rule for determining useful life, predominant
foreign use, etc. - In the case of a qualified film (within the
meaning of section 48(k)(1)(B) of the Internal Revenue Code of
1986 (formerly I.R.C. 1954)) placed in service in a taxable year
beginning before January 1, 1975, with respect to which neither
an election under paragraph (2) of this subsection nor an
election under subsection (e)(2) applies -
''(A) the applicable percentage under section 46(c)(2) of
such Code shall be determined as if the useful life of the film
would have expired at the close of the first taxable year by
the close of which the aggregate amount allowable as a
deduction under section 167 of such Code would equal or exceed
90 percent of the basis of such property (adjusted for any
partial dispositions),
''(B) for purposes of section 46(c)(1) of such Code, the
basis of the property shall be determined by taking into
account the total production costs (within the meaning of
section 48(k)(5)(B) of such Code),
''(C) for purposes of section 48(a)(2) of such Code, such
film shall be considered to be used predominantly outside the
United States in the first taxable year for which 50 percent or
more of the gross revenues received or accrued during the
taxable year from showing the film were received or accrued
from showing the film outside the United States, and
''(D) Section 47(a)(7) of such Code shall apply.
''(2) Election of 40-percent method. -
''(A) In general. - A taxpayer may elect to have this
paragraph apply to all qualified films placed in service during
taxable years beginning before January 1, 1975 (other than
films to which an election under subsection (e)(2) of this
section applies).
''(B) Effect of election. - If the taxpayer makes an election
under this paragraph, then section 48(k) of the Internal
Revenue Code of 1986 shall apply to all qualified films
described in subparagraph (A) with the following modifications:
''(i) subparagraph (B) of paragraph (4) shall not apply,
but in determining qualified investment under section
46(c)(1) of such Code there shall be used (in lieu of the
basis of such property) an amount equal to 40 percent of the
aggregate production costs (within the meaning of paragraph
(5)(B) of such section 48(k)),
''(ii) paragraph (2) shall be applied by substituting '100
percent' for '66 2/3 percent', and
''(iii) paragraph (3) and paragraph (5) (other than
subparagraph (B)) shall not apply.
''(C) Rules relating to elections. - An election under this
paragraph shall be made not later than the day which is 6
months after the date of the enactment of this Act (Oct. 4,
1976) and shall be made in such manner as the Secretary of the
Treasury or his delegate shall by regulations prescribe. Such
an election may be revoked only with the consent of the
Secretary of the Treasury or his delegate.
''(D) The taxpayer must consent to join in certain
proceedings. - No election may be made under this paragraph or
subsection (e)(2) by any taxpayer unless he consents, under
regulations prescribed by the Secretary of the Treasury or his
delegate, to treat the determination of the investment credit
allowable on each film subject to an election as a separate
cause of action, and to join in any judicial proceeding for
determining the person entitled to, and the amount of, the
credit allowable under section 38 of the Internal Revenue Code
of 1986 with respect to any film covered by such election.
''(3) Election to have credit determined in accordance with
previous litigation. -
''(A) In general. - A taxpayer described in subparagraph (B)
may elect to have this paragraph apply to all films (whether or
not qualified) placed in service in taxable years beginning
before January 1, 1975, and with respect to which an election
under subsection (e)(2) is not made.
''(B) Who may elect. - A taxpayer may make an election under
this paragraph if he has filed an action in any court of
competent jurisdiction, before January 1, 1976, for a
determination of such taxpayer's rights to the allowance of a
credit against tax under section 38 of the Internal Revenue
Code of 1986 for any taxable year beginning before January 1,
1975, with respect to any film.
''(C) Effect of election. - If the taxpayer makes an election
under this paragraph -
''(i) paragraphs (1) and (2) of this subsection, and
subsection (d) shall not apply to any film placed in service
by the taxpayer, and
''(ii) subsection 48(k) of the Internal Revenue Code of
1986 shall not apply to any film placed in service by the
taxpayer in any taxable year beginning before January 1,
1975, and with respect to which an election under subsection
(e)(2) is not made,
and the right of the taxpayer to the allowance of a credit against
tax under section 38 of such Code with respect to any film
placed in service in any taxable year beginning before January
1, 1975, and as to which an election under subsection (e)(2) is
not made, shall be determined as though this section (other
than this paragraph) has not been enacted.
''(D) Rules relating to elections. - An election under this
paragraph shall be made not later than the day which is 90 days
after the date of the enactment of this Act (Oct. 4, 1976), by
filing a notification of such election with the national office
of the Internal Revenue Service. Such an election, once made,
shall be irrevocable.''
ENTITLEMENT TO CREDIT
Section 804(d) of Pub. L. 94-455, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''Paragraph
(1) of section 48(k) of the Internal Revenue Code of 1986 (formerly
I.R.C. 1954) (relating to entitlement to credit) shall apply to any
motion picture film or video tape placed in service in any taxable
year beginning before January 1, 1975.''
INCREASE IN BASIS OF PROPERTY PLACED IN SERVICE BEFORE JANUARY 1,
1964
Section 203(a)(2) of Pub. L. 88-272, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(A) The basis of any section 38 property (as defined in section
48(a) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954))
placed in service before January 1, 1964, shall be increased, under
regulations prescribed by the Secretary of the Treasury or his
delegate, by an amount equal to 7 percent of the qualified
investment with respect to such property under section 46(c) of the
Internal Revenue Code of 1986. If there has been any increase with
respect to such property under section 48(g)(2) of such Code, the
increase under the preceding sentence shall be appropriately
reduced therefor.
''(B) If a lessor made the election provided by section 48(d) of
the Internal Revenue Code of 1986 with respect to property placed
in service before January 1, 1964 -
''(i) subparagraph (A) shall not apply with respect to such
property, but
''(ii) under regulations prescribed by the Secretary of the
Treasury or his delegate, the deductions otherwise allowable
under section 162 of such Code to the lessee for amounts paid to
the lessor under the lease (or, if such lessee has purchased such
property, the basis of such property) shall be adjusted in a
manner consistent with subparagraph (A).
''(C) The adjustments under this paragraph shall be made as of
the first day of the taxpayer's first taxable year which begins
after December 31, 1963.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 29, 50, 168, 409, 1274A
of this title.
