Internal Revenue Code:Sec. 47. Rehabilitation 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. 47. Rehabilitation credit
(a) General rule
For purposes of section 46, the rehabilitation credit for any
taxable year is the sum of -
(1) 10 percent of the qualified rehabilitation expenditures
with respect to any qualified rehabilitated building other than a
certified historic structure, and
(2) 20 percent of the qualified rehabilitation expenditures
with respect to any certified historic structure.
(b) When expenditures taken into account
(1) In general
Qualified rehabilitation expenditures with respect to any
qualified rehabilitated building shall be taken into account for
the taxable year in which such qualified rehabilitated building
is placed in service.
(2) Coordination with subsection (d)
The amount which would (but for this paragraph) be taken into
account under paragraph (1) with respect to any qualified
rehabilitated building shall be reduced (but not below zero) by
any amount of qualified rehabilitation expenditures taken into
account under subsection (d) by the taxpayer or a predecessor of
the taxpayer (or, in the case of a sale and leaseback described
in section 50(a)(2)(C), by the lessee), to the extent any amount
so taken into account has not been required to be recaptured
under section 50(a).
(c) Definitions
For purposes of this section -
(1) Qualified rehabilitated building
(A) In general
The term ''qualified rehabilitated building'' means any
building (and its structural components) if -
(i) such building has been substantially rehabilitated,
(ii) such building was placed in service before the
beginning of the rehabilitation,
(iii) in the case of any building other than a certified
historic structure, in the rehabilitation process -
(I) 50 percent or more of the existing external walls of
such building are retained in place as external walls,
(II) 75 percent or more of the existing external walls of
such building are retained in place as internal or external
walls, and
(III) 75 percent or more of the existing internal
structural framework of such building is retained in place,
and
(iv) depreciation (or amortization in lieu of depreciation)
is allowable with respect to such building.
(B) Building must be first placed in service before 1936
In the case of a building other than a certified historic
structure, a building shall not be a qualified rehabilitated
building unless the building was first placed in service before
1936.
(C) Substantially rehabilitated defined
(i) In general
For purposes of subparagraph (A)(i), a building shall be
treated as having been substantially rehabilitated only if
the qualified rehabilitation expenditures during 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 exceed the greater of -
(I) the adjusted basis of such building (and its
structural components), or
(II) $5,000.
The adjusted basis of the building (and its structural
components) shall be determined as of the beginning of the
1st day of such 24-month period, or of the holding period of
the building, whichever is later. 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.
(ii) Special rule for phased rehabilitation
In the case of any rehabilitation which may reasonably be
expected to be completed in phases set forth in architectural
plans and specifications completed before the rehabilitation
begins, clause (i) shall be applied by substituting
''60-month period'' for ''24-month period''.
(iii) Lessees
The Secretary shall prescribe by regulation rules for
applying this subparagraph to lessees.
(D) Reconstruction
Rehabilitation includes reconstruction.
(2) Qualified rehabilitation expenditure defined
(A) In general
The term ''qualified rehabilitation expenditure'' means any
amount properly chargeable to capital account -
(i) for property for which depreciation is allowable under
section 168 and which is -
(I) nonresidential real property,
(II) residential rental property,
(III) real property which has a class life of more than
12.5 years, or
(IV) an addition or improvement to property described in
subclause (I), (II), or (III), and
(ii) in connection with the rehabilitation of a qualified
rehabilitated building.
(B) Certain expenditures not included
The term ''qualified rehabilitation expenditure'' does not
include -
(i) Straight line depreciation must be used
Any expenditure with respect to which the taxpayer does not
use the straight line method over a recovery period
determined under subsection (c) or (g) of section 168. The
preceding sentence shall not apply to any expenditure to the
extent the alternative depreciation system of section 168(g)
applies to such expenditure by reason of subparagraph (B) or
(C) of section 168(g)(1).
(ii) Cost of acquisition
The cost of acquiring any building or interest therein.
(iii) Enlargements
Any expenditure attributable to the enlargement of an
existing building.
(iv) Certified historic structure, etc.
Any expenditure attributable to the rehabilitation of a
certified historic structure or a building in a registered
historic district, unless the rehabilitation is a certified
rehabilitation (within the meaning of subparagraph (C)). The
preceding sentence shall not apply to a building in a
registered historic district if -
(I) such building was not a certified historic structure,
(II) the Secretary of the Interior certified to the
Secretary that such building is not of historic
significance to the district, and
(III) if the certification referred to in subclause (II)
occurs after the beginning of the rehabilitation of such
building, the taxpayer certifies to the Secretary that, at
the beginning of such rehabilitation, he in good faith was
not aware of the requirements of subclause (II).
(v) Tax-exempt use property
(I) In general
Any expenditure in connection with the rehabilitation of
a building which is allocable to the portion of such
property which is (or may reasonably be expected to be)
tax-exempt use property (within the meaning of section
168(h)).
(II) Clause not to apply for purposes of paragraph (1)(C)
This clause shall not apply for purposes of determining
under paragraph (1)(C) whether a building has been
substantially rehabilitated.
(vi) Expenditures of lessee
Any expenditure of a lessee of a building if, on the date
the rehabilitation is completed, the remaining term of the
lease (determined without regard to any renewal periods) is
less than the recovery period determined under section
168(c).
(C) Certified rehabilitation
For purposes of subparagraph (B), the term ''certified
rehabilitation'' means any rehabilitation of a certified
historic structure which the Secretary of the Interior has
certified to the Secretary as being consistent with the
historic character of such property or the district in which
such property is located.
(D) Nonresidential real property; residential rental property;
class life
For purposes of subparagraph (A), the terms ''nonresidential
real property,'' ''residential rental property,'' and ''class
life'' have the respective meanings given such terms by section
168.
(3) Certified historic structure defined
(A) In general
The term ''certified historic structure'' means any building
(and its structural components) which -
(i) is listed in the National Register, or
(ii) is located in a registered historic district and is
certified by the Secretary of the Interior to the Secretary
as being of historic significance to the district.
(B) Registered historic district
The term ''registered historic district'' means -
(i) any district listed in the National Register, and
(ii) any district -
(I) which is designated under a statute of the
appropriate State or local government, if such statute is
certified by the Secretary of the Interior to the Secretary
as containing criteria which will substantially achieve the
purpose of preserving and rehabilitating buildings of
historic significance to the district, and
(II) which is certified by the Secretary of the Interior
to the Secretary as meeting substantially all of the
requirements for the listing of districts in the National
Register.
(d) Progress expenditures
(1) In general
In the case of any building to which this subsection applies,
except as provided in paragraph (3) -
(A) if such building is self-rehabilitated property, any
qualified rehabilitation expenditure with respect to such
building shall be taken into account for the taxable year for
which such expenditure is properly chargeable to capital
account with respect to such building, and
(B) if such building is not self-rehabilitated property, any
qualified rehabilitation expenditure with respect to such
building shall be taken into account for the taxable year in
which paid.
(2) Property to which subsection applies
(A) In general
This subsection shall apply to any building which is being
rehabilitated by or for the taxpayer if -
(i) the normal rehabilitation period for such building is 2
years or more, and
(ii) it is reasonable to expect that such building will be
a qualified rehabilitated building in the hands of the
taxpayer when it is placed in service.
Clauses (i) and (ii) shall be applied on the basis of facts
known as of the close of the taxable year of the taxpayer in
which the rehabilitation begins (or, if later, at the close of
the first taxable year to which an election under this
subsection applies).
(B) Normal rehabilitation period
For purposes of subparagraph (A), the term ''normal
rehabilitation period'' means the period reasonably expected to
be required for the rehabilitation of the building -
(i) beginning with the date on which physical work on the
rehabilitation begins (or, if later, the first day of the
first taxable year to which an election under this subsection
applies), and
(ii) ending on the date on which it is expected that the
property will be available for placing in service.
(3) Special rules for applying paragraph (1)
For purposes of paragraph (1) -
(A) Component parts, etc.
Property which is to be a component part of, or is otherwise
to be included in, any building to which this subsection
applies shall be taken into account -
(i) at a time not earlier than the time at which it becomes
irrevocably devoted to use in the building, and
(ii) as if (at the time referred to in clause (i)) the
taxpayer had expended an amount equal to that portion of the
cost to the taxpayer of such component or other property
which, for purposes of this subpart, is properly chargeable
(during such taxable year) to capital account with respect to
such building.
(B) Certain borrowing disregarded
Any amount borrowed directly or indirectly by the taxpayer
from the person rehabilitating the property for him shall not
be treated as an amount expended for such rehabilitation.
(C) Limitation for buildings which are not self-rehabilitated
(i) In general
In the case of a building which is not self-rehabilitated,
the amount taken into account under paragraph (1)(B) for any
taxable year shall not exceed the amount which represents the
portion of the overall cost to the taxpayer of the
rehabilitation which is properly attributable to the portion
of the rehabilitation which is completed during such taxable
year.
(ii) Carryover of certain amounts
In the case of a building which is not a self-rehabilitated
building, if for the taxable year -
(I) the amount which (but for clause (i)) would have been
taken into account under paragraph (1)(B) exceeds the
limitation of clause (i), then the amount of such excess
shall be taken into account under paragraph (1)(B) for the
succeeding taxable year, or
(II) the limitation of clause (i) exceeds the amount
taken into account under paragraph (1)(B), then the amount
of such excess shall increase the limitation of clause (i)
for the succeeding taxable year.
(D) Determination of percentage of completion
The determination under subparagraph (C)(i) of the portion of
the overall cost to the taxpayer of the rehabilitation which is
properly attributable to rehabilitation completed during any
taxable year shall be made, under regulations prescribed by the
Secretary, on the basis of engineering or architectural
estimates or on the basis of cost accounting records. Unless
the taxpayer establishes otherwise by clear and convincing
evidence, the rehabilitation shall be deemed to be completed
not more rapidly than ratably over the normal rehabilitation
period.
(E) No progress expenditures for certain prior periods
No qualified rehabilitation expenditures shall be taken into
account under this subsection for any period before the first
day of the first taxable year to which an election under this
subsection applies.
(F) No progress expenditures for property for year it is placed
in service, etc.
In the case of any building, no qualified rehabilitation
expenditures shall be taken into account under this subsection
for the earlier of -
(i) the taxable year in which the building is placed in
service, or
(ii) the first taxable year for which recapture is required
under section 50(a)(2) with respect to such property,
or for any taxable year thereafter.
(4) Self-rehabilitated building
For purposes of this subsection, the term ''self-rehabilitated
building'' means any building if it is reasonable to believe that
more than half of the qualified rehabilitation expenditures for
such building will be made directly by the taxpayer.
(5) Election
This subsection shall apply to any taxpayer only if such
taxpayer has made an election under this paragraph. Such an
election shall apply to the taxable year for which made and all
subsequent taxable years. Such an election, once made, may be
revoked only with the consent of the Secretary.
Sources
(Added Pub. L. 87-834, Sec. 2(b), Oct. 16, 1962, 76 Stat. 966;
amended Pub. L. 91-172, title VII, Sec. 703(c), Dec. 30, 1969, 83
Stat. 666; Pub. L. 91-676, Sec. 1, Jan. 12, 1971, 84 Stat. 2060;
Pub. L. 92-178, title I, Sec. 102(c), 107(a)(1), (b)(1), Dec. 10,
1971, 85 Stat. 500, 507; Mar. 29, 1975, Pub. L. 94-12, title III,
Sec. 302(b)(2)(A), (c)(1), (2), 89 Stat. 43, 44; Pub. L. 94-455,
title VIII, Sec. 804(b), title XIX, Sec. 1906(b)(13)(A), Oct. 4,
1976, 90 Stat. 1594, 1834; Pub. L. 95-600, title III, Sec. 317(a),
Nov. 6, 1978, 92 Stat. 2830; Pub. L. 95-618, title II, Sec. 241(b),
Nov. 9, 1978, 92 Stat. 3193; Pub. L. 97-34, title II, Sec.
211(f)(2), (g), Aug. 13, 1981, 95 Stat. 231, 233; Pub. L. 97-248,
title II, Sec. 208(a)(2)(B), Sept. 3, 1982, 96 Stat. 435; Pub. L.
97-448, title I, Sec. 102(e)(3), Jan. 12, 1983, 96 Stat. 2371; Pub.
L. 98-369, div. A, title IV, Sec. 421(b)(7), 431(b)(2), (d)(4),
(5), 474(o)(8), (9), July 18, 1984, 98 Stat. 794, 807, 810, 836;
Pub. L. 98-443, Sec. 9(p), Oct. 4, 1984, 98 Stat. 1708; Pub. L.
99-121, title I, Sec. 103(b)(6), Oct. 11, 1985, 99 Stat. 510; Pub.
L. 99-514, title XV, Sec. 1511(c)(2), title XVIII, Sec.
1802(a)(5)(A), 1844(b)(1), (2), (4), Oct. 22, 1986, 100 Stat. 2744,
2788, 2855; Pub. L. 100-647, title I, Sec. 1002(a)(18), (26)-(28),
1007(g)(3)(A), Nov. 10, 1988, 102 Stat. 3356, 3357, 3435; Pub. L.
101-508, title XI, Sec. 11801(c)(8)(A), 11813(a), Nov. 5, 1990, 104
Stat. 1388-524, 1388-536.)
Miscellaneous
AMENDMENTS
1990 - Pub. L. 101-508, Sec. 11813(a), amended section generally,
substituting section catchline for one which read: ''Certain
dispositions, etc., of section 38 property'' and in text
substituting present provisions for provisions relating to general
rules regarding disposition of section 38 property,
nonapplicability of section in certain cases, the treatment of any
increase in tax under the section, increases in nonqualified
nonrecourse financing, and transfers between spouses or incident to
divorce.
Subsec. (b)(1) to (3). Pub. L. 101-508, Sec. 11801(c)(8)(A),
inserted ''or'' at end of par. (1), substituted a period for '',
or'' at end of par. (2), and struck out par. (3) which related to
nonapplicability of subsec. (a) in the case of a transfer of
section 38 property related to exchanges under final system plan
for ConRail.
1988 - Subsec. (a)(5)(D). Pub. L. 100-647, Sec. 1002(a)(26)(B),
struck out at end ''If, prior to a disposition to which this
subsection applies, any portion of any credit is not allowable with
respect to any property by reason of section 168(i)(3), such
portion shall be treated (for purposes of this subparagraph) as not
having been used to reduce tax liability.''
Subsec. (a)(5)(E)(iii). Pub. L. 100-647, Sec. 1002(a)(26)(C),
substituted ''168(e)'' for ''168(c)''.
Subsec. (a)(5)(E)(v). Pub. L. 100-647, Sec. 1002(a)(26)(A), added
cl. (v).
Subsec. (a)(9)(A). Pub. L. 100-647, Sec. 1002(a)(27), substituted
''section 168(h)(2)'' for ''section 168(j)(4)(C)''.
Subsec. (c). Pub. L. 100-647, Sec. 1007(g)(3)(A), substituted
''D, or G'' for ''or D''.
Subsec. (d)(1). Pub. L. 100-647, Sec. 1002(a)(18), substituted
''section 46(c)(8)(C)'' for ''section 48(c)(8)(C)''.
Subsec. (d)(3)(C)(i). Pub. L. 100-647, Sec. 1002(a)(28),
substituted ''class life (as defined in section 168(i)(1))'' for
''present class life (as defined in section 168(g)(2))'' and ''no
class life'' for ''no present class life''.
1986 - Subsec. (a)(9). Pub. L. 99-514, Sec. 1802(a)(5)(A), added
par. (9).
Subsec. (d)(1). Pub. L. 99-514, Sec. 1844(b)(1), substituted
''reducing the credit base (as defined in section 48(c)(8)(C))''
for ''reducing the qualified investment'' and inserted ''For
purposes of determining the amount of credit subject to the early
disposition or cessation rules of subsection (a), the net increase
in the amount of the nonqualified nonrecourse financing with
respect to the property shall be treated as reducing the property's
credit base (and correspondingly reducing the qualified investment
in the property) in the year in which the property was first placed
in service.''
Subsec. (d)(3)(E)(i). Pub. L. 99-514, Sec. 1844(b)(4), inserted
''reduced by the sum of the credit recapture amounts with respect
to such property for all preceding years''.
Subsec. (d)(3)(F). Pub. L. 99-514, Sec. 1844(b)(2), struck out
subpar. (F) which read as follows: ''The amount of any increase in
tax under subsection (a) with respect to any property to which this
paragraph applies shall be determined by reducing the qualified
investment with respect to such property by the aggregate credit
recapture amounts for all taxable years under this paragraph.''
Subsec. (d)(3)(G). Pub. L. 99-514, Sec. 1511(c)(2), substituted
''determined at the underpayment rate established under section
6621'' for ''determined under section 6621''.
1985 - Subsec. (a)(5)(B). Pub. L. 99-121 substituted ''For
property other than 3-year property'' for ''For 15-year, 10-year,
and 5-year property'' in table heading.
1984 - Subsec. (a)(5)(D), (6). Pub. L. 98-369, Sec. 474(o)(8),
substituted ''under section 39'' for ''under section 46(b)''.
Subsec. (a)(7)(C). Pub. L. 98-443 substituted ''Secretary of
Transportation'' for ''Civil Aeronautics Board''.
Subsec. (c). Pub. L. 98-369, Sec. 474(o)(9), substituted
''subpart A, B, or D'' for ''subpart A''.
Subsec. (d). Pub. L. 98-369, Sec. 431(b)(2), substituted
''Increases in nonqualified nonrecourse financing'' for ''Property
ceasing to be at risk'' in heading.
Subsec. (d)(1). Pub. L. 98-369, Sec. 431(b)(2), substituted
provisions relating to increases in tax liability resulting from
increases in nonqualified nonrecourse financing for provisions
relating to increases in tax liability resulting from the taxpayer
ceasing to be at risk with respect to certain property.
Subsec. (d)(2). Pub. L. 98-369, Sec. 431(b)(2), substituted
provisions that for purposes of par. (1), transfers of debt, or
agreements to transfer, occurring more than one year after the
initial borrowing shall not be treated as increasing nonqualified
nonrecourse financing with respect to the taxpayer for provisions
that for purposes of par. (1), such transfers (or agreements to
transfer) by a qualified person to a nonqualified person would not
cause the taxpayer to be treated as ceasing to be at risk.
Subsec. (d)(3)(A). Pub. L. 98-369, Sec. 431(d)(4), substituted
''increasing the amount of nonqualified nonrecourse financing
(within the meaning of section 46(c)(8))'' for ''ceasing to be at
risk''.
Subsec. (d)(3)(B)(i). Pub. L. 98-369, Sec. 431(d)(5), struck out
''other than a loan described in section 46(c)(8)(B)(ii)'' after
''section 46(c)(8)(F)(iv)''.
Subsec. (e). Pub. L. 98-369, Sec. 421(b)(7), added subsec. (e).
1983 - Subsec. (d)(2). Pub. L. 97-448, Sec. 102(e)(3)(A),
substituted ''section 46(c)(8)(D)'' and ''section 46(c)(8)(B)'' for
''section 48(c)(8)(D)'' and ''section 48(c)(8)(B)'', respectively.
Subsec. (d)(3)(A). Pub. L. 97-448, Sec. 102(e)(3)(B), substituted
''section 46(c)(8)(F)'' for ''section 46(c)(8)(E)''.
1982 - Subsec. (a)(5)(D). Pub. L. 97-248, Sec. 208(a)(2)(B),
inserted provision that if, prior to a disposition to which this
subsection applies, any portion of any credit is not allowable with
respect to any property by reason of section 168(i)(3), such
portion shall be treated, for purposes of this subparagraph, as not
having been used to reduce tax liability.
1981 - Subsec. (a)(3)(D). Pub. L. 97-34, Sec. 211(g)(2)(A),
inserted provisions relating to disposition, cessation, or change
in expected use described in paragraph (5).
Subsec. (a)(5), (6). Pub. L. 97-34, Sec. 211(g)(1), (2)(B), added
par. (5), redesignated former par. (5) as (6) and substituted
''paragraph (1), (3), or (5)'' for ''paragraph (1) or (3)''. Former
par. (6) redesignated (7).
Subsec. (a)(7), (8). Pub. L. 97-34, Sec. 211(g)(1), (2)(C),
redesignated former par. (6) as (7), substituted ''paragraph (6)''
for ''paragraph (5)'', and redesignated former par. (7) as (8).
Subsec. (d). Pub. L. 97-34, Sec. 211(f)(2), added subsec. (d).
1978 - Subsec. (a)(4), (5). Pub. L. 95-618, Sec. 241(b)(1), added
par. (4), redesignated former par. (4) as (5) and substituted
''paragraph (2) or (4)'' for ''paragraph (2)''.
Subsec. (a)(6)(B). Pub. L. 95-618, Sec. 241(b)(3), substituted
''paragraph (5)'' for ''paragraph (4)''.
Subsec. (b)(3). Pub. L. 95-600, Sec. 317(a), added par. (3).
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out in introductory provision and in par. (3)(C) ''or his
delegate'' after ''Secretary''.
Subsec. (a)(7). Pub. L. 94-455, Sec. 804(b), added par. (7).
1975 - Subsec. (a)(3), (4). Pub. L. 94-12, Sec. 302(b)(2)(A),
(c)(1), added par. (3), redesignated former par. (3) as (4) and
substituted ''paragraph (1) or (3)'' for ''paragraph (1)''. A
former par. (4), relating to increase or adjustment of tax where
property is destroyed by casualty, etc., was repealed by Pub. L.
92-178.
Subsec. (a)(5), (6)(B). Pub. L. 94-12, Sec. 302(c)(2),
substituted ''paragraph (4)'' for ''paragraph (3)''.
1971 - Subsec. (a)(4). Pub. L. 92-178, Sec. 107(a)(1), struck out
par. (4) relating to property destroyed by casualty, etc.
Subsec. (a)(5). Pub. L. 92-178, Sec. 107(b)(1), provided for the
repeal of par. (5) with the repeal not to apply, however, in the
case of certain replacement property. See section 107(b)(2) of
Pub. L. 92-178, set out in the Effective Date of 1971 Amendment
note below.
Subsec. (a)(6)(A). Pub. L. 92-178, Sec. 102(c), substituted ''3
1/2 years'' for ''4 years''.
Subsec. (a)(6). Pub. L. 91-676 added par. (6).
1969 - Subsec. (a)(5). Pub. L. 91-172, Sec. 703(c)(2), added par.
(5).
Subsec. (a)(4). Pub. L. 91-172, Sec. 703(c)(1), inserted
provision making subpars. (B) and (C) inapplicable to any casualty
or theft occurring after April 18, 1969.
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
Section 1511(d) of Pub. L. 99-514 provided that: ''The amendments
made by this section (amending this section and sections 48, 167,
644, 852, 4497, 6214, 6332, 6343, 6601, 6602, 6611, 6621, 6654,
6655, and 7426 of this title and sections 1961 and 2411 of Title
28, Judiciary and Judicial Procedure, and enacting provisions set
out as a note under section 6621 of this title) shall apply for
purposes of determining interest for periods after December 31,
1986.''
Amendment by sections 1802(a)(5)(A) and 1844(b)(1), (2), (4) 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 1985 AMENDMENT
Amendment by Pub. L. 99-121 applicable as if included in the
amendments made by section 111 of the Tax Reform Act of 1984, Pub.
L. 98-369, see section 105(b)(4) of Pub. L. 99-121, set out as a
note under section 168 of this title, and section 111(g) of Pub. L.
98-369, set out as an Effective Date of 1984 Amendment note under
section 168 of this title.
EFFECTIVE DATE OF 1984 AMENDMENTS
Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section
9(v) of Pub. L. 98-443, set out as a note under section 5314 of
Title 5, Government Organization and Employees.
Amendment by section 421(b)(7) of Pub. L. 98-369 applicable to
transfers after July 18, 1984, in taxable years ending after such
date, subject to election to have amendment apply to transfers
after 1983 or to transfers pursuant to existing decrees, see
section 421(d) of Pub. L. 98-369, set out as an Effective Date note
under section 1041 of this title.
Amendment by section 431(b)(2), (d)(4), (5) 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 subsec. (d) of this section and section 46(c)(8),
(9) 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)(8), (9) 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.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by 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.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-248 applicable to agreements entered into
after July 1, 1982, or to property placed in service after that
date, but not to transitional safe harbor lease property, nor 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 section 208(d)(1), (2)(A), (5) of Pub. L. 97-248, set out as a
note under section 168 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 211(g) 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 in a note under section 46 of
this title.
Amendment by section 211(f)(2) of Pub. L. 97-34 not to apply to
property placed in service by the taxpayer on or before Feb. 18,
1981, and property placed in service by the taxpayer after Feb. 18,
1981, where such property was acquired by the taxpayer pursuant to
a binding contract entered into on or before that date, see section
211(i)(5) of Pub. L. 97-34, set out as a note under section 46 of
this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 317(b) of Pub. L. 95-600 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years ending after March 31, 1976.''
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 804(b) of Pub. L. 94-455 applicable to
taxable years beginning after Dec. 31, 1974, see section 804(e) of
Pub. L. 94-455, set out as a note under section 48 of this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by 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 a note under section 46 of this title.
EFFECTIVE DATE OF 1971 AMENDMENTS
In redetermining qualified investment for purposes of subsec. (a)
of this section in the case of any property which ceases to be
section 38 property with respect to the taxpayer after Aug. 15,
1971, or which becomes public utility property after such date,
section 46(c)(2) of this title as amended by section 102(a) of Pub.
L. 92-178 as applicable, see section 102(d)(2) of Pub. L. 92-178,
set out as a note under section 46 of this title.
Amendment by section 107(a)(1) of Pub. L. 92-178 applicable to
casualties and thefts occurring after Aug. 15, 1971, see section
107(a)(2) of Pub. L. 92-178, set out as a note under section 46 of
this title.
Section 107(b)(2) of Pub. L. 92-178, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''The
repeal made by paragraph (1) (repealing subsec. (a)(5) of this
section) shall not apply if replacement property described in
subparagraph (B) of such section 47(a)(5) is not property described
in section 50 of the Internal Revenue Code of 1986 (formerly I.R.C.
1954).''
Section 102(d)(3) of Pub. L. 92-178 provided that: ''The
amendment made by subsection (c) (amending this section) shall
apply to leases executed after April 18, 1969.''
Section 2 of Pub. L. 91-676 provided that: ''The amendment made
by the first section of this Act (amending this section) shall
apply to taxable years ending after April 18, 1969.''
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.
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
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.
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.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 49, 50, 170, 469, 772,
1400I of this title.
