Page:United States Statutes at Large Volume 100 Part 3.djvu/1100

 100 STAT. 2908

PUBLIC LAW 99-514—OCT. 22, 1986 for beverage purposes and which are brought into the United States from Puerto Rico or the Virgin Islands on or before the date of the enactment of this Act. (B) With respect to articles brought into the United States after September 27, 1985, subparagraph (A) shall apply only if the Secretary of the Treasury or his delegate is satisfied that the amounts paid to Puerto Rico or the Virgin Islands under subparagraph (A) are being repaid to the proper persons who used the distilled spirits in such articles.

0) ALLOWANCE OF INVESTMENT CREDIT TO ELIGIBLE SECTION 50 Kd* ORGANIZATIONS.—

(1) IN GENERAL.—Section 48 (relating to definitions and speciaJ rules) is amended by redesignating subsection (r) as subsection (s) and by inserting after subsection (q) the following new subsection: "(r) CERTAIN SECTION 501(d) ORGANIZATIONS.— "(1) IN GENERAL.—In the case of eligible section 501(d) organizations— "(A) any business engeiged in by such organization for the common benefit of its members and the taxable income from which is included in the gross income of its members shall be treated as an unrelated business for purposes of paragraph (4) of subsection (a), "(B) the qualified investment for each taxable year with respect to such business shall be apportioned pro rata among such members in the same manner as the taxable income of such organization, and "(C) any individual to whom any investment has been apportioned under subparagraph (B) shall be treated for purposes of this subpart (other than section 47) as the taxpayer with respect to such investment, and such investment shall not 0)y reason of such apportionment) lose its character as an investment in new section 38 property or used section 38 property, as the case may be. "(2)

LIMITATION ON USED SECTION 38 PROPERTY APPLIED AT

ORGANIZATION LEVEL.—The limitetion under subparagraph (A) of subsection (c)(2) shall apply with respect to the section 501(d) organization. property for which credit was allowed under section 38 by reason of this subsection— "(A) the section 501(d) organization shall be treated as the taxpayer to which the credit under section 38 was allowed, "(B) the amount of such credit allowed with respect to the property shall be treated as the amount which would have been allowed to the section 501(d) organization were such credit allowable to such organization, "(C) subparagraph (D) of section 47(a)(5) shall not apply, and "(D) the amount of the increase in tax under section 47 for any taxable year with respect to property to which this subsection applies shall be allocated pro rata among the members of such organization in the same manner as such organization's taxable income for such year is allocated among such members. "(4) No INVESTMENT CREDIT ALLOWED TO MEMBER IF MEMBER CLAIMS OTHER INVESTMENT CREDIT.—No Credit shall be allowed
 * (3) RECAPTURE.—For purposes of applying section 47 to any

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