Page:United States Statutes at Large Volume 100 Part 3.djvu/319

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2127

"(ii) engages in discriminatory or other acts (including tolerance of international cartels) or policies unjustifiably restricting United States commerce, the President may by Executive order provide for the application of paragraph (I)(D) to any article or class of articles manufactured or produced in such foreign country for such period as may be provided by such Executive order. Any period specified in the preceding sentence shall not apply to any property ordered before (or the construction, reconstruction, or erection of which began before) the date of the Executive order unless the President determines an earlier date to be in the public interest and specifies such date in the Executive order. "(B) IMPORTED PROPERTY.—For purposes of this subsection, the term 'imported property' means any property if— "(i) such property was completed outside the United States, or "(ii) less than 50 percent of the basis of such property is attributable to value added within the United States. For purposes of this subparagraph, the term 'United States' includes the Commonwealth of Puerto Rico and the possessions of the United States.

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"(7) ELECTION TO USE ALTERNATIVE DEPRECIATION SYSTEM.—

"(A) IN GENERAL.—If the taxpayer makes an election under this paragraph with respect to any class of property for any taxable year, the alternative depreciation system under this subsection shall apply to all property in such class placed in service during such taxable year. Notwithstanding the preceding sentence, in the case of nonresidential real property or residential rental property, such election may be made separately with respect to each property. "(B) ELECTION IRREVOCABLE.—An election under subparagraph (A), once made, shall be irrevocable.

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'(h) TAX-EXEMPT USE PROPERTY.—

"(1) IN GENERAL.—For purposes of this section— "(A) PROPERTY OTHER THAN NONRESIDENTIAL REAL PROP-

ERTY.—Except as otherwise provided in this subsection, the term 'tax-exempt use property' means that portion of any tangible property (other than nonresidential real property) leased to a tax-exempt entity. "(B) NONRESIDENTIAL REAL PROPERTY.—

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"(i) IN GENERAL.—In the csise of nonresidential real property, the term 'tax-exempt use property' means that portion of the property leased to a tax-exempt entity in a disqualified lease. "(ii) DISQUAUFIED LEASE.—For purposes of this subparagraph, the term 'disqualified lease' means any lease of the property to a tax-exempt entity, but only if— "(I) part or all of the property was financed (directly or indirectly) by an obligation the interest on which is exempt from tax under section 103(a) and such entity (or a related entity) participated in such financing, "(II) under such lease there is a fixed or determinable price purchase or sale option which in-

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