Page:United States Statutes at Large Volume 100 Part 3.djvu/361

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2169

(A) such property shall be treated as recovery property described in section 208(d)(5) of the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA"); (B) "48 months" shall be substituted for "3 months" each place it appears in applying— (i) section 48(b)(2)(B) of the Code, and (ii) section 168(f)(8)(D) of the Code (as in effect after the amendments made by the Technical Corrections Act of 1982 but before the amendments made by TEFRA); and (C) the limitation of section 168(D(8)(D)(iiXIII) (as then in effect) shall be read by substituting "the lessee's original cost basis.", for "the adjusted basis of the lessee at the time of the lease.". (3) The aggregate amount of property to which this paragraph shall apply shall not exceed $60,000,000. (e) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in this subsection, the amendments made by this section shall apply to property placed in service after December 31, 1985, in taxable years ending after such date. (2) EXCEPTIONS FOR CERTAIN FILMS.—For purposes of determin-

ing whether any property is transition property within the meaning of section 49(e) of the Internal Revenue Code of 1986— (A) in the case of any motion picture or television film, construction shall be treated as including production for purposes of section 2030t)Xl) of this Act, and written contemporary evidence of an agreement (in accordance with industry practice) shall be treated as a written binding contract for such purposes, (B) in the case of any television film, a license agreement or agreement for production services between a television network and a producer shall be treated as a binding contract for purposes of section 203(b)(l)(A) of this Act, and (C) a motion picture film shall be treated as described in section 203(b)(l)(A) of this Act if— (i) funds were raised pursuant to a public offering before September 26, 1985, for the production of such film, (ii) 40 percent of the funds raised pursuant to such public offering are being spent on films the production of which commenced before such date, and (iii) all of the films funded by such public offering are required to be distributed pursuant to distribution agreements entered into before September 26, 1985. (3) NORMALIZATION RULES.—The provisions of subsection 0^) shall apply to any violation of the normalization requirements under paragraph (1) or (2) of section 46(f) of the Internal Revenue Code of 1986 occurring in taxable years ending after December 31, 1985. (4) ADDITIONAL EXCEPTIONS.—

(A) Paragraphs (c) and (d) of section 49 of the Internal Revenue Code of 1954 shall not apply to any continuous caster facility for slabs and blooms which is subject to a lease and which is part of a project the second phase of which is a continuous slab caster which was placed in service before December 31, 1935.

�