Page:United States Statutes at Large Volume 100 Part 3.djvu/373

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2181

Subtitle E—Changes in Certain Amortization Provisions SEC. 241. REPEAL OF 5-YEAR AMORTIZATION OF TRADEMARK AND TRADE NAME EXPENDITURES.

(a) IN GENERAL.—Section 177 (relating to trademark and trade name expenditures) is hereby repealed. (b) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) Paragraph (3) of section 312(n) is amended by striking out ", 177,". (2) Subsection (a) of section 1016 (relating to adjustments to basis) is amended by striking out paragraph (16) and by redesignating paragraphs (17) through (27) as paragraphs (16) through (26), respectively. (3) The table of sections for part VI of subchapter B of chapter 1 is amended by striking out the item relating to section 177. (c) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to expenditures paid or incurred after December 31, 1986. (2) TRANSITIONAL RULE.—The amendments made by this section shall not apply to any expenditure incurred— (A) pursuant to a binding contract entered into before March 2, 1986, or (B) with respect to the development, protection, expansion, registration, or defense of a trademark or trade name commenced before March 2, 1986, but only if not less than the lesser of $1,000,000 or 5 percent of the aggregate cost of such development, protection, expansion, registration, or defense has been incurred or committed before such date. The preceding sentence shall not apply to any expenditure with respect to a trademark or trade name placed in service after December 31, 1987. SEC. 242. REPEAL OF AMORTIZATION OF RAILROAD GRADING AND TUNNEL BORES.

(a) IN GENERAL.—Section 185 (relating to amortization of railroad grading and tunnel bores) is hereby repealed. (b) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) Subparagraph (B) of section 1082(a)(2) is amended by striking out", 185,^'. (2) Paragraph (3) of section 1250(b) (defining additional depreciation) is amended by inserting "(as in effect before its repeal by the Tax Reform Act of 1986)" after "185". (3) The table of sections for part VI of subchapter B of chapter 1 is amended by striking out the item relating to section 185. (c) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to that portion of the basis of any property which is attributable to expenditures paid or incurred after December 31, 1986. (2) TRANSITIONAL RULE.—The amendments made by this section shall not apply to any expenditure incurred— (A) pursuant to a binding contract entered into before March 2, 1986, or

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