Page:United States Statutes at Large Volume 100 Part 3.djvu/378

 100 STAT. 2186

PUBLIC LAW 99-514—OCT. 22, 1986 (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 PARA-

GRAPH (i)(c).—This clause shall not apply for purposes of determining under paragraph dXC) 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 REHABIUTATION.—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.—For purposes of this subsection— "(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. "(4) PROPERTY TREATED AS NEW SECTION 38 PROPERTY.—Prop-

erty which is treated as section 38 property by reason of subsection (a)(l)(E) shall be treated as new section 38 property." (c) BASIS ADJUSTMENT FOR CERTIFIED HISTORIC STRUCTURES.—Para-

graph (3) of section 48(q) (relating to special rule for qualified rehabilitated buildings) is amended by striking out "other than a certified historic structure". (d) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to

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