Page:United States Statutes at Large Volume 100 Part 3.djvu/830

 100 STAT. 2638

PUBLIC LAW 99-514—OCT. 22, 1986 ^iXi

vided by reason of this paragraph to a first-time farmer for personal property— b-i "(i) of a character subject to the allowance for depreG-ciation, "(ii) the original use of which does not begin with such farmer, and "i ' 4 > "(iii) which is to be used for farming purposes, exceed $62,500. A rule similar to the rule of subparagraph (C)(ii) shall apply for purposes of the preceding sentence. "(3) EXCEPTION FOR CERTAIN LAND ACQUIRED FOR ENVIRONMENTAL PURPOSES, ETC.—Any land acquired by a governmental

unit (or issuing authority) in connection with an airport, mass commuting facility, dock, or wharf shall not be taken into account under paragraph (1) if— "(A) such land is acquired for noise abatement or wetland preservation, or for future use as an airport, mass commuting facility, dock, or wharf, and "(B) there is not other significant use of such land. "(d) ACQUISITION OF EXISTING PROPERTY NOT PERMITTED.—

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"(1) IN GENERAL.—Except as provided in subsection (h), a private activity bond shall not be a qualified bond if issued as part of an issue and any portion of the net proceeds of such issue is to be used for the acquisition of any property (or an interest therein) unless the 1st use of such property is pursuant to such acquisition. "(2) EXCEPTION FOR CERTAIN REHABILITATIONS.—Paragraph (1)

shall not apply with respect to any building (and the equipment therefor) if— "(A) the rehabilitation expenditures with respect to such ^•'*"' building, equal or exceed "(B) 15 percent of the portion of the cost of acquiring such building (and equipment) financed with the net proceeds of the issue. A rule similar to the rule of the preceding sentence shall apply in the case of structures other than a building except that subparagraph (B) shall be applied by substituting '100 percent' for '15 percent'. "(3) REHABILITATION EXPENDITURES.—For purposes of this subsection— "(A) IN GENERAL.—Except as provided in this paragraph, the term 'rehabilitation expenditures' means any amount c properly chargeable to capital account which is incurred by the person acquiring the building for property (or additions or improvements to property) in connection with the rehabilitation of a building. In the case of an integrated operation contained in a building before its acquisition, •BZkt'. such term includes rehabilitating existing equipment in •' • such building or replacing it with equipment having substantially the same function. For purposes of this subparagraph, any amount incurred by a successor to the person acquiring the building or by the seller under a sales contract with such person shall be treated as incurred by such person. "(B) CERTAIN EXPENDITURES NOT INCLUDED.—The term 'rehabilitation expenditures' does not include any expendi< ^^? ture described in section 48(g)(2)(B).

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