Page:United States Statutes at Large Volume 100 Part 3.djvu/983

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2791

with respect to the coliseum facility subject to a binding contract to lease which was in effect on January 1, 1985. "(E) TREATMENT OF CERTAIN HISTORIC STRUCTURES.—If—

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"(i) on June 16, 1982, the legislative body of the local governmental unit adopted a bond ordinance to provide funds to renovate elevators in a deteriorating building owned by the local governmental unit and listed in the National Register, and "(ii) the chief executive officer of the local governmental unit, in connection with the renovation of such - building, made an application on June 1, 1983, to a State agency for a Federal historic preservation grant and made an application on June 17, 1983, to the Economic Development Administration of the United States Department of Commerce for a grant, the requirements of clauses (i) and (ii) of subparagraph (A) shall be treated as met." (F) Subparagraph (H) of section 31(g)(17) of the Tax Reform Act of 1984 is amended by adding at the end thereof the following new sentence: "In the case of Clemson University, the preceding sentence applies only to the Continuing Education Center and the component housing project." (G) Subparagraph (L) of section 31(g)(17) of the Tax Reform Act of 1984 is amended by adding at the end thereof the following: "Property is described in this subparagraph if such property was leased to a tax-exempt entity pursuant to a lease recorded in the Registry of Deeds of Essex County, New Jersey, on May 7, 1984, and a deed of such property was recorded in the Registry of Deeds of Essex County, New Jersey, on May 7, 1985."

(b) AMENDMENTS RELATED TO SECTION 32 OF THE ACT.—

(1) Subsection (f) of section 168 (relating to special rules) is amended— (A) by redesignating the paragraph (13) relating to motor vehicle operating leases as paragraph (14), and (B) by redesignating paragraph (14) as paragraph (15). (2) Subsection (c) of section 32 of the Tax Reform Act of 1984 is amended by striking out "section 168(f)(13)" and inserting in lieu thereof "section 168(0(14)". SEC. 1803. AMENDMENTS RELATED TO TREATMENT OF BONDS AND OTHER DEBT INSTRUMENTS. (a) AMENDMENTS RELATED TO SECTION 41 OF THE ACT.— (1) TREATMENT OP SHORT-TERM NONGOVERNMENT OBLIGATIONS.—

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(A) Subsection (a) of section 1271 (relating to treatment of amounts received on retirement or sale or exchange of debt instruments) is amended by adding at the end thereof the following new paragraph: "(4) CERTAIN SHORT-TERM NONGOVERNMENT OBLIGATIONS.—

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"(A) IN GENERAL.—On the sale or exchange of any shortterm nongovernment obligation, any gain realized which does not exceed an amount equal to the ratable share of the original issue discount shall be treated as ordinary income.

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