Page:United States Statutes at Large Volume 104 Part 2.djvu/956

 104 STAT. 1388-548 PUBLIC LAW 101-508 —NOV. 5, 1990 reason of section 47(d) and which has not been required to be recaptured before such disposition, cessation, or change in use were allowable for the taxable year the property was placed in service. "(E) SPECIAL RULES.— Rules similar to the rules of this paragraph shall apply in cases where qualified progress expenditures were taken into account under the rules referred to in section 48(a)(5)(A). "(3) CARRYBACKS AND CARRYOVERS ADJUSTED. — In the case of any cessation described in paragraph (1) or (2), the carrybacks and carryovers under section 39 shall be adjusted by reason of such cessation. " (4) SUBSECTION NOT TO APPLY IN CERTAIN CASES.— Paragraphs (1) and (2) shall not apply to— "(A) a transfer by reason of death, or "(B) a transaction to which section 381(a) applies. For purposes of this subsection, property shall not be treated as ceasing to be investment credit property with respect to the taxpayer by reason of a mere change in the form of conducting the trade or business so long as the property is retained in such trade or business as investment credit property and the taxpayer retains a substantial interest in such trade or business. "(5) DEFINITIONS AND SPECIAL RULES.— "(A) INVESTMENT CREDIT PROPERTY. — For purposes of this subsection, the term 'investment credit property' means any property eligible for a credit determined under this subpart. "(B) TRANSFER BETWEEN SPOUSES OR INCIDENT TO DI- VORCE. — In the case of any transfer described in subsection (a) of section 1041— "(i) the foregoing provisions of this subsection shall not apply, and "(ii) the same tax treatment under this subsection with respect to the transferred property shall apply to the transferee as would have applied to the transferor. "(C) SPECIAL RULE.— Any increase in tax under paragraph (1) or (2) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit allowable under subpart A, B, D, or G. "(b) CERTAIN PROPERTY NOT ELIGIBLE. —No credit shall be determined under this subpart with respect to— "(1) PROPERTY USED OUTSIDE UNITED STATES.— "(A) IN GENERAL.— Except as provided in subparagraph (B), no credit shall be determined under this subpart with respect to any property which is used predominantly outside the United States. " (B) EXCEPTIONS.— Subparagraph (A) shall not apply to any property described in section 168(g)(4). "(2) PROPERTY USED FOR LODGING. — No credit shall be determined under this subpart with respect to any property which is used predominantly to furnish lodging or in connection with the furnishing of lodging. The preceding sentence shall not apply to— "(A) nonlodging commercial facilities which are available to persons not using the lodging facilities on the same basis as they are available to persons using the lodging facilities.®*
 * So in original. Probably should be "facilities;".

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