Page:United States Statutes at Large Volume 104 Part 2.djvu/958

 104 STAT. 1388-550 PUBLIC LAW 101-508—NOV. 5, 1990 "(1) IN GENERAL. —For purposes of this subtitle, if a credit is determined under this subpart with respect to any property, the basis of such property shall be reduced by the amount of the credit so determined. "(2) CERTAIN DISPOSITIONS. —I f during any taxable year there is a recapture amount determined with respect to any property the basis of which was reduced under paragraph (1), the basis of such property (immediately before the event resulting in such recapture) shall be increased by an amount equal to such recapture amount. For purposes of the preceding sentence, the term 'recapture amount' means any increase in tax (or adjustment in carrybacks or carryovers) determined under subsection (a). "(3) SPECIAL RULE.— In the case of any energy credit or reforestation credit— "(A) only 50 percent of such credit shall be taken into account under paragraph (1), and "(B) only 50 percent of any recapture amount attributable to such credit shall be taken into account under paragraph (2). "(4) RECAPTURE OF REDUCTIONS. — "(A) IN GENERAL.—For purposes of sections 1245 and 1250, any reduction under this subsection shall be treated as a deduction allowed for depreciation, "(B) SPECIAL RULE FOR SECTION 1250. —For purposes of section 1250(b), the determination of what would have been the depreciation adjustments under the straight line method shall be made as if there had been no reduction under this section. "(5) ADJUSTMENT IN BASIS OF INTEREST IN PARTNERSHIP OR S CORPORATION. — The adjusted basis of— "(A) a partner's interest in a partnership, and "(B) stock in an S corporation, shall be appropriately adjusted to take into account adjustments made under this subsection in the basis of property held by the partnership or S corporation (as the case may be). "(d) CERTAIN RULES MADE APPLICABLE.— For purposes of this subpart, rules similar to the rules of the following provisions (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply: "(1) Section 46(e) (relating to limitations with respect to certain persons). "(2) Section 46(f) (relating to limitation in case of certain regulated companies). "(3) Section 46(h) (relating to special rules for cooperatives). "(4) Paragraphs (2) and (3) of section 48(b) (relating to special rule for sale-leasebacks). "(5) Section 48(d) (relating to certain leased property), "(6) Section 48(f) (relating to estates and trusts). "(7) Section 48(r) (relating to certain 501(d) organizations)." (b) CONFORMING AMENDMENTS, — dXA) Subclause (III) of section 29a)X3XAXi) is amended by striking "section 48(1)(11XC)" and inserting "section 48(a)(4)(C)'\ (B) Paragraph (4) of section 29(b) is amended by striking "section 47" each place it appears and inserting "section 49(b) or 50(a)".

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