Page:United States Statutes at Large Volume 111 Part 1.djvu/1024

 Ill STAT. 1000 PUBLIC LAW 105-34—AUG. 5, 1997 For purposes of the preceding sentence, the term 'return due date' means the date prescribed for fihng the return of the tax imposed by this chapter (determined without regard to extensions).". 26 USC 460 note. (c) EFFECTIVE DATE.— (1) IN GENERAL.— Except as provided in paragraph (2), the amendments made by this section shall apply to contracts completed in taxable years ending after the date of the enactment of this Act. (2) SUBSECTION (b).— The amendments made by subsection (b) shall apply for purposes of section 167(g) of the Internal Revenue Code of 1986 to property placed in service after September 13, 1995. SEC. 1212. MINIMUM TAX TREATMENT OF CERTAIN PROPERTY AND CASUALTY INSURANCE COMPANIES. (a) IN GENERAL.—Clause (i) of section 56(g)(4)(B) (relating to inclusion of items included for purposes of computing earnings and profits) is amended by adding at the end the following new sentence: "In the case of any insurance company taxable under section 831(b), this clause shall not apply to any amount not described in section 834(b).", 26 USC 56 note. (b) EFFECTIVE DATE.— The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1997. SEC. 1213. QUALIFIED LESSEE CONSTRUCTION ALLOWANCES FOR SHORT-TERM LEASES. (a) IN GENERAL. — Part III of subchapter B of chapter 1 is amended by inserting after section 109 the following new section: " SEC. 110. QUALIFIED LESSEE CONSTRUCTION ALLOWANCES FOR SHORT-TERM LEASES. "(a) IN GENERAL. — Gross income of a lessee does not include any amount received in cash (or treated as a rent reduction) by a lessee from a lessor— "(1) under a short-term lease of retail space, and "(2) for the purpose of such lessee's constructing or improving qualified long-term real property for use in such lessee's trade or business at such retail space, but only to the extent that such amount does not exceed the amount expended by the lessee for such construction or improvement. "(b) CONSISTENT TREATMENT BY LESSOR. —Qualified long-term real property constructed or improved in connection with any amount excluded from a lessee's income by reason of subsection (a) shall be treated as nonresidential real property of the lessor (including for purposes of section 168(i)(8)(B)). "(c) DEFINITIONS. —For purposes of this section— "(1) QUALIFIED LONG-TERM REAL PROPERTY.—The term 'qualified long-term real property' means nonresidential real property which is part of, or otherwise present at, the retail space referred to in subsection (a) and which reverts to the lessor at the termination of the lease. "(2) SHORT-TERM LEASE. — The term 'short-term lease' means a lease (or other agreement for occupancy or use) of retail space for 15 years or less (as determined under the rules of section 168(i)(3)).

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