Page:United States Statutes at Large Volume 111 Part 1.djvu/868

 Ill STAT. 844 PUBLIC LAW 105-34—AUG. 5, 1997 "(3) EXCEPTION.— The modifications in paragraph (2) shall not apply to— "(A) any item acquired by the corporation in a transaction to which section 381 applies, and "(B) any property the basis of which in the hands of the corporation is determined by reference to the basis of the property in the hands of the transferor, if such item or property was subject to any provision referred to in paragraph (2) while held by the transferor. "(4) CHANGE DATE. —For purposes of paragraph (2), the change date is the first day of the first taxable year for which the taxpayer ceases to be described in paragraph (1). "(5) LIMITATION ON USE OF CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY. —In the case of a taxpayer whose tentative minimum tax for any taxable year is zero by reason of paragraph (1), section 53(c) shall be applied for such year by reducing the amount otherwise taken into account under section 53(c)(1) by 25 percent of so much of such amount as exceeds $25,000. Rules similar to the rules of section 38(c)(3)(B) shall apply for purposes of the preceding sentence.". 26 USC 55 note. (b) EFFECTIVE DATE. —The amendment made by this section shall apply to tsixable years beginning after December 31, 1997, SEC. 402. REPEAL OF SEPARATE DEPRECIATION LIVES FOR MINIMUM TAX PURPOSES. (a) IN GENERAL. —Clause (i) of section 56(a)(1)(A) is amended by adding at the end the following new sentence: "In the case of property placed in service after December 31, 1998, the preceding sentence shall not apply but clause (ii) shall continue to apply,". (b) POLLUTION CONTROL FACILITIES. —Paragraph (5) of section 56(a) is amended by adding at the end the following new sentence: "In the case of such a facility placed in service after December 31, 1998, such deduction shall be determined under section 168 using the straight line method.". SEC. 403. MINIMUM TAX NOT TO APPLY TO FARMERS' INSTALLMENT SALES. (a) IN GENERAL.— Subsection (a) of section 56 is amended by striking paragraph (6) (relating to treatment of installment sales) and by redesignating paragraphs (7) and (8) as paragraphs (6) and (7), respectively. 26 USC 56 note. (b) EFFECTIVE DATES.— (1) IN GENERAL.— The amendment made by this section shall apply to dispositions in taxable years beginning after December 31, 1987. (2) SPECIAL RULE FOR 1987,— In the case of taxable years beginning in 1987, the last sentence of section 56(a)(6) of the Internal Revenue Code of 1986 (as in effect for such taxable years) shall be applied by inserting "or in the case of a taxpayer using the cash receipts and disbursements method of accounting, any disposition described in section 453C(e)(l)(B)(ii)" after " se ction 453C(e)(4)",

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