Page:United States Statutes at Large Volume 116 Part 1.djvu/49

 PUBLIC LAW 107-147—MAR. 9, 2002 116 STAT. 23 "(i)(I) to which this section apphes which has a recovery period of 20 years or less, "(II) which is computer software (as defined in section 167(f)(1)(B)) for which a deduction is allowable under section 167(a) without regard to this subsection, "(III) which is water utility property, or "(IV) which is qualified leasehold improvement property, "(ii) the original use of which commences with the taxpayer after September 10, 2001, "(iii) which is— "(I) acquired by the taxpayer after September 10, 2001, and before September 11, 2004, but only if no written binding contract for the acquisition was in effect before September 11, 2001, or "(II) acquired by the taxpayer pursuant to a written binding contract which was entered into after September 10, 2001, and before September 11, 2004, and "(iv) which is placed in service by the taxpayer before January 1, 2005, or, in the case of property described in subparagraph (B), before January 1, 2006. "(B) CERTAIN PROPERTY HAVING LONGER PRODUCTION PERIODS TREATED AS QUALIFIED PROPERTY.— "(i) IN GENERAL.—The term 'qualified property' includes property— "(I) which meets the requirements of clauses (i), (ii), and (iii) of subparagraph (A), "(II) which has a recovery period of at least 10 years or is transportation property, and "(III) which is subject to section 263A by reason of clause (ii) or (iii) of subsection (f)(1)(B) thereof. " (ii) ONLY PRE-SEPTEMBER ll, 2004, BASIS ELIGIBLE Applicabmty. FOR ADDITIONAL ALLOWANCE. — In the case of property which is qualified property solely by reason of clause (i), paragraph (1) shall apply only to the extent of the adjusted basis thereof attributable to manufacture, construction, or production before September 11, 2004. " (iii) TRANSPORTATION PROPERTY.—For purposes of this subparagraph, the term 'transportation property' means tangible personal property used in the trade or business of transporting persons or property. "(C) EXCEPTIONS. — "(i) ALTERNATIVE DEPRECIATION PROPERTY. — The term 'qualified property' shall not include any property to which the alternative depreciation system under subsection (g) applies, determined— "(I) without regard to paragraph (7) of subsection (g) (relating to election to have system apply), and "(II) after application of section 280F(b) (relating to listed property with limited business use). "(ii) QUALIFIED NEW YORK LIBERTY ZONE LEASE- HOLD IMPROVEMENT PROPERTY. —The term 'qualified property' shall not include any qualified New York

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