Page:United States Statutes at Large Volume 80 Part 1.djvu/1544

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PUBLIC LAW 89-800-NOV. 8, 1966

[80 STAT.

Public Law 89-800 November 8, 1966 AN ACT [H. R. 17607] rp^j suspend the investment credit and the allowance of accelerated depreciation in the case of certain real property. Taxes. Depreciable

prop^rtyVrnCestment credit sus^^6^ st^t. 967. 26 USC 48. 76 Stat. 962. 26 USC 38.

Post. p. 1512.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 48 of the Internal Revenue Code of 1964 (relating to definition; special rulcs) is amended by redesignating subsection (h) as subsection (k), ^nd by inserting before such subsection the following new subsections: " (h) SUSPENSION OF INVESTMENT CREDIT.—For purposes of this subpart— "(1) GENERAL RULE.—Section SB property which is suspension period property shall not be treated as new or used section 38 property. "(2) SUSPENSION PERIOD PROPERTY DEFINED.—Except as other^ig^ provided in this subsection and subsection (i), the term 'suspension period property' means section 38 property— " (A) the physical construction, reconstruction, or erection of which begins either during the suspension period or pursuant to an order placed during such period, or " (B) which is acquired by the taxpayer either during the suspension period or pursuant to an order placed during such period. "(3) BINDING CONTRACTS.—To the extent that any property is constructed, reconstructed, erected, or acquired pursuant to a contract which was, on October 9, 1966, and at all times thereafter, binding on the taxpayer, such property shall not be deemed to be suspension period property. " (4) EQUIPPED BUILDING RULE.—If—

" (A) pursuant to a plan of the taxpayer in existence on October 9, 1966 (which plan was not substantially modified at any time after such date and before the taxpayer placed the equipped building in service), the taxpayer has constructed, reconstructed, erected, or acquired.a building and the machinery and equipment necessary to the planned use of the building by the taxpayer, and " (B) more than 50 percent of the aggregate adjusted basis of all the property of a character subject to the allowance for depreciation making up such building as so equipped is attributable to either property the construction, reconstruction, or erection of which was begun by the taxpayer before October 10, 1966, or property the acquisition of which by the taxpayer occurred before such date, then all section 38 property comprising such building as so equipped (and any incidental section 38 property adjacent to such building which is necessary to the planned use of the building) shall be treated as section 38 property which is not suspension period property. For purposes of subparagraph (B) of the preceding sentence, the rules of paragraphs (3) and (6) shall be applied. For purposes of this paragraph, a special purpose structure shall be treated as a building. " (5) PLANT FACILITY RULE.—" (A) GENERAL RULE.—If—

" (i) pursuant to a plan of the taxpayer in existence on October 9, 1966 (which plan was not substantially modified at any time after such date and before the taxpayer

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