Page:United States Statutes at Large Volume 80 Part 1.djvu/1547

 80 STAT.]

PUBLIC LAW 89-800-NOV. 8, 1966

" (B) If— " (i) property or rights under a contract are acquired in a transaction to which section 334(b)(2) applies, "(ii) the stock of the distributing corporation was acquired before October 10, 1966, or pursuant to a binding contract in effect October 9, 1966, and "(iii) such property (or the property acquired under such contract) would not be treated as suspension period property in the hands of the distributing corporation, such property shall not be treated as suspension period property in the hands of the distributee. "(10)

PROPERTY ACQUIRED FROM AFFILIATED CORPORATION.—For

purposes of this subsection, in the case of property acquired by a corporation which is a member of an affiliated group from another member of the same group— " (A) such corporation shall be treated as having acquired such property on the date on which it was acquired by such other member, " (B) such corporation shall be treated as having entered into a binding contract for the construction, reconstruction, erection, or acquisition of such property on the date on which such other member entered into a contract for the construction, reconstruction, erection, or acquisition of such property, and " (C) such corporation shall be treated as having commenced the construction, reconstruction, or erection of such property on the date on which such other member commenced such construction, reconstruction, or erection. For purposes of the preceding sentence, the term 'affiliated group' has the meaning assigned to it by section 1504(a), except that all corporations shall be treated as includible corporations (without any exclusion under section 1504(b)). "(11) CERTAIN TANGIBLE PROPERTY CONSTRUCTED DURING SUSPENSION PERIOD AND LEASED NEW THEREAFTER.—Tangible personal

property constructed or reconstructed by a person shall not be suspension period property if— " (A) such person leases such property after the close of the suspension period and the original use of such property commences after the close of such period, " (B) such construction or reconstruction, and such lease transaction, was not pursuant to an order placed during the suspension period, and " (C) an election is made under subsection (d) with respect to such property which satisfies the requirements of such subsection. "(12)

WATER AND AIR POLLUTION CONTROL FACILITIES.—

" (A) IN GENERAL.—Any water pollution control facility or air pollution control facility shall be treated as property which is not suspension period property. " (B) WATER POLLUTION CONTROL FACILITY.—For purposes of subparagraph (A), the term 'water pollution control facility' means any section 38 property which— " (i) is used primarily to control water pollution by removing, altering, or disposing of wastes, including the necessary intercepting sewers, outfall sewers, pumping,

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68A Stat. 104.

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