Page:United States Statutes at Large Volume 83.djvu/609

 g3 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

581

then an amount equal to the lesser of the tax imposed by subsection (a) or 10 percent of the amount of the net operating loss carryover described in subparagraph (A) shall be treated as tax liability not imposed for the taxable year, but as imposed for the succeeding taxable year or years pursuant to paragraph (2). "(2) YEAR OF LIABILITY.—In any taxable year in which any portion of the net operating loss carryover attributable to the excess described in paragraph (1)(B) reduces taxable income, the amount of tax liability described in paragraph (1) shall be treated as tax liability imposed in such taxable year in an amount equal to 10 percent of such reduction.

d 36X.« "

"(3) PRIORITY OF APPLICATION.—For purposes of paragraph

(2), if any portion of the net operating loss carryover described in paragraph (1)(A) is not attributable to the excess described in paragraph (1)(B), such portion shall be considered as being applied in reducing taxable income before such other portion. "SEC. 57. ITEMS OF TAX PREFERENCE. «(a) IN GENERAL.—For purposes of this part, the items of tax preference are— "(1) EXCESS INVESTMENT INTEREST.—The amount of the excess

investment interest for the taxable year (as determined under subsection (b)). "(2) ACCELERATED DEPRECIATION ON REAL PROPERTY.—With

respect to each section 1250 property (as defined in section 1250 (c)), the amount by which the deduction allowable for the taxable year for exhaustion, wear and tear, obsolescence, or amortization exceeds the depreciation deduction which would have been allowable for the taxable year had the taxpayer depreciated the property under the straight line method for each taxable year of its useful life (determined without regard to section 167(k)) for which the taxpayer has held the property.

26 USC 1256.

Post.

p. 651.

" (3) ACCELERATED DEPRECIATION ON PERSONAL PROPERTY SUBJECT

TO A NET LEASE.—With respect to each item of section 1245 property (as defined in section 1245(a)(3)) which is the subject of Po^t^^'.^yV^' a net lease, the amount by which the deduction allowable for the taxable year for exhaustion, wear and tear, obsolescence, or amortization exceeds the depreciation deduction which would have been allowable for the taxable year had the taxpayer depreciated the property under the straight line method for each taxable year of its useful life for which the taxpayer has held the property. "(4) AMORTIZATION or CERTIFIED POLLUTION CONTROL FACILI-

TIES.—With respect to each certified pollution control facility for which an election is in effect under section 169, the amount by ^°«^' P- ^^''^ which the deduction allowable for the taxable year under such section exceeds the depreciation deduction which would otherwise be allowable under section 167. . ..^°^'' P^' ^^^' 649. "(5) AMORTIZATION OF RAILROAD ROLLING STOCK.—With respect to each unit of railroad rolling stock for which an election is in effect under section 184, the amount by which the deduction allow- Post, p. 6 7 0. able for the taxable year under such section exceeds the depreciation deduction which would otherwise be allowable under section 167. " (6) STOCK oPTiONS.With respect to the transfer of a share of stock pursuant to the exercise of a qualified stock option (as de78 Stat. 6 4. fined in section 422(b)) or a restricted stock option (as defined in

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