Page:United States Statutes at Large Volume 85.djvu/533

 85 STAT. ]

PUBLIC LAW 92-178-DEC. 10, 1971

503

railroad track, the term 'section 38 property' includes replace- "section 38 ment track material, if— proper y. " (A) the replacement is made pursuant to a scheduled program for replacement, " (B) the replacement is made pursuant to observations by maintenance-of-way personnel of specific track material needing replacement, " (C) the replacement is made pursuant to the detection by a rail-test car of specific track material needing replacement, or " (D) the replacement is made as a result of a casualty. Replacements made as a result of a casualty shall be section 38 property only to the extent that, in the case of each casualty, the qualified investment with respect to the replacement track material "Track mateexceeds $5,0. For purposes of this paragraph, the term 'track rial." material' includes ties, rail, other track material, and ballast." (h) EFFECTIVE DATES.—The amendments made by this section (other than by subsections (c)(1), (c)(2), and (g)) shall apply to property described in section 50 of the Internal Revenue Code of 1954. The amendments made by subsections (c)(1), (c)(2), and (g) ^"'®' P* ^SS. shall apply to taxable years ending after December 31, 1961. SEC. 105. REGULATED COMPANIES. (a) INCREASE I N QUALIFIED INVESTMENT FOR PUBLIC UTILITY PROP-

ERTY.—Section 46(c)(3)(A) (relating to qualified investment in case of public utility property) is amended by striking out " 3 / 7 " and inserting in lieu thereof "4/7". (b)

DEFINITION

OF PUBLIC

UTILITY

PROPERTY,

^^ ^^^^ 963.

ETC.—Section

46(c)(3) (relating to public utility property) is amended— (1) by inserting "or" at the end of clause (ii) of subparagraph (B), and by striking out clauses (iii) and (iv) of such subparagraph and inserting in lieu thereof the following: "(iii) telephone service, telegraph service by means of domestic telegraph operations (as defined in section 222(a) (5) of the Communications Act of 1934, as amended; 47 U.S.C., sec. 2 2 2 (a)(5)), or other communication services s? Stat. s. (other than international telegraph service),"; (2) by adding at the end of subparagraph (B) the following new sentence: "Such term also means communication property of the type used by persons engaged in providing telephone or microwave communication services to which clause (iii) applies, if such supra. property is used predominantly for communication purposes."; and (3) by adding after subparagraph (B) the following new subparagraph: " (C) I n the case of any interest in a submarine cable circuit used to furnish telegraph service between the United States and a point outside the United States of a taxpayer engaged in furnishing international telegraph service (if the rates for such furnishing have been established or approved by a governmental unit, agency, instrumentality, commission, or similar body described in subparagraph (B)), the qualified investment shall not exceed the qualified investment attributable to so much of the interest of the taxpayer in the circuit as does not exceed 50 percent of all interests in the circuit." (c) CREDIT NOT AVAILABLE I N CERTAIN CASES.—Section 46 (relat- ^^ ^*^** ^^^* ing to amount of credit) is amended by adding at the end thereof the following new subsection:

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