Page:United States Statutes at Large Volume 90 Part 2.djvu/129

 »

PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 15^7

" (A) the acquisition, construction, or reconstruction of a qualified vessel, or " (B) the acquisition, construction, or reconstruction of barges or containers which are part of the complement of a qualified vessel and to which subsection (f)(1)(B) of such section 607 applies, 46 USC 1177. for purposes of section 38 there shall be deemed to have been made (at the time of such withdrawal) a qualified investment (within the meaning of subsection (c)) or qualified progress expenditures (within the meaning of subsection (d)), whichever is appropriate, with respect to property which is section 38 property. " (2) A M O U N To r CREDIT.—For purposes of paragraph (1), the

amount of the qualified investment shall be 50 percent of the applicable percentage of the qualified withdrawal referred to in paragraph (1), or the amount of the qualified progress expenditures shall be 50 percent of such withdrawal, as the case may be. For purposes of determining the amount of the credit allowable by reason of this subsection for any taxable year, the limitation or subsection (a)(3) shall be determined without regard to subsection (d)(1)(A) of such section 607.

'*' 5 \

"''

'' '

" (3) COORDINATION W I T H SECTION 38.—The a m o u n t of the c r e d i t

allowable by reason of this STibsection with respect to any property shall be the minimum amount allowable under section 38 with respect to such property. If, without regard to this subsection, a greater amount is allowable under section 38 with respect to such property, then such greater amount shall apply and this subsection shall not apply. "(4)

COORDINATION W I T H

SECTION 47.—Section 47 shall

be

applied— " (A) to any property to which this subsection applies, and " (B) to the payment ( o u t of the untaxed portion of a '.;.*,\ capital gain account or out of the ordinary income account of a capital construction fund established under section 607 of the Merchant Marine Act, 1936) of the principal of any indebtedness incurred in connection with property with respect to which a credit was allowed under section 38. For purposes of section 47, any payment described in subparagraph (B) of the preceding sentence shall be treated as a disposition occurring less than 3 years after the property was placed in service; but, in the case of a credit allowable without regard to this subsection, the aggregate amount which may be recaptured by reason of this sentence shall not exceed 50 percent of such credit. " (5) DEEINITIONS.—Any term used in section 607 of the Merchant Marine Act, 1970, shall have the same meaning when used 46 USC 1177. in this subsection. " (6) No INFERENCE.—Nothing in this subsection shall be construed to infer that any property described in this subsection is or is not section 38 property, and any determination of such issue shall be made as if this subsection h a d not been enacted." (b) EFFECTIVE D A T E S. —

(1) IN GENERAL.—Except as provided in subparagraph (B), the amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1975, in the case of property placed in service after such date.

-194 O—78—pt. 2

9

26 USC 46 note.

�