Page:United States Statutes at Large Volume 90 Part 2.djvu/448

 9 0 STAT. 1916

PUBLIC LAW 94-455—OCT. 4, 1976 (1) by adding to adjusted gross income any items of tax preference excluded from, o r deducted in arriving at, adjusted gross income, (2) by subtracting any investment expenses incurred i n the production of such, income to the extent of the investment income, and (3) by making both of the adjustments referred to i n paragraph s (1) and (2). I n any event these data are to include the number of such individuals with total income over $200,000 who owe no Federal income tax (after credits) and the deductions, exclusions or credits used by them to avoid tax. SEC. 2124. TAX INCENTIVES TO ENCOURAGE THE PRESERVATION OF HISTORIC STRUCTURES. (a) AMORTIZATION o r REHABILITATION EXPENDITURES. — (1) ALLOWANCE OF DEDUCTION.—Part VI of subchapter B of

26 USC 191.

chapter 1 (relating to itemized deductions) is amended by a d d i n g at the end thereof the following new section: "SEC. 191. AMORTIZATION OF CERTAIN REHABILITATION EXPENDITURES FOR CERTIFIED HISTORIC STRUCTURES. "(a)

V

ALLOWANCE o r DEDUCTION. — E v e r y person, a t his election,

shall be entitled to a deduction with respect to the amortization of the amortizable basis of any certified historic structure (as defined i n subsection (d)) based on a period of 60 months. Such amortization deduction shall be an amount, with respect to each month of such period within the taxable year, equal to the amortizable basis a t the end of such month divided by the number of months (including the month for which the deduction is computed) remaining i n the period. Such amortizable basis at the end of the month shall be computed without regard to the amortization deduction for such month. The amortization deduction provided by this section with respect to any month shall be in lieu of the depreciation deduction with respect to such basis for such month provided by section 167. The 60-month period shall begin, as to any historic structure, a t the election of the taxpayer, with the month following the month in which the basis is acquired, or with the succeeding taxable year. "(b)

ELECTION OF AMORTIZATION.—The election of the tax p a y e r to

take the amortization deduction and to begin the 60-month period with the month following the month i n which the basis is acquired, o r with the taxable year succeeding: the taxable year in which such basis is ac(iuired, shall be made by filing with the Secretary, i n such manner, in such form, and within such time as the Secretary may by regulations prescribe, a statement of such election. "(c)

TERMINATION o r AMORTIZATION DEDUCTION. — A tax p a y e r who

has elected under subsection (b) to take the amortization deduction provided in subsection (a) may, a t any time after making such election, discontinue the amortization deduction with respect to the remainder of the amortization period, such discontinuance to begin as of the beginning of any month specified by the taxpayer i n a notice in writing filed with the Secretary before the beginning of such month. The depreciation deduction provided under section 167 shall be allowed, beginning with the first month as to which the amortization deduction does not apply, and the tax p a y e r shall not be entitled to any further amortization deduction under this section with respect to such certified historic structure. \.

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