Page:United States Statutes at Large Volume 92 Part 3.djvu/193

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2825

(b) SPECIAL RULES FOR CERTAIN UTIUTIES, RAILROADS, AND AIRUNES.—

(1) UTILITIES.—Paragraph (7) of section 46(a) (relating to alter- 26 USC 46. native limitation in the case of certain utilities) is amended to read as follows: "(7) ALTERNATIVE LIMITATION IN THE CASE OF CERTAIN UTILITIES.—

"(A) IN GENERAL.—If, for the taxable year ending in 1979— "(i) the amount of the qualified investment of the taxpayer which is attributable to public utility property is 25 percent or more of his aggregate qualified investment, and "(ii) the application of this paragraph results in a percentage higher than 60 percent, then subparagraph (B) of paragraph (3) of this subsection shall be applied by substituting for '60 percent' the taxpayer's applicable percentage for such year. "(B) APPLICABLE PERCENTAGE.—The applicable percentage for any taxpayer for any taxable year ending in 1979 is— "(i) 50 percent, plus "(ii) that portion of 20 percent which the taxpayer's amount of qualified investment which is public utility property bears to his aggregate qualified investment. If the proportion referred to in clause (ii) is 75 percent or more, the applicable percentage of the taxpayer for the year shall be 70 percent. "(C) PUBLIC UTILITY PROPERTY DEFINED.—For purposes of

this paragraph, the term 'public utility property' has the meaning given to such term by the first sentence of subsection (c)(3)(B)." (2) ALTERNATIVE LIMITATION IN THE CASE OF CERTAIN RAILROADS

AND AIRLINES.—Subsection (a) of section 46 is amended by striking out paragraphs (8) and (9) and by inserting in lieu thereof the following new paragraph: "(8) ALTERNATIVE LIMITATION IN THE CASE OF CERTAIN RAILROADS AND AIRLINES.—

"(A) IN GENERAL.—If^ for a taxable year ending in 1979 or 1980— "(i) the amount of the qualified investment of the taxpayer which is attributable to railroad property or to airline property, as the case may be, is 25 percent or more of his aggregate qualified investment, and "(ii) the application of this paragraph results in a percentage higher than 60 percent (70 percent in the case of a taxable year ending in 1980), then subparagraph (B) of paragraph (3) of this subsection shall be applied by substituting for'60 percent'('70 percent' in the case of a taxable year ending in 1980) the taxpayer's applicable percentage for such year. "(B) APPLICABLE PERCENTAGE.—The applicable percentage of any taxpayer for any taxable year under this paragraph is— "(i) 50 percent, plus "(ii) that portion of the tentative percentage for the taxable year which the taxpayer's amount of qualified investment which is railroad property or airline prop-

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