Page:United States Statutes at Large Volume 95.djvu/253

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 227

ing. This provision shall not apply to any rate order which, under the rules in effect before the date of the enactment of this Act, required a regulated public utility to use a method of accounting with respect to the deduction allowable by section 167 which, under section 167(1), it was not permitted to use. (2) TRANSITIONAL RULE FOR REQUIREMENTS OF SECTION 46(f).—If, 26 USC 46 note. by the terms of the applicable rate order last entered before the date of the enactment of this Act by a regulatory commission having appropriate jurisdiction, a regulated public utUity would (but for this provision) fail to meet the requirements of paragraph (1) or (2) of section 46(f) of the Internal Revenue Code of 1954 with respect to property for an accounting period ending after December 31, 1980, such regulated public utility shall not fail to meet such requirements if, by the terms of its first rate order determining cost of service with respect to such property which becomes effective after the date of the enactment of this Act and on or before January 1, 1983, such regulated public utility meets such requirements. This provision shall not apply to any rate order which, under the rules in effect before the date of the enactment of this Act, was inconsistent with the requirements of paragraph (1) or (2) of section 46(f) of such Code (whichever would have been applicable). (3) (CLARIFICATION.—Subpar^aph (C) of section 167(1)(3) is 26 USC i67. amended by inserting "and which is placed in service before January 1, 1981" immediately before the period at the end thereof. (4) AUTHORITY TO PRESCRIBE INTERIM REGULATIONS WITH RE- 26 USC i68

SPECT TO NORMALIZATION.—Until C]k)ngress acts further, the Sec- note. retary of the Treasury or his delegate may prescribe such interim regulations as may be necessary or appropriate to determine whether the requirements of section 168(e)(o)(B) of the Internal Revenue Code of 1954 have been met with respect to property Ante, p. 203. placed in service after December 31, 1980.

Subtitle B—Investment Tax Credit Provisions SEC. 211. MODIFICATION OF INVESTMENT TAX CREDIT TO REFLECT ACCELERATED COST RECOVERY. (a) APPLICABLE PERCENTAGE.—

(1) IN GENERAL.—Subsection (c) of section 46 (relating to 26 USC 46. qualified investment) is amended by adding at the end thereof the following new paragraph: "(7) APPLICABLE PERCENTAGE FOR RECOVERY PROPERTY.-Not-

withstanding paragraph (2), the applicable percentage for purposes of paragraph (1) shall be— "(A) in the case of 15-year public utility, 10-year, or 5-year property (within the meaning of section 168(c)), 100 percent, and "(B) in the case of 3-year property (within the meaning of section 168(c)), 60 percent. For {purposes of subparagraph (A), RRB replacement property (within the meaning of section 168(fK3XB)) shall be treated as 5-year property." (2) Subsection (a) of section 48 (defining section 38 property) is 26 USC 48. amended by striking out paragraph (9). (b) REVISION OF PROGRESS ExPENnrruRE RULES.—

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