Page:United States Statutes at Large Volume 95.djvu/261

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 235

(C) Subparagraph (B) of section 47(a)(7) (as redesignated by paragraph (1)) is amended by striking out "paragraph (5) and inserting in lieu thereof paragraph (6)". (h) TREATMENT OP CERTAIN LEASED ROLUNG STOCK.—Clause (ii) of

section 48(a)(2)(B) is amended to read as follows: 26 USC 48. "(ii) rolling stock which is used within and without the United States and which is— "(I) of a domestic railroad corporation providing transportation subject to subchapter I of chapter 105 of title 49, or 49 USC losoi. "(n) of a United States person (other than a corporation described in subclause (I)) but only if the rolling stock is not leased to one or more foreign persons for periods aggregating more than 12 months in any 24-month period;", (i) EFFECTIVE DATE.— 26 USC 46 note. (1) IN GENERAL.—Except as provided in this subsection, the amendments made by this section shall apply to property placed in service after December 31, 1980. (2) PROGRESS EXPENDITURES.—The amendments made by subsection (b) shall apply to progress expenditures made after December 31, 1980. (3) PETROLEUM STORAGE FACILITIES.—The amendments made by subsection (c) shall apply to periods after December 31, 1980, under rules similar to the rules under section 48(m). (4) NONCORPORATE LESSORS.—The amendments made by subsection (d) shall apply to leases entered into after June 25, 1981. (5) AT RISK RULES.— (A) IN GENERAL.—The amendment made by subsection (f) shall not apply to— (i) property placed in service by the taxpayer on or before February 18, 1981, and t; (ii) property placed in service by the taxpayer after February 18, 1981, where such property is acquired by the taxpayer pursuant to a binding contract entered into on or before that date. (B) BINDING CONTRACT.—For purposes of subparagraph (A)(ii), property acquired pursuant to a binding contract shall, under regulations prescribed by the Secretary, include property acquired in a manner so that it would have qualified as pretermination property under section 49(b) (as in effect before its repeal by the Revenue Act of 1978). (6) LEASED ROLLING STOCK.—The amendment made by subsection (h) shall apply to taxable years beginning after December 31, 1980. SEC. 212. INCREASE IN INVESTMENT TAX CREDIT FOR QUALIFIED REHABILITATION EXPENDITURES. (a) INCREASE IN AMOUNT OF CREDIT.—

(1) IN GENERAL.—Subparagraph (A) of section 46(a)(2) (relating 26 USC 46. to amount of investment tax credit) is amended by striking out "and" at the end of clause (ii), by striking out the period at the end of clause (iii), by inserting in lieu thereof ", and", and by adding at the end thereof the following new clause: "(iv) in the case of that portion of the basis of any property which is attributable to qualified rehabilitation expenditures, the rehabilitation percentage.".

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