Page:United States Statutes at Large Volume 96 Part 1.djvu/467

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 425

"(B) APPLICATION O F SECTION 617(d).—In the case of any

disposition of mining property to which section 617(d) applies (determined without regard to this section), any a m o u n t allowable as a deduction under paragraph (2)(B) which is allocable to such property shall, for purposes of section 617(d), be t r e a t e d a s a deduction allowable under section 617(a).

26 USC 617.

"(C) RECAPTURE O F INVESTMENT CREDIT.—In the case of

any disposition of any property to which the credit allowable under section 38 by reason of paragraph (2)(B) is allocable, such disposition shall, for purposes of section 47, be t r e a t e d a s a disposition of section 38 recovery property which is not 3-year property. "(5) INTEGRATED OIL COMPANY D E F I N E D. — For purposes of t h i s

subsection, the term 'integrated oil company' means, with respect to any taxable year, any producer (within the m e a n i n g of section 4996(a)(1)) of crude oil other than a n independent producer (within the m e a n i n g of section 4992(b)). "(6) COORDINATION WITH COST DEPLETION.—The p o r t i o n of the

adjusted basis of any property which is a t t r i b u t a b l e to intangible drilling and development costs or mining exploration and development costs shall not be t a k e n into account for purposes of determining depletion under section 611. "(c) SPECIAL RULES R E L A T I N G TO P O L L U T I O N CONTROL FACILITIES.—

For purposes of this subtitle— "(1) ACCELERATED COST RECOVERY DEDUCTION.—For purposes of

subclause (I) of section 168(d)(l)(A)(ii), a tax p a y e r shall not be 95 Stat. 204. t r e a t e d as electing the amortization deduction under section 169 with respect to that portion of the basis not t a k e n into account under section 169 by reason of subsection (a)(5). "(2) 1250 RECAPTURE.—Subsection (a)(1) shall not apply to any section 1250 property which is part of a certified pollution control facility (within the m e a n i n g of section 169(d)(1)) with respect to which a n election under section 169 was made. "(d) SPECIAL RULE FOR R E A L ESTATE INVESTMENT T R U S T S. — I n the

case of a real estate investment t r u s t (as defined in section 856), the difference between the a m o u n t s described in subparagraph s (A) and (B) of subsection (a)(1) shall be reduced to the e x t e n t that a capital gain dividend (as defined in section 857(b)(3)(C), applied without regard to this section) is t r e a t e d a s paid o u t of such difference. Any capital gain dividend t r e a t e d as having been paid o u t of such difference to a shareholder which is a n applicable corporation retains its c h a r a c t e r in the h and s of the shareholder a s gain from the disposition of section 1250 property for purposes of applying subsection (a)(1) to such shareholder. "(e) DEFINITIONS.—For purposes of this section— "(1)

FINANCIAL

INSTITUTION PREFERENCE I T E M. — The

term

'financial institution preference item' includes the following: "(A) EXCESS RESERVES FOR LOSSES O N BAD DEBTS O F FINANCIAL

INSTITUTIONS.—In the case of a financial institution to which section 585 or 593 applies, the excess of— "(i) the a m o u n t which would, b u t for this section, be allowable as a deduction for the taxable year for a reasonable addition to a reserve for bad debts, over "(ii) the a m o u n t which would have been allowable h a d such institution m a i n t a i n e d its b a d debt reserve for all taxable years on the basis of actual experience.

�