Page:United States Statutes at Large Volume 96 Part 1.djvu/470

 96 STAT. 428

PUBLIC LAW 97-248—SEPT. 3, 1982 "(4) ELECTION OF REDUCED CREDIT I N LIEU OF BASIS ADJUSTMENT FOR REGULAR PERCENTAGE.—

26 USC 46.

"(A) IN GENERAL.—If the tax p a y e r elects to h a v e t h i s paragraph apply with respect to any recovery property— "(i) paragraph s (1) and (2) shall not apply to so m u c h of the credit determined under section 46(a)(2) with respect to such property as is a t t r i b u t a b l e to the regular percentage set forth in section 46(a)(2)(B); and "(ii) the a m o u n t of the credit allowable under section 38 with respect to such property shall be determined under subparagraph (B). "(B) REDUCTION I N CREDIT.—In the case of any recovery

95 Stat. 204.

property to which a n election under subparagraph (A) applies— "(i) solely for the purposes of applying the regular percentage, the applicable percentage under subsection (c) or (d) of section 46 shall be deemed to be 100 percent, and "(ii) notwithstanding section 46(a)(2)(B), the regular percentage shall be— "(I) 8 percent in the case of recovery property other than 3-year property, or "(II) 4 percent in the case of recovery property which is 3-year property. For purposes of the preceding sentence, RRB r e p l a c e m e n t property (within the m e a n i n g of section 168(f)(3)(B)) shall be t r e a t e d as property which is not 3-year property. "(C) T I M E AND M A N N E R OF M A K I N G ELECTION.—

"(i) IN GENERAL.—An election under this subsection with respect to any property shall be m a d e on the tax p a y e r ' s r e t u r n of the tax imposed by this chapter for the tax p a y e r ' s taxable year in which such property is placed in service (or in the case of property to which a n election under section 46(d) applies, for the first taxable year for which qualified progress expenditures were t a k e n into account with respect to such property). "(ii) REVOCABLE ONLY WITH C O N S E N T. — A n

election

under t h i s subsection with respect to any property, once made, may be revoked only with the consent of the Secretary. "(5) RECAPTURE OF REDUCTIONS.—

"(A) IN GENERAL.—For purposes of sections 1245 and 1250, any reduction under this subsection shall be t r e a t e d as a deduction allowed for depreciation. "(B) SPECIAL RULE FOR SECTION 1 2 5 0. — For purposes of

section 1250(b), the determination of w h a t would have been the depreciation adjustments under the s t r a i g h t line method shall be m a d e a s if the r e h a d been no reduction under this section." (2) A L L O W A N C E O F DEDUCTION FOR CERTAIN U N U S E D INVEST-

MENT CREDITS.—Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by adding a t the end thereof the following new section: 26 USC 196.

"SEC. 196. DEDUCTION FOR CERTAIN UNUSED INVESTMENT CREDITS. "(a) A L L O W A N C E OF DEDUCTIONS.—If—

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