Page:United States Statutes at Large Volume 96 Part 1.djvu/472

 96 STAT. 430

PUBLIC LAW 97-248—SEPT. 3, 1982 (C) The table of sections for part VI of subchapter B of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 196. Deduction for certain unused investment credits." (b) INVESTMENT CREDIT LIMITED TO 85 PERCENT OF TAX LIABILITY INSTEAD OF 90 PERCENT.—

26 USC 46.

(1) IN GENERAL.—Subparagraph (B) of section 46(a)(3) (relating to limitation based on amount of tax) is amended to read as follows: "(B) 85 percent of so much of the liability for tax for the taxable year as exceeds $25,000." (2) TECHNICAL AMENDMENTS.—

(A) Subsection (a) of section 46 is amended by striking out paragraphs (7) and (8) and by redesignating paragraph (9) as paragraph (7). (B) Clause (i) of section 46(a)(7)(B), as redesignated by subparagraph (A), is amended to read as follows: "(i) paragraph (3)(B) shall be applied by substituting '100 percent' for '85 percent', and". (C) Subparagraph (B) of section 46(a)(7), as redesignated by subparagraph (A), is amended by striking clause (ii) and by redesignating clause (iii) as clause (ii). 26 USC 196 note.

Post, p. 442.

(c) EFFECTIVE DATES.— (1) SUBSECTION (a). — (A) GENERAL RULE.—Except as otherwise provided in this

paragraph, the amendments made by subsection (a) shall apply to periods after December 31, 1982, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1954. (B) EXCEPTION.—The amendments made by subsection (a) shall not apply to any property which— (i) is constructed, reconstructed, erected, or acquired pursuant to a contract which was entered into after August 13, 1981, and was, on July 1, 1982, and at all times thereafter, binding on the taxpayer, (ii) is placed in service after December 31, 1982, and before January 1, 1986, (iii) with respect to which an election under section 168(f)(8)(A) of such Code is not in effect at any time, and (iv) is not described in section 167(1)(3)(A) of such Code. (C) SPECIAL RULE FOR INTEGRATED MANUFACTURING FACILITIES.—

(i) IN GENERAL.—In the case of any integrated manufacturing facility, the requirements of clause (i) of subparagraph (B) shall be treated as met if— (I) the on-site construction of the facility began before July 1, 1982, and (II) during the period beginning after August 13, 1981, and ending on July 1, 1982, the taxpayer constructed (or entered into binding contracts for the construction of) more than 20 percent of the cost of such facility.

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