Page:United States Statutes at Large Volume 96 Part 1.djvu/475

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 433

"(i) LIMITATIONS RELATING TO LEASES OF QUALIFIED LEASED PROP-

ERTY.—For purposes of this subtitle, in the case of safe harbor lease property, the following limitations shall apply: "(1) LESSOR MAY NOT REDUCE TAX LIABILITY BY MORE THAN 50 PERCENT.—

"(A) IN GENERAL.—The aggregate amount allowable as deductions or credits for any taxable year which are allocable to all safe harbor lease property with respect to which the taxpayer is the lessor may not reduce the liability for tax of the taxpayer for such taxable year (determined without regard to safe harbor lease items) by more than 50 percent of such liability. "(B) CARRYOVER OF AMOUNTS NOT ALLOWABLE AS DEDUCTIONS O CREDITS.—Any amount not allowable as a deducR

tion or credit under subparagraph (A)— "(i) may be carried over to any subsequent taxable year, and "(ii) shall be treated as a deduction or credit allocable to safe harbor lease property in such subsequent taxable year. "(C) ALLOCATION AMONG DEDUCTIONS AND CREDITS.—The

Secretary shall prescribe regulations for determining the amount— "(i) of any deduction or credit allocable to safe harbor lease property for any taxable year to which subparagraph (A) applies, and "(ii) of any carryover of any such deduction or credit under subparagraph (B) to any subsequent taxable year. "(D) LIABILITY FOR TAX AND SAFE HARBOR LEASE ITEMS

DEFINED.—For purposes of this paragraph— "(i) LIABILITY FOR TAX DEFINED.—Except as provided in this subparagraph, the term 'liability for tax' means the tax imposed by this chapter, reduced by the sum of the credits allowable under subpart A of part IV of subchapter A of this chapter. "(ii) SAFE HARBOR LEASE ITEMS DEFINED.—The term 'safe harbor lease items' means any of the following items which are properly allocable to safe harbor lease property with respect to which the taxpayer is the lessor: "(I) Any deduction or credit allowable under this chapter (other than any deduction for interest). "(II) Any rental income received by the taxpayer from any lessee of such property. "(Ill) Any interest allowable as a deduction under this chapter on indebtedness of the taxpayer (or any related person within the meaning of subsection (e)(4)(D)) which is paid or incurred to the lessee of such property (or any person so related to the lessee), "(iii) CERTAIN TAXES NOT INCLUDED.—The term 'tax imposed by this chapter' shall not include any tax treated as not imposed by this chapter under the last sentence of section 53(a) (other than the tax imposed by 26 USC 53. section 56).

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