Page:United States Statutes at Large Volume 96 Part 1.djvu/477

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 435

"(B) COORDINATION WITH CRUDE OIL WINDFALL PROFIT

TAX.—Section 4988(b)(3)(A) shall be applied without regard to subparagraph (A). "(7) TRANSITIONAL RULE FOR APPLICATION OF PARAGRAPH (i)

TO CERTAIN TRANSACTIONS.—In the case of any deduction or credit with respect to— "(A) any transitional safe harbor lease property (within the meaning of section 208(d)(3) of the Tax Equity and Fiscal Responsibility Act of 1982), or "(B) any other safe harbor lease property placed in service during 1982 and to which paragraph (1) does not apply, paragraph (1) shall not operate to disallow any such deduction or credit for the taxable year for which such deduction or credit would otherwise be allowable but deductions and credits with respect to such property shall be taken into account first in determining whether any deduction or credit is allowable under paragraph (1) with respect to any other safe harbor lease property. "(8) SAFE HARBOR LEASE PROPERTY.—For purposes of this section, the term 'safe harbor lease property' means qualified leased property with respect to which an election under section 168(f)(8) is in effect." (2) CONFORMING AMENDMENT.—

(A) Subparagraph (A) of section 168(0(8) (relating to spe- 95 Stat. 204. cial rules for leases) is amended by inserting "except as provided in subsection (i)," before "for purposes of this subtitle". (B) Subparagraph (D) of section 47(a)(5) (relating to cer- 26 USC 47. tain dispositions, etc., of section 38 property) is amended by adding at the end thereof the following new sentence: "If, prior to a disposition to which this subsection applies, any portion of any credit is not allowable with respect to any property by reason of section 168(i)(3), such portion shall be treated (for purposes of this subparagraph) as not having been used to reduce tax liability." Qo) ADDITIONAL REQUIREMENTS TO QUALIFY AS LEASE FOR PURPOSES OF ACCELERATED COST RECOVERY.— (1) RELATED PERSONS MAY NOT QUALIFY AS LESSORS.—Subclause

(I) of section 168(fK8XBXi) (relating to qualified lessors) is amended by inserting "which is not a related person with respect to the lessee" before the comma at the end thereof. (2) MAXIMUM LEASE TERM REDUCED.—Clause (iii) of section

168(fK8XB) (relating to term of lease) is amended to read as follows: "(iii) the term of the lease (including any extensions) does not exceed the greater of— "(I) 120 percent of the present class life of the property, or "(II) the period equal to the recovery period determined with respect to such property under subsection (i)(2)." (3)' DEFINITION OF QUALIFIED LEASED PROPERTY.—Subparagraph

(D) of section 168(f)(8) (defining qualified leased property) is amended to read as follows: "(D) QUALIFIED LEASED PROPERTY DEFINED.—For purposes

of this section—

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