Page:United States Statutes at Large Volume 96 Part 1.djvu/479

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 437

property placed in service during any calendar year which— "(I) is new section 38 property of the taxpayer, "(II) is safe harbor lease property (not described in subclause (I)) with respect to which the taxpayer is the lessee, or "(III) is designated leased property (other than property described in subclause (I) or (II)) with respect which the taxpayer is the lessee. Any designated leased property taken into account by any lessee under the preceding sentence shall not be taken into account by the lessor in determining the lessor's qualified base property. The lessor shall provide the lessee with such information with respect to the cost basis of such property as is necessary to carry out the purposes of this clause. "(vii) DEFINITION OF DESIGNATED LEASED PROPERTY.—

For purposes of this subparagraph, the term 'designated leased property' means property— "(I) which is new section 38 property, "(II) which is subject to a lease with respect to which the lessor of the property is treated (without regard to this paragraph) as the owner of the property for Federal tax purposes, "(III) with respect to which the term of the lease to which such property is subject is more than 50 percent of the present class life (or, if no present class life, the recovery period used in subsection (i)(2)) of such property, and "(IV) which the lessee designates on his return as designated leased property, "(viii) DEFINITION; SPECIAL RULE.—For purposes of

this subparagraph— "(I) N E W SECTION 38 PROPERTY.—The term 'new section 38 property' has the meaning given such term by section 48(b). "(II) PROPERTY PLACED IN SERVICE.—For purposes

of this title (other than clause (i)), any property described in clause (i) to which subparagraph (A) applies shall be deemed originally placed in service not earlier than the date such property is used under the lease." (4) DEFINITIONS AND SPECIAL RULES.—Paragraph (8) of section

168(f) (relating to special rules for leases) is amended by redes- 95 Stat. 204. ignating subparagraph (H) as subparagraph (K) and by inserting after subparagraph (G) the following new subparagraphs: "(H) DEFINITIONS.—For purposes of this paragraph— "(i) RELATED PERSON.—A person is related to another person if both persons are members of the same affiliated group (within the meaning of subsection (a) of section 1504 and determined without regard to subsection (b) of section 1504). "(ii) NONQUALIFIED TAX-EXEMPT ORGANIZATION.—

"(I) IN GENERAL.—The term 'nonqualified taxexempt organization' means, with respect to any agreement to which subparagraph (A) applies, any organization (or predecessor organization which

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