Page:United States Statutes at Large Volume 96 Part 1.djvu/485

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 443

in reverse order to when the agreement described in subparagraph (A) with respect to such property was entered into. "(iv) CERTAIN PROPERTY MAY NOT BE TREATED AS FINANCE LEASE PROPERTY.—The term 'finance lease

property' shall not include recovery property— "(I) which is a qualified rehabilitated building (within the meaning of section 48(g)(l)), 26 USC 48. "(11) which is public utility property (within the meaning of section 167(1)(3)(A)), "(III) which is property with respect to which a deduction is allowable by reason of section 291(b), -^"fe, p. 423. "(IV) with respect to which the lessee of the property under the agreement described in subparagraph (A) is a nonqualified tax-exempt organization, or "(V) property with respect to which the user of such property is a person (other than a United States person) not subject to United States tax on income derived from the use of such property. "(v) QUALIFIED BASE PROPERTY.—For purposes of this subparagraph, the term 'qualified base property' means property placed in service during any calendar year which— "(I) is new section 38 property of the taxpayer, "(II) is finance 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 (ID) with respect to 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. "(vi) 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 under subsection (a)) of such property, and "(XV) which the lessee designates on his return as designated leased property, "(vii) DEFINITION; SPECIAL RULES.—For purposes of this subparagraph—

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