Page:United States Statutes at Large Volume 96 Part 1.djvu/487

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 445

taxation under this title at any time during the 5-year period ending on the date such agreement was entered into. "(ii) SPECIAL RULE FOR FARMERS' COOPERATIVES.—The

term 'nonqualified tax-exempt organization' shall not include any farmers' cooperative organization which is described in section 521 whether or not exempt from 26 USC 521. taxation under section 521. "(iii) SPECIAL RULE FOR PROPERTY USED IN UNRELATED TRADE OR BUSINESS.—An organization

shall not be

treated as a nonqualified tax-exempt organization with respect to any property if such property is used in an unrelated trade or business (within the meaning of section 513) of such organization which is subject to taxation under section 511. "(F) CROSS REFERENCE.— "For special recapture in case where lessee acquires financed recovery property, see section 1245." (b) SPECIAL LIMITATIONS ON FINANCE LEASE PROPERTY.—Subsec-

tion (i) of section 168 (relating to limitations and additional require- ^"^e> P- 432. ments with respect to leases) is amended to read as follows: "(i)

LIMITATIONS

RELATING

TO LEASES

OF FINANCE

LEASE

PROPERTY.—For purposes of this subtitle, in the case of finance 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 finance 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 finance lease items) by more than 50 percent of such liability. "(B) CARRYOVER OF AMOUNTS NOT ALLOWABLE AS DEDUC-

TIONS OR CREDITS.—Any amount not allowable as a deduction 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 finance 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 finance 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 FINANCE 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

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