Page:United States Statutes at Large Volume 98 Part 1.djvu/1097

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 1049

"(I) is used directly in connection with the manufacture or production of low sulfur gaseous fuel from coal, and "(II) would be described in subparagraph (A) if 'July 1, 1984' were substituted for 'January 1, 1983'., "(ii) SPECIAL RULE.—For purposes of determining whether property described in this subparagraph is described in subparagraph (A), such property shall be treated as having been acquired during the period referred to in subparagraph (A)(ii) if at least 20 percent of the cost of such property is paid during such period, "(iii) LIMITATION ON AMOUNT.—Clause (i) shall only apply to the lease of an undivided interest in the property in an amount which does not exceed the lesser of— .^ ^ ^ "(I) 50 percent of the cost basis of such property, or "(II) $67,500,000. "(iv) PLACED IN SERVICE.—In the case of property to which this subparagraph applies— "(I) such property shall be treated as placed in service when the taxpayer receives an operating permit with respect to such property from a State environmental protection agency, and "(II) the term of the lease with respect to such property shall be treated as being 5 years." (b) SPECIAL RULE FOR SUBSECTION (a).—The amount of any recap- 26 USC 168 note. ture under section 47 of the Internal Revenue Code of 1954 with respect to the credit allowed under section 38 of such Code with Ante, p. 827. respect to progress expenditures (within the meaning of section 46(d) of such Code) shall apply only to the percentage of the cost basis of the coal gasification facility to which the amendment made by subsection (a) applies. (c) EFFECTIVE DATE.—The amendment made by subsection (a) shall 26 USC 168 note. take effect as if included in the provision of section 208(d)(3) of the Tax Equity and Fiscal Responsibility Act of 1982.

Subtitle H—Additional Provisions SEC. 1071. TAX TREATMENT OF REGULATED INVESTMENT COMPANIES. (a) PERSONAL HOLDING COMPANIES PERMITTED TO B E REGULATED INVESTMENT COMPANIES.—

(1) IN GENERAL.—Subsection (a) of section 851 (defining regu- 26 USC 851. lated investment company) is amended by striking out "(other than a personal holding company as defined in section 542)". (2) SPECIAL RULE FOR RATE OF TAX.—Paragraph (1) of section

852(b) (relating to imposition of tax on regulated investment 26 USC 852. companies) is amended by adding at the end thereof the following new sentence: "In the case of a regulated investment company which is a personal holding company (as defined in section 542), that tax shall be computed at the highest rate of tax specified in section 11(b)." (3) REQUIREMENT THAT INVESTMENT COMPANY HAVE NO EARNINGS AND PROFITS ACCUMULATED IN YEAR FOR WHICH IT WAS NOT A REGULATED INVESTMENT COMPANY.—Subsection (a) of section

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