Page:United States Statutes at Large Volume 98 Part 1.djvu/561

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 513

"(ii) a majority of the board of directors of such corporation is not selected by the United States or any State or political subdivision thereof. "(E) CERTAIN PREVIOUSLY TAX-EXEMPT ORGANIZATIONS.—

"(i) IN GENERAL.—For purposes of this subsection and paragraph (4) of section 48(a), an organization shall be treated as an organization described in subparagraph (A)(ii) with respect to any property of which such organization is the lessee if such organization was an organization (other than a cooperative described in section 521) exempt from tax imposed by this chapter at any time during the 5-year period ending on the date such property was first leased to such organization. The preceding sentence shall not apply to the Federal Home Loan Mortgage Corporation, "(ii) ELECTION NOT TO HAVE CLAUSE (i) APPLY.—

"(I) IN GENERAL.—In the case of an organization formerly exempt from tax under section 501(a) as an organization described in section 501(c)(12), clause (i) shall not apply to such organization with respect to any property of which such organization is the lessee if such organization elects not to be exempt from tax under section 501(a) during the tax-exempt use period with respect to such property.

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"(II)

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TAX-EXEMPT USE PERIOD.—For purposes of

subclause (I), the term 'tax-exempt use period' means the period beginning with the taxable year in which the property described in subclause (I) is placed in service under the lease and ending with ^jjg close of the 15th taxable year following the last taxable year of the recovery period of such property. "(III) ELECTION.—Any election under subclause (I), once made, shall be irrevocable, "(iii) TREATMENT OF SUCCESSOR ORGANIZATIONS.—Any organization which is engaged in activities substantially similar to those engaged in by a predecessor organization shall succeed to the treatment under this subparagraph of such predecessor organization.

"(5) SPECIAL RULES FOR CERTAIN HIGH TECHNOLOGY EQUIPMENT.— "(A) EXEMPTION WHERE LEASE TERM IS 5 YEARS OR LESS.—

For purposes of this subsection, the term 'tax-exempt use property' shall not include any qualified technological equipment if the lease to the tax-exempt entity has a lease term of 5 years or less. "(B)

RECOVERY PERIOD WHERE LEASE TERM IS GREATER

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THAN 5 YEARS.—In the case of any qualified technological equipment not described in subparagraph (A) and which is not property to which subsection (f)(2) applies, the recovery period used for purposes of paragraph (1) shall be 5 years.

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poses of this paragraph— "(i) IN GENERAL.—Except as otherwise provided in this subparagraph, the term 'qualified technological equipment' means—

"(C)

QUALIFIED TECHNOLOGICAL EQUIPMENT.—For

pur-

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