Page:United States Statutes at Large Volume 98 Part 1.djvu/565

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 517

share shall be the highest share such entity may receive. "(D) OTHER PASS-THRU ENTITIES; TIERED ENTITIES.—Rules

similar to the rules of subparagraphs (A), (B), and (C) shall also apply in the case of any pass-thru entity other than a partnership and in the case of tiered partnerships and other entities. "(E) REGULATIONS.—For purposes of determining whether there is a qualified allocation under subparagraph (B), the regulations prescribed under paragraph (10) for purposes of this paragraph— "(i) shall set forth the proper treatment for partnership guaranteed payments, and "(ii) may provide for the exclusion or segregation of items. "(10) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection." Ob) DENIAL OF INVESTMENT TAX CREDIT FOR PROPERTY USED BY FOREIGN GOVERNMENTS AND OTHER FOREIGN PERSONS.—Paragraph

(5) of section 48(a) (relating to property used by governmental units) is amended to read as follows: "(5) PROPERTY USED BY GOVERNMENTAL UNITS OR FOREIGN PERSONS OR ENTITIES.—



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26 USC 48. ,, >

"(A) IN GENERAL.—Property used— "(i) by the United States, any State or political subdivision thereof, any possession of the United States, or any agency or instrumentality of any of the foregoing, or "(ii) by any foreign person or entity (as defined in section 168(j)(4)(C)), but only with respect to property to Ante, p. 509. which section 168(j)(4)(A)(iii) applies (determined after the application of section 168(j)(4)(B)), r shall not be treated as section 38 property. "(B) EXCEPTION FOR SHORT-TERM LEASES.—
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"(i) IN GENERAL.—This paragraph and paragraph (4) shall not apply to any property by reason of use under a lease with a term of less than 6 months (determined under section 168(j)(6)). "(ii) EXCEPTION FOR CERTAIN OIL DRILLING PROPERTY

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AND CERTAIN CONTAINERS.—For purposes of this paragraph and paragraph (4), clause (i) shall be applied by substituting the lease term limitation in section 168(j)(3)(C)(ii) for the lease term limitation in clause (i) in the case of property which is leased to a foreign person or entity and— "(I) which is used in offshore drilling for oil and gas (including drilling vessels, barges, platforms, and drilling equipment) and support vessels with respect to such property, or "(II) which is a container described in section 48(a)(2)(B)(v) (without regard to whether such container is used outside the United States) or container chassis or trailer but only if such container, chassis, or trailer has a present class life of not more than 6 years, "(iii) EXCEPTION FOR CERTAIN AIRCRAFT.—

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