Page:United States Statutes at Large Volume 98 Part 1.djvu/569

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 521

"(B) at least 80 percent of the units in such property are leased to low-income tenants (within the meaning of section 167(k)(3)(B)). "(6) REGULATIONS.—The Secretary may prescribe such regulations as may be necessary or appropriate to carry out the provisions of this subsection." (f) INVESTMENT TAX CREDIT FOR PROPERTY LEASED BY CERTAIN PERSONS NOT TO EXCEED CREDIT ALLOWED IF SUCH PERSONS OWNED

PROPERTY.—Section 46(e) (relating to limitations with respect to 26 USC 46. certain persons) is amended by adding at the end thereof the following new paragraph: "(4) SPECIAL RULES WHERE SECTION 593 ORGANIZATION IS

"(A) IN GENERAL.—For purposes of paragraph (1)(A), if an organization described in section 593 is the lessee of any section 38 property, the lessor of such property shall be treated as an organization described in section 593 with respect to such property. "(B) EXCEPTION FOR SHORT-TERM LEASES.—This paragraph

shall not apply to any property by reason of use under a lease with a term of less than 6 months (determined under s e c t i o n 168(j)(6)). "(C) ELECTION NOT TO HAVE SUBPARAGRAPH (A) APPLY.—

Ante, p. 509.

Subparagraph (A) shall not apply for any taxable year to an organization described in section 593 if such organization elects to compute for such year and all subsequent taxable years the amount of the deduction for a reasonable addition to a reserve for bad debts on the basis of actual experience. Any such election shall apply to any successor organization engaged in substantially similar activities and, once made, shall be irrevocable." (g) EFFECTIVE DATES.— 26 USC 168 note. (1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply— (A) to property placed in service by the taxpayer after May 23, 1983, in taxable years ending after such date, and (B) to property placed in service by the taxpayer on or before May 23, 1983, if the lease to the tax-exempt entity is entered into after May 23, 1983. (2) LEASES ENTERED INTO ON OR BEFORE MAY 23, 1983.—The

amendments made by this section shall not apply with respect to any property leased to a tax-exempt entity if the property is leased pursuant to— (A) a lease entered into on or before May 23, 1983 (or a sublease under such a lease), or (B) any renewal or extension of a lease entered into on or before May 23, 1983, if such renewal or extension is pursuant to an option exercisable by the tax-exempt entity which was held by the tax-exempt entity on May 23, 1983. (3) BINDING CONTRACTS, ETC.—

(A) The amendments made by this section shall not apply with respect to any property leased to a tax-exempt entity if such lease is pursuant to 1 or more written binding contracts which, on May 23, 1983, and at all times thereafter, required—

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