Page:United States Statutes at Large Volume 98 Part 1.djvu/686

 98 STAT. 638

PUBLIC LAW 98-369—JULY 18, 1984 tc-j^

Post, p. 827.

26 USC 168, 46.

26 USC 48.

26 USC 48. Post, p. 827.

(I) 20 percent or more of the production costs of such film were incurred before March 16, 1984, and (II) the taxpayer treats such film as recovery property for purposes of section 168 of such Code. No credit shall be allowable under section 38 of such Code with respect to any qualified film described in clause (ii), except to the extent provided in section 48(k) of such Code. (B) The amendment made by paragraph (2) and (3) of subsection (b) shall apply as if included in the amendments made by section 201(a), 211(a)(l), and 211(f)(1) of the Economic Recovery Tax Act of 1981. (C) The amendment made by paragraph (4) of subsection (b) shall take effect as if included in the amendments made by section 205(a)(1) of the Tax Equity and Fiscal Responsibility Act of 1982. (D) For purposes of this paragraph, the terms "qualified film" and "production costs" have the same respective meanings as when used in section 48(k) of the Internal Revenue Code of 1954. SEC. 114. DEFINITION OF SECTION 38 PROPERTY IN SALE-LEASEBACK TRANSACTIONS. (a) IN GENERAL.—Subsection (b) of section 48 (defining new section 38 property) is amended to read as follows: "(b) N E W SECTION 38 PROPERTY.—For purposes of this subpart— "(1) IN GENERAL.—The term 'new section 38 property' means section 38 property the original use of which commences with the taxpayer. "(2) SPECIAL RULE FOR SALE-LEASEBACKS.—For purposes of

26 USC 48 note. '33f>a?<>

paragraph (1), in the case of any section 38 property which— "(A) is originally placed in service by a person, and "(B) is sold and leased back by such person, or is leased to such person, within 3 months of the date such property was originally placed in service, such property shall be treated as originally placed in service not earlier than the date on which such property is used under the lease. "(3) SPECIAL RULE FOR ENERGY PROPERTY.—The principles of paragraph (2) shall be applicable in determining whether the original use of property commences with the taxpayer for purposes of section 48(l)(2)(B)(ii)." (b) EFFECTIVE DATE.—The amendment made by this section shall apply to property originally placed in service after April 11, 1984 (determined without regard to such amendment).

Subtitle J—Foreign Provisions PART I—CHANGES IN SOURCE AND CHARACTER RULES

26 USC 904. Post, p. 843.

SEC. 121. CERTAIN AMOUNTS TREATED AS DERIVED FROM UNITED STATES SOURCES FOR PURPOSES OF LIMITATION ON FOREIGN TAX CREDIT. (a) GENERAL RULE.—Section 904 (relating to limitation on foreign tax credit) is amended by redesignating subsections (g) and (h) as subsections (h) and (i), respectively, and by inserting after subsection (f) the following new subsection:

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