Page:United States Statutes at Large Volume 98 Part 1.djvu/858

 98 STAT. 810

PUBLIC LAW 98-369—JULY 18, 1984

Tife q SBC\

"(E) DEFINITION OF AT-RISK LESSEE AND AT-RISK PROPERTY.—For purposes of this paragraph— "(i) AT-RISK LESSEE.—The term 'at-risk lessee' means any lessee who is a taxpayer described in section 465(a)(1). "(ii) AT-RISK PROPERTY.—The term 'at-risk property' means any property used by an at-risk lessee in connection with an activity with respect to which any loss is suWect to limitation under section 465. "(F) SPECIAL RULES FOR SUBPARAGRAPHS (C) AND (D).— "(i) SUBPARAGRAPHS (C) AND (D) APPLY IN UEU OF OTHER AT-RISK RULES.—In the case of any election under

Ante, p. 807. «i

this subsection, paragraphs (8) and (9) of section 46(c) and subsection (d) of section 47 shall only apply with respect to the lessor. ' (ii) APPLICATION TO PARTNERSHIPS AND S CORPORA-

Ante, p. 805.

TIONS.—For purposes of subparagraphs (C) and (D), rules similar to the rules of subparagraph (E) of section .i^:^iiq: 46(c)(8) shall apply. "(iii) SUBSEQUENT REDUCTIONS IN AT-RISK AMOUNT.— Under regulations prescribed by the Secretary, the principles of subsection (d) of section 47 shall apply for purposes of subparagraphs (C) and (D). "(G) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph, including regulations— "(i) providing for such adjustments as may be appropriate where expenses connected with the lease are borne by the lessor, and "(ii) providing the extent to which contingencies in the lease will be disregarded." (d) TECHNICAL AMENDMENTS.—

26 USC 46.

26 USC 47. «

26 USC 46 note.

(1) Clause (i) of section 46(c)(8)(F) (relating to special rule for certain energy property) is amended to read as follows: "(i) IN GENERAL.—Subparagraph (A) shall not apply with respect to qualified energy property." (2) Subclause (III) of section 46(c)(8)(F)(ii) (defining qualified energy property) is amended to read as follows: "(III) as of the close of the taxable year in which the property is placed in service, not more than 75 percent of the basis of such property is attributable to nonqualified nonrecourse financing, and". (3) Subclause (IV) of section 46(c)(8)(F)(ii) is amended by striking out "nonrecourse financing (other than financing described in section 46(c)(8)(B)(ii))" and inserting in lieu thereof "nonqualified nonrecourse financing". (4) Subparagraph (A) of section 47(d)(3) is amended by striking out "ceasing to be at risk" and inserting in lieu thereof "increasing the amount of nonqualified nonrecourse financing (within the meaning of section 46(c)(8))". (5) Clause (i) of section 47(d)(3)(B) is amended by striking out "other than a loan described in section 46(c)(8)(B)(ii)"(e) EFFECTIVE D A T E S. —

(1) IN GENERAL.—The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act in taxable years ending after such date; except that such amendments shall not apply to any property to which

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