Page:United States Statutes at Large Volume 99 Part 1.djvu/100

 99 STAT. 78

PUBLIC LAW 99-44—MAY 24, 1985 "(1) EMPLOYER ELECTION NOT TO WITHHOLD.—The employer

26 USC 6051.

may elect not to deduct and withhold any tax under this chapter with respect to any vehicle fringe benefit provided to any employee if such employee is notified by the employer of such election (at such time and in such manner as the Secretary shall by regulations prescribe). The preceding sentence shall not apply to any vehicle fringe benefit unless the amount of such benefit is included by the employer on a statement timely furnished under section 6051. "(2) EMPLOYER MUST FURNISH W-2.—Any vehicle fringe benefit shall be treated as wages from which amounts are required to be deducted and withheld under this chapter for purposes of section 6051. "(3) VEHICLE FRINGE BENEFIT.—For purposes of this subsection, the term 'vehicle fringe benefit' means any fringe benefit— "(A) which constitutes wages (as defined in section 3401), and "(B) which consists of providing a highway motor vehicle for the use of the employee." SEC. 4. REDUCTION IN LIMITATIONS ON INVESTMENT TAX CREDIT AND DEPRECIATION FOR LUXURY AUTOMOBILES. (a) GENERAL RULE.— (1) INVESTMENT TAX CREDIT.—Paragraph (1) of section 280F(a)

98 Stat. 713. 26 USC 280F.

of the Internal Revenue Code of 1954 (relating to investment tax credit) is amended by striking out "$1,000" and inserting in lieu thereof "$675". (2) DEPRECIATION.—Paragraph (2) of section 280F(a) of such Code (relating to depreciation) is amended— (A) by striking out "$4,000" in subparagraph (A)(i) and inserting in lieu thereof "$3,200", and (B) by striking out "$6,000" each place it appears in subparagraphs (A)(ii) and (B)(ii) and inserting in lieu thereof "$4,800". (b) 4-YEAR DEFERRAL OF INFLATION ADJUSTMENT.— (1) ADJUSTMENT AFTER 1988.—Subparagraph (A) of section

280F(d)(7) of such Code (relating to automobile price inflation adjustment) is amended by striking out "passenger automobile" and inserting in lieu thereof "passenger automobile placed in service after 1988". (2) 1987 BASE PERIOD.—Subclause (II) of section 280F(d)(7)(B)(i) of such Code is amended by striking out "1983" and inserting in lieu thereof "1987". (3) TECHNICAL AMENDMENT.—Clause (i) of section 280F(d)(7)(B) of such Code is amended by striking out the last sentence. SEC. 5. NEW REGULATIONS.

26 USC 274 note.

Not later than October 1, 1985, the Secretary of the Treasury or his delegate shall prescribe regulations to carry out the provisions of this Act which shall fully reflect such provisions. SEC. 6. EFFECTIVE DATES. 26 USC 274 note. (a) REPEALS.—The amendment and repeals made by subsections (a) and (b) of section 1 shall take effect as if included in the Ante, p. 77. amendments made by section 179(b) of the Tax Reform Act of 1984.

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