Page:United States Statutes at Large Volume 99 Part 1.djvu/531

 PUBLIC LAW 99-121—OCT. 11, 1985

99 STAT. 509

inserting in lieu thereof "by using a discount rate equal to 120 percent of the applicable Federal rate (determined under section 1274(d)), compounded semiannually". (d) CLERICAL AMENDMENT.—The table of sections for subpart A of part V of subchapter P of chapter 1 of such Code is amended by inserting after the item relating to section 1274 the following new item:

98 Stat. 538. 26 USC 1274.

"Sec. 1274A. Special rules for certain transactions where stated principal amount does not exceed $2,800,000."

SEC. 103. RECOVERY PERIOD FOR 18-YEAR REAL PROPERTY EXTENDED TO 19 YEARS. (a) IN GENERAL.—Clause (i) of section 16803)(2)(A) of the Internal Revenue Code of 1954 (relating to amount of deduction for 18-year 98 Stat. 631. real property) is amended by striking out "18-year recovery period" 26 USC 168. and inserting in lieu thereof "19-year recovery period". (b) TECHNICAL AMENDMENTS.—

(1) The following provisions of the Internal Revenue Code of 1954 are amended by striking out "18-year real property" each place it appears in the text and headings thereof and inserting in lieu thereof "19-year real property": (A) Section 168 (relating to accelerated cost recovery system). (B) Section 57(a)(12) (relating to preference for accelerated cost recovery deduction). (C) Section 312(k)(3)(A) (relating to earnings and profits). (D) Subparagraphs (A), (B), and (C) of section 1245(a)(5) (relating to gain from dispositions of certain depreciable property). (2) The table contained in subparagraph (A) of section 168(b)(3) of such Code (relating to election of different recovery percentage) is amended by striking out "18, 35, or 45" and inserting in lieu thereof "19, 35, or 45 years". (3)(A) Subparagraph (B) of section 168(fKl) of such Code (relating to components of section 1250 class property) is amended by redesignating clause (iii) as clause (iv) and by inserting after clause (ii) the following new clause: "(iii) BUILDINGS PLACED IN SERVICE BEFORE MAY 9, 1985.—In the case of any building placed in service by the taxpayer before May 9, 1985, for purposes of applying subparagraph (A) to components of such buildings placed in service after May 8, 1985, the deduction allowable under subsection (a) with respect to such components shall be computed in the same manner as the deduction allowable with respect to the first component placed in service after May 8, 1985." (B) Clause (ii) of section 168(f)(l)(B) of such Code is amended by striking out "March 15, 1984, the" and inserting in lieu thereof "March 15, 1984, and before May, 9, 1985, the". (C) Clause (iv) of section 168(f)(l)(B) of such Code, as redesignated by subparagraph (A), is amended by striking out "or (ii)" and inserting in lieu thereof ", (ii), or (iii)". (4) Clause (ii) of section 168(f)(12XB) of such Code (relating to limitations for property financed with tax-exempt bonds) is amended—

98 Stat. 633. 26 USC 57. 98 Stat. 633. 26 USC 312. 26 USC 1245 98 Stat. 633. 26 USC 168. 98 Stat. 632. 26 USC 168.

�