§ 49. At-risk rules

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 title II § 211(a) · 100 Stat. 2085

   Enacted · 26 U.S.C. § 49

   Added Pub. L. 99–514, title II, § 211(a), Oct. 22, 1986, 100 Stat. 2166

   Source evidence

   Code source credit
   Added Pub. L. 99–514, title II, § 211(a), Oct. 22, 1986, 100 Stat. 2166

   Enacted provision · exact public law section
   (a) General Rule.— Subpart E of part IV of subchapter A of chapter 1 (relating to investment tax credit) is amended by adding at the end thereof the following new section: “SEC. 49. TERMINATION OF REGULAR PERCENTAGE. “(a) General Rule.— For purposes of determining the amount of the investment tax credit determined under section 46, the regular percentage shall not apply to any property placed in service after December 31, 1985. “(b) Exceptions.— Subject to the provisions of subsections (c) and (d), subsection (a) shall not apply to the following: “(1) Transition property.— Property which is transition property (within the meaning of subsection (e)). “(2) Qualified progress expenditure for periods before January 1, 1986.— In the case of any taxpayer who has made an election under section 46(d)(6), the portion of the adjusted basis of any progress expenditure property attributable to qualified progress expenditures for periods before January 1, 1986. “(3) Qualified timber property.— The portion of the adjusted basis of qualified timber property which is treated as section 38 property under section 48 (a)(1)(F). “(c) 35-Percent Reduction in Credit for Taxable Years After 1986.— “(1) Reduction in current year investment credit.— Any portion of the current year business credit under section 38(b) for any taxable year beginning after June 30, 1987, which is attributable to the regular investment credit shall be reduced by 35 percent. “(2) Unexpired carryforwards to 1st taxable year beginning after june 30, 1987.— Any portion of the business credit carryforward under section 38(a)(1) attributable to the regular investment credit which has not expired as of the close of the taxable year preceding the 1st taxable year of the taxpayer beginning after June 30, 1987, shall be reduced by 35 percent. “(3) Special rule for taxable years beginning before and ending after July 1, 1987.— In the case of any taxable year beginning before and ending after July 1, 1987— “(A) any portion of the current year business credit under section 38(b) for such taxable year, or “(B) any portion of the business credit carryforward under section 38(a)(1) to such year, which is attributable to the regular investment credit shall be reduced by the applicable percentage. “(4) Treatment of disallowed credit.— “(A) In general.— The amount of the reduction of the regular investment credit under paragraphs (1) and (2) shall not be allowed as a credit for any taxable year. “(B) No carryback for year straddling july 1, 1987; gross up of carryforwards.— The amount of the reduction of the regular investment credit under paragraph (3)— “(i) may not be carried back to any taxable year, but “(ii) shall be added to the carryforwards from the taxable year before applying paragraph (2). “(5) Definitions and special rules.— For purposes of this subsection— “(A) Applicable percentage.— The term ‘applicable percentage’ means, with respect to a taxable year beginning before and ending after July 1, 1987, the percentage which bears the same ratio to 35 percent as— “(i) the number of months in such taxable year after June 30, 1987, bears to “(ii) the number of months in such taxable year. “(B) Regular investment credit.— “(i) In general.— The term ‘regular investment credit’ has the meaning given such term by section 48(o). “(ii) Exception for timber property.— The term ‘regular investment credit’ shall not include any portion of the regular investment credit which is attributable to section 38 property described in section 48(a)(1)(F). “(C) Portion of credits attributable to regular investment credit.— The portion of any current year business credit or business credit carryforward which is attributable to the regular investment credit shall be determined on the basis that the regular investment credit is used first. “(d) Full Basis Adjustment.— “(1) In general.— In the case of periods after December 31, 1985, section 48(q) (relating to basis adjustment to section 38 property) shall be applied with respect to transaction property— “(A) by substituting ‘100 percent’ for ‘50 percent’ in paragraph (1), and “(B) without regard to paragraph (4) thereof (relating to election of reduced credit in lieu of basis adjustment). “(2) Special rule for qualified progress expenditures.— If the taxpayer made an election under section 48(q)(4) with respect to any qualified progress expenditures for periods before January 1, 1986— “(A) paragraph (1) shall not apply to the portion of the adjusted basis attributable to such expenditures, and “(B) such election shall not apply to such expenditures for periods after December 31, 1985. “(e) Transition Property.— For purposes of this section— “(1) Transition property.— The term ‘transition property’ means any property placed in service after December 31, 1985, and to which the amendments made by section 201 of the Tax Reform Act of 1986 do not apply, except that in making such determination— “(A) section 203(a)(1)(A) of such Act shall be applied by substituting ‘1985’ for ‘1986’, “(B) sections 203(b)(1) and 204(a)(3) of such Act shall be applied by substituting ‘December 31, 1985’ for ‘March 1, “(C) in the case of transition property with a class life of less than 7 years— “(i) section 203(b)(2) of such Act shall apply, and “(ii) in the case of property with a class life— “(I) of less than 5 years, the applicable date shall be July 1, 1986, and “(II) at least 5 years, but less than 7 years, the applicable date shall be January 1, 1987, and “(D) section 2O3(b)(3) shall be applied by substituting ‘1986’ for ‘1987’. “(2) Treatment of progress expenditures.— No progress expenditures for periods after December 31, 1985, with respect to any property shall be taken into account for purposes of applying the regular percentage unless it is reasonable to expect that such property will be transition property when placed in service. If any progress expenditures are taken into account by reason of the preceding sentence and subsequently there is not a reasonable expectation that such property would be transition property when placed in service, the credits attributable to progress expenditures with respect to such property shall be recaptured under section 47.”

2. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1002(e)(2) · 102 Stat. 3342

   1. Substituted · 26 U.S.C. § 49(c)(4)(B)

      Pub. L. 100–647, § 1002(e)(2), substituted “years” for “year” in heading

   2. Amended · 26 U.S.C. § 49(c)(4)(B)

      Pub. L. 100–647, § 1002(e)(2), amended text generally. Prior to amendment, text read as follows: “The amount of the reduction of the regular investment credit under paragraph (3)—

   Source evidence

   Code amendment note
   Subsec. (c)(4)(B). Pub. L. 100–647, § 1002(e)(2), substituted “years” for “year” in heading and amended text generally. Prior to amendment, text read as follows: “The amount of the reduction of the regular investment credit under paragraph (3)—

   “(i) may not be carried back to any taxable year, but “(ii) shall be added to the carryforwards from the taxable year before applying paragraph (2).”

   Enacted provision · exact public law section
   (2) Subparagraph (B) of section 49(c)(4) of the 1986 Code is amended to read as follows: “(B) No carryback for years straddling july 1, 1987; gross up of carryforwards.— In any case to which paragraph (3) applies— “(i) the amount of the reduction under paragraph (3) may not be carried back to any taxable year, but “(ii) there shall be added to the carryforwards from the taxable year (before applying paragraph (2)) an amount equal to the amount which bears the same ratio to the carryforwards from such taxable year (determined without regard to this clause) as— “(I) the applicable percentage, bears to “(II) 1 minus the applicable percentage.”

3. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1002(e)(3) · 102 Stat. 3342

   Amended · 26 U.S.C. § 49(c)(5)(B)(i)

   Pub. L. 100–647, § 1002(e)(3), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “The term ‘regular investment credit’ has the meaning given such term by section 48(o)”

   Source evidence

   Code amendment note
   Subsec. (c)(5)(B)(i). Pub. L. 100–647, § 1002(e)(3), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “The term ‘regular investment credit’ has the meaning given such term by section 48(o)”.

   Enacted provision · exact public law section
   (3) Clause (i) of section 49(c)(5)(B) of the 1986 Code is amended to read as follows: “(i) In general.— The term ‘regular investment credit’ means the credit determined under section 46(a) to the extent attributable to the regular percentage.”

4. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1002(e)(8)(B) · 102 Stat. 3342

   Struck · 26 U.S.C. § 49(c)(5)(C)

   Pub. L. 100–647, § 1002(e)(8)(B), struck out subpar. (C) which related to portion of credits attributable to regular investment credit

   Source evidence

   Code amendment note
   Subsec. (c)(5)(C). Pub. L. 100–647, § 1002(e)(8)(B), struck out subpar. (C) which related to portion of credits attributable to regular investment credit.

   Enacted provision · exact public law section
   (B) Subparagraph (C) of section 49(c)(5) of the 1986 Code is hereby repealed.

5. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1002(e)(1) · 102 Stat. 3342

   Amended · 26 U.S.C. § 49(d)(1)

   Pub. L. 100–647, § 1002(e)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “In the case of periods after December 31, 1985, section 48(q) (relating to basis adjustment to section 38 property) shall be applied with respect to transaction property—

   Source evidence

   Code amendment note
   Subsec. (d)(1). Pub. L. 100–647, § 1002(e)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “In the case of periods after December 31, 1985, section 48(q) (relating to basis adjustment to section 38 property) shall be applied with respect to transaction property—

   “(A) by substituting ‘100 percent’ for ‘50 percent’ in paragraph (1), and “(B) without regard to paragraph (4) thereof (relating to election of reduced credit in lieu of basis adjustment).”

   Enacted provision · exact public law section
   (1) Paragraph (1) of section 49(d) of the 1986 Code is amended to read as follows: (1) In general.— In the case of periods after December 31, 1985, with respect to so much of the credit determined under section 46(a) with respect to transition property as is attributable to the regular investment credit (as defined in subsection (c)(5)(B))— “(A) paragraphs (1), (2), and (7) of section 48(q) and section 48(d)(5) shall be applied by substituting TOO percent’ for ‘50 percent’ each place it appears, and “(B) sections 48((j)(4) and 196(d) shall not apply.”

6. 1990

   Revenue Reconciliation Act of 1990

   Pub. L. 101–508 § 11813(a) · 104 Stat. 1388

   1. Amended · 26 U.S.C. § 49

      Pub. L. 101–508, § 11813(a), amended section generally

   2. Substituted · 26 U.S.C. § 49

      Pub. L. 101–508, § 11813(a), substituting section catchline for one which read: “Termination of regular percentage” and in text substituting present provisions for provisions relating to the nonapplicability of the regular percentage to any property placed in service after Dec. 31, 1985, for purposes of determining the investment tax credit, exceptions to such rule, the 35 percent reduction in credit for taxable years after 1986, the full basis adjustment in determining investment tax credit, and the definition of transition property and treatment of progress expenditures

   Source evidence

   Code amendment note
   Pub. L. 101–508, § 11813(a), amended section generally, substituting section catchline for one which read: “Termination of regular percentage” and in text substituting present provisions for provisions relating to the nonapplicability of the regular percentage to any property placed in service after Dec. 31, 1985, for purposes of determining the investment tax credit, exceptions to such rule, the 35 percent reduction in credit for taxable years after 1986, the full basis adjustment in determining investment tax credit, and the definition of transition property and treatment of progress expenditures.

   Enacted provision · exact public law section
   (a) General Rule.— Subpart E of part IV of subchapter A of chapter 1 is amended to read as follows: “Subpart E— Rules for Computing Investment Credit “Sec. 46. Amount of credit. “Sec. 47. Rehabilitation credit. “Sec. 48. Energy credit; reforestation credit. “Sec. 49. At-risk rules. “Sec. 50. Other special rules. “SEC. 46. AMOUNT OF CREDIT. 8383 So in original. Probably should be “For”.For purposes of section 38, the amount of the investment credit determined under this section for any taxable year shall be the sum of— “(1) the rehabilitation credit, “(2) the energy credit, and “(3) the reforestation credit. “SEC. 47. REHABILITATION CREDIT. “(a) General Rule.— For purposes of section 46, the rehabilitation credit for any taxable year is the sum of— “(1) 10 percent of the qualified rehabilitation expenditures with respect to any qualified rehabilitated building other than a certified historic structure, and “(2) 20 percent of the qualified rehabilitation expenditures with respect to any certified historic structure. “(b) When Expenditures Taken Into Account.— “(1) In general.— Qualified rehabilitation expenditures with respect to any qualified rehabilitated building shall be taken into account for the taxable year in which such qualified rehabilitated building is placed in service. “(2) Coordination with subsection (d).— The amount which would (but for this paragraph) be taken into account under paragraph (1) with respect to any qualified rehabilitated building shall be reduced (but not below zero) by any amount of qualified rehabilitation expenditures taken into account under subsection (d) by the taxpayer or a predecessor of the taxpayer (or, in the case of a sale and leaseback described in section 50(a)(2)(C), by the lessee), to the extent any amount so taken into account has not been required to be recaptured under section 50(a). “(c) Definitions.— For purposes of this section— “(1) Qualified rehabilitated building.— “(A) In general.— The term ‘qualified rehabilitated building’ means any building (and its structural components) if— “(i) such building has been substantially rehabilitated, “(ii) such building was placed in service before the beginning of the rehabilitation, “(iii) in the case of any building other than a certified historic structure, in the rehabilitation process— “(I) 50 percent or more of the existing external walls of such building are retained in place as external walls, “(II) 75 percent or more of the existing external walls of such building are retained in place as internal or external walls, and “(III) 75 percent or more of the existing internal structural framework of such building is retained in place, and “(iv) depreciation (or amortization in lieu of depreciation) is allowable with respect to such building. “(B) Building must be first placed in service before 1936.— In the case of a building other than a certified historic structure, a building shall not be a qualified rehabilitated building unless the building was first placed in service before 1936. “(C) Substantially rehabilitated defined.— “(i) In general.— For purposes of subparagraph (A)(i), a building shall be treated as having been substantially rehabilitated only if the qualified rehabilitation expenditures during the 24-month period selected by the taxpayer (at the time and in the manner prescribed by regulation) and ending with or within the taxable year exceed the greater of— “(I) the adjusted basis of such building (and its structural components), or “(II) $5,000. The adjusted basis of the building (and its structural components) shall be determined as of the beginning of the 1st day of such 24-month period, or of the holding period of the building, whichever is later. For purposes of the preceding sentence, the determination of the beginning of the bolting period shall be made without regard to any reconstruction by the taxpayer in connection with the rehabilitation. “(ii) Special rule for phased rehabilitation.— In the case of any rehabilitation which may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, clause (i) shall be applied by substituting ‘60-month period’ for ‘24-month period’. “(iii) Lessees.— The Secretary shall prescribe by regulation rules for applying this subparagraph to lessees. “(D) Reconstruction.— Rehabilitation includes reconstruction. “(2) Qualified rehabilitation expenditure defined.— “(A) In general.— The term ‘qualified rehabilitation expenditure’ means any amount properly chargeable to capital account— “(i) for property for which depreciation is allowable under section 168 and which is— “(I) nonresidential real property, “(II) residential rental property, “(III) real property which has a class life of more than 12.5 years, or “(IV) an addition or improvement to property described in subclause (I), (II), or (III), and “(ii) in connection with the rehabilitation of a qualified rehabilitated building. “(B) Certain expenditures not included.— The term ‘qualified rehabilitation expenditure’ does not include— “(i) Straight line depreciation must be used.— Any expenditure with respect to which the taxpayer does not use the straight line method over a recovery period determined under subsection (c) or (g) of section 168. The preceding sentence shall not apply to any expenditure to the extent the alternative depreciation system of section 168(g) applies to such expenditure by reason of subparagraph (B) or (O of section 168(g)(D. “(ii) Cost of acquisition.— The cost of acquiring any building or interest therein. “(iii) Enlargements.— Any expenditure attributable to the enlargement of an existing building. “(iv) Certified historic structure, etc.— Any expenditure attributable to the rehabilitation of a certified historic structure or a building in a registered historic district, unless the rehabilitation is a certified rehabilitation (within the meaning of subparagraph (O). The preceding sentence shall not apply to a building in a registered historic district if— “(I) such building was not a certified historic structure, “(II) the Secretary of the Interior certified to the Secretary that such building is not of historic significance to the district, and “(III) if the certification referred to in subclause (II) occurs after the beginning of the rehabilitation of such building, the taxpayer certifies to the Secretary that, at the beginning of such rehabilitation, he in good faith was not aware of the requirements of subclause (II). “(v) Tax-exempt use property.— “(I) In general.— Any expenditure in connection with the rehabilitation of a building which is allocable to the portion of such property which is (or may reasonably be expected to be) tax-exempt use property (within the meaning of section 168(h)). “(II) Clause not to apply for purposes of paragraph (i)(c).— This clause shall not apply for purposes of determining under paragraph (1)(C) whether a building has been substantially rehabilitated. “(vi) Expenditures of lessee.— Any expenditure of a lessee of a building if, on the date the rehabilitation is completed, the remaining term of the lease (determined without regard to any renewal periods) is less than the recovery period determined under section 168(c). “(C) Certified rehabilitation.— For purposes of subparagraph (B), the term ‘certified rehabilitation’ means any rehabilitation of a certified historic structure which the Secretary of the Interior has certified to the Secretary as being consistent with the historic character of such property or the district in which such property is located. “(D) Non residential real property; residential rental property; class life.— For purposes of subparagraph (A), the terms ‘nonresidential real property,’ ‘residential rental property,’ and ‘class life’ have the respective meanings given such terms by section 168. “(3) Certified historic structure defined.— “(A) In general.— The term ‘certified historic structure’ means any building (and its structural components) which— “(i) is listed in the National Register, or “(ii) is located in a registered historic district and is certified by the Secretary of the Interior to the Secretary as being of historic significance to the district. “(B) Registered historic district.— The term ‘registered historic district’ means— “(i) any district listed in the National Register, and “(ii) any district— “(I) which is designated under a statute of the appropriate State or local government, if such statute is certified by the Secretary of the Interior to the Secretary as containing criteria which will substantially achieve the purpose of preserving and rehabilitating buildings of historic significance to the district, and “(II) which is certified by the Secretary of the Interior to the Secretary as meeting substantially all of the requirements for the listing of districts in the National Register. “(d) Progress Expenditures.— “(1) In general.— In the case of any building to which this subsection applies, except as provided in paragraph (3)— “(A) if such building is self-rehabilitated property, any qualified rehabilitation expenditure with respect to such building shall be taken into account for the taxable year for which such expenditure is properly chargeable to capital account with respect to such building, and “(B) if such building is not self-rehabilitated property, any qualified rehabilitation expenditure with respect to such building shall be taken into account for the taxable year in which paid. “(2) Property to which subsection applies.— “(A) In general.— This subsection shall apply to any building which is being rehabilitated by or for the taxpayer if— “(i) the normal rehabilitation period for such building is 2 years or more, and “(ii) it is reasonable to expect that such building will be a qualified rehabilitated building in the hands of the taxpayer when it is placed in service. Clauses (i) and (ii) shall be applied on the basis of facts known as of the close of the taxable year of the taxpayer in which the rehabilitation begins (or, if later, at the close of the first taxable year to which an election under this subsection applies). “(B) Normal rehabilitation period.— For purposes of subparagraph (A), the term ‘normal rehabilitation period’ means the period reasonably expected to be required for the rehabilitation of the building— “(i) beginning with the date on which physical work on the rehabilitation begins (or, if later, the first day of the first taxable year to which an election under this subsection applies), and “(ii) ending on the date on which it is expected that the property will be available for placing in service. “(3) Special rules for applying paragraph (i).— For purposes of paragraph (1)— “(A) Component parts, etc.— Property which is to be a component part of, or is otherwise to be included in, any building to which this subsection applies shall be taken into account— “(i) at a time not earlier than the time at which it becomes irrevocably devoted to use in the building, and “(ii) as if (at the time referred to in clause (i)) the taxpayer had expended an amount equal to that portion of the cost to the taxpayer of such component or other property which, for purposes of this subpart, is properly chargeable (during such taxable year) to cap-ital account with respect to such building. “(B) Certain borrowing disregarded.— Any amount borrowed directly or indirectly by the taxpayer from the person rehabilitating the property for him shall not be treated as an amount expended for such rehabilitation. “(C) Limitation for buildings which are not self-rehabilitated.— “(i) In general.— In the case of a building which is not self-rehabilitated, the amount taken into account under paragraph (1)(B) for any taxable year shall not exceed the amount which represents the portion of the overall cost to the taxpayer of the rehabilitation which is properly attributable to the portion of the rehabilitation which is completed during such taxable year. “(ii) Carry-over of certain amounts.— In the case of a building which is not a self-rehabilitated building, if for the taxable year— “(I) the amount which (but for clause (i)) would have been taken into account under paragraph (1)(B) exceeds the limitation of clause (i), then the amount of such excess shall be taken into account under paragraph (1)(B) for the succeeding taxable year, or “(II) the limitation of clause (i) exceeds the amount taken into account under paragraph (1)(B), then the amount of such excess shall increase the limitation of clause (i) for the succeeding taxable year. “(D) Determination of percentage of completion.— The determination under subparagraph (C)(i) of the portion of the overall cost to the taxpayer of the rehabilitation which is properly attributable to rehabilitation completed during any taxable year shall be made, under regulations prescribed by the Secretary, on the basis of engineering or architectural estimates or on the basis of cost accounting records. Unless the taxpayer establishes otherwise by clear and convincing evidence, the rehabilitation shall be deemed to be completed not more rapidly than ratably over the normal rehabilitation period. “(E) No progress expenditures for certain prior periods.— No qualified rehabilitation expenditures shall be taken into account under this subsection for any period before the first day of the first taxable year to which an election under this subsection applies. “(F) No progress expenditures for property for year it is placed in service, etc.— In the case of any building, no qualified rehabilitation expenditures shall be taken into account under this subsection for the earlier of— “(i) the taxable year in which the building is placed in service, or “(ii) the first taxable year for which recapture is required under section 50(a)(2) with respect to such property, or for any taxable year thereafter. “(4) Self-rehabilitated building.— For purposes of this subsection, the term ‘self-rehabilitated building’ means any building if it is reasonable to believe that more than half of the qualified rehabilitation expenditures for such building will be made directly by the taxpayer. “(5) Election.— This subsection shall apply to any taxpayer only if such taxpayer has made an election under this paragraph. Such an election shall apply to the taxable year for which made and all subsequent taxable years. Such an election, once made, may be revoked only with the consent of the Secretary. “SEC. 48. ENERGY CREDIT; REFORESTATION CREDIT. “(a) Energy Credit.— “(1) In general.— For purposes of section 46, the energy credit for any taxable year is the energy percentage of the basis of each energy property placed in service during such taxable year. “(2) Energy percentage.— “(A) In general.— Except as provided in subparagraph (B), the energy percentage is 10 percent. “(B) Termination.— Effective with respect to periods after December 31, 1991, the energy percentage is zero. For purposes of the preceding sentence, rules similar to the rules of section 48(m) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply. “(C) Coordination with rehabilitation credit.— The energy percentage shall not apply to that portion of the basis of any property which is attributable to qualified rehabilitation expenditures. “(3) Energy property.— For purposes of this subpart, the term ‘energy property’ means any property— “(A) which is— “(i) equipment which uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat, or “(ii) equipment used to produce, distribute, or use energy derived from a geothermal deposit (within the meaning of section 613(e)(2)), but only, in the case of electricity generated by geothermal power, up to (but not including) the electrical transmission stage, “(B) (i) the construction, reconstruction, or erection of which is completed by the taxpayer, or “(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer, “(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and “(D) which meets the performance and quality standards (if any) which— “(i) have been prescribed by the Secretary by regulations (after consultation with the Secretary of Energy), and “(ii) are in effect at the time of the acquisition of the property. The term ‘energy property’ shall not Include any property which is public utility property (as defined in section 46(f)(5) as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). “(4) Special rule for property financed by subsidized energy financing or industrial development bonds.— “(A) Reduction of basis.— For purposes of applying the energy percentage to any property, if such property is financed in whole or in part by— “(i) subsidized energy financing, or “(ii) the proceeds of a private activity bond (within the meaning of section 141) the interest on which is exempt from tax under section 103, the amount taken into account as the basis of such property shall not exceed the amount which (but for this subpara-graph) would be so taken into account multiplied by the fraction determined under subparagraph (B). “(B) Determination of fraction.— For purposes of subparagraph (A), the fraction determined under this subparagraph is 1 reduced by a fraction— “(i) the numerator of which is that portion of the basis of the property which is allocable to such financing or proceeds, and “(ii) the denominator of which is the basis of the property. “(C) Subsidized energy financing.— For purposes of subparagraph (A), the term ‘subsidized energy financing’ means financing provided under a Federal, State, or local program a principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy. “(5) Certain progress expenditure rules made applicable.— Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this subsection. “(b) Reforestation Credit.— “(1) In general.— For purposes of section 46, the reforestation credit for any taxable year is 10 percent of the portion of the amortizable basis of any qualified timber property which was acquired during such taxable year and which is taken into account under section 194 (after the application of section 194(b)(D). “(2) Definitions.— For purposes of this subpart, the terms ‘amortizable basis’ and ‘qualified timber property’ have the respective meanings given to such terms by section 194. “SEC. 49. AT-RISK RULES. “(a) General Rule.— “(1) Certain nonrecourse financing excluded from credit base.— “(A) Limitation.— The credit base of any property to which this paragraph applies shall be reduced by the non-qualified nonrecourse financing with respect to such credit base (as of the close of the taxable year in which placed in service). “(B) Property to which paragraph applies.— This paragraph applies to any property which— “(i) is placed in service during the taxable year by a taxpayer described in section 465(a)(D, and “(ii) is used in connection with an activity with respect to which any loss is subject to limitation under section 465. “(C) Credit base defined.— For purposes of this paragraph, the term ‘credit base’ means— “(i) the portion of the basis of any qualified rehabilitated building attributable to qualified rehabilitation expenditures, “(ii) the basis of any energy property, and “(iii) the amortizable basis of any qualified timber property. “(D) Nonqualified nonrecourse financing.— “(i) In general.— For purposes of this paragraph and paragraph (2), the term ‘nonqualified nonrecourse financing’ means any nonrecourse financing which is not qualified commercial financing. “(ii) Qualified commercial financing.— For purposes of this paragraph, the term ‘qualified commercial financing’ means any financing with respect to any property if— “(I) such property is acquired by the taxpayer from a person who is not a related person, “(II) the amount of the nonrecourse financing with respect to such property does not exceed 80 percent of the credit base of such property, and “(III) such financing is borrowed from a qualified person or represents a loan from any Federal, State, or local government or instrumentality thereof, or is guaranteed by any Federal, State, or local government. Such term shall not include any convertible debt. “(iii) Nonrecourse financing.— For purposes of this subparagraph, the term ‘nonrecourse financing’ includes— “(I) any amount with respect to which the tax-payer is protected against loss through guarantees, stop-loss agreements, or other similar arrangements, and “(II) except to the extent provided in regulations, any amount borrowed from a person who has an interest (other than as a creditor) in the activity in which the property is used or from a related person to a person (other than the taxpayer) having such an interest. In the case of amounts borrowed by a corporation from a shareholder, subclause (II) shall not apply to an interest as a share-holder. “(iv) Qualified person.— For purposes of this paragraph, the term ‘qualified person’ means any person which is actively and regularly engaged in the business of lending money and which is not— “(I) a related person with respect to the tax-payer, “(II) a person from which the taxpayer acquired the property (or a related person to such person), or “(III) a person who receives a fee with respect to the taxpayer’s investment in the property (or a related person to such person). “(v) Related person.— For purposes of this subparagraph, the term ‘related person’ has the meaning given such term by section 465(b)(3)(C). Except as otherwise provided in regulations prescribed by the Secretary, the determination of whether a person is a related person shall be made as of the close of the taxable year in which the property is placed in service. “(E) Application to partnerships and s corporations.— For purposes of this paragraph and paragraph (2)— “(i) In general.— Except as otherwise provided in this subparagraph, in the case of any partnership or S corporation, the determination of whether a partner s or shareholder’s allocable share of any financing is nonqualified nonrecourse financing shall be made at the partner or shareholder level. “(ii) Special rule for certain recourse financing of s corporation.— A shareholder of an S corporation shall be treated as liable for his allocable share of any financing provided by a qualified person to such corporation if— “(I) such financing is recourse financing (determined at the corporate level), and “(II) such financing is provided with respect to qualified business property of such corporation, “(iii) Qualified business property.— For purposes of clause (ii), the term ‘qualified business property’ means any property if— “(I) such property is used by the corporation in the active conduct of a trade or business, “(II) during the entire 12-month period ending on the last day of the taxable year, such corporation had at least 3 full-time employees who were not owner-employees (as defined in section 465(c)(7)(E)(i)) and substantially all the services of whom were services directly related to such trade or business, and “(III) during the entire 12-month period ending on the last day of such taxable year, such corporation had at least 1 full-time employee substantially all of the services of whom were in the active management of the trade or business. “(iv) Determination of allocable share.— The determination of any partner’s or shareholder’s allocable share of any financing shall be made in the same manner as the credit allowable by section 38 with respect to such property. “(F) Special rules for energy property.— Rules similar to the rules of subparagraph (F) of section 46(c)(8) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this paragraph. “(2) Subsequent decreases in nonqualified nonrecourse financing with respect to the property.— “(A) In general.— If, at the close of a taxable year following the taxable year in which the property was placed, in service, there is a net decrease in the amount of non-qualified nonrecourse financing with respect to such property, such net decrease shall be taken into account as an increase in the credit base for such property tn accordance with subparagraph (C). “(B) Certain transactions not taken into account.— For purposes of this paragraph, nonqualified nonrecourse financing shall not be treated as decreased through the surrender or other use of property financed by nonqualified nonrecourse financing. “(C) Manner in which taken into account.— “(i) Credit determined by reference to taxable year property placed in service.— For purposes of determining the amount of credit allowable under section 38 and the amount of credit subject to the early disposition or cessation rules under section 50(a), any increase in a taxpayer’s credit base for any property by reason of this paragraph shall be taken into account as if it were property placed in service by the taxpayer in the taxable year in which the property referred to in subparagraph (A) was first placed in service. “(ii) Credit allowed for year of decrease in non-qualified nonrecourse financing.— Any credit allow-able under this subpart for any increase in qualified investment by reason of this paragraph shall be treated as earned during the taxable year of the decrease in the amount of nonqualified nonrecourse financing. “(b) Increases in Nonqualified Nonrecourse Financing.— “(1) In general.— If, as of the close of the taxable year, there is a net increase with respect to the taxpayer in the amount of nonqualified nonrecourse financing (within the meaning of subsection (a)(l)) with respect to any property to which subsection (a)(1) applied, then the tax under this chapter for such taxable year shall be increased by an amount equal to the aggregate decrease in credits allowed under section 38 for all prior taxable years which would have resulted from reducing the credit base (as defined in subsection (a)(l)(O) taken into account with respect to such property by the amount of such net increase. For purposes of determining the amount of credit subject to the early disposition or cessation rules of section 50(a), the net increase in the amount of the nonqualified nonrecourse financing with respect to the property shall be treated as reducing the property’s credit base in the year in which the property was first placed in service. “(2) Transfers of debt more than 1 year after initial borrowing not treated as increasing nonqualified nonrecourse financing.— For purposes of paragraph (1), the amount of nonqualified nonrecourse financing (within the meaning of subsection (a)(lRD)) with respect to the taxpayer shall not be treated as increased by reason of a transfer of (or agreement to transfer) any evidence of any indebtedness if such transfer occurs (or such agreement is entered into) more than 1 year after the date such indebtedness was incurred. “(3) Special rules for certain energy property.— Rules similar to the rules of section 47(d)(3) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this subsection. “(4) Special rule.— Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit allowable under sub-part A, B, D, or G. “SEC. 50. OTHER SPECIAL RULES. “(a) Recapture in Case of Dispositions, Etc.— Under regulations prescribed by the Secretary— “(1) Early disposition, etc.— “(A) General rule.— If, during any taxable year, investment credit property is disposed of, or otherwise ceases to be investment credit property with respect to the taxpayer, before the close of the recapture period, then the tax under this chapter for such taxable year shall be increased by the recapture percentage of the aggregate decrease in the cred-its allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero any credit determined under this subpart with respect to such property. “(B) Recapture percentage.— For purposes of subparagraph (A), the recapture percentage shall be determined in accordance with the following table: “If the property ceases to be investment credit property within— The recapture percentage is:  (i) One full year after placed in service. 100  (ii) One full year after the close of the period described in clause (i) 80  (iii) One full year after the close of the period described in clause (ii) 60  (iv) One full year after the close of the period described in clause (iii) 40  (v) One full year after the close of the period described in clause (iv) 20 “(2) Property ceases to qualify for progress expenditures.— “(A) In general.— If during any taxable year any building to which section 47(d) applied ceases (by reason of sale or other disposition, cancellation or abandonment of con-tract, or otherwise) to be, with respect to the taxpayer, property which, when placed in service, will be a qualified rehabilitated building, then the tax under this chapter for such taxable year shall be increased by an amount equal to the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero the credit determined under this subpart with respect to such building. “(B) Certain excess credit recaptured.— Any amount which would have been applied as a reduction under paragraph (2) of section 47(b) but for the fact that a reduction under such paragraph cannot reduce the amount taken into account under section 47(b)(l) below zero shall be treated as an amount required to be recaptured under subparagraph (A) for the taxable year during which the building is placed in service. “(C) Certain sales and leasebacks.— Under regulations prescribed by the Secretary, a sale by, and leaseback to, a taxpayer who, when the property is placed in service, will be a lessee to whom the rules referred to in subsection (c)(4) apply shall not be treated as a cessation described in subparagraph (A) to the extent that the amount which will be passed through to the lessee under such rules with respect to such property is not less than the qualified rehabilitation expenditures properly taken into account by the lessee under section 47(d) with respect to such property. “(D) Coordination with paragraph (1).— If, after property is placed in service, there is a disposition or other cessation described in paragraph (1), then paragraph (1) shall be applied as if any credit which was allowable by reason of section 47(d) and which has not been required to be recaptured before such disposition, cessation, or change in use were allowable for the taxable year the property was placed in service. “(E) Special rules.— Rules similar to the rules of this paragraph shall apply in cases where qualified progress expenditures were taken into account under the rules referred to in section 48(a)(5)(A). “(3) Carrybacks and carryovers adjusted.— In the case of any cessation described in paragraph (1) or (2), the carrybacks and carryovers under section 39 shall be adjusted by reason of such cessation. “(4) Subsection not to apply in certain cases.— Paragraphs (1) and (2) shall not apply to— “(A) a transfer by reason of death, or “(B) a transaction to which section 381(a) applies. For purposes of this subsection, property shall not be treated as ceasing to be investment credit property with respect to the taxpayer by reason of a mere change in the form of conducting the trade or business so long as the property is retained in such trade or business as investment credit property and the tax-payer retains a substantial interest in such trade or business. “(5) Definitions and special rules.— “(A) Investment credit property.— For purposes of this subsection, the term ‘investment credit property’ means any property eligible for a credit determined under this subpart. “(B) Transfer between spouses or incident to divorce.— In the case of any transfer described in subsection (a) of section 1041— “(i) the foregoing provisions of this subsection shall not apply, and ’ “(ii) the same tax treatment under this subsection with respect to the transferred property shall apply to the transferee as would have applied to the transferor. “(C) Special rule.— Any increase in tax under paragraph (1) or (2) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit allow-able under subpart A, B, D, or G. “(b) Certain Property Not Eligible.— No credit shall be determined under this subpart with respect to— “(1) Property used outside united states.— “(A) In general.— Except as provided in subparagraph (B), no credit shall be determined under this subpart with respect to any property which is used predominantly out-side the United States. “(B) Exceptions.— Subparagraph (A) shall not apply to any property described in section 168(g)(4). “(2) Property used for lodging.— No credit shall be determined under this subpart with respect to any property which is used predominantly to furnish lodging or in connection with the furnishing of lodging. The preceding sentence shall not apply to— “(A) nonlodging commercial facilities which are available to persons not using the lodging facilities on the same basis as they are available to persons using the lodging facilities.8484 So in original. Probably should be “facilities;”. “(B) property used by a hotel or motel in connection with the trade or business of furnishing lodging where the predominant portion of the accommodations is used by transients; “(C) a certified historic structure to the extent of that portion of the basis which is attributable to qualified rehabilitation expenditures; and “(D) any energy property. “(3) Property used by certain tax-exempt organization.— No credit shall be determined under this subpart with respect to any property used by an organization (other than a cooperative described in section 521) which is exempt from the tax imposed by this chapter unless such property is used predominantly in an unrelated trade or business the income of which is subject to tax under section 511. If the property is debt-financed property (as defined in section 514(b)), the amount taken into account for purposes of determining the amount of the credit under this subpart with respect to such property shall be that percentage of the amount (which but for this paragraph would be so taken into account) which is the same percentage as is used under section 514(a), for the year the property is placed in service, in computing the amount of gross income to be taken into account during such taxable year with respect to such property. If any qualified rehabilitated building is used by the tax-exempt organization pursuant to a lease, this paragraph shall not apply for purposes of determining the amount of the rehabilitation credit. “(4) Property used by governmental units or foreign persons or entities.— “(A) In general.— No credit shall be determined under this subpart with respect to any property used— “(i) by the United States, any State or political sub-division thereof, any possession of the United States, or any agency or instrumentality of any of the foregoing, or “(ii) by any foreign person or entity (as defined in section 168(h)(2)(O), but only with respect to property to which section 168(h)(2)(A)(iii) applies (determined after the application of section 168(h)(2)(B)). “(B) Exception for short-term leases.— This paragraph and paragraph (3) shall not apply to any property by reason of use under a lease with a term of less than 6 months (determined under section 168(i)(3)). “(C) Exception for qualified rehabilitated buildings leased to governments, etc.— If any qualified rehabilitated building is leased to a governmental unit (or a foreign person or entity) this paragraph shall not apply for purposes of determining the rehabilitation credit with respect to such building. “(D) Special rules for partnerships, etc.— For purposes of this paragraph and paragraph (3), rules similar to the rules of paragraphs (5) and (6) of section 168(h) shall apply. “(E) Cross reference.— “For special rules for the application of this paragraph and paragraph (3), see section 168(h).” “(c) Basis Adjustment to Investment Credit Property.— “(1) In general.— For purposes of this subtitle, if a credit is determined under this subpart with respect to any property, the basis of such property shall be reduced by the amount of the credit so determined. “(2) Certain dispositions.— If during any taxable year there is a recapture amount determined with respect to any property the basis of which was reduced under paragraph (1), the basis of such property (immediately before the event resulting in such recapture) shall be increased by an amount equal to such recapture amount. For purposes of the preceding sentence, the term ‘recapture amount’ means any increase in tax (or adjustment in carrybacks or carryovers) determined under subsection (a). “(3) Special rule.— In the case of any energy credit or re-forestation credit— “(A) only 50 percent of such credit shall be taken into account under paragraph (1), and “(B) only 50 percent of any recapture amount attributable to such credit shall be taken into account under paragraph (2). “(4) Recapture of reductions.— “(A) In general.— For purposes of sections 1245 and 1250, any reduction under this subsection shall be treated as a deduction allowed for depreciation. “(B) Special rule for section 1250.— For purposes of section 1250(b), the determination of what would have been the depreciation adjustments under the straight line method shall be made as if there had been no reduction under this section. “(5) Adjustment in basis of interest in partnership or s corporation.— The adjusted basis of— “(A) a partner’s interest in a partnership, and “(B) stock in an S corporation, shall be appropriately adjusted to take into account adjustments made under this subsection in the basis of property held by the partnership or S corporation (as the case may be). “(d) Certain Rules Made Applicable.— For purposes of this sub-part, rules similar to the rules of the following provisions (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply: “(1) Section 46(e) (relating to limitations with respect to certain persons). “(2) Section 46(f) (relating to limitation in case of certain regulated companies). “(3) Section 46(h) (relating to special rules for cooperatives). “(4) Paragraphs (2) and (3) of section 48(b) (relating to special rule for sale-leasebacks). “(5) Section 48(d) (relating to certain leased property). “(6) Section 48(f) (relating to estates and trusts). “(7) Section 48(r) (relating to certain 501(d) organizations).”

7. 1998

   Internal Revenue Service Restructuring and Reform Act of 1998

   Pub. L. 105–206 title VI § 6004(g)(6) · 112 Stat. 685

   Substituted · 26 U.S.C. § 49(b)(4)

   Pub. L. 105–206 substituted “this chapter” for “subpart A, B, D, or G”

   Source evidence

   Code amendment note
   Subsec. (b)(4). Pub. L. 105–206 substituted “this chapter” for “subpart A, B, D, or G”.

   Enacted provision · exact public law section
   (6) Paragraph (4) of section 49(b) of the 1986 Code is amended by striking “subpart A, B, D, or G” and inserting “this chapter”.

8. 2005

   Energy Tax Incentives Act of 2005

   Pub. L. 109–58 title XIII § 1307(c)(1) · 119 Stat. 594

   1. Added · 26 U.S.C. § 49(a)(1)(C)(iii); 26 U.S.C. § 49(a)(1)(C)(iv)

      Pub. L. 109–58 added cls. (iii) and (iv)

   2. Struck · 26 U.S.C. § 49(a)(1)(C)(iii); 26 U.S.C. § 49(a)(1)(C)(iv)

      Pub. L. 109–58 struck out former cl. (iii) which read as follows: “the amortizable basis of any qualified timber property.”

   Source evidence

   Code amendment note
   Subsec. (a)(1)(C)(iii), (iv). Pub. L. 109–58 added cls. (iii) and (iv) and struck out former cl. (iii) which read as follows: “the amortizable basis of any qualified timber property.”

   Enacted provision · exact public law section
   (1) Section 49(a)(1)(C) is amended by striking “and” at the end of clause (ii), by striking clause (iii), and by adding after clause (ii) the following new clauses: “(iii) the basis of any property which is part of a qualifying advanced coal project under section 48A, and “(iv) the basis of any property which is part of a qualifying gasification project under section 48B.” .

9. 2009

   American Recovery and Reinvestment Act of 2009

   Pub. L. 111–5 div. B title I § 1302(c)(1) · 123 Stat. 115

   Added · 26 U.S.C. § 49(a)(1)(C)(v)

   Pub. L. 111–5 added cl. (v)

   Source evidence

   Code amendment note
   Subsec. (a)(1)(C)(v). Pub. L. 111–5 added cl. (v).

   Enacted provision · exact public law section
   (1) Section 49(a)(1)(C) 26 USC 49. is amended by striking “and” at the end of clause (iii), by striking the period at the end of clause (iv) and inserting “, and”, and by adding after clause (iv) the following new clause: “(v) the basis of any property which is part of a qualifying advanced energy project under section 48C.” .

10. 2010

    Patient Protection and Affordable Care Act

    Pub. L. 111–148 title IX § 9023(c)(1) · 124 Stat. 119

    Added · 26 U.S.C. § 49(a)(1)(C)(vi)

    Pub. L. 111–148 added cl. (vi)

    Source evidence

    Code amendment note
    Subsec. (a)(1)(C)(vi). Pub. L. 111–148 added cl. (vi).

    Enacted provision · exact public law section
    (1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986 is 26 USC 49. amended— (A) by striking “and” at the end of clause (iv), (B) by striking the period at the end of clause (v) and inserting “, and”, and (C) by adding at the end the following new clause: “(vi) the basis of any property to which paragraph (1) of section 48D(e) applies which is part of a qualifying therapeutic discovery project under such section 48D.” .

11. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(d)(3)(B)(i) · 132 Stat. 348

    Struck · 26 U.S.C. § 49(a)(1)(C)(vi)

    Pub. L. 115–141, § 401(d)(3)(B)(i), struck out cl. (vi) which read as follows: “the basis of any property to which paragraph (1) of section 48D(e) applies which is part of a qualifying therapeutic discovery project under such section 48D.”

    Source evidence

    Code amendment note
    Subsec. (a)(1)(C)(vi). Pub. L. 115–141, § 401(d)(3)(B)(i), struck out cl. (vi) which read as follows: “the basis of any property to which paragraph (1) of section 48D(e) applies which is part of a qualifying therapeutic discovery project under such section 48D.”

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

12. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(24) · 132 Stat. 348

    Substituted · 26 U.S.C. § 49(a)(1)(D)(iii)

    Pub. L. 115–141, § 401(a)(24), substituted “shareholder” for “share-holder” in concluding provisions

    Source evidence

    Code amendment note
    Subsec. (a)(1)(D)(iii). Pub. L. 115–141, § 401(a)(24), substituted “shareholder” for “share-holder” in concluding provisions.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

13. 2022

    CHIPS Act of 2022

    Pub. L. 117–167 div. A § 107(d)(2) · 136 Stat. 1366

    Added · 26 U.S.C. § 49(a)(1)(C)(vi)

    Pub. L. 117–167 added cl. (vi)

    Source evidence

    Code amendment note
    Subsec. (a)(1)(C)(vi). Pub. L. 117–167 added cl. (vi).

    Enacted provision · exact public law section
    (2) Section 49(a)(1)(C) of such Code is amended— (A) by striking “and” at the end of clause (iv), (B) by striking the period at the end of clause (v) and inserting “, and”, and (C) by adding at the end the following new clause: “(vi) the basis of any qualified property (as defined in subsection (b)(2) of section 48D) which is part of an advanced manufacturing facility (as defined in subsection (b)(3) of such section).” .

    Effective date note
    Amendment by Pub. L. 117–169 applicable to property placed in service after Dec. 31, 2024, see section 13702(c) of Pub. L. 117–169, set out as an Effective Date note under section 48E of this title. Amendment by Pub. L. 117–167 applicable to property placed in service after Dec. 31, 2022, and, for any property the construction of which begins prior to Jan. 1, 2023, only to the extent of the basis thereof attributable to the construction, reconstruction, or erection after Aug. 9, 2022, see section 107(f) of Pub. L. 117–167, set out as a note under section 905 of Title 2, The Congress.

14. 2022

    Pub. L. 117–169 title I § 13702(b)(2) · 136 Stat. 1818

    Added · 26 U.S.C. § 49(a)(1)(C)(vii); 26 U.S.C. § 49(a)(1)(C)(viii)

    Pub. L. 117–169 added cls. (vii) and (viii)

    Source evidence

    Code amendment note
    Subsec. (a)(1)(C)(vii), (viii). Pub. L. 117–169 added cls. (vii) and (viii).

    Enacted provision · exact public law section
    (2) Section 49(a)(1)(C), as amended by section 107(d) of the CHIPS Act of 2022, 26 USC 49. is amended— (A) by striking “and” at the end of clause (v), (B) by striking the period at the end of clause (vi) and inserting a comma, and (C) by adding at the end the following new clauses: “(vii) the basis of any qualified property which is part of a qualified facility under section 48E, and “(viii) the basis of any energy storage technology under section 48E.” .

    Effective date note
    Amendment by Pub. L. 117–169 applicable to property placed in service after Dec. 31, 2024, see section 13702(c) of Pub. L. 117–169, set out as an Effective Date note under section 48E of this title. Amendment by Pub. L. 117–167 applicable to property placed in service after Dec. 31, 2022, and, for any property the construction of which begins prior to Jan. 1, 2023, only to the extent of the basis thereof attributable to the construction, reconstruction, or erection after Aug. 9, 2022, see section 107(f) of Pub. L. 117–167, set out as a note under section 905 of Title 2, The Congress.

17 of 17 references resolved to an enrolled provision