107 STAT. 432 PUBLIC LAW 103-66—AUG. 10, 1993 Subpart C—Modification to Minimum Tax Depreciation Rules SEC. 13116. MODIFICATION TO MINIMUM TAX DEPRECIATION RULES. (a) ELIMINATION OF ACE DEPRECIATION ADJUSTMENT. —Clause 26 USC 56. (i) of section 56(g)(4)(A) (relating to depreciation adjustments for computing adjusted current earnings) is amended by adding at the end thereof the following new sentence: The prececting sentence shall not apply to any property placed in service after December 31, 1993, and the depreciation deduction with respect to such property shall be determined under the rules of subsection (a)(l)(A).. 26 USC 56 note. (b) EFFECTIVE DATES, — (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 1993. (2) COORDINATION WITH TRANSITIONAL RULES.— The amendments made by this section shall not apply to any property to which paragraph (1) of section 56(a) of the Internal Revenue Code of 1986 does not apply by reason of subparagraph (C)(i) thereof. Subpart D—Increase in Expense Treatment for Small Businesses SEC. 13116. INCREASE IN EXPENSE TREATMENT FOR SMALL BUSINESSES. (a) GENERAL RULE.— Paragraph (1) of section 179(b) (relating to dollar limitation) is amended by striking "$10,000" and inserting " $17,500 ". 26 USC 179 note. (b) EFFECTIVE DATE. —The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1992. Subpart E—Tax Exempt Bonds SEC. 13121. HIGH-SPEED INTERCITY RAIL FACILITY BONDS EXEMPT FROM STATE VOLUME CAP. (a) IN GENERAL. — Paragraph (4) of section 146(g) (relating to exemption for certain bonds) is amended by adding at the end thereof the following flush sentence: "Paragraph (4) shall be applied without regard to '75 percent of if all of the property to oe financed by the net proceeds of the issue is to be owned by a governmental unit (within the meaning of section 142(b)(1))." 26 USC 146 note. (b) EFFECTIVE DATE.— The amendment made by subsection (a) shall apply to bonds issued after December 31, 1993. SEC. 13122. PERMANENT EXTENSION OF QUALIFIED SMALL ISSUE BONDS. (a) IN GENERAL. —Subparagraph (B) of section 144(a)(12) is amended to read as follows: "(B) BONDS ISSUED TO FINANCE MANUFACTURING FACILI- TIES AND FARM PROPERTY.—Subparagraph (A) shall not apply to any bond issued as part of an issue 95 percent or more of the net proceeds of which are to be used to provide— "(i) any manufacturing facility, or
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