Page:United States Statutes at Large Volume 78.djvu/76

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PUBLIC LAW 88-000—MMMM. DD, 1964

34

PUBLIC LAW 88-272-FEB. 26, 1964

(ii) iiiuler regulations prescribe(l by the Secretary of the Treasury or his delegate, the deductions otherwise allowable under section lfi2 of such Code to the lessee ^^^ amounts paid to the lessor under the lease (or, if such lessee has purchased such property, the basis of such property) shall be adjusted in a manner consistent with subparagraph (A). / (C) The adjustments under this paragraph shall be made as of the first day of the taxpayer's first taxable year which begins after December 31, 1963.

68A Stat. 45. 26 USC 162.

(3)

76 Stat. 967. ^^ " '^^' 26 USC 181. 26 USC 1016.

[78 STAT.

CONFORMING AMENDMENTS.—

^^\ The last senteuce of section 48(d) (relating to certain leased property) is hereby repealed. (B) Section 181 (relating to deduction for certain unused investment credit) is hereby repealed. (C) Section 1016(a) (19) (relating to adjustments to basis) is amended to read as follows: •'(19) to the extent provided in section 48(g) and in section 203(a)(2) of the Revenue Act of 1964, in the case of property which is or has been section 38 property (as defined in section 48(a));" (D) The table of sections for part VI of subchapter B of chapter 1 is amended by striking out the following: "Sec. 181. Deduction for certain nnnsed investment credit."

(4) EFFECTIVE DATE.—Paragraphs (1) and (3) of this subsection shall apply— (A) m the case of property placed in ser\-ice after December 31, 1963, with respect to taxable years ending after such date, and (B) in the case of property placed in service before January 1, 1964, with respect to taxable years beginning after December 31, 1963. (b)

26 USC 46.

BASIS or CERTAIN LEASED PROPERTY TO LESSEE.—Paragraphs

(1) and (2) of section 48(d) (relating to certain leased property) are amended to read as follows: " (1) except as provided in paragraph (2), the fair market \'alue of such property, or "(2) if such property is leased by a corporation which is a member of an afRliated group (within the meaning of section 46(a)(5)) to another corporation which is a member of the same affiliated group, the basis of such pr()perty to the lessor," (c) TREATMENT OF ELEVATORS AND ESCALATORS FOR PURPOSES OF

26 USC 48, 38.

piiE INVESTMENT CREDIT.—Section 4 8 (a)(1) (relating to section 3S property) is amended— (1) by striking out the period at the end of subparagraph (B) and inserting in lieu thereof ", or"; and (2) by adding after subparagraph (B) the following new subparagraph: " (C) elevators and escalators, but only if— " (i) the construction, reconstruction, or erection of the elevator or escalator is completed by the taxpaver after June 30, 1063, or "(ii) the elevator or escalator is accjuired after June 30, 1963, and the original use of such elevator or escalator commences with the taxpayer and commences after such date."