90 STAT. 1530
PUBLIC LAW 94-455—OCT. 4, 1976 such operation of an agreement or process of law, pursuant to which the disposition occurred, began." (c) CONFORMING AMENDMENTS. — (1) AMENDMENT OF SECTION 1 2 5 0 (f)(2). — Paragraph (2) of sec-
26 USC 1250.
tion 1250(f) (relating to special rule for property which is substantially improved) is amended to read as follows: " (2) ORDINARY INCOME ATTRIBUTABLE TO A N E L E M E N T. — For
purposes of paragraph (1), the amount taken into account for any element shall be the sum of a series of amounts determined for the periods set forth in subsection (a), with the amount for any such period being determined by multiplying— " (A) the amount which bears the same ratio to the lower of the amounts specified in clause (i) or (ii) of subsection (a)(1)(A), in clause (i) or ( i i) of subsection (a)(2)(A), or in clause (i) or (ii) of subsection (a)(3)(A), as the case may be, for the section 1250 property as the additional depreciation for such element attributable to such period uears to the sum of the additional depreciation for all elements attributable to such period, by " (B) the applicable percentage for such element for such period. For purposes of this paragraph, determinations with respect to any element shall be made as if it were a separate property." (2) AMENDMENT OF SECTION 1 2 5 0 (g)(2). — Paragraph (2) of
section 1250(g) (relating to special rules for qualified low-income housing) is amended to read as follows: "(2)
ORDINARY INCOME ATTRIBUTABLE TO AN E L E M E N T. — For
purposes of paragraph (1), the amount taken into account for any element shall be determined in a manner similar to that provided by subsection (f)(2). " (3)
26 USC 167.
26 USC 1250 "o*®-
26 USC 167.
AMENDMENT OF SECTION 167(e)(3). — Paragraph (3) of
section 167(e) (relating to change in depreciation methoci with respect to section 1250 property) is amended by striking out "beginning after July 24, 1969," and inserting in lieu thereof "beginning after December 31, 1975,". (d) EFFECTIVE D A T E. — The amendments made by this section (other than subsection (b)) shall apply for taxable years ending after December 31, 1975. The amendment made by subsection (b) shall apply with respect to proceedings (and to operations of law) referred to m section 1250(d) (10) of the I n t e r n a l Revenue Code of 1954 which begin after December 31, 1975. SEC. 203. AMENDMENT OF SECTION 167(k). (a) GENERAL RULE.—Section 167(k) (relating to depreciation of expenditures to rehabilitate low-income rental housing) is amended— (1) by striking out " January 1, 1976," in paragraph (1) and inserting in lieu thereof " January 1, 1978"; (2) by striking out "$15,000" in paragraph (2)(A) and inserting in lieu thereof "$20,000"; (3) by striking out " the policies of the Housing and Urban Development Act of 1968" in paragraph (3)(B) and inserting in lieu thereof "the Leased Housing Program under section 8 of the United States Housing Act of 1937"; and (4) by a d d i n g the following new subparagraph a t the end of paragraph (3): " (D) REHABILITATION EXPENDITURES INCURRED.—Rehabili-
tation expenditures incurred pursuant to a binding con-