95 STAT. 206
"Low income housing." 26 USC 1250.
PUBLIC LAW 97-34—AUG. 13, 1981 service shall be determined on the basis of the number of months in such year during which the property was in service. For purposes of this subparagraph, the term 'lowincome housing' means property described in clause (i), (ii), (iii), or (iv) of section 1250(a)(l)(B). "(B) SPECIAL RULE FOR YEAR OP DISPOSITION.—In the case of a disposition of 15-year real property, the deduction allowable under subsection (a) for the taxable year in which the disposition occurs shall reflect only the months during such year the property was in service. "(3) ELECTION OF DIFFERENT RECOVERY PERCENTAGE.—
"(A) IN GENERAL.—Except as provided in subsection (£X2), in lieu of any applicable percentage under paragraphs (1) and (2), the taxpayer may elect, with respect to one or more classes of recovery property placed in service during the taxable ^ear, the applicable percentage determined by use of the straight line method over the recovei^jr period elected by the taxpayer in accordance with the following table: "In the case of: 3-year property 5^ear property l(>-year property 15-year real property 15-year public utility property "(B) OPERATING RULES.—
The taxpayer may elect a recovery period of: 3,5, or 12 years. 5,12, or 25 years. 10,25, or 35 years. 15,35, or 45 years. 15,35, or 45 years.
"(i) IN GENERAL.—Except as provided in clause (ii), the taxpayer may elect under subparagraph (A) only a single percentage for property in any class of recovery property placed in service during the taxable year. The percentage so elected shall apply to all property in such class placed in service during such taxaole year and shall apply throughout the recovery period elected for such property. "(ii) REAL PROPERTY.—In the case of 15-year real property the taxpayer shall make the election under subparagraph (A) on a property-by-property basis. "(iii) CONVENTION.—Under regulations prescribed by the Secretary, the half-year convention shall apply to any election with respect to any recovery property (other than 15-year real property) with respect to which an election is made under tms paragraph. "(c) RECOVERY PROPERTY.—For purposes of this title— "(1) RECOVERY PROPERTY DEFINED.—Except as provided in subsection (e), the term 'recovery property* means tangible property of a character subject to the allowance for depreciation— "(A) used in a trade or business, or "(B) held for the production of income. "(2) CLASSES OF RECOVERY PROPERTY.—Each item of recovery property shall be assigned to one of the following classes of property: (A) 3-YEAR PROPERTY.—The term '3-year property' means section 1245 class property— "(i) with a present class life of 4 years or less; or "(ii) used in connection with research and experimentation. "(B) 5-YEAR PROPERTY.—The term '5-year property' means recovery property which is section 1245 class property and
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