96 STAT. 446
PUBLIC LAW 97-248—SEPT. 3, 1982 the credits allowable under subpart A of part IV of subchapter A of this chapter. "(ii)
FINANCE
LEASE
ITEMS
DEFINED.—The
term
'finance lease items' means any of the following items which a r e properly allocable to finance lease property with respect to which the tax p a y e r is the lessor: "(I) Any deduction or credit allowable under this chapter. "(II) Any r e n t a l income received by the tax p a y e r from any lessee of such property. "(iii) CERTAIN TAXES NOT INCLUDED.—The term
26 USC 53.
'tax
imposed by this chapter' shall not include any tax t r e a t e d as not imposed by this chapter under the last sentence of section 53(a) (other than the tax imposed by section 56). "(E) CERTAIN SAFE HARBOR LEASE PROPERTY TAKEN INTO
ACCOUNT.—Under regulations prescribed by the Secretary, deductions and credits and safe h a r b o r lease items which a r e allocable to safe h a r b o r lease property to which this paragraph (as in effect for taxable years beginning in 1983) applies shall be t a k e n into account for purposes of applying this paragraph. "(2) INVESTMENT CREDIT ALLOWED ONLY OVER 5-YEAR PERIOD.—
In the case of any credit which would otherwise be allowable under section 38 with respect to any finance lease property for any taxable year (determined without regard to this paragraph), only 20 percent of the a m o u n t of such credit shall be allowable in such taxable year and 20 percent of such a m o u n t shall be allowable in each of the succeeding 4 taxable years. "(3) COMPUTATION OF TAXABLE INCOME OF LESSEE FOR PURPOSES OF PERCENTAGE DEPLETION.—
"(A) IN GENERAL.—For purposes of section 613 or 613A, the taxable income of any tax p a y e r who is a lessee of any financed recovery property shall be computed as if the taxpayer w a s the owner of such property, except that the a m o u n t of the deduction under subsection (a) of this section shall be determined after application of paragraph (2) of this subsection. "(B) COORDINATION WITH
CRUDE
OIL WINDFALL PROFIT
TAX.—Section 4988(b)(3)(A) shall be applied without regard to subparagraph (A). "(4) L I M I T A T I O N S. — "(A) TERMINATION OF CERTAIN PROVISIONS.—
"(i) PARAGRAPH (i). — Paragraph (1) shall not apply to property placed in service after September 30, 1985, in taxable years beginning after such date. "(ii) PARAGRAPH (2).—Paragraph (2) shall not apply to property placed in service after September 30, 1985. "(B) CERTAIN FARM PROPERTY.—This subsection shall not
Ante, p. 442.
apply to property which is used for farming purposes (within the m e a n i n g of section 2032A(e)(5)) and which is placed in service during the taxable year but only if the cost basis of such property, when added to the cost basis of other finance lease property used for such purpose, does not exceed $150,000 (determined under rules similar to the rules of section 209(d)(1)(B) of the T a x Equity and Fiscal Responsibility Act of 1982)."
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