PUBLIC LAW 98-369—JULY 18, 1984
98 STAT. 809
any credit allowable under section 38 to the lessee by Post, p. 827. reason of an election under this subsection (hereinafter in this paragraph referred to as the 'total credit') shall be allowable only as provided in subparagraph (D). "(ii) AT-RISK PERCENTAGE.—For purposes of this paragraph, the term 'at-risk percentage' means the percentage obtained by dividing— "(I) the present value (as of the time the lease is entered into) of the aggregate lease at-risk payments, by "(II) the lessee acquisition amount. For purposes of subclause (I), the present value shall be determined by using a discount rate equal to the rate in "^ • ! ^ -' " effect under section 6621 as of the time the lease is entered into. "(iii) REQUIRED PERCENTAGE.—For purposes of clause (i)(III), the term 'required percentage' means the sum of— "(I) 2 times the sum of the percentages applicable to the property under section 46(a), plus Post, p. 834. "(II) 10 percent. In the case of 3-year property, such term means 60 percent of the required percentage determined under the preceding sentence. "(iv) LESSEE ACQUISITION AMOUNT.—For purposes of
this paragraph, the term 'lessee acquisition amount' means the amount for which the lessee is treated as having acquired the property by reason of an election under this subsection. "(v) LEASE AT-RISK PAYMENT.—For purposes of this paragraph, the term 'lease at-risk payment' means any rental payment— '(I) which the lessee is required to vaake under the lease in all events, and "(II) with respect to which the lessee is not protected against loss through nonrecourse financing, guarantees, stop-loss agreements, or other similar arrangements. '(D) YEAR FOR WHICH CREDIT ALLOWABLE.—
"(i) IN GENERAL.—Except as provided in clause (ii), in any case to which subparagraph (C)(i) applies, the portion of the total credit eillowable for any taxable year shall be an amount which bears the same ratio to such total credit as— "(I) the aggregate rental payments made by the lessee under the lease during such taxable year, bears to "(II) the lessee acquisition amount, "(ii) REMAINING AMOUNT ALLOWABLE FOR YEAR IN WHICH AGGREGATE RENTAL PAYMENTS EXCEED REQUIRED PERCENTAGE OF ACQUISITION AMOUNT.—The total credit
(to the extent not allowable for a preceding taxable year) shall be allowable for the first taxable year as of the close of which the aggregate rental payments made by the lessee under the lease equal or exceed the required percentage (as defined in subparagraph (C)(iii)) of the lessee acquisition amount.
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