PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2165
(A) Arena project, Michigan, (B) Campbell Soup Company, Pennsylvania and California, (C) Overton, Florida, (D) Legett and Piatt, (E) East Bank Housing Project, (F) Standard Telephone Company, (G) Presidential Air, (H) Ann Arbor Railroad, (I) Ada, Michigan Cogeneration, (J) Anchor Store Project, Michigan, (K) Biogen Power, (L) $14,000,000 of television transmitting towers placed in service by Media General, Inc., which were subject to binding contracts as of January 21, 1986, and will be placed in service before January 1, 1988, (M) Hardage Company, (N) Mesa Airlines, (O) Yarn-spinning equipment used at Spring Cotton Mills, and (P) 328 units of low-income housing at Angelus Plaza. (d) RAILROAD GRADING AND TUNNEL BORES.—
(1) IN GENERAL.—In the case of expenditures for railroad grading and tunnel bores which were incurred by a common carrier by railroad to replace property destroyed in a disaster occurring on or about April 17, 1983, near Thistle, Utah, such expenditures, to the extent not in excess of $15,000,000, shall be treated as recovery property which is 5-year property under section 168 of the Internal Revenue Code of 1954 (as in effect before the amendments made by this Act) and which is placed in service at the time such expenditures were incurred. (2) BUSINESS INTERRUPTION PROCEEDS.—Business interruption proceeds received for loss of use, revenues, or profits in connection with the disaster described in paragraph (1) and devoted by the taxpayer described in paragraph (1) to the construction of replacement track and related grading and tunnel bore expenditures shall be treated as constituting an amount received from the involuntary conversion of property under section 1033(a)(2) of such Code. (3) EFFECTIVE DATE.—This subsection shall apply to taxable years ending after April 17, 1983. (e) TREATMENT OF CERTAIN DISASTER LOSSES.—
(1) IN GENERAL.—In the case of a disaster described in paragraph (2), at the election of the taxpayer, the amendments made by section 201 of this Act— (A) shall not apply to any property placed in service during 1987 or 1988, or (B) shall apply to any property placed in service during 1985 or 1986, which is property to replace property lost, damaged, or destroyed in such disaster. (2) DISASTER TO WHICH SECTION APPLIES.—This section shall apply to a flood which occurred on November 3 through 7, 1985, and which was declared a natural disaster area by the President of the United States.
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