78 STAT. ]
PUBLIC LAW 88-272-FEB. 26, 1964
(d) T K K A T M EXT OF Kl-EVATCMiS AX1> ESCALATOKS If ()]{ PlUrOSKS OF SKCTIOX 1*245.—Section I'i+afii) (relntino- to «rini\ from dispositions
of certain depreciahle property) is amended— (1) by striking- out so much of paragraph (2) as precedes the second sentence thereof and inserting in lieu thereof the following: "(2) RECo^rPITTED BASIS,—Foi" purposes of this section, the term 'recomputed basis' means— " (A) with respect to any property referred to in paragraph (3)(A) or (B), its adjusted basis recomputed by adding thereto all adjustments, attributable to periods after December 31, 1961, or " (B) with respect to any property referred to in paragraph (3)(C), its adjusted basis recomputed by adding thereto all adjustments, attributable to periods after June 30, 1963, reflected in such adjusted basis on account of deductions (whether in respect of the same or other property) allowed or allowable to the taxpayer or to any other person for depreciation, or for amortization under section 168,"; (2) by striking out the period at the end of paragraph (3)(B) and inserting in lieu thereof ", or"; and (3) by adding at the end of paragraph (3) the following new subparagraph: " (C) an elevator or an escalator," (e) TREATMENT OF lNA'EsT:\rENT Cincnrr RY FEDERAL REOFLATORY A(tEX(TES.—It was the intent of the Congress in providhig an investment credit under section 38 of the Internal Revenue Code of 1954, and it is the intent of the Congress in repealing the reduction in basis required by section 48(g) of such Code, to provide an incentive for modernization and growth of private industry (including that portion thereof which is regulated). Accordingly, Congress does not intend that any agency or instrumentality of the United States having jurisdiction with respect to a taxpayer shall, without the consent of the taxpayer, use— (1) in the case of ]nd)lic utility property (as defined in section 46(c)(3)(B) ()f the Internal Revenue Code of 1954), more than a proportionate part (determined with i*eference to the average useful life of the property with respect to which the credit was allowed) of the credit against tax allowed for any taxable year by section 38 of such Code, or (2) in the case of any other property, any credit against tax allowed by section 38 of such Code. fo reduce such taxpayer's Federal income taxes for the purpose of establishing the cost of service of the taxpayer or to accomplish a similar result by anj- other method. (f) EFFECTIVE DATES.—
(1) The amendments made by subsection (b) shall apply with respect to i^roperty possession of which is transferred to a lessee on or after the date of enactment of this Act. (2) The amendments made by subsection (c) shall appl^- with respect to taxable years ending after June 30, 1963. (3) The amendments made by subsection (d) shall apply with respect to dispositions after December 31, 1963, in taxable years en d i n g after such date.
35 26 USC 1^245^.'
68A Stat. 52. 26 USC 168.
76 Stat. 962. 26 USC 38,
In(e, p."33
26 USC 46.
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