522
Effective date. 26 u*sc 5^*^*
PUBLIC LAW 92-178-DEC. 10, 1971
"(b) SECTION 188 PROPERTY.—For purposes of this section, the term 'section 188 property' means tangible property which qualifies under regulations prescribed hj the Secretary or his delegate as a facility for on-the-job training of employees (or prospective employees) of the taxpayer, or as a child care center facility primarily for the children of employees of the taxpayer; except that such term shall not include— "(1) any property which is not of a character subject to depreciation; or " (2) property located outside the United States. "(c) APPLICATION" OF SECTION.—This section shall apply only with respect to expenditures made after December 31, 1971, and before January 1, 1977." ^"^^ MINIMUM TAX.—Section 57(a) (relating to items of tax preference) is amended by inserting after paragraph (9) the following new paragraph: "(10)
Ante, p. 521.
Ante, p. 508.
[85 STAT.
AMORTIZATION OF ON-THE-JOB TRAINING AND CHILD CARE
FACILITIES.—With respcct to each item of section 188 property for which an election is in effect under section 188, the amount by which the deduction allowable for the taxable year under such section exceeds the depreciation deduction which would otherwise ^ allowable under section 167." (c) TECHNICAL AMENDMENTS.—
83 Stat. 670.
83 Stat. 669.
(1) Section 1245(a)(2) is amended by striking out "or 187" each place it appears and inserting in lieu thereof "187, or 188". (2) Section 1245(a)(3)(D) is amended by striking out "or 185" and inserting in lieu thereof ", 185, or 188". (3) Section 1250(b)(3) is amended by striking out "or 185" and inserting in lieu thereof ", 185, or 188". (4) Section 642(f) is amended by striking out "and 187" and inserting in lieu thereof "187, and 188". (5) Section 1 0 8 2 (a)(2)(B) is amended by striking out "or 187" and inserting in lieu thereof "187, or 188". (6) The table of sections for part VI of subchapter B of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 188. Amortization of certain expenditures for on-the-job training and child care facilities." (d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years ending after December 31, 1971. SEC. 304. EXCESS INVESTMENT INTEREST. (a) DEFINITION OF N E T LEASE.—
83 Stat. 581.
^ ^ Section 57(c) (relating to definition of net lease) is amended to read as follows: "(c) N E T LEASES.—
Post, p. 525.
"(1) IN GENERAL.—For purposes of this section, property shall be considered to be subject to a net lease for a taxable year if— " (A) for such taxable year the sum of the deductions of the lessor with respect to such property which are allowable solely by reason of section 162 (other than rents and reimbursed amounts with respect to such property) is less than 15 percent of the rental income produced by such property, or " (B) the lessor is either guaranteed a specified return or is guaranteed in whole or in part against loss of income. " (2) MULTIPLE LEASES OF SINGLE PARCEL OF REAL PROPERTY.—If
a parcel of real property of the taxpayer is leased under two or more leases, paragraph (1)(A) shall, at the election of the taxpayer, be applied by treating all leased portions of such property as subject to a single lease.
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