89 STAT. 42
PUBLIC LAW 94-12—MAR. 29, 1975 (3)(B), then the amount of such excess shall be taken into account under such clause (ii) for the succeeding taxable year. "(D)
Post, p. 4^.
DEITIRMINATION OF PKRCENTAGE OF COMPLETION.—In
the case of non-self-constructed property, the determination under paragraph (3)(B) (ii) of the proportion of the overall cost to the taxpayer of the construction of any property which is properly attributable to construction completed during any taxable year shall be made, under regulations prescribed by the Secretary or his delegate, on the basis of engineering or architectural estimates or on the basis of cost accounting records. Unless the taxpayer establishes otherwise by clear and convincing evidence, the con'^truction shall be deemed to be completed not more rapidly than ratably over the normal construction period. " (E) No QUALIFIED PROGRESS EXPENDITURES FOR CERTAIN PRIOR PERIODS.—In the case of any property, no qualified progress expenditures shall be taken into account under this subsection for any period before January 22, 1975 (or, if later, before the first day of the first taxable year to which an election under this subsection applies). " (F) No QUALIFIED PROGRESS EXPENDITURES FOR PROPERTY FOR YEAR IT IS PLACED IN SERVICE, ETC.—In the case of any property, no qualified progress expenditures shall be taken into account under this subsection for the earlier of— " (i) the taxable year in which the property is placed in service, or " ( i i) the first taxable year for which recapture is required under section 4 7 (a)(3) with respect to such property, or for any taxable year thereafter. " (5) OTHER DEFINITIONS. — For purposes of this subsection— " (A) SELF-CONSTRUCTED PROPERTY.—The term 'self-con-
structed property' means property more than half of the construction expenditures for which it is reasonable to believe will be made directly by the taxpayer. "(B)
NON-SELF-CONSTRUCTED PROPERTY.—The term
'non-
self-constructed property' means property which is not selfconstructed property. " (C) CONSTRUCTION, ETC.—The term 'construction' includes reconstruction and erection, and the term 'constructed' includes reconstructed and erected. "(D)
O N L Y CONSTRUCTION OF SECTION 38 PROPERTY TO BE
TAKEN INTO ACCOUNT.—Construction shall be taken into account only if, for purposes of this subpart, expenditures therefor are properly chargeable to capital account with respect to the property. " (6) ELECTION.—A election under this subsection may be made at such time and in such manner as the Secretary or his delegate may by regulations prescribe. Such a n election shall apply to the taxable year for which made and to all subsequent taxable years. Such an election, once made, may not be revoked except with the consent of the Secretary or his delegate. " (7) TRANSITIONAL RULES.—The qualified investment taken into account under this subsection for any taxable year beginning before January 1, 1980, with respect to any property shall be ( i n lieu of the full amount) an amount equal to the sum of—
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