89 STAT. 4 3
PUBLIC LAW 94-12—MAR. 29, 1975
" (A) the applicable percentage of the full amount determined under the following t a b l e: "For a taxable year The applicable beginning in: percentage i s: 1974 or 1975 20 1976 40 1977 60 1978 80 1979 100; plus " (B) in the case of any property to which this subsection applied for one or more preceding taxable years, 20 percent of the full amount for each such preceding taxable year. For purposes of this paragraph, the term 'full amount', when used "Full amount, with respect to any property for any taxable year, means the amount of the qualified investment for such property for such year determined under this subsection without regard to this paragraph.-' (b) CONFORMING AMENDMENTS. — (1) AMENDMENT OF SECTION 4 6 (C).—Section 46(c) ( r e l a t i n g to
26 USC 46.
qualified investment) is amended by adding a t the end thereof the following new paragraph: " (4) COORDINATION W I T H SUBSECTION (d). — The amount which
would (but for this paragraph) be treated as qualified investment under this subsection with respect to any property shall be reduced (but not below zero) by any amount treated by the taxpayer or a predecessor of the taxpayer (or, in the case of a sale and leaseback described in section 4 7 (a)(3)(C), by the lessee) as qualified Infrainvestment with respect to such property under subsection (d), to the extent the amount so treated has not been required to be recaptured by reason of section 47(a)(3). " (2) DISPOSITION, ETC.—
(A) Subsection (a) of section 47 (relating to certain dis- 26 USC 47. positions, etc., of section 38 property) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: " (3) PROPERTY CEASES TO BE PROGRESS EXPENDITURE PROPERTY.—
" (A) IN GENERAL.—If during any taxable year any property taken into account in determining qualified investment under section 46(d) ceases (by reason of sale or other disposi- Ante, p. 40. tion, cancellation or abandonment of contract, or otherwise) to be, with respect to the taxpayer, property which, when placed in service, will be new section 38 property, then the tax under this chapter for such taxable year shall be increased by an amount equal to the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero the qualified investment taken into account with respect to such property. "(B)
CERTAIN EXCESS CREDIT RECAPTURED.—Any
amount
which would have been applied as a reduction of the qualified investment in property by reason of paragraph (4) of section 46(c) but for the fact that a reduction under such paragraph cannot reduce qualified investment below zero shall be treated as a n amount required to be recaptured under subparagraph (A) for the taxable year in which the property is placed i n service. " (C) CERTAIN SALES AND LEASEBACKS.—Under regulations
prescribed by the Secretary or his delegate, a sale by, and
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