95 STAT. 238
PUBLIC LAW 97-34—AUG. 13, 1981 tary that, at the beginning of such rehabilitation, he in good faith was not aware of the requirements of subclause (II). "(v) EXPENDITURES OF LESSEE.—Any expenditure of a lessee of a building if, on the date the rehabilitation is completed, the remaining term of the lease (determined without regard to any renewal periods) is less than 15 years. "(C) CERTIFIED REHABILITATION.—For purposes of subparagraph (B), the term 'certified rehabilitation' means any rehabilitation of a certified historic structure which the Secretary of the Interior has certified to the Secretary as being consistent with the historic character of such property or the district in which such property is located. "(3) CERTIFIED HISTORIC STRUCTURE DEFINED.—
"(A) IN GENERAL.—The term 'certified historic structure' means any building (and its structural components) which— "(i) is listed in the National Register, or "(ii) is located in a registered historic district and is certified by the Secretary of the Interior to the Secretary as being of historic significance to the district. "(B) REGISTERED HISTORIC DISTRICT.—The term 'registered historic district' meeuis— "(i) any district listed in the National Register, and "(ii) any district— "(I) which is designated under a statute of the appropriate State or local government, if such statute is certified by the Secretary of the Interior to the Secretary as containing criteria which will substantially achieve the purpose of preserving and rehabilitating buildings of historic significance to the district, and "(II) which is certified by the Secretary of the Interior to the Secretary as meeting substantially all of the requirements for the listing of districts in the National Register. "(4) PROPERTY TREATED AS NEW SECTION 38 PROPERTY.—Prop-
26 USC 38.
erty which is treated as section 38 property by reason of subsection (a)(1)(E) shall be treated as new section 38 property. "(5) ADJUSTMENT TO BASIS.—
"(A) IN GENERAL.—For purposes of this subtitle, if a credit is allowed under this section for any qualified rehabilitation expenditure in connection with a qualified rehabilitated building other than a certified historic structure, the increase in basis of such property which would (but for this paragraph) result from such expenditure shall be reduced by the amount of the credit so allowed. "(B) CERTAIN DISPOSITIONS.—If during any taxable year there is a recapture amount determined with respect to any qualified rehabilitated building the basis of which was reduced under subparagraph (A), the basis of such building (immediately before the event resulting in such recapture) shall be increased by an amount equal to such recapture amount. For purposes of the preceding sentence, the term 'recapture amount' means any increase in tax (or adjustment in carrybacks or carryovers) determined under section Ante, p. 233.
47(a)(5)."
�
