PUBLIC LAW 97-248—SEPT. 3, 1982
96 STAT. 427
with respect to any costs to which any deduction is allowed under section 58(i) or 291." (2) The table of part s for subchapter B of chapter 1 is amended by adding a t the e n d thereof the following:
Ante, pp. 417, 423.
"Part XI. Special rules relating to corporate preference items." (d) EFFECTIVE D A T E S. —
26 USC 291 note.
(1) IN GENERAL.—Except as provided in this subsection, the amendments m a d e by this section shall apply to taxable years beginning after December 31, 1982. (2) 1250 GAIN.—Section 291(a)(1) of the I n t e r n a l Revenue Code Ante, p. 423. of 1954 shall apply to sales or other dispositions after December 31, 1982, in taxable years ending after such date. (3) POLLUTION CONTROL FACILITIES.—Section 291(a)(5) of such
Code shall apply to property placed in service after December 31, 1982, in tax a b l e years ending after such date. (4) DRILLING AND M I N I N G COSTS.—Section 291(b) of such Code
shall apply to expenditures after December 31, 1982, in taxable years ending after such date. (5) REDUCTION I N PERCENTAGE DEPLETION FOR COAL AND IRON
ORE.—Section 291(a)(2) of such Code shall apply to taxable years beginning after December 31, 1983. (6) MINIMUM TAX.—The amendment m a d e by subsection (b) shall apply to tax a b l e year s ending after December 31, 1982, with respect to items of tax preference described in section 57(b) Ante, p. 426. of such Code to which section 291 of such Code applies; except that in the case of a n item described in section 291(a)(2) of such Code, such amendment shall apply to taxable year s beginning after December 31, 1983. SEC. 205. AMENDMENTS TO INVESTMENT CREDIT. (a) BASIS ADJUSTMENT TO REFLECT INVESTMENT T A X C R E D I T. —
(1) IN GENERAL.—Section 48 (relating to definitions and special rules involving section 38 property) is amended by redesignating subsection (q) a s subsection (r) and by inserting after subsection (p) the following new subsection:
26 USC 48.
"(q) BASIS ADJUSTMENT TO SECTION 38 PROPERTY. —
"(1) IN GENERAL.—For purposes of this subtitle, if a credit is determined under section 46(a)(2) with respect to section 38 property, the basis of such property shall be reduced by 50 percent of the a m o u n t of the credit so determined. "(2) CERTAIN DISPOSITIONS.—If during any taxable year the r e is a r e c a p t u r e a m o u n t determined with respect to any section 38 property the basis of which w a s reduced under paragraph (1), the basis of such property (immediately before the event resulting in such recapture) shall be increased by a n a m o u n t equal to 50 percent of such r e c a p t u r e a m o u n t. For purposes of the "Recapture preceding sentence, the term ' r e c a p t u r e a m o u n t ' means any amounts." increase in tax (or adjustment in c a r r y b a c k s or carryovers) determined under section 47. "(3) SPECIAL RULE FOR QUALIFIED REHABILITATED BUILDINGS.—
In the case of any credit determined under section 46(a)(2) for any qualified rehabilitation expenditure in connection w i t h a qualified r e h a b i l i t a t e d building other than a certified historic s t r u c t u r e, paragraph s (1) and (2) shall be applied w i t h o u t r e g a r d to the p h r a s e '50 p e r c e n t of.
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