96 STAT. 436
PUBLIC LAW 97-248—SEPT. 3, 1982 "(i) IN GENERAL.—The term 'qualified leased property' means recovery property— "(I) which is new section 38 property of the lessor, which is leased within 3 months after such property was placed in service, and which, if acquired by the lessee, would have been new section 38 property of the lessee, or "(II) which was new section 38 property of the lessee, which is leased within 3 months after such property is placed in service by the lessee, and with respect to which the adjusted basis of the lessor does not exceed the adjusted basis of the lessee at the time of the lease. "(ii) ONLY 45 PERCENT OF THE LESSEE'S PROPERTY MAY
BE TREATED AS QUALIFIED.—The cost basis of all Safe harbor lease property (determined without regard to this clause)— "(I) which is placed in service during any calendar year, and "(II) with respect to which the taxpayer is a lessee, shall not exceed an amount equal to the 45 percent of the cost basis of the taxpayer's qualified base property placed in service during such calendar year. "(iii) ALLOCATION OF DISQUALIFIED BASIS.—The cost basis not treated as qualified leased property under clause (ii) shall be allocated to safe harbor lease property for such calendar year (determined without regard to clause (ii)) in reverse order to when the agreement described in subparagraph (A) with respect to such property was entered into. "(iv) CERTAIN PROPERTY MAY NOT BE TREATED AS QUALIFIED LEASED PROPERTY.—The term 'qualified
26 USC 48.
Ante, p. 423.
leased property' shall not include recovery property— "(I) which is a qualified rehabilitated building (within the meaning of section 48(g)(l)), "(II) which is public utility property (within the meaning of section 167(1)(3)(A)), "(III) which is property with respect to which a deduction is allowable by reason of section 291(b), "(IV) with respect to which the lessee of the property (other than property described in clause (v)) under the agreement described in subparagraph (A) is a nonqualified tax-exempt organization, or "(V) property with respect to which the user of such property is a person (other than a United States person) not subject to United States tax on income derived from the use of such property. "(v)
QUALIFIED
MASS
COMMUTING
VEHICLES
INCLUDED.—The term 'qualified leased property' includes recovery property which is a qualified mass commuting vehicle (as defined in section 103(b)(9)) which is financed in whole or in part by obligations the interest on which is excludable under section 103(a). "(vi) QUALIFIED BASE PROPERTY.—For purposes of this subparagraph, the term 'qualified base property' means
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