PUBLIC LAW 98-369—JULY 18, 1984
98 STAT. 1055
(3) Subsection (b) of section 5 of the Act referred to in subsec- 16 USC 7l8e. tion (a) is amended by striking out "No person" and inserting in lieu thereof "Except as provided in clauses (i) and (ii) of section 504(1)(D) of title 18, United States Code, no person", (c) EFFECTIVE DATE.—The amendments made by this section shall 16 USC 7l8e take effect on the date of the enactment of this Act. note. SEC. 1078. EXCLUSION FROM GROSS INCOME OF PAYMENTS FROM THE UNITED STATES FOREST SERVICE AS A RESULT OF RESTRICTING MOTORIZED TRAFFIC IN THE BOUNDARY WATERS CANOE AREA.
(a) GENERAL RULE.—At the election of the taxpayer, for purposes of the Internal Revenue Code of 1954, gross income does not include 26 USC l et seq. the excludable portion of payments received from the United States Forest Service as a result of restricting motorized traffic in the q,;.«i Boundary Waters Canoe Area, pursuant to section 19(a) of "An Act to designate the Boundary Waters Canoe Area Wilderness, to establish the Boundary Waters Canoe Area Mining Protection Area, and for other purposes", approved October 21, 1978 (Public Law 95-495; 92 Stat. 1649). 92 Stat. 1659. (b) EXCLUDABLE PORTION.—For purposes of this section, the term "excludable portion" means that portion (or all) of a payment made , svii\ to any taxpayer during the period after December 31, 1979, and before the later of the date which is 2 years after— (1) the date of the enactment of this Act, or (2) the date of such payment, which payment is reinvested within such period in depreciable property used in a trade or business of such taxpayer as authorized by the Act referred to in subsection (a). In determining whether reinvestment has occurred, no direct tracing is required. (c) ELECTION.—An election under subsection (a) shall identify such property for which such payment has been allocated. An election may be made at any time before the expiration of the period for making a claim for credit or refund of the tax imposed by chapter 1 26 USC i et seq. of such Code for the taxable year in which the reinvestment occurred, and shall be made in such manner as the Secretary of the Treasury or his delegate shall by regulations prescribe. (d) BASIS OF PROPERTY.—
(1) IN GENERAL.—The basis of any property, with respect to which an allocation of any payment has been elected, shall be reduced by the amount of such payment. (2) INCREASE DUE TO REPAYMENT.—The basis of any property t described in paragraph (1) shall be increased by the amount of any repayments made to the United States Forest Service upon ' the sale of such property. (e) DENIAL OF DOUBLE BENEFIT.—No deduction or credit shall be allowed under such Code with respect to any expenditure which is properly associated with any amount excluded from gross income under subsection (a). (f) EFFECTIVE DATE; SPECIAL RULE.— (1) EFFECTIVE DATE.—The amendments
made by this section shall apply to payments made in taxable years beginning after '-^- December 31, 1979. (2) ELECTIONS FOR PRIOR YEARS.—In the case of any taxable year ending before the date of the enactment of this Act—