92 STAT. 3198
PUBLIC LAW 95-618—NOV. 9, 1978
i
includes some virgin materials shall not be treated as failing to meet the exclusive use requirements of subparagraph (A) if the amount of such virgin materials is 10 percent or less. "(I)) CERTAIN EQUIPMENT INCLUDED.—The term 'recycling equipment' includes any equipment which is used in the conversion of solid waste into a fuel or into useful energy such as steam, electricity, or hot water. "(7) SHALE OIL EQUIPMENT.—The term 'shale oil equipment' means equipment for producing or extracting oil from oil-bearing shale rock but does not include equipment for hydrogenation, refining, or other process subsequent to retorting.
'
<)*•
"(8)
26 USC 613A.
EQUIPMENT FOR PRODUCING NATURAL GAS FROM GEOPRES-
suRED BRINE.—The term 'equipment for producing natural gas from geopressured brine' means equipment which is used exclusively to extract natural gas described in section 613A(b)(3) (C)(i). "(9) EQUIPMENT MUST MEET CERTAIN STANDARDS TO QUALIFY.—
Equipment qualifies under paragraph (3), (4), (5), (6), (T),or (8) only if it meets the performance and quality standards (if any) which— " (A) have been prescribed by the Secretary by regulations (after consultation with the Secretary of Energy), and "(B) are in effect at the time of the acquisition of the property. "(10) EXISTING.—For purposes of this subsection, the term 'existing'means— "(A) when used in connection with a facility, 50 percent or more of the basis of such facility is attributable to construction, reconstruction, or erection before October 1, 1978, or " (B) when used in connection with an industrial or commercial process, such process was carried on in the facility as of October 1, 1978. "(11) SPECIAL RULE FOR PROPERTY FINANCED BY INDUSTRIAL DEVELOPMENT BONDS.—In the case of property which is financed
26 USC 103.
in whole or in part by the proceeds of an industrial development bond (within the meaning of section 103(b)(2)) the interest on which is exempt from tax under section 103, the energy percentage shall be 5 percent. "(12) INDUSTRIAL INCLUDES AGRICULTURAL.—The term 'industrial' includes agricultural, "(m)
Ante, p. 3194; 26 USC 46.
APPLICATION OF CERTAIN TRANSITIONAL RULES.—Where the
application of any provision of subsection (1) of this section or subsection (a)(2) or (c)(3) of section 46 is expressed in terms of a period, such provision shall apply only to— "(1) property to which section 46(d) does not apply, the construction, reconstruction, or erection of which is completed by the taxpayer on or after the first day of such period, but only to the extent of the basis thereof attributable to the construction, reconstruction, or erection during such period, "(2) property to which section 46(d) does not apply, acquired by the taxpayer during such period and placed in service by the taxpayer during such period, and "(3) property to which section 46(d) applies, but only to the extent of the qualified investment (as determined under subsec-
�
