92 STAT. 3200
PUBLIC LAW 95-618—NOV. 9, 1978 (2) BOILERS FUELED BY OIL OR GAS.—Subsection (a) of section
26 USC 48.
48 (defining section 38 property) is amended by adding at the end thereof the following new paragraph: " (10)
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BOILERS FUELED BY OIL OR GAS.—
" (A) IN GENERAL.—The term 'section 38 property ' does not include any boiler primarily fueled by petroleum or petroleum products (including n a t u r a l gas) unless the use of coal is precluded by Federal air pollution regulations (or by State air pollution regulations in effect on October 1, 1978) or unless the use of such boiler will be an exempt use within the meaning of subparagraph (B).
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" (B) E X E M P T USE DEFINED.—For purposes of subparagraph
26 USC 6420.
26 USC 46.
(A), the term 'exempt use' means— " (i) use in an apartment, hotel, motel, or other residential facility, " (ii) use in a vehicle, aircraft, or vessel, or in transportation by pipeline, " (iii) use on a farm for farming purposes (within the meaning of section 6420(c)), " ( i v) use in— " (I) a shopping center, " ( II) an office building, " ( III) a wholesale or retail establishment, " ( IV) any other facility which is not an integral part of manufacturing, processing, or mining, or " (V) any facility for the production of electric power having a heat rate of less than 9,500 Btu's per J,.. kilowatt hour and which is capable of converting to synthetic fuels (as certified by the Secretary), j " (v) use in the exploration for, or the development, extraction, transmission, or storage of, crude oil, natural
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gas, or n a t u r a l gas liquids, and " ( v i) use in H a w a i i. E x c e p t as provided in clauses (iv)(V) and (vi) of the preceding sentence, the term 'exempt use' does not include use of a boiler which is public utility property (within the meaning /: of section 46(f) ( 5 1)). " (3)
26 USC 167.
OR GAS.—Section 167 (relating to depreciation) is amended by redesignating subsection (p) as subsection (r) and by inserting after subsection (o) the following new subsection: "(p)
26 USC 48.
26 USC 48 note.
D E N I A L OF RAPID DEPRECIATION FOR BOILERS FUELED BY OIL
STRAIGHT L I N E METHOD FOR BOILERS F U E L E D BY O I L OR GAS.-—
I n the case of any boiler which, by reason of section 48(a) (10), is not section 38 property— " (1) subsections (b), (j), and (1) shall not apply, and " (2) the term 'reasonable allowance' as used in subsection (a) shall mean only an allowance computed under the straight line method using a useful life equal to the class life prescribed by the Secretary under subsection (m) which is applicable to such property (determined without regard to the last sentence of subsection (m)(l)). " (4)
EFFECTIVE DATE.—
(A) IN GENERAL.—The amendments made by this subsection shall apply to property which is placed in service after September 30, 1978.
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