100 STAT. 2182
PUBLIC LAW 99-514—OCT. 22, 1986
(B) with respect to any improvement commenced before March 2, 1986, but only if not less than the lesser of $1,000,000 or 5 percent of the aggregate cost of such improvement has been incurred or committed before such date. The preceding sentence shall not apply to any expenditure with respect to an improvement placed in service after December 31, 1987. SEC. 243. DEDUCTION FOR BUS AND FREIGHT FORWARDER OPERATING AUTHORITY. . ">. > (a) Bus OPERATING AUTHORITY.—
(1) IN GENERAL.—Subject to the modifications contained in paragraph (2), section 266 of the Economic Recovery Tax Act of 1981 shall be applied as if the term "motor carrier operating authority" included a bus operating authority. (2) MODIFICATIONS.—For purposes of paragraph (1), section 266 of such Act shall be applied— (A) by substituting "November 19, 1982" for "July 1, 1980" each place it appears, and (B) by substituting "November 1982" for "July 1980" in subsection (a) thereof. (3) B u s OPERATING AUTHORITY DEFINED.—For purpOSeS of t h i s
subsection and section 266 of such Act, the term "bus operating authority" means— (A) a certificate or permit held by a motor common or contract carrier of passengers which was issued pursuant to subchapter II of chapter 109 of title 49, United States Code, and (B) a certificate or permit held by a motor carrier authorizing the transportation of passengers, as a common carrier, over regular routes in intrastate commerce which was issued by the appropriate State agency. (b) FREIGHT FORWARDER OPERATING AUTHORITY.—
(1) IN GENERAL.—Subject to the modifications contained in paragraph (2), section 266 of the Economic Recovery Tax Act of 1981 shall be applied as if subsection (b) thereof contained "or a freight forwarder" after "contract carrier of property". (2) MODIFICATIONS.—The modifications referred to in this paragraph are: (A) 60-MONTH PERIOD TO BEGIN IN 1987.—The 60-month period referred to in section 266(a) of such Act shall begin with the later of— (i) the deregulation month, or (ii) at the election of the taxpayer, the 1st month of the taxpayer's 1st taxable year beginning after the deregulation month. (B) AUTHORITY MUST BE HELD AS OF BEGINNING OF 60-
MONTH PERIOD.—A motor carrier operating authority shall not be taken into account unless such authority is held by the taxpayer at the beginning of the 60-month period applicable to the taxpayer under subparagraph (A). (C) ADJUSTED BASIS NOT TO EXCEED ADJUSTED BASIS AT
BEGINNING OF 60-MONTH PERIOD.—The adjusted basis taken into account with respect to any motor carrier operating authority shall not exceed the adjusted basis of such
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