PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2381 (b) EFFECTIVE DATE.— The amendment made by subsection (a) 26 USC 704 note. shall apply in the case of property contributed to the partnership after October 3, 1989, in taxable years ending after such date. SEC. 7643. DEPRECIATION TREATMENT OF CELLULAR TELEPHONES. (a) GENERAL RULE.— Subparagraph (A) of section 280F(d)(4) (defin- ing listed property) is amended by striking "and" at the end of clause (iv), by redesignating clause (v) as clause (vi), and by inserting after clause (iv) the following new clause: "(v) any cellular telephone (or other similar tele- communications equipment), and". (b) EFFECTIVE DATE. — The amendment made by subsection (a) 26 USC 280F shall apply to property placed in service or leased in taxable years "°^- beginning after December 31, 1989. SEC. 7644. ELIMINATION OF RETROACTIVE CERTIFICATION OF EMPLOY- EES FOR WORK INCENTIVE JOBS CREDIT. (a) IN GENERAL.—So much of subparagraph (A) of section 50B(h)(l) of the Internal Revenue (Dode of 1954 (as in effect for taxable years beginning before January 1, 1982) as precedes clause (i) thereof is amended to read as follows: "(A) who has been certified (or for whom a written re- quest for certification has been made) on or before the day the individual began work for the taxpayer by the Sec- retary of Labor or by the appropriate agency of State or local government as—". (b) EFFECTIVE DATE. —The amendment made by subsection (a) 26 USC 50B shall apply for purposes of credits first claimed after March 11, 1987. "o**- SEC. 7645. DISALLOWANCE OF DEPRECIATION FOR CERTAIN TERM IN- Real property. TERESTS. (a) GENERAL RULE.—Section 167 (as amended by section 7622) is amended by inserting after subsection (q) the following new subsec- tion: "(r) CERTAIN TERM INTERESTS NOT DEPRECIABLE. — "(1) IN GENERAL.—No depreciation deduction shall be allowed under this section (and no depreciation or amortization deduc- tion shall be allowed under any other provision of this subtitle) to the taxpayer for any term interest in property for any period during which the remainder interest in such property is held (directly or indirectly) by a related person. "(2) COORDINATION WITH SECTION 273. — Th is subsection shall not apply to any term interest to which section 273 applies. "(3) BASIS ADJUSTMENTS.—I f, but for this subsection, a depre- ciation or amortization deduction would be allowable to the taxpayer with respect to any term interest in property— "(A) the tiucpayer's basis in such property shall be re- duced by any depreciation or amortization deductions dis- allowed under this subsection, and "(B) the basis of the remainder interest in such property shall be increased by the amount of such disallowed deduc- tions (properly adjusted for any depreciation deductions allowable under subsection (h) to the taxpayer). "(4) SPECIAL RULES. — "(A) DENIAL OF INCREASE IN BASIS OF REMAINDERMAN.— No increase in the basis of the remainder interest shall be made under paragraph (3)(B) for any disallowed deductions
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