Page:United States Statutes at Large Volume 104 Part 2.djvu/954

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104 STAT. 1388-546 PUBLIC LAW 101-508—NOV. 5, 1990 " (i) CREDIT DETERMINED BY REFERENCE TO TAXABLE YEAR PROPERTY PLACED IN SERVICE. —For plirpoSeS of determining the amount of credit allowable under section 38 and the amount of credit subject to the early disposition or cessation rules under section 50(a), any increase in a taxpayer's credit base for any property by reason of this paragraph shall be taken into account as if it were property placed in service by the taxpayer in the taxable year in which the property referred to in subparagraph (A) was first placed in service. " (ii) CREDIT ALLOWED FOR YEAR OF DECREASE IN NON- QUALIFIED NONRECOURSE FINANCING. —Any Credit allowable under this subpart for any increase in qualified investment by reason of this paragraph shall be treated as earned during the taxable year of the decrease in the amount of nonqualified nonrecourse financing. "(b) INCREASES IN NONQUAUFIED NONRECOURSE FINANCING.— "(1) IN GENERAL,—If, as of the close of the taxable year, there is a net increase with respect to the taxpayer in the amount of nonqualified nonrecourse financing (within the meaning of subsection (a)(l)) with respect to any property to which subsection (a)(1) applied, then the tax under this chapter for such taxable year shall be increased by an amount equal to the aggregate decrease in credits allowed under section 38 for all prior taxable years which would have resulted from reducing the credit base (as defined in subsection (a)(l)(C)) taken into account with respect to such property by the amount of such net increase. For purposes of determining the amount of credit subject to the early disposition or cessation rules of section 50(a), the net increase in the amount of the nonqualified nonrecourse financing with respect to the property shall be treated as reducing the property's credit base in the year in which the property was first placed in service. " (2) TRANSFERS OF DEBT MORE THAN i YEAR AFTER INITIAL BORROWING NOT TREATED AS INCREASING NONQUALIFIED NONRECOURSE FINANCING.— For purposes of paragraph (1), the amount of nonqualified nonrecourse financing (within the meaning of subsection (a)(1)(D)) with respect to the taxpayer shall not be treated as increased by reason of a transfer of (or agreement to transfer) any evidence of any indebtedness if such transfer occurs (or such agreement is entered into) more than 1 year after the date such indebtedness wsis incurred. "(3) SPECIAL RULES FOR CERTAIN ENERGY PROPERTY. —Rules similar to the rules of section 47(d)(3) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this subsection. "(4) SPECIAL RULE.— Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit allowable under subpartA,B,D,orG. "SEC. 50. OTHER SPECIAL RULES. "(a) RECAPTURE IN CASE OF DISPOSITIONS, ETC.— Under regulations prescribed by the Secretary— " (1) EARLY DISPOSITION, ETC.— "(A) GENERAL RULE. —If, during any taxable year, investment credit property is disposed of, or otherwise ceases to