Page:United States Statutes at Large Volume 104 Part 2.djvu/957

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PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-549 "(B) property used by a hotel or motel in connection with the trade or business of furnishing lodging where the predominant portion of the accommodations is used by transients; "(C) a certified historic structure to the extent of that portion of the basis which is attributable to qualified rehabilitation expenditures; and "(D) any energy property. "(3) PROPERTY USED BY CERTAIN TAX-EXEMPT ORGANIZATION.— No credit shall be determined under this subpart with respect to any property used by an organization (other than a cooperative described in section 521) which is exempt from the tax imposed by this chapter unless such property is used predominantly in an unrelated trade or business the income of which is subject to tax under section 511. If the property is debt-financed property (as defined in section 514(b)), the amount taken into account for purposes of determining the amount of the credit under this subpart with respect to such property shall be that percentage of the amount (which but for this paragraph would be so taken into account) which is the same percentage as is used under section 514(a), for the year the property is placed in service, in computing the amount of gross income to be taken into account during such taxable year with respect to such property. If any qualified rehabilitated building is used by the tax-exempt organization pursuant to a lease, this paragraph shall not apply for purposes of determining the amount of the rehabilitation credit. "(4) PROPERTY USED BY GOVERNMENTAL UNITS OR FOREIGN PERSONS OR ENTITIES. — " (A) IN GENERAL. —No credit shall be determined under this subpart with respect to any property used— "(i) by the United States, any State or political subdivision thereof, any possession of the United States, or any agency or instrumentality of any of the foregoing, or "(ii) by any foreign person or entity (as defined in section 168(h)(2)(C)), but only with respect to property to which section 168(h)(2)(A)(iii) applies (determined after the application of section 168(h)(2)(B)). "(B) EXCEPTION FOR SHORT-TERM LEASES. —Th is paragraph and paragraph (3) shall not apply to any property by reason of use under a lease with a term of less than 6 months (determined under section 168(i)(3)). "(C) EXCEPTION FOR QUALIFIED REHABILITATED BUILDINGS LEASED TO GOVERNMENTS, ETC.— If any qualified rehabilitated building is leased to a governmental unit (or a foreign person or entity) this paragraph shall not apply for purposes of determining the rehabilitation credit with respect to such building. "(D) SPECIAL RULES FOR PARTNERSHIPS, ETC.— For purposes of this paragraph and paragraph (3), rules similar to the rules of paragraphs (5) and (6) of section 168(h) shall apply. "(E) CROSS REFERENCE.— "For special rules for the application of this paragraph and paragraph (3), see section 168(h)." '(c) BASIS ADJUSTMENT TO INVESTMENT CREDIT PROPERTY. —