PUBLIC LAW 95-618—NOV. 9, 1978
92 STAT. 3193
"(i) the seating capacity of which is at least 8 adults (not including the driver), " (ii) at least 80 percent of the mileage use of which can reasonably be expected to be (I) for purposes of transporting the taxpayer's employees between their residences and their place of employment, and ( II) on trips during which the number of employees transported for such purposes is at least one-half of the adult seating capacity of such vehicle (not including the driver), "(iii) which is acquired by the taxpayer on or after the date of the enactment of the Energy Tax Act of 1978, and placed in service by the taxpayer before Ante, p. 3174. January 1, 1986, and "(iv) with respect to which the taxpayer makes an election under this paragraph on his return for the taxable year in which such vehicle is placed in service." (b) AMENDMENTS OF THE RECAPTURE RULES.—
(1) Subsection (a) of section 47 (relating to recapture in case 26 USC 47. of certain dispositions, etc., of section 38 property) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: " (4) S P E C I A L RULES FOR C O M M U T E R HIGHWAY VEHICLES.—
" (A) USEFUL LIFE.—For purposes of this subsection, 3 years shall be treated as the useful life which was taken into account in computing the credit under section 38 with respect 26 USC 38. to any commuter highway vehicle (as defined in section 46 (c)(6)(B)). Ante, p. 3192. "(B) CHANGE IN USE.—If less than 80 percent of the mileage use of any commuter highway vehicle by the taxpayer during that portion of any taxable year which is within the first 36 months of the operation of such vehicle by the taxpayer meets the requirements of section 46(c)(6)(B), then the tax under this chapter for such taxable year shall be increased by an amount equal to the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from treating such vehicle, for purposes of determining qualified investment, as not being a commuter highway vehicle. If the application of this subparagraph to any property is followed by the application of paragraph (1) to such property, proper adjustment shall be made in applying paragraph (1)." (2) Paragraph (5) of section 47(a) (as redesignated by subparagraph (A)) is amended by striking out "paragraph (2)" and inserting in lieu thereof "paragraph (2) or (4)". (3) Subparagraph (B) of section 47(a)(6) is amended by striking out "paragraph (4)" and inserting in lieu thereof "paragraph (5)". SEC. 242. EXCLUSION FROM GROSS INCOME OF VALUE OF QUALIFIED TRANSPORTATION PROVIDED BY EMPLOYER. (a) IN GENERAL.—Part III of subchapter B of chapter 1 (relating 26 USC 101. to items specifically excluded from gross income) is amended by redesignating section 124 as 125, and by inserting after section 123 the 26 USC 124, following new section: 125. «SEC. 124. QUALIFIED TRANSPORTATION PROVIDED BY EMPLOYER. 26 USC 124. " (a) GENERAL RULE.—Gross income of an employee does not include the value of qualified transportation provided by the employer between the employee's residence and place of employment.
39-194 O—80—pt. 3
36: QL3
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