PUBLIC LAW 96-222—APR. 1, 1980
94 STAT. 207
"(A) IN GENERAL.—In the case of the component members of a qualified leasing group, paragraph (4) shall be applied— "(i) by substituting *80 percent' for '50 percent' in subparagraph (B) thereof, and "(ii) as if paragraph (4) did not include subparagraph (C) thereof. "(B) QuAUFiED LEASING GROUP.—For purposes of this paragraph, the term 'qualified leasing group' means a controlled group of corporations which, for the taxable year and each of the 2 immediately preceding taxable years, satisfied each of the following 3 requirements: "(i) A T LEAST 3 EMPLOYEES.—During the entire year,
the group had at least 3 full-time employees substantially all of the services of whom were services directly related to the equipment leasing activity of the qualified leasing members. "(ii) A T LEAST 5 SEPARATE LEASING TRANSACTIONS.—
During the year, the qualified leasing members in the aggregate entered into at least 5 separate equipment leasing transactions. "(iii) A T LEAST $1,000,000 EQUIPMENT LEASING RECEIPTS.—During the year, the qualified leasing members in the aggregate had at least $1,000,000 in gross receipts from equipment leasing. The term 'qualified leasing group' does not include any controlled group of corporations to which, without regard to this paragraph, paragraph (4) applies. "(C) QuAUFiED LEASING MEMBER.—For purposes of this paragraph, a corporation shall be treated as a qualified leasing member for the taxable year only if for each of the taxable years referred to in subparagraph (B)— "(i) it is a component member of the controlled group of corporations, and "(ii) it meets the requirements of paragraph (4)(B) (as modified by subparagraph (A)(i) of this paragraph). "(6) DEFINITIONS RELATING TO PARAGRAPHS (4) AND (5).—For
purposes of paragraphs (4) and (5)— "(A) EQUIPMENT LEASING.—The term 'equipment leasing' means— "(i) the leasing of equipment which is section 1245 26 USC 1245. property, and "(ii) the purchasing, servicing, and selling of such equipment. "(B)
LEASING
OF MASTER
SOUND
RECORDINGS, ETC.,
EXCLUDED.—The term 'equipment leasing' does not include the leasing of master sound recordings, and other similar contractual arrangements with respect to tangible or intangible assets associated with literary, artistic, or musical properties. "(C) CONTROLLED GROUP OF CORPORATIONS; COMPONENT
MEMBER.—The terms 'controlled group of corporations' and 'component member' have the same meanings as when used in section 1563. The determination of the taxable years taken into account with respect to any controlled group of corporations shall be made in a manner consistent with the manner set forth in section 1563." (ii) Subparagraph (D) of section 465(c)(3) is amended to 26 USC 465. read as follows:
79-194
O—81—pt. 1
17: QL3
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