98 STAT. 612
PUBLIC LAW 98-369—JULY 18, 1984 "(e) DEFINITIONS.—For purposes of this section— "(1) CONSTANT RENTAL AMOUNT.—The term 'constant rental amount' means, with respect to any section 467 rental agreement, the amount which, if paid as of the close of each lease period under the agreement, would result in an aggregate present value equal to the present value of the aggregate payments required under the agreement. "(2) LEASEBACK TRANSACTION.—A transaction is a leaseback transaction if it involves a leaseback to any person who had an interest in such property at any time within 2 years before such leaseback (or to a related person). "(3) STATUTORY RECOVERY PERIOD.—
> "(A) IN GENERAL.— "In the case of property which is: The statutory recovery period is: 3-year property 3 years 5-year property 5 years 10-year property 10 years Low-income housing 15 years 15-year public utility property 15 years 18-year real property 18 years "(B) SPECIAL RULE FOR PROPERTY WHICH IS NOT RECOVERY
Ante, p. 538.
PROPERTY.—In the case of any property which is not recovery property, subparagraph (A) shall be applied as if such property were recovery property. "(4) DISCOUNT AND INTEREST RATE.—For purposes of computing present value and interest under subsection (a)(2), the rate used shall be equal to 110 percent of the applicable Federal rate determined under section 1274(d) (compounded semiannually) which is in effect at the time the agreement is entered into with respect to debt instruments having a maturity equal to the term of the agreement. "(5) RELATED PERSON.—The term 'related person' has the meaning given to such term by section 168(d)(4)(D). "(6) CERTAIN OPTIONS OF LESSEE TO RENEW NOT TAKEN INTO
ACCOUNT.—Except as provided in regulations prescribed by the Secretary, there shall not be taken into account in computing the term of any agreement for purposes of this section any extension which is solely at the option of the lessee. "(f) COMPARABLE RULES WHERE AGREEMENT FOR DECREASING PAY-
MENTS.—Under regulations prescribed by the Secretary, rules comparable to the rules of this section shall also apply in the case of any agreement where the amount paid under the agreement for the use of property decreases during the term of the agreement. "(g) COMPARABLE RULES FOR SERVICES.—Under regulations prescribed by the Secretary, rules comparable to the rules of subsection (a)(2) shall also apply in the case of payments for services which meet requirements comparable to the requirements of subsection (d). "(h) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including regulations providing for the application of this section in the case of contingent payments." (b) CLERICAL AMENDMENT.—The table of sections for subpart C of part II of subchapter E of chapter 1 is amended by adding at the end thereof the following new item: 26 USC 467 note.
Sec. 467. Certain payments for use of property or service.' (c) EFFECTIVE D A T E S. —
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