PUBLIC LAW 98-369—JULY 18, 1984
98 STAT. 805
t =
for purposes of this paragraph if such individual would be so treated under paragraph (3) of section 37(e)." 97 Stat. 85. (b) EFFECTIVE DATE.—The amendment made by subsection (a) Post, p. 826. shall apply to taxable years beginning after December 31, 1984. 26 USC 151 note.
Subtitle C—Revision of At-Risk Rules SEC. 431. REVISION OF INVESTMENT CREDIT AT-RISK RULES. (a) IN GENERAL.—So much of paragraph (8) of section 46(c) (relat- 26 USC 46. ing to limitation to amount at risk) as precedes subparagraph (F) thereof is amended to read as follows: "(8) CERTAIN NONRECOURSE FINANCING EXCLUDED FROM CREDIT
BASE.— "(A) LIMITATION.—The credit base of any property to •; i. which this paragraph applies shall be reduced by the nonqualified nonrecourse financing with respect to such property (as of the close of the taxable year in which placed in service). "(B) PROPERTY TO WHICH PARAGRAPH APPLIES.—This para• graph applies to any property which— & "(i) is placed in service during the taxable year by a taxpayer described in section 465(a)(1), and "(ii) is used in connection with an activity with respect to which any loss is subject to limitation under section 465. "(C) CREDIT BASE DEFINED.—For purposes of this paragraph, the term 'credit base' means— "(i) in the case of new section 38 property, the basis of Post, p. 827. the property, or ~ ^'ri^ "(ii) in the case of used section 38 property, the cost of such property. "(D) NONQUAUFIED NONRECOURSE FINANCING.— "(i) IN GENERAL.—For purposes of this paragraph and paragraph (9), the term 'nonqualified nonrecourse financing means any nonrecourse financing which is not » ,,;,«;,. qualified commercial financing. "(ii) QUALIFIED COMMERCIAL FINANCING.—For plirposes of this paragraph, the term 'qualified commercial financing' means any financing with respect to any property if^ "(I) such property is acquired by the taxpayer from a person who is not a related person, isteb' J t "(II) the amount of the nonrecourse financing with respect to such property does not exceed 80 percent of the credit base of such property, and "(III) such financing is borrowed from a qualified person or represents a loan from any Federal, State, or local government or instrumentality thereof, or is guaranteed by any Federal, State, or ' local government. Such term shall not include any convertible debt. ^' "(iii) NONRECOURSE FINANCING.—For purposes of this subparagraph, the term 'nonrecourse financing' includes— "(I) any amount with respect to which the taxpayer is protected against loss through guarantees.
�
