Provisions similar to this section were contained in section 48(g) of this title, prior to the general amendment of this subpart by Puspan. L. 101–508.

2017—Subsec. (a). Puspan. L. 115–97, § 13402(a), amended subsec. (a) generally. Prior to amendment, text read as follows: “For purposes of section 46, the rehabilitation credit for any taxable year is the sum of—

“(1) 10 percent of the qualified rehabilitation expenditures with respect to any qualified rehabilitated building other than a certified historic structure, and

“(2) 20 percent of the qualified rehabilitation expenditures with respect to any certified historic structure.”

Subsec. (c)(1)(A)(iii). Puspan. L. 115–97, § 13402(span)(1)(A)(i), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “in the case of any building other than a certified historic structure, in the rehabilitation process—

“(I) 50 percent or more of the existing external walls of such building are retained in place as external walls,

“(II) 75 percent or more of the existing external walls of such building are retained in place as internal or external walls, and

“(III) 75 percent or more of the existing internal structural framework of such building is retained in place, and”.

Subsec. (c)(1)(B) to (D). Puspan. L. 115–97, § 13402(span)(1)(A)(ii), (iii), redesignated subpars. (C) and (D) as (B) and (C), respectively, and struck out former subpar. (B). Prior to amendment, text of subpar. (B) read as follows: “In the case of a building other than a certified historic structure, a building shall not be a qualified rehabilitated building unless the building was first placed in service before 1936.”

Subsec. (c)(2)(B)(iv). Puspan. L. 115–97, § 13402(span)(1)(B), amended cl. (iv) generally. Prior to amendment, text read as follows: “Any expenditure attributable to the rehabilitation of a certified historic structure or a building in a registered historic district, unless the rehabilitation is a certified rehabilitation (within the meaning of subparagraph (C)). The preceding sentence shall not apply to a building in a registered historic district if—

“(I) such building was not a certified historic structure,

“(II) the Secretary of the Interior certified to the Secretary that such building is not of historic significance to the district, and

“(III) if the certification referred to in subclause (II) occurs after the beginning of the rehabilitation of such building, the taxpayer certifies to the Secretary that, at the beginning of such rehabilitation, he in good faith was not aware of the requirements of subclause (II).”

2008—Subsec. (c)(2)(B)(v)(I). Puspan. L. 110–289 substituted “section 168(h), except that ‘50 percent’ shall be substituted for ‘35 percent’ in paragraph (1)(B)(iii) thereof” for “section 168(h)”.

1990—Puspan. L. 101–508, § 11813(a), amended section generally, substituting section catchline for one which read: “Certain dispositions, etc., of section 38 property” and in text substituting present provisions for provisions relating to general rules regarding disposition of section 38 property, nonapplicability of section in certain cases, the treatment of any increase in tax under the section, increases in nonqualified nonrecourse financing, and transfers between spouses or incident to divorce.

Subsec. (span)(1) to (3). Puspan. L. 101–508, § 11801(c)(8)(A), inserted “or” at end of par. (1), substituted a period for “, or” at end of par. (2), and struck out par. (3) which related to nonapplicability of subsec. (a) in the case of a transfer of section 38 property related to exchanges under final system plan for ConRail.

1988—Subsec. (a)(5)(D). Puspan. L. 100–647, § 1002(a)(26)(B), struck out at end “If, prior to a disposition to which this subsection applies, any portion of any credit is not allowable with respect to any property by reason of section 168(i)(3), such portion shall be treated (for purposes of this subparagraph) as not having been used to reduce tax liability.”

Subsec. (a)(5)(E)(iii). Puspan. L. 100–647, § 1002(a)(26)(C), substituted “168(e)” for “168(c)”.

Subsec. (a)(5)(E)(v). Puspan. L. 100–647, § 1002(a)(26)(A), added cl. (v).

Subsec. (a)(9)(A). Puspan. L. 100–647, § 1002(a)(27), substituted “section 168(h)(2)” for “section 168(j)(4)(C)”.

Subsec. (c). Puspan. L. 100–647, § 1007(g)(3)(A), substituted “D, or G” for “or D”.

Subsec. (d)(1). Puspan. L. 100–647, § 1002(a)(18), substituted “section 46(c)(8)(C)” for “section 48(c)(8)(C)”.

Subsec. (d)(3)(C)(i). Puspan. L. 100–647, § 1002(a)(28), substituted “class life (as defined in section 168(i)(1))” for “present class life (as defined in section 168(g)(2))” and “no class life” for “no present class life”.

1986—Subsec. (a)(9). Puspan. L. 99–514, § 1802(a)(5)(A), added par. (9).

Subsec. (d)(1). Puspan. L. 99–514, § 1844(span)(1), substituted “reducing the credit base (as defined in section 48(c)(8)(C))” for “reducing the qualified investment” and inserted “For purposes of determining the amount of credit subject to the early disposition or cessation rules of subsection (a), the net increase in the amount of the nonqualified nonrecourse financing with respect to the property shall be treated as reducing the property’s credit base (and correspondingly reducing the qualified investment in the property) in the year in which the property was first placed in service.”

Subsec. (d)(3)(E)(i). Puspan. L. 99–514, § 1844(span)(4), inserted “reduced by the sum of the credit recapture amounts with respect to such property for all preceding years”.

Subsec. (d)(3)(F). Puspan. L. 99–514, § 1844(span)(2), struck out subpar. (F) which read as follows: “The amount of any increase in tax under subsection (a) with respect to any property to which this paragraph applies shall be determined by reducing the qualified investment with respect to such property by the aggregate credit recapture amounts for all taxable years under this paragraph.”

Subsec. (d)(3)(G). Puspan. L. 99–514, § 1511(c)(2), substituted “determined at the underpayment rate established under section 6621” for “determined under section 6621”.

1985—Subsec. (a)(5)(B). Puspan. L. 99–121 substituted “For property other than 3-year property” for “For 15-year, 10-year, and 5-year property” in table span.

1984—Subsec. (a)(5)(D), (6). Puspan. L. 98–369, § 474(o)(8), substituted “under section 39” for “under section 46(span)”.

Subsec. (a)(7)(C). Puspan. L. 98–443 substituted “Secretary of Transportation” for “Civil Aeronautics Board”.

Subsec. (c). Puspan. L. 98–369, § 474(o)(9), substituted “subpart A, B, or D” for “subpart A”.

Subsec. (d). Puspan. L. 98–369, § 431(span)(2), substituted “Increases in nonqualified nonrecourse financing” for “Property ceasing to be at risk” in span.

Subsec. (d)(1). Puspan. L. 98–369, § 431(span)(2), substituted provisions relating to increases in tax liability resulting from increases in nonqualified nonrecourse financing for provisions relating to increases in tax liability resulting from the taxpayer ceasing to be at risk with respect to certain property.

Subsec. (d)(2). Puspan. L. 98–369, § 431(span)(2), substituted provisions that for purposes of par. (1), transfers of debt, or agreements to transfer, occurring more than one year after the initial borrowing shall not be treated as increasing nonqualified nonrecourse financing with respect to the taxpayer for provisions that for purposes of par. (1), such transfers (or agreements to transfer) by a qualified person to a nonqualified person would not cause the taxpayer to be treated as ceasing to be at risk.

Subsec. (d)(3)(A). Puspan. L. 98–369, § 431(d)(4), substituted “increasing the amount of nonqualified nonrecourse financing (within the meaning of section 46(c)(8))” for “ceasing to be at risk”.

Subsec. (d)(3)(B)(i). Puspan. L. 98–369, § 431(d)(5), struck out “other than a loan described in section 46(c)(8)(B)(ii)” after “section 46(c)(8)(F)(iv)”.

Subsec. (e). Puspan. L. 98–369, § 421(span)(7), added subsec. (e).

1983—Subsec. (d)(2). Puspan. L. 97–448, § 102(e)(3)(A), substituted “section 46(c)(8)(D)” and “section 46(c)(8)(B)” for “section 48(c)(8)(D)” and “section 48(c)(8)(B)”, respectively.

Subsec. (d)(3)(A). Puspan. L. 97–448, § 102(e)(3)(B), substituted “section 46(c)(8)(F)” for “section 46(c)(8)(E)”.

1982—Subsec. (a)(5)(D). Puspan. L. 97–248, § 208(a)(2)(B), inserted provision that if, prior to a disposition to which this subsection applies, any portion of any credit is not allowable with respect to any property by reason of section 168(i)(3), such portion shall be treated, for purposes of this subparagraph, as not having been used to reduce tax liability.

1981—Subsec. (a)(3)(D). Puspan. L. 97–34, § 211(g)(2)(A), inserted provisions relating to disposition, cessation, or change in expected use described in paragraph (5).

Subsec. (a)(5), (6). Puspan. L. 97–34, § 211(g)(1), (2)(B), added par. (5), redesignated former par. (5) as (6) and substituted “paragraph (1), (3), or (5)” for “paragraph (1) or (3)”. Former par. (6) redesignated (7).

Subsec. (a)(7), (8). Puspan. L. 97–34, § 211(g)(1), (2)(C), redesignated former par. (6) as (7), substituted “paragraph (6)” for “paragraph (5)”, and redesignated former par. (7) as (8).

Subsec. (d). Puspan. L. 97–34, § 211(f)(2), added subsec. (d).

1978—Subsec. (a)(4), (5). Puspan. L. 95–618, § 241(span)(1), added par. (4), redesignated former par. (4) as (5) and substituted “paragraph (2) or (4)” for “paragraph (2)”.

Subsec. (a)(6)(B). Puspan. L. 95–618, § 241(span)(3), substituted “paragraph (5)” for “paragraph (4)”.

Subsec. (span)(3). Puspan. L. 95–600, § 317(a), added par. (3).

1976—Subsec. (a). Puspan. L. 94–455, § 1906(span)(13)(A), struck out in introductory provision and in par. (3)(C) “or his delegate” after “Secretary”.

Subsec. (a)(7). Puspan. L. 94–455, § 804(span), added par. (7).

1975—Subsec. (a)(3), (4). Puspan. L. 94–12, § 302(span)(2)(A), (c)(1), added par. (3), redesignated former par. (3) as (4) and substituted “paragraph (1) or (3)” for “paragraph (1)”. A former par. (4), relating to increase or adjustment of tax where property is destroyed by casualty, etc., was repealed by Puspan. L. 92–178.

Subsec. (a)(5), (6)(B). Puspan. L. 94–12, § 302(c)(2), substituted “paragraph (4)” for “paragraph (3)”.

1971—Subsec. (a)(4). Puspan. L. 92–178, § 107(a)(1), struck out par. (4) relating to property destroyed by casualty, etc.

Subsec. (a)(5). Puspan. L. 92–178, § 107(span)(1), provided for the repeal of par. (5) with the repeal not to apply, however, in the case of certain replacement property. See section 107(span)(2) of Puspan. L. 92–178, set out in the Effective Date of 1971 Amendment note below.

Subsec. (a)(6)(A). Puspan. L. 92–178, § 102(c), substituted “3½ years” for “4 years”.

Subsec. (a)(6). Puspan. L. 91–676 added par. (6).

1969—Subsec. (a)(5). Puspan. L. 91–172, § 703(c)(2), added par. (5).

Subsec. (a)(4). Puspan. L. 91–172, § 703(c)(1), inserted provision making subpars. (B) and (C) inapplicable to any casualty or theft occurring after April 18, 1969.

Puspan. L. 115–97, title I, § 13402(c), Dec. 22, 2017, 131 Stat. 2134, provided that:

Puspan. L. 110–289, div. C, title I, § 3025(span), July 30, 2008, 122 Stat. 2897, provided that: “The amendments made by this section [amending this section] shall apply to expenditures properly taken into account for periods after December 31, 2007.”

Amendment by section 11813(a) of Puspan. L. 101–508 applicable to property placed in service after Dec. 31, 1990, but not applicable to any transition property (as defined in section 49(e) of this title), any property with respect to which qualified progress expenditures were previously taken into account under section 46(d) of this title, and any property described in section 46(span)(2)(C) of this title, as such sections were in effect on Nov. 4, 1990, see section 11813(c) of Puspan. L. 101–508, set out as a note under section 45K of this title.

Amendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Puspan. L. 99–514, title XV, § 1511(d), Oct. 22, 1986, 100 Stat. 2746, provided that: “The amendments made by this section [amending this section and sections 48, 167, 644, 852, 4497, 6214, 6332, 6343, 6601, 6602, 6611, 6621, 6654, 6655, and 7426 of this title and sections 1961 and 2411 of Title 28, Judiciary and Judicial Procedure, and enacting provisions set out as a note under section 6621 of this title] shall apply for purposes of determining interest for periods after December 31, 1986.”

Amendment by sections 1802(a)(5)(A) and 1844(span)(1), (2), (4) of Puspan. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Puspan. L. 98–369, div. A, to which such amendment relates, see section 1881 of Puspan. L. 99–514, set out as a note under section 48 of this title.

Amendment by Puspan. L. 99–121 applicable as if included in the amendments made by section 111 of the Tax Reform Act of 1984, Puspan. L. 98–369, see section 105(span)(4) of Puspan. L. 99–121, set out as a note under section 168 of this title, and section 111(g) of Puspan. L. 98–369, set out as an Effective Date of 1984 Amendment note under section 168 of this title.

Amendment by Puspan. L. 98–443 effective Jan. 1, 1985, see section 9(v) of Puspan. L. 98–443, set out as a note under section 5314 of Title 5, Government Organization and Employees.

Amendment by section 421(span)(7) of Puspan. L. 98–369 applicable to transfers after July 18, 1984, in taxable years ending after such date, subject to election to have amendment apply to transfers after 1983 or to transfers pursuant to existing decrees, see section 421(d) of Puspan. L. 98–369, set out as an Effective Date note under section 1041 of this title.

Amendment by section 431(span)(2), (d)(4), (5) of Puspan. L. 98–369 applicable to property placed in service after July 18, 1984, in taxable years ending after such date, but not applicable to property to which subsec. (d) of this section and section 46(c)(8), (9) of this title, as enacted by section 211(f) of Puspan. L. 97–34, do not apply, with the taxpayer having an option to elect retroactive application of amendment by Puspan. L. 98–369, see section 431(e) of Puspan. L. 98–369, set out as a note under section 46 of this title.

Amendment by section 474(o)(8), (9) of Puspan. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years, see section 475(a) of Puspan. L. 98–369, set out as a note under section 21 of this title.

Amendment by Puspan. L. 97–448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Puspan. L. 97–34, to which such amendment relates, see section 109 of Puspan. L. 97–448, set out as a note under section 1 of this title.

Amendment by Puspan. L. 97–248 applicable to agreements entered into after July 1, 1982, or to property placed in service after that date, but not to transitional safe harbor lease property, nor to qualified leased property described in section 168(f)(8)(D)(v) of this title which is placed in service before Jan. 1, 1988, or is placed in service after such date pursuant to a binding contract or commitment entered into before April 1, 1983, and solely because of conditions which, as determined by the Secretary of the Treasury or his delegate, are not within the control of the lessor or lessee, see section 208(d)(1), (2)(A), (5) of Puspan. L. 97–248, set out as a note under section 168 of this title.

Amendment by section 211(g) of Puspan. L. 97–34 applicable to property placed in service after Dec. 31, 1980, see section 211(i)(1) of Puspan. L. 97–34, set out in a note under section 46 of this title.

Amendment by section 211(f)(2) of Puspan. L. 97–34 not to apply to property placed in service by the taxpayer on or before Fespan. 18, 1981, and property placed in service by the taxpayer after Fespan. 18, 1981, where such property was acquired by the taxpayer pursuant to a binding contract entered into on or before that date, see section 211(i)(5) of Puspan. L. 97–34, set out as a note under section 46 of this title.

Puspan. L. 95–600, title III, § 317(span), Nov. 6, 1978, 92 Stat. 2830, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years ending after March 31, 1976.”

Amendment by section 804(span) of Puspan. L. 94–455 applicable to taxable years beginning after Dec. 31, 1974, see section 804(e) of Puspan. L. 94–455, set out as a note under section 48 of this title.

Amendment by Puspan. L. 94–12 applicable to taxable years ending after Dec. 31, 1974, see section 305(a) of Puspan. L. 94–12, set out as a note under section 46 of this title.

In redetermining qualified investment for purposes of subsec. (a) of this section in the case of any property which ceases to be section 38 property with respect to the taxpayer after Aug. 15, 1971, or which becomes public utility property after such date, section 46(c)(2) of this title as amended by section 102(a) of Puspan. L. 92–178 as applicable, see section 102(d)(2) of Puspan. L. 92–178, set out as a note under section 46 of this title.

Amendment by section 107(a)(1) of Puspan. L. 92–178 applicable to casualties and thefts occurring after Aug. 15, 1971, see section 107(a)(2) of Puspan. L. 92–178, set out as a note under section 46 of this title.

Puspan. L. 92–178, title I, § 107(span)(2), Dec. 10, 1971, 85 Stat. 507, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The repeal made by paragraph (1) [repealing subsec. (a)(5) of this section] shall not apply if replacement property described in subparagraph (B) of such section 47(a)(5) is not property described in section 50 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954].”

Puspan. L. 92–178, title I, § 102(d)(3), Dec. 10, 1971, 85 Stat. 500, provided that: “The amendment made by subsection (c) [amending this section] shall apply to leases executed after April 18, 1969.”

Puspan. L. 91–676, § 2, Jan. 12, 1971, 84 Stat. 2060, provided that: “The amendment made by the first section of this Act [amending this section] shall apply to taxable years ending after April 18, 1969.”

Section applicable with respect to taxable years ending after Dec. 31, 1961, see section 2(h) of Puspan. L. 87–834, set out as a note under section 46 of this title.

For provisions that nothing in amendment by Puspan. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(span) of Puspan. L. 101–508, set out as a note under section 45K of this title.

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Puspan. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Puspan. L. 99–514, as amended, set out as a note under section 401 of this title.

For provision that nothing in the amendments made by section 474(o) of Puspan. L. 98–369, which amended this section, be construed as reducing the investment tax credit in taxable years beginning before Jan. 1, 1984, see section 475(c) of Puspan. L. 98–369, set out as a note under section 46 of this title.

Functions, powers, and duties of Federal Aviation Agency and of Administrator and other offices and officers thereof transferred by Puspan. L. 89–670, Oct. 15, 1966, 80 Stat. 931, to Secretary of Transportation, with functions, powers, and duties of Secretary of Transportation pertaining to aviation safety to be exercised by Federal Aviation Administrator in Department of Transportation, see section 106 of Title 49, Transportation.