RESTORATION OF INVESTMENT CREDIT.

SEC. 101. RESTORATION OF INVESTMENT CREDIT. (a) Subpart B of part IV of subchapter A of chapter 1 (relating to rules for computing credit for investment in certain depreciable property) is amended by adding at the end thereof the following new section: “SEC. 50. RESTORATION OF CREDIT. “(a) General Rule—Section 49(a) (relating to termination of credit) shall not apply to property— “(1) the construction, reconstruction, or erection of which— “(A) is completed by the taxpayer after August 15, 1971, or “(B) is begun by the taxpayer after March 31, 1971, or “(2) which is acquired by the taxpayer— “(A) after August 15, 1971, or “(B) after March 31, 1971, and before August 16, 1971, pursuant to an order which the taxpayer establishes was placed after March 31, 1971. “(b) Transitional Rule—In applying section 46(c)(1)(A) in the case of property described in subsection (a)(1)(A) the construction, reconstruction, or erection of which is begun before April 1, 1971, there shall be taken into account only that portion of the basis which is properly attributable to construction, reconstruction, or erection after August 15, 1971. This subsection shall not apply to pre-termination property (within the meaning of section 49(b)).” (b) Conforming Amendments— (1) Section 49(a) (relating to termination of credit) is amended by adding at the end thereof the following new sentence: “This subsection shall not apply to property described in section 50.” 85 Stat. 499 (2) Section 49(b) (defining pre-termination property) is amended by striking out “For purposes of this section” and inserting in lieu thereof “For purposes of this subpart”. (3) Section 49(d) (relating to property placed in service after 1975) is hereby repealed. (4) The heading for section 49 is amended to read as follows: “SEC. 49. TERMINATION FOR PERIOD BEGINNING APRIL 19, 1969, AND ENDING DURING 1971.” (5) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by striking out the item relating to section 49 and inserting in lieu thereof the following: “Sec. 49. Termination for period beginning April 19, 1969, and ending during 1971. “Sec. 50. Restoration of credit.”. (c) Accounting for Investment Credit in Certain Financial Reports and Reports to Federal Agencies— (1) In general—It was the intent of the Congress in enacting, in the Revenue Act of 1962, the investment credit allowed by section 38 of the Internal Revenue Code of 1954, and it is the intent of the Congress in restoring that credit in this Act, to provide an incentive for modernization and growth of private industry. Accordingly, notwithstanding any other provision of law, on and after the date of the enactment of this Act— (A) no taxpayer shall be required to use, for purposes of financial reports subject to the Jurisdiction of any Federal agency or reports made to any Federal agency, any particular method of accounting for the credit allowed by such section 38, (B) a taxpayer shall disclose, in any such report, the method of accounting for such credit used by him for purposes of such report, and (C) a taxpayer shall use the same method of accounting for such credit in all such reports made by him, unless the Secretary of the Treasury or his delegate consents to a change to another method. (2) Exceptions—Paragraph (1) shall not apply to taxpayers who are subject to the provisions of section 46(e) of the Internal Revenue Code of 1954 (as added by section 105(c) of this Act) or to section 203(e) of the Revenue Act of 1964 (as modified by section 105 (e) of this Act).