DETERMINATION OF QUALIFIED INVESTMENT.

SEC. 102. DETERMINATION OF QUALIFIED INVESTMENT. (a) Change in Useful Life Brackets— (1) Section 46(c)(2) (relating to applicable percentage for purposes of determining qualified investment) is amended— (A) by striking out “4 years” and inserting in lieu thereof “3 years”, (B) by striking out “6 years” each place it appears and inserting in lieu thereof “5 years”, and (C) by striking out “8 years” each place it appears and inserting in lieu thereof “7 years”. (2) The second sentence of section 48(a) (1) (defining section 38 property) is amended by striking out “4 years” and inserting in lieu thereof “3 years”. (b) Useful Life for Investment Credit Purposes—The second sentence of section 46 (c) (2) is amended to read as follows: “For purposes of this subpart, the useful life of any property shall be the useful life used in computing the allowance for depreciation under section 167 for the taxable year in which the property is placed in service.” 85 Stat. 500 (c) Technical Amendment—Section 47(a)(6)(A) (relating to aircraft used outside the United States after April 18, 1969) is amended by striking out “4 years” and inserting in lieu thereof “3years”. (d) Effective Dates— (1) The amendments made by subsections (a) and (b) shall apply to property described in section 50 of the Internal Revenue Code of 1954. (2) In redetermining qualified investment for purposes of section 47(a) of the Internal Revenue Code of 1954 in the case of any property which ceases to be section 38 property with respect to the taxpayer after August 15, 1971, or which becomes public utility property after such date, section 46(c) (2) of such Code shall be applied as amended by subsection (a). (3) The amendment made by subsection (c) shall apply to leases executed after April 18, 1969.