AMENDMENT OF SECTION 167(k).

SEC. 203. AMENDMENT OF SECTION 167(k). (a) General Rule.— Section 167(k) (relating to depreciation of expenditures to rehabilitate low-income rental housing) is amended— (1) by striking out “January 1, 1976,” in paragraph (1) and inserting in lieu thereof “January 1, 1978”; (2) by striking out “$15,000” in paragraph (2)(A) and inserting in lieu thereof “$20,000”; (3) by striking out “the policies of the Housing and Urban Development Act of 1968” in paragraph (3)(B) and inserting in lieu thereof “the Leased Housing Program under section 8 of the United States Housing Act of 1937”; and (4) by adding the following new subparagraph at the end of paragraph (3): “(D) Rehabilitation expenditures incurred.— Rehabilitation expenditures incurred pursuant to a binding con-90 STAT. 1531tract entered into before January 1, 1978, and rehabilitation expenditures incurred with respect to low-income rental housing the rehabilitation of which has begun before January 1, 1978, shall be deemed incurred before January 1, 1978.” (b) Effective Date.— The amendments made by paragraphs (1), (8), and (4) of subsection (a) shall apply to expenditures paid or incurred after December 31, 1975, and before January 1, 1978, and expenditures made pursuant to a binding contract entered into before January 1, 1978. The amendment made by paragraph (2) of subsection (a) shall apply to expenditures incurred after December 31, 1975.