TREATMENT OF CERTAIN POLLUTION CONTROL FACILITIES.

SEC. 2112. TREATMENT OF CERTAIN POLLUTION CONTROL FACILITIES. (a) Availability of Investment Credit for Certain Pollution Control Facilities.— (1) In general.— Section 48(a)(8) (relating to amortized property) is amended by striking out “169,” and by striking out the second sentence thereof, (2) Applicable percentage in determining amount of credit.— Section 46(c) (relating to qualified investment) is amended by adding at the end thereof the following new paragraph: “(5) Applicable percentage in the case of certain pollution control facilities.— Notwithstanding subsection (c)(2), in the case of property— “(A) with respect to which an election under section 169 applies, and 90 STAT. 1906 (B) the useful life of which (determined without regard to section 169) is not less than 5 years, 50 percent shall be the applicable percentage for purposes of applying paragraph (1) with respect to so much of the adjusted basis of the property as (after the application of section 169(f)) constitutes the amortizable basis for purposes of section 169.” (b) Definition of Certified Pollution Control Facilities.— Paragraph (1) of section 169(d)(defining certified pollution control facilities) is amended— (1) by striking out “January 1, 1969,” and inserting in lieu thereof “January 1, 1976,”; (2) by striking out “or storing” and inserting in lieu thereof “storing, or preventing the creation or emission of”; and (3) by striking out “and” at the end of subparagraph (A), by striking out the period at the end of subparagraph (B) and inserting in lieu thereof “; and”, and by adding at the end thereof the following new subparagraph: “(C) does not significantly— “(i) increase the output or capacity, extend the useful life, or reduce the total operating costs of such plant or other property (or any unit thereof), or “(ii) alter the nature of the manufacturing or production process or facility.” (c) Extension of Amortization.— Paragraph (4) of section 169(d) (relating to new identifiable treatment facility) is amended to read as follows: “(4) New identifiable treatment facility.— “(A) In general.— For purposes of paragraph (1), the term ‘new identifiable treatment facility’ includes only tangible property (not including a building and its structural components, other than a building which is exclusively a treatment facility) which is of a character subject to the allowance for depreciation provided in section 167, which is identifiable as a treatment facility, and which is property— “(i) the construction, reconstruction, or erection of which is completed by the taxpayer after December 31, 1968, or “(ii) acquired after December 31, 1968, if the original use of the property commences with the taxpayer and commences after such date. In applying this section in the case of property described in clause (i) there shall be taken into account only that portion of the basis which is properly attributable to construction, reconstruction, or erection after December 31, 1968. “(B) Certain plants, etc., placed in operation after 1968.— In the case of any treatment facility used in connection with any plant or other property not in operation before January 1, 1969, the preceding sentence shall be applied by substituting December 31, 1975, for December 31, 1968.” (d) Effective Dates.— (1) The amendments made by subsection (a) shall apply to— (A) property acquired by the taxpayer after December 31, 1976, and (B) property the construction, reconstruction, or erection of which was completed by the taxpayer after December 31, 1976, (but only to the extent of the basis thereof attributable 90 STAT. 1907to construction, reconstruction, or erection after such date), in taxable years beginning after such date. (2) The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 1975. Such amendments shall not apply in the case of any property with respect to which the amortization period under section 169 of the Internal Revenue Code of 1954 has begun before January 1, 1976.