INCREASE IN RECOVERY PERIOD FOR NONRESIDENTIAL REAL PROPERTY.

SEC. 13151. INCREASE IN RECOVERY PERIOD FOR NONRESIDENTIAL REAL PROPERTY. (a) General Rule.— Paragraph (1) of section 168(c) (relating to applicable recovery period) is amended by striking the item relating to nonresidential real property and inserting the following: “Nonresidential real property 39 years.”. (b) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendment made by subsection (a) shall apply to property placed in service by the taxpayer on or after May 13, 1993. (2) Exception.— The amendments made by this section shall not apply to property placed in service by the taxpayer before January 1, 1994, if— (A) the taxpayer or a qualified person entered into a binding written contract to purchase or construct such property before May 13, 1993, or (B) the construction of such property was commenced by or for the taxpayer or a qualified person before May 13, 1993. For purposes of this paragraph, the term “qualified person” means any person who transfers his rights in such a contract or such property to the taxpayer but only if the property is not placed in service by such person before such rights are transferred to the taxpayer.