ACCELERATED DEPRECIATION FOR PROPERTY ON INDIAN RESERVATIONS.

SEC. 13321. ACCELERATED DEPRECIATION FOR PROPERTY ON INDIAN RESERVATIONS. (a) In General.— Section 168 is amended by adding at the end the following new subsection: “(j) Property on Indian Reservations.— “(1) In general.— For purposes of subsection (a), the applicable recovery period for qualified Indian reservation property shall be determined in accordance with the table contained in paragraph (2) in lieu of the table contained in subsection (c). “(2) Applicable recovery period for Indian reservation property.— For purposes of paragraph (D— “In the case of: The applicable recovery period is: 3-year property 2 years 5-year property 3 years 7-year property 4 years 10-year property 6 years 15-year property 9 years 20-year property 12 years Nonresidential real property 22 years. “(3) Deduction allowed in computing minimum tax.— For purposes of determining alternative minimum taxable income under section 55, the deduction under subsection (a) for property to which paragraph (1) applies shall be determined under this section without regard to any adjustment under section 56. “(4) Qualified Indian reservation property defined.— For purposes of this subsection— “(A) In general.— The term ‘qualified Indian reservation property’ means property which is property described in the table in paragraph (2) and which is— “(i) used by the taxpayer predominantly in the active conduct of a trade or business within an Indian reservation, “(ii) not used or located outside the Indian reservation on a regular basis, “(iii) not acquired (directly or indirectly) by the taxpayer from a person who is related to the taxpayer (within the meaning of section 465(b)(3)(C)), and “(iv) not property (or any portion thereof) placed in service for purposes of conducting or housing class I, II, or III gaming (as defined in section 4 of the Indian Regulatory Act (25 U.S.C. 2703)). “(B) Exception for alternative depreciation property.— The term ‘qualified Indian reservation property' does not include any property to which the alternative 107 STAT. 559depreciation system under subsection (g) applies, determined— “(i) without regard to subsection (g)(7) (relating to election to use alternative depreciation system), and “(ii) after the application of section 280F(b) (relating to listed property with limited business use). “(C) Special rule for reservation infrastructure investment.— “(i) In general.— Subparagraph (A)(ii) shall not apply to qualified infrastructure property located out-side of the Indian reservation if the purpose of such property is to connect with qualified infrastructure property located within the Indian reservation. “(ii) Qualified infrastructure property.— For purposes of this subparagraph, the term ‘qualified infrastructure property’ means qualified Indian reservation property (determined without regard to subparagraph (A)(ii)) which— “(I) benefits the tribal infrastructure, “(II) is available to the general public, and “(III) is placed in service in connection with the taxpayer’s active conduct of a trade or business within an Indian reservation. Such term includes, but is not limited to, roads, power lines, water systems, railroad spurs, and communications facilities. “(5) Real estate rentals.— For purposes of this subsection, the rental to others of real property located within an Indian reservation shall be treated as the active conduct of a trade or business within an Indian reservation. “(6) Indian reservation defined.— For purposes of this subsection, the term Indian reservation’ means a reservation, as defined in— “(A) section 3(d) of the Indian Financing Act of 1974 (25 U.S.C. 1452(d)), or “(B) section 4(10) of the Indian Child Welfare Act of 1978 (25 U.S.C. 1903(10)). “(7) Coordination with nonrevenue laws.— Any reference in this subsection to a provision not contained in this title shall be treated for purposes of this subsection as a reference to such provision as in effect on the date of the enactment of this paragraph. “(8) Termination.— This subsection shall not apply to property placed in service after December 31, 2003.” (b) Effective Date.— The amendment made by this section shall apply to property placed in service after December 31, 1993.