TREATMENT OF PROPERTY USED IN A FARMING BUSINESS.

SEC. 6028. TREATMENT OF PROPERTY USED IN A FARMING BUSINESS. (a) In General.—Paragraph (2) of section 168(b) of the 1986 Code (as amended by title I) is amended by striking out “or” at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph: “(B) any property used in a farming business (within the meaning of section 263A(e)(4)), or”. (b) Effective Date.— (1) In general.—Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 1988, (2) Exception.—The amendments made by this section shall not apply to any property if such property is placed in service before July 1, 1989, and if such property— (A) is constructed, reconstructed, or acquired by the taxpayer pursuant to a written contract which was binding on July 14, 1988, or (B) is constructed or reconstructed by the taxpayer and such construction or reconstruction began by July 14, 1988.