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TITLE 26-INTERNAL REVENUE CODE Repeal of subsec. (a)(4) of this section by Pub. L. 92- 178 applicable to casualties and thefts occurring after Aug. 15, 1971, see section 107(a)(1) of Pub. L. 92-178, set out as an Effective Date of 1971 Amendment note under section 46 of this title. Section 107(b)(2) of Pub. L. 92-178 provided that: "The repeal made by paragraph (1) [of subsec. (a)(5) of this section] shall not apply if replacement proper- ty described in subparagraph (B) of such section 47(a)(5) is not property described in section 50 of the Internal Revenue Code of 1954 [section 50 of this title]." Section 102(d)(3) of Pub. L. 92-178 provided that: "The amendment made by subsection (c) [to subsec. (a)(6)(A) of this section] shall apply to leases executed after April 18, 1969." Section 2 of Pub. L. 91-676 provided that: "The amendment made by the first section of this Act [en- acting subsee. (a)(6) of this section] shall apply to tax- able years ending after April 18, 1969." EFFECTIvE DATE Section applicable with respect to taxable years ending after Dec. 31, 1961, see section 2(h) of Pub. L. 87-834, set out as an Effective Date note under section 38 of this title. TRANSFER OF FUNCTIONS All functions, powers, and duties of the Federal Avi. ation Agency and of the Administrator and other of- fices and officers thereof were transferred to the Sec- retary of Transportation, with the functions, powers, and duties of the Secretary of Transportation pertain- Ing to aviation safety to be exercised by the Federal Aviation Administrator in the Department of Trans- portation, see sections 1652(e)(2), 1655(c), and 1657(f), (g) of Title 49, Transportation. SECTION REFERM TO IN OTHER SECTIONS This section is referred to in sections 46, 48, 49 of this title. § 48. Definitions; special rules (a) Section 38 property (1) In general Except as provided in this subsection, the term "section 38 property" means- (A) tangible personal property, or (B) other tangible property (not including a building and its structural components) but only if such property- (1) is used as an integral part of manu- facturing, production, or extraction or of furnishing transportation, .mmunica- tions, electrical energy, gas, water, or sewage disposal services, or (i) constitutes a research facility used in connection with any of the activities re- ferred to in clause (i), or (i) constitutes a facility used in connec- tion with any of the activities referred to in clause (1) for the bulk storage of fungi- ble commodities (incltding commodities In a liquid or gaseous state), or (C) elevators and escalators, but only if- (1) the construction, reconstruction, or erection of the elevator or escalator is completed by the taxpayer after June 30, 1963, or (it) the elevator or escalator is acquired after June 30, 1963, and the original use of such elevator or escalator commences with the taxpayer and commences after such date. Such term includes only property with re- spect to which depreciation (or amortization in lieu of depreciation) is allowable and having a useful life (determined as of the time such property is placed in service) of 3 years or more. (2) Property used outside the United States (A) In general Except as provided in subparagraph (B), the term "section 38 property" does not in- clude property which is used predominantly outside the United States. (B) Exceptions Subparagraph (A) shall not apply to- (i) any aircraft which is registered by the Administrator of the Federal Aviation Agency and which is operated to and from the United States or is operated under contract with the United States; (ii) rolling stock, of a domestic railroad corporation subject to part I of the Inter- state Commerce Act, which is used within and without the United States; (iii) any vessel documented under the laws of the United States which is operat- ed in the foreign or domestic commerce of tie United States; (iv) any motor vehicle of a United States person (as defined in section 7701(a)(30)) which is operated to and from the United States; (v) any container of a United States person which is used in the transportation of property to and from the United States; (vi) any property (other than a vessel or an aircraft) of a United States person which is used for the purpose of exploring for, developing, removing, or transporting resources from the outer Continental Shelf (within the meaning of section 2 of the Outer Continental Shelf Lands Act, as amended and supplemented; 43 U.S.C., 1331); (vii) any property which is owned by a domestic corporation (other than a corpo- ration which has an election in effect under section 936 or which is entitled to the benefits of section 934(b)) or by a United States citizen (other than a citizen entitled to the benefits of section 931, 932, 933, or 934(c)) and which is used predomi- nantly in a possession of the United States by such a corporation or such a citizen, or by a corporation created or or- ganized in, or under the law of, a posses- sion of the United States; (viii) any communications satellite (as defined in section 103(3) of the Communi- cations Satellite Act of 1962, 47 U.S.C. 702(3)), or any interest therein, of a United States person; (ix) any cable, or any interest therein, of a domestic corporation engaged in fur- nishing telephone service to which section 46(c)(3)(B)(iii) applies (or of a wholly owned domestic subsidiary of such a cor- poration), if such cable is part of a subma- rine cable system which constitutes part of a communication link exclusively be- Page 68