Page 78

TITLE 26-INTERNAL REVENUE CODE a right to use the property under a lease with such other person, then to the extent of the transferred rights such other person shall, for purposes of para- graph (2), succeed to the position of the transferor with respect to such binding contract and such prop- erty. The preceding sentence shall apply, in any case in which the lessor does not make an election under section 48(d) of the Internal Revenue Code of 1954 [subsec. (d) of this section], only if a party to such contract retains a right to use the property under a long-term lease." EFFECTIVE DATE OF 1971 AMENDMENT Section 104(h) of Pub. L. 92-178 provided that: "The amendments made by this section [to subsec. (a)(1)(B), (2)(B)(ix), (x, (3)(C)(6), and (8) of this sec- tion and sections 169(h) and 1245(a)(3)(B) of this title] (other than by subsections (c)(1), (c)(2), and (g) [amendment of subsec. (a)(5) and enactment of subsec. (a)(2)(B)(viii) and (9) of this section]) shall apply to property described in section 50 of the Internal Rev- enue Code of 1954 [section 50 of this title]. The amendments made by subsections (c)(1), (c)(2), and (g) [amendment of subsec. (a)(5) and enactment of subsec. (a)(2)(B)(viii) and (9) of this section] shall apply to taxable years ending after December 31, 1961." Amendment of subsec. (d) by ,ection 108(b) and Cc) of Pub. L. 92-178, applicable to leases entered into after Sept. 22, 1971, and after Nov. 8, 1971, respective- ly, see section 108(d) of Pub. L. 92-178, set out as an Effective Date of 1971 Amendment note under section 46 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment of subsec. (a)(4) by section 121(d)(2)(A) of Pub. L. 91-172 applicable to taxable years beginning after Dec. 31, 1969, see section 121(g) of Pub. L. 91- 172, set out as an Effective Date of 1969 Amendment note under section 511 of this title. Amendment of subsecs. (c)(2)(C), (c)(3)(C) and (d)(2) of this section by section 401(e)(2) to (4) of Pub. L. 91- 172 applicable with respect to taxable years ending on or after Dec. 31, 1970, see section 401(h)(3) of Pub. L. 91-172, set out as an Effective Date of 1969 Amend- ment note under section 1561 of this title. EFFECTIVE DATE OF 1967 AMENDMENT Section 4 of Pub. L. 90-26 provided that: "The amendments made by the first three sections of this Act [amending subsecs. (a)(2), (h)(2), and (j) of this section, and subsecs. (i)(1) and (1)(3) of section 167 of this title] shall apply to taxable years ending after March 9, 1967." EFFECTIVE DATE OF 1966 AMENDMENT Section 201(b) of Pub. L. 89-809 provided that: "The amendments made by subsection (a) [adding subsec. (a)(2)(B)(vii) of this section] shall apply to taxable years ending after December 31, 1965, but only with respect to property placed in service after such date. In applying section 46(b) of the Internal Revenue Code of 1954 (relating to carryback and carryover of unused credits) [section 46(b) of this title], the amount of any investment credit carryback to any tax- able year ending on or before December 31, 1965, shall be determined without regard to the amendments made by this section." Amendment by Pub. L. 89-800 applicable to taxable years ending after Oct. 9, 1966, see section 4 of Pub. L. 89-800, set out as an Effective Date of 1966 Amend- ment note under section 46 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Section 203(a)(4) of Pub. L. 88-272 provided that: "Paragraphs (1) [repealing subsec. (g) of this sec- tion] and (3) [amending subsec. Cd) of this section, the analysis preceding section 161, and section 1016 of this title and repealing section 181 of this title] of this sub- section shall apply- "CA) in the case of property placed in service after December 31, 1963, with respect to taxable years ending after such date, and "(B) in the case of property placed in service before January 1, 1964, with respect to taxable years beginning after December 31, 1963." Section 203(f) of Pub. L. 88-272 provided that: "(D1 The amendments made by subsection (b) [to subsec. (d)(1)(2) of this section] shall apply with re- spect to property possession of which is transferred to a lessee on or after the date of enactment of this Act (Feb. 26, 1964]. "(2) The amendments made by subsection (c) [to subsec. (a)(1)(c) of this section] shall apply with re- spect to taxable years ending after June 30, 1963. "(3) The amendments made by subsection Cd) [to section 1245 of this title] shall apply with respect to dispositions after December 31, 1963, in taxable years ending after such date." EFFCTIvE 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. ALTERNATIVE METHODS OF COMPUTING CREDIT FOR PAST PERIODS Section 804(c) of Pub. L. 94-455 provided that: "(1) General rule for determining useful life, pre- dominant foreign use, etc.-In the case of a qualified film (within the meaning of section 48(k)(1)(B) of the Internal Revenue Code of 1954 [subsec. (k)(1)(B) of this section]) placed in service in a taxable year beginning before January 1, 1975, with respect to which neither an election under paragraph (2) of this subsection nor an election under subsection (e)(2) applies- "(A) the applicable percentage under section 46(c)(2) of such Code [section 46(c)(2) of this title] shall be determined as if the useful life of the film would have expired at the close of the first taxable year by the close of which the aggregate amount allowable as a deduction under section 167 of such Code [section 167 of this title] would equal or exceed 90 percent of the basis of such property (adjusted for any partial dispositions), "(B) for purposes of section 46(c)(1) of such Code [section 46(c)(1) of this tit!el, the basis of the property shall be determined by taking into ac- count the total production costs (within the mean- ing of section 48(k)(5)(B) of such Code [subsec. (k)(5)(B) of this section]), "(C) for purposes of section 48(a)(2) of such Code [subsec. (a)(2) of this section], such film shall be considered to be used predominantly out- side the United States in the first taxable year for which 50 percent or more of the gross revenues re- ceived or accrued during the taxable year from showing the film were received or accrued from showing the film outside the United States, and "(D) Section 47(a)(7) of such Code [section 47(a)(7) of this title] shall apply. "(2) Election of 40-percent method.- "CA) In general.-A taxpayer may elect to have this paragraph apply to all qualified films placed in service during taxable years beginning before January 1, 1975 (other than films to which an elec- tion under subsection (e)(2) of this section ap- plies). Page 78