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107 STAT. 448 PUBLIC LAW 103-66—AUG. 10, 1993 26 use 108. (5) Subparagraph (A) of section 108(dX9) is amended by inserting "or under paragraph (3XB) of subsection (c)" after "subsection (b)". (6) Paragraph (2) of section 1017(a) is amended by striking "or (bXSr and inserting ", (bX5), or (cXD". (7) Subparagraph (A) of section 10170>X3) is amended by inserting "or (cXl)" after "subsection (bXS)". (8) Section 1017(bX3) is amended by adding at the end the following new subparagraph: "(F) SPECIAL RULES FOR QUALIFIED REAL PROPERTY BUSINESS INDEBTEDNESS.—^In the case of any amount which under section 108(cXl) is to be applied to reduce basis— "(i) depreciable property shall only include depre- ciable real property for purposes of subparagraphs (A) and (C), "(ii) subparagraph (E) shall not apply, and "(iii) in the case of property taken into account under section 108(cX2XB), the reduction with respect to such property shall be made as of the time imme- diately before disposition if earlier than the time under subsection (a)." (9) Paragraph (1) of section 703(b) is amended by striking "subsection (bXS)" and inserting "subsection (bX5) or (cX3) . 26 use 108 note. (d) EFFECTIVE DATE.—^The amendments made by this section shall apply to discharges after December 31, 1992, in taxable years ending after such date. Subpart E—^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.". 26 use 168 note. (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 t£ixpayer 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.