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131 STAT. 2210 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(1) IN GENERAL.—The term ‘qualified business asset invest- ment’ means, with respect to any controlled foreign corporation for any taxable year, the average of such corporation’s aggregate adjusted bases as of the close of each quarter of such taxable year in specified tangible property— ‘‘(A) used in a trade or business of the corporation, and ‘‘(B) of a type with respect to which a deduction is allowable under section 167. ‘‘(2) SPECIFIED TANGIBLE PROPERTY.— ‘‘(A) IN GENERAL.—The term ‘specified tangible prop- erty’ means, except as provided in subparagraph (B), any tangible property used in the production of tested income. ‘‘(B) DUAL USE PROPERTY.—In the case of property used both in the production of tested income and income which is not tested income, such property shall be treated as specified tangible property in the same proportion that the gross income described in subsection (c)(1)(A) produced with respect to such property bears to the total gross income produced with respect to such property. ‘‘(3) DETERMINATION OF ADJUSTED BASIS.—For purposes of this subsection, notwithstanding any provision of this title (or any other provision of law) which is enacted after the date of the enactment of this section, the adjusted basis in any property shall be determined— ‘‘(A) by using the alternative depreciation system under section 168(g), and ‘‘(B) by allocating the depreciation deduction with respect to such property ratably to each day during the period in the taxable year to which such depreciation relates. ‘‘(3) PARTNERSHIP PROPERTY.—For purposes of this sub- section, if a controlled foreign corporation holds an interest in a partnership at the close of such taxable year of the con- trolled foreign corporation, such controlled foreign corporation shall take into account under paragraph (1) the controlled foreign corporation’s distributive share of the aggregate of the partnership’s adjusted bases (determined as of such date in the hands of the partnership) in tangible property held by such partnership to the extent such property— ‘‘(A) is used in the trade or business of the partnership, ‘‘(B) is of a type with respect to which a deduction is allowable under section 167, and ‘‘(C) is used in the production of tested income (deter- mined with respect to such controlled foreign corporation’s distributive share of income with respect to such property). For purposes of this paragraph, the controlled foreign corpora- tion’s distributive share of the adjusted basis of any property shall be the controlled foreign corporation’s distributive share of income with respect to such property. ‘‘(4) REGULATIONS.—The Secretary shall issue such regula- tions or other guidance as the Secretary determines appropriate to prevent the avoidance of the purposes of this subsection, including regulations or other guidance which provide for the treatment of property if— ‘‘(A) such property is transferred, or held, temporarily, or VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00158 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS