References in Text
The date of the enactment of this clause, referred to in subsec. (a)(5)(C)(iii), is the date of enactment of [Pub. L. 110–289], which was approved July 30, 2008.
The date of the enactment of the Tax Reform Act of 1986, referred to in subsec. (a)(6), is the date of enactment of [Pub. L. 99–514], which was approved Oct. 22, 1986.
Prior Provisions
A prior section 57, added [Pub. L. 91–172, title III, § 301(a)], Dec. 30, 1969, [83 Stat. 581]; amended [Pub. L. 92–178, title III], §§ 303(b), 304(a)(1), (b)(1), (d), Dec. 10, 1971, [85 Stat. 522–524]; [Pub. L. 94–455, title III, § 301(c)(1)]–(4)(A), (C), title XIX, §§ 1901(b)(33)(A), (B), 1906(b)(13)(A), Oct. 4, 1976, [90 Stat. 1550–1552], 1800, 1834; [Pub. L. 95–30, title I, § 101(d)(5)], title III, § 308(a), title IV, § 402(a)(5), May 23, 1977, [91 Stat. 133], 153, 155; [Pub. L. 95–600, title III, § 301(b)(2)], title IV, §§ 402(b)(1), 421(b), title VII, § 701(b)(1), (3), (4), (f)(3)(D), Nov. 6, 1978, [92 Stat. 2820], 2868, 2874, 2898, 2899, 2901; [Pub. L. 95–618, title IV, § 402(b)], Nov. 9, 1978, [92 Stat. 3202]; [Pub. L. 96–222, title I], §§ 104(a)(4)(E), (F), 107(a)(1)(A), Apr. 1, 1980, [94 Stat. 217], 222; [Pub. L. 96–596, § 3(a)], Dec. 24, 1980, [94 Stat. 3475]; [Pub. L. 97–34, title I, § 121(c)(1)], title II, §§ 205, 212(d)(2)(B), Aug. 13, 1981, [95 Stat. 197], 223, 239; [Pub. L. 97–248, title II], §§ 201(b), 204(b), Sept. 3, 1982, [96 Stat. 416], 426; [Pub. L. 97–354, § 5(a)(14)], (15), Oct. 19, 1982, [96 Stat. 1693]; [Pub. L. 97–448, title I, § 102(b)(1)(A)], (3), (4), Jan. 12, 1983, [96 Stat. 2369], 2370; [Pub. L. 98–369, div. A, title I], §§ 16(b), 68(c), 111(e)(5)–(7), title V, § 555(a)(2), title VII, §§ 711(a)(3)(A), 722(a)(1), July 18, 1984, [98 Stat. 505], 588, 633, 897, 942, 972; [Pub. L. 99–121, title I, § 103(b)(1)(B)], (7), Oct. 11, 1985, [99 Stat. 509], 510; [Pub. L. 99–272, title XIII, § 13208(a)], Apr. 7, 1986, [100 Stat. 321]; [Pub. L. 99–514, title XVIII], §§ 1804(k)(3)(B)–(D), 1809(a)(3), Oct. 22, 1986, [100 Stat. 2809], 2819, related to items of tax preference, prior to the general revision of this part by [Pub. L. 99–514, § 701(a)].
Amendments
2014—Subsec. (a)(1). [Pub. L. 113–295, § 221(a)(10)], substituted “This paragraph” for “Effective with respect to taxable years beginning after December 31, 1992, this paragraph”.
Subsec. (a)(2)(E)(i). [Pub. L. 113–295, § 221(a)(11)(A)], substituted “This paragraph” for “In the case of any taxable year beginning after December 31, 1992, this paragraph”.
Subsec. (a)(2)(E)(ii). [Pub. L. 113–295, § 221(a)(11)(B)], struck out “(30 percent in case of taxable years beginning in 1993)” after “40 percent”.
2009—Subsec. (a)(5)(C)(vi). [Pub. L. 111–5] added cl. (vi).
2008—Subsec. (a)(5)(C)(iii) to (v). [Pub. L. 110–289] added cl. (iii) and redesignated former cls. (iii) and (iv) as (iv) and (v), respectively.
2003—Subsec. (a)(7). [Pub. L. 108–27] substituted “7 percent” for “42 percent” after “An amount equal to” and struck out last sentence which read as follows: “In the case of stock the holding period of which begins after December 31, 2000 (determined with the application of the last sentence of section 1(h)(2)(B)), the preceding sentence shall be applied by substituting ‘28 percent’ for ‘42 percent’.”
1998—Subsec. (a)(7). [Pub. L. 105–206] inserted at end “In the case of stock the holding period of which begins after December 31, 2000 (determined with the application of the last sentence of section 1(h)(2)(B)), the preceding sentence shall be applied by substituting ‘28 percent’ for ‘42 percent’.”
1997—Subsec. (a)(7). [Pub. L. 105–34] substituted “42 percent” for “one-half”.
1996—Subsec. (a)(4). [Pub. L. 104–188] struck out par. (4) which read as follows: “Reserves for losses on bad debts of financial institutions.—In the case of a financial institution to which section 593 applies, the amount by which the deduction allowable for the taxable year for a reasonable addition to a reserve for bad debts exceeds the amount that would have been allowable had the institution maintained its bad debt reserve for all taxable years on the basis of actual experience.”
1993—Subsec. (a)(6), (7). [Pub. L. 103–66, § 13171(a)], redesignated pars. (7) and (8) as (6) and (7), respectively, and struck out heading and text of former par. (6). Text read as follows:
“(A) In general.—The amount by which the deduction allowable under section 170 or 642(c) would be reduced if all capital gain property were taken into account at its adjusted basis.
“(B) Capital gain property.—For purposes of subparagraph (A), the term ‘capital gain property’ has the meaning given to such term by section 170(b)(1)(C)(iv). Such term shall not include any property to which an election under section 170(b)(1)(C)(iii) applies. In the case of any taxable year beginning in 1991, such term shall not include any tangible personal property. In the case of a contribution made before July 1, 1992, in a taxable year beginning in 1992, such term shall not include any tangible personal property.”
Subsec. (a)(8). [Pub. L. 103–66, § 13171(a)], redesignated par. (8) as (7).
[Pub. L. 103–66, § 13113(b)(1)], added par. (8).
1992—Subsec. (a)(1). [Pub. L. 102–486, § 1915(a)(1)], inserted at end “Effective with respect to taxable years beginning after December 31, 1992, this paragraph shall not apply to any deduction for depletion computed in accordance with section 613A(c).”
Subsec. (a)(2)(E). [Pub. L. 102–486, § 1915(b)(1)], added subpar. (E).
1991—Subsec. (a)(6)(B). [Pub. L. 102–227] inserted at end “In the case of a contribution made before July 1, 1992, in a taxable year beginning in 1992, such term shall not include any tangible personal property.”
1990—Subsec. (a)(2)(D)(ii). [Pub. L. 101–508, § 11815(b)(3)], substituted “section 613(e)(2)” for “section 613(e)(3)”.
Subsec. (a)(4). [Pub. L. 101–508, § 11801(c)(12)(A)], struck out “585 or” after “section”.
Subsec. (a)(6)(B). [Pub. L. 101–508, § 11344], inserted at end “In the case of any taxable year beginning in 1991, such term shall not include any tangible personal property.”
1988—Subsec. (a)(3). [Pub. L. 100–647, § 1007(b)(14)(B)], struck out par. (3) which related to incentive stock options.
Subsec. (a)(5)(C)(i). [Pub. L. 100–647, § 1007(c)(2)], amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “For purposes of this part, the term ‘specified private activity bonds’ means any private activity bond (as defined in section 141) issued after August 7, 1986.”
Subsec. (a)(5)(C)(iii). [Pub. L. 100–647, § 1007(c)(1)], inserted “(whether a current or advance refunding)” after “any refunding bond”.
Subsec. (a)(6)(A). [Pub. L. 100–647, § 1007(c)(3)], inserted “or 642(c)” after “section 170”.
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by [Pub. L. 113–295] effective Dec. 19, 2014, subject to a savings provision, see [section 221(b) of Pub. L. 113–295], set out as a note under section 1 of this title.
Effective Date of 2009 Amendment
Amendment by [Pub. L. 111–5] applicable to obligations issued after Dec. 31, 2008, see [section 1503(c) of Pub. L. 111–5], set out as a note under section 56 of this title.
Effective Date of 2008 Amendment
Amendment by [Pub. L. 110–289] applicable to bonds issued after July 30, 2008, see [section 3022(d)(1) of Pub. L. 110–289], set out as a note under section 56 of this title.
Effective Date of 2003 Amendment
Amendment by [Pub. L. 108–27] applicable to dispositions on or after May 6, 2003, see [section 301(d)(3) of Pub. L. 108–27], set out as an Effective and Termination Dates of 2003 Amendment note under section 1 of this title.
Effective Date of 1998 Amendment
Amendment by [Pub. L. 105–206] effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, [Pub. L. 105–34], to which such amendment relates, see [section 6024 of Pub. L. 105–206], set out as a note under section 1 of this title.
Effective Date of 1997 Amendment
Amendment by [Pub. L. 105–34] applicable to taxable years ending after May 6, 1997, see [section 311(d) of Pub. L. 105–34], set out as a note under section 1 of this title.
Effective Date of 1996 Amendment
Amendment by [Pub. L. 104–188] applicable to taxable years beginning after Dec. 31, 1995, see [section 1616(c) of Pub. L. 104–188], set out as a note under section 593 of this title.
Effective Date of 1993 Amendment
Amendment by [section 13113(b)(1) of Pub. L. 103–66] applicable to stock issued after Aug. 10, 1993, see [section 13113(e) of Pub. L. 103–66], set out as a note under section 53 of this title.
Amendment by [section 13171(a) of Pub. L. 103–66] applicable to contributions made after June 30, 1992, except that in case of any contribution of capital gain property which is not tangible personal property, such amendment applicable only if the contribution is made after Dec. 31, 1992, see [section 13171(d) of Pub. L. 103–66], set out as a note under section 53 of this title.
Effective Date of 1992 Amendment
Amendment by [Pub. L. 102–486] applicable to taxable years beginning after Dec. 31, 1992, see [section 1915(d) of Pub. L. 102–486], set out as a note under section 56 of this title.
Effective Date of 1988 Amendment
Amendment by [section 1007(b)(14)(B) of Pub. L. 100–647] applicable with respect to options exercised after Dec. 31, 1987, see [section 1007(b)(14)(C) of Pub. L. 100–647], set out as a note under section 56 of this title.
Amendment by [section 1007(c) of Pub. L. 100–647] effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, [Pub. L. 99–514], to which such amendment relates, see [section 1019(a) of Pub. L. 100–647], set out as a note under section 1 of this title.
Effective Date
Section applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, but subsec. (a)(6) not to apply to any deduction attributable to contributions made before Aug. 16, 1986, see [section 701(f) of Pub. L. 99–514], set out as a note under section 55 of this title.
Savings Provision
For provisions that nothing in amendment by sections 11801 and 11815 of [Pub. L. 101–508] be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see [section 11821(b) of Pub. L. 101–508], set out as a note under section 45K of this title.
Transitional Provisions
[Pub. L. 100–647, title I, § 1007(f)(4)], Nov. 10, 1988, [102 Stat. 3433], provided that:“(A)
If any property to which this paragraph applies is placed in service in a taxable year which begins before January 1, 1987, and ends on or after August 1, 1986, the item of tax preference determined under section 57(a) of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986 [Oct. 22, 1986]) with respect to such property shall be the excess of—
“(i)
the amount allowable as a deduction for depreciation or amortization for such taxable year, over
“(ii)
the amount which would be determined for such taxable year under the rules of paragraph (1) or (5) (whichever is appropriate) of section 56(a) of the Internal Revenue Code of 1954 (as amended by the Tax Reform Act of 1986 [[Pub. L. 99–514]]).
“(B)
This paragraph shall apply to any property—
“(i)
which is described in paragraph (4) or (12) of section 57(a) of the Internal Revenue Code of 1954 (as so in effect), and
“(ii)
to which paragraph (1) or (5) of section 56(a) of the Internal Revenue Code of 1986 would apply if the taxable year referred to in subparagraph (A) began after December 31, 1986.”
Applicability of Certain Amendments by [Pub. L. 99–514] in Relation to Treaty Obligations of United States
For applicability of amendment by [section 701(a) of Pub. L. 99–514] [enacting this section] notwithstanding any treaty obligation of the United States in effect on Oct. 22, 1986, with provision that for such purposes any amendment by title I of [Pub. L. 100–647] be treated as if it had been included in the provision of [Pub. L. 99–514] to which such amendment relates, see section 1012(aa)(2), (4) of [Pub. L. 100–647], set out as a note under section 861 of this title.