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(C) Class lives.--For purposes of
subparagraph (A)--
(i) the class life of property to
which section 168(g)(3)(B) of the
Internal Revenue Code of 1986 (as added
by section 201) shall be the class life
in effect on January 1, 1986, except
that computer-based telephone central
office switching equipment described in
section 168(e)(3)(B)(iii) of such Code
shall be treated as having a class life
of 6 years,
(ii) property described in section
204(a) shall be treated as having a
class life of 20 years, and
(iii) property with no class life
shall be treated as having a class life
of 12 years.
(D) Substitution of applicable dates.--
If any provision of this Act substitutes a
date for an applicable date, this paragraph
shall be applied by using such date.
The pertinent portion of TRA section 204, 100 Stat. 2146,
provides:
SEC. 204. ADDITIONAL TRANSITIONAL RULES.
(a) Other Transitional Rules.--
* * * * * * *
(3) Supply or service contracts.--The
amendments made by section 201 shall not apply to
any property which is readily identifiable with
and necessary to carry out a written supply or
service contract, or agreement to lease, which was
binding on * * * [December 31, 1985] March 1,
1986.
We note that “provisions granting special tax exemptions are
to be strictly construed.” Helvering v. Nw. Steel Rolling Mills,
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