r/title-26-INTERNAL-REVENUE-CODE wiki — defined terms

“qualified financial institution” applies in that section

the term “qualified financial institution” means— (A) any bank (as defined in section 581), (B) any institution described in section 591, (C) any credit union the deposits or accounts in which are insured under Federal or State law or are protected or guaranteed under State law, or (D) any similar institution chartered and supervised under Federal or State law. (4) Deposit For purposes of this subsection,

“qualified individual” applies in that section

the term “qualified individual” means any individual, except an individual— (A) who owns at least 1 percent in value of the outstanding stock of the qualified financial institution, (B) who is an officer of the qualified financial institution, (C) who is a sibling (whether by the whole or half blood), spouse, aunt, uncle, nephew, niece, ancestor, or lineal descendant of an individual described in subparagraph (A) or (B), or (D) who otherwise is a related person (as defined in section 267(b)) with respect to an individual described in subparagraph (A) or (B). (3) Qualified financial institution For purposes of this subsection,

“registered form” applies in that section

The term “registered form” has the same meaning as when used in section 163(f). (3) Exceptions The Secretary may, by regulations, provide that this subsection and section 1287 shall not apply with respect to obligations held by any person if— (A) such person holds such obligations in connection with a trade or business outside the United States, (B) such person holds such obligations as a broker dealer (registered under Federal or State law) for sale to customers in the ordinary course of his trade or business, (C) such person complies with reporting requirements with respect to ownership, transfers, and payments as the Secretary may require, or (D) such person promptly surrenders the …

“registration-required obligation” applies in that section

The term “registration-required obligation” has the meaning given to such term by section 163(f)(2). (B) Registered form

“security” applies in that section

the term “security” means— (A) a share of stock in a corporation; (B) a right to subscribe for, or to receive, a share of stock in a corporation; or (C) a bond, debenture, note, or certificate, or other evidence of indebtedness, issued by a corporation or by a government or political subdivision thereof, with interest coupons or in registered form. (3) Securities in affiliated corporation For purposes of paragraph (1), any security in a corporation affiliated with a taxpayer which is a domestic corporation shall not be treated as a capital asset.

“State” applies in that section

The term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. (i) Disaster losses (1) Election to take deduction for preceding year Notwithstanding the provisions of subsection (a), any loss occurring in a disaster area and attributable to a federally declared disaster may, at the election of the taxpayer, be taken into account for the taxable year immediately preceding the taxable year in which the disaster occurred.

“State declared disaster” applies in that section

The term “State declared disaster” means, with respect to any State, any natural catastrophe (including any hurricane, tornado, storm, high water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor of such State (or the Mayor, in the case of the District of Columbia) and the Secretary causes damage of sufficient severity and magnitude to warrant the application of the rules of this section. (ii) State

“nonbusiness debt” applies in that section

the term “nonbusiness debt” means a debt other than— (A) a debt created or acquired (as the case may be) in connection with a trade or business of the taxpayer; or (B) a debt the loss from the worthlessness of which is incurred in the taxpayer’s trade or business. (e) Worthless securities This section shall not apply to a debt which is evidenced by a security as defined in section 165(g)(2)(C). (f) Cross references (1) For disallowance of deduction for worthlessness of debts owed by political parties and similar organizations, see section 271. (2) For special rule for banks with respect to worthless securities, see section 582.

“applicable musical property” applies in that section

The term “applicable musical property” means any musical composition (including any accompanying words), or any copyright with respect to a musical composition, which is property to which this subsection applies without regard to this paragraph. (ii) Exceptions Such term shall not include any property— (I) with respect to which expenses are treated as qualified creative expenses to which section 263A(h) applies, (II) to which a simplified procedure established under section 263A(i)(2) 1 applies, or (III) which is an amortizable section 197 intangible (as defined in section 197(c)).

“computer software” applies in that section

the term “computer software” has the meaning given to such term by section 197(e)(3)(B); except that such term shall not include any such software which is an amortizable section 197 intangible. (C) Tax-exempt use property subject to lease In the case of computer software which would be tax-exempt use property as defined in subsection (h) of section 168 if such section applied to computer software, the useful life under subparagraph (A) shall not be less than 125 percent of the lease term (within the meaning of section 168(i)(3)).

“major integrated oil company” applies in that section

the term “major integrated oil company” means, with respect to any taxable year, a producer of crude oil— (i) which has an average daily worldwide production of crude oil of at least 500,000 barrels for the taxable year, (ii) which had gross receipts in excess of $1,000,000,000 for its last taxable year ending during calendar year 2005, and (iii) to which subsection (c) of section 613A does not apply by reason of paragraph (4) of section 613A(d), determined— (I) by substituting “15 percent” for “5 percent” each place it occurs in paragraph (3) of section 613A(d), and (II) without regard to whether subsection (c) of section 613A does not apply by reason of paragraph (2) of section 613A(d).

“participations and residuals” applies in that section

the term “participations and residuals” means, with respect to any property, costs the amount of which by contract varies with the amount of income earned in connection with such property. (C) Special rules relating to recomputation years If the adjusted basis of any property is determined under this paragraph, paragraph (4) shall be applied by substituting “for each taxable year in such period” for “for such period”.

“recomputation year” applies in that section

the term “recomputation year” means, with respect to any property, the 3d and the 10th taxable years beginning after the taxable year in which the property was placed in service, unless the actual income earned in connection with the property for the period before the close of such 3d or 10th taxable year is within 10 percent of the income earned in connection with the property for such period which was taken into account under paragraph (1)(A).

“related person” applies in that section

The term “related person” means any person bearing a relationship to the taxpayer described in subsection (b) or (e) of section 267. (6) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection, including regulations preventing avoidance of this subsection through cross-ownership arrangements or otherwise. (f) Treatment of certain property excluded from section 197 (1) Computer software (A) In general If a depreciation deduction is allowable under subsection (a) with respect to any computer software, such deduction shall be computed by using the straight line method and a useful life of 36 months.

“term interest in property” applies in that section

The term “term interest in property” has the meaning given such term by section 1001(e)(2). (B) Related person

“10-year property” applies in that section

The term “10-year property” includes— (i) any single purpose agricultural or horticultural structure (within the meaning of subsection (i)(13)), (ii) any tree or vine bearing fruit or nuts, (iii) any qualified smart electric meter, and (iv) any qualified smart electric grid system. (E) 15-year property

“15-year property” applies in that section

The term “15-year property” includes— (i) any municipal wastewater treatment plant, (ii) any telephone distribution plant and comparable equipment used for 2-way exchange of voice and data communications, (iii) any section 1250 property which is a retail motor fuels outlet (whether or not food or other convenience items are sold at the outlet), (iv) initial clearing and grading land improvements with respect to gas utility property, (v) any section 1245 property (as defined in section 1245(a)(3)) used in the transmission at 69 or more kilovolts of electricity for sale and the original use of which commences with the taxpayer after April 11, 2005 , (vi) any natural gas distribution line the …

“20-year property” applies in that section

The term “20-year property” means initial clearing and grading land improvements with respect to any electric utility transmission and distribution plant. (4) Railroad grading or tunnel bore

“3-year property” applies in that section

The term “3-year property” includes— (i) any race horse— (I) which is placed in service before January 1, 2022 , and (II) which is placed in service after December 31, 2021 , and which is more than 2 years old at the time such horse is placed in service by such purchaser, (ii) any horse other than a race horse which is more than 12 years old at the time it is placed in service, and (iii) any qualified rent-to-own property. (B) 5-year property

“5-year property” applies in that section

The term “5-year property” includes— (i) any automobile or light general purpose truck, (ii) any semi-conductor manufacturing equipment, (iii) any computer-based telephone central office switching equipment, (iv) any qualified technological equipment, (v) any section 1245 property used in connection with research and experimentation, (vi) any property which— (I) is described in paragraph (15) of section 48( l ) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) and has a power production capacity of not greater than 80 megawatts, or (II) is described in section 48( l )(3)(A)(ix) (as in effect on the day before the date of the enactment of …

“7-year property” applies in that section

The term “7-year property” includes— (i) any railroad track, (ii) any motorsports entertainment complex, (iii) any Alaska natural gas pipeline, (iv) any natural gas gathering line the original use of which commences with the taxpayer after April 11, 2005 , and (v) any property which— (I) does not have a class life, and (II) is not otherwise classified under paragraph (2) or this paragraph. (D) 10-year property

“Alaska natural gas pipeline” applies in that section

The term “Alaska natural gas pipeline” means the natural gas pipeline system located in the State of Alaska which— (A) has a capacity of more than 500,000,000,000 Btu of natural gas per day, and (B) is— (i) placed in service after December 31, 2013 , or (ii) treated as placed in service on January 1, 2014 , if the taxpayer who places such system in service before January 1, 2014 , elects such treatment. Such term includes the pipe, trunk lines, related equipment, and appurtenances used to carry natural gas, but does not include any gas processing plant. (17) Natural gas gathering line

“class life” applies in that section

the term “class life” means the class life (if any) which would be applicable with respect to any property as of January 1, 1986 , under subsection (m) of section 167 (determined without regard to paragraph (4) and as if the taxpayer had made an election under such subsection). The Secretary, through an office established in the Treasury, shall monitor and analyze actual experience with respect to all depreciable assets. The reference in this paragraph to subsection (m) of section 167 shall be treated as a reference to such subsection as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990. (2) Qualified technological equipment (A) In general

“computer” applies in that section

The term “computer” means a programmable electronically activated device which— (I) is capable of accepting information, applying prescribed processes to the information, and supplying the results of these processes with or without human intervention, and (II) consists of a central processing unit containing extensive storage, logic, arithmetic, and control capabilities. (iii) Related peripheral equipment

“computer or peripheral equipment” applies in that section

The term “computer or peripheral equipment” means— (I) any computer, and (II) any related peripheral equipment. (ii) Computer

“consumer property” applies in that section

The term “consumer property” means tangible personal property of a type generally used within the home for personal use. (D) Rent-to-own contract

“disqualified lease” applies in that section

the term “disqualified lease” means any lease of the property to a tax-exempt entity, but only if— (I) part or all of the property was financed (directly or indirectly) by an obligation the interest on which is exempt from tax under section 103(a) and such entity (or a related entity) participated in such financing, (II) under such lease there is a fixed or determinable price purchase or sale option which involves such entity (or a related entity) or there is the equivalent of such an option, (III) such lease has a lease term in excess of 20 years, or (IV) such lease occurs after a sale (or other transfer) of the property by, or lease of the property from, such entity (or a related entity) …

“dwelling unit” applies in that section

the term “dwelling unit” means a house or apartment used to provide living accommodations in a building or structure, but does not include a unit in a hotel, motel, or other establishment more than one-half of the units in which are used on a transient basis, and (II) if any portion of the building or structure is occupied by the taxpayer, the gross rental income from such building or structure shall include the rental value of the portion so occupied. (B) Nonresidential real property

“electronic scrap” applies in that section

the term “electronic scrap” means— (I) any cathode ray tube, flat panel screen, or similar video display device with a screen size greater than 4 inches measured diagonally, or (II) any central processing unit. (C) Recycling or recycle

“foreign person or entity” applies in that section

the term “foreign person or entity” means— (i) any foreign government, any international organization, or any agency or instrumentality of any of the foregoing, and (ii) any person who is not a United States person. Such term does not include any foreign partnership or other foreign pass-thru entity.

“high technology medical equipment” applies in that section

the term “high technology medical equipment” means any electronic, electromechanical, or computer-based high technology equipment used in the screening, monitoring, observation, diagnosis, or treatment of patients in a laboratory, medical, or hospital environment.

“imported property” applies in that section

the term “imported property” means any property if— (i) such property was completed outside the United States, or (ii) less than 50 percent of the basis of such property is attributable to value added within the United States. For purposes of this subparagraph,

“Indian reservation” applies in that section

the term “Indian reservation” means a reservation, as defined in— (A) section 3(d) of the Indian Financing Act of 1974 ( 25 U.S.C. 1452(d) ), or (B) section 4(10) of the Indian Child Welfare Act of 1978 ( 25 U.S.C. 1903(10) ). For purposes of the preceding sentence, such section 3(d) shall be applied by treating the term “former Indian reservations in Oklahoma” as including only lands which are within the jurisdictional area of an Oklahoma Indian tribe (as determined by the Secretary of the Interior) and are recognized by such Secretary as eligible for trust land status under 25 CFR Part 151 (as in effect on the date of the enactment of this sentence).

“lease” applies in that section

the term “lease” includes any grant of a right to use property. (8) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection. (i) Definitions and special rules For purposes of this section— (1) Class life Except as provided in this section,

“livestock” applies in that section

The term “livestock” includes poultry. (14) Qualified rent-to-own property (A) In general

“motorsports entertainment complex” applies in that section

The term “motorsports entertainment complex” means a racing track facility which— (i) is permanently situated on land, and (ii) during the 36-month period following the first day of the month in which the asset is placed in service, hosts 1 or more racing events for automobiles (of any type), trucks, or motorcycles which are open to the public for the price of admission.

“natural gas gathering line” applies in that section

The term “natural gas gathering line” means— (A) the pipe, equipment, and appurtenances determined to be a gathering line by the Federal Energy Regulatory Commission, and (B) the pipe, equipment, and appurtenances used to deliver natural gas from the wellhead or a commonpoint to the point at which such gas first reaches— (i) a gas processing plant, (ii) an interconnection with a transmission pipeline for which a certificate as an interstate transmission pipeline has been issued by the Federal Energy Regulatory Commission, (iii) an interconnection with an intrastate transmission pipeline, or (iv) a direct interconnection with a local distribution company, a gas storage facility, or an …

“nonresidential real property” applies in that section

The term “nonresidential real property” means section 1250 property which is not— (i) residential rental property, or (ii) property with a class life of less than 27.5 years. (3) Classification of certain property (A) 3-year property

“northern portion of the Western Hemisphere” applies in that section

the term “northern portion of the Western Hemisphere” means the area lying west of the 30th meridian west of Greenwich, east of the international dateline, and north of the Equator, but not including any foreign country which is a country of South America. (5) Tax-exempt bond financed property For purposes of this subsection— (A) In general Except as otherwise provided in this paragraph,

“public utility property” applies in that section

The term “public utility property” means property used predominantly in the trade or business of the furnishing or sale of— (A) electrical energy, water, or sewage disposal services, (B) gas or steam through a local distribution system, (C) telephone services, or other communication services if furnished or sold by the Communications Satellite Corporation for purposes authorized by the Communications Satellite Act of 1962 ( 47 U.S.C.

“qualified allocation” applies in that section

the term “qualified allocation” means any allocation to a tax-exempt entity which— (i) is consistent with such entity’s being allocated the same distributive share of each item of income, gain, loss, deduction, credit, and basis and such share remains the same during the entire period the entity is a partner in the partnership, and (ii) has substantial economic effect within the meaning of section 704(b)(2). For purposes of this subparagraph, items allocated under section 704(c) shall not be taken into account.

“qualified improvement property” applies in that section

The term “qualified improvement property” means any improvement made by the taxpayer to an interior portion of a building which is nonresidential real property if such improvement is placed in service after the date such building was first placed in service. (B) Certain improvements not included Such term shall not include any improvement for which the expenditure is attributable to— (i) the enlargement of the building, (ii) any elevator or escalator, or (iii) the internal structural framework of the building.

“qualified Indian reservation property” applies in that section

The term “qualified Indian reservation property” means property which is property described in the table in paragraph (2) and which is— (i) used by the taxpayer predominantly in the active conduct of a trade or business within an Indian reservation, (ii) not used or located outside the Indian reservation on a regular basis, (iii) not acquired (directly or indirectly) by the taxpayer from a person who is related to the taxpayer (within the meaning of section 465(b)(3)(C)), and (iv) not property (or any portion thereof) placed in service for purposes of conducting or housing class I, II, or III gaming (as defined in section 4 of the Indian Regulatory Act ( 25 U.S.C. 2703 )).

“qualified infrastructure property” applies in that section

the term “qualified infrastructure property” means qualified Indian reservation property (determined without regard to subparagraph (A)(ii)) which— (I) benefits the tribal infrastructure, (II) is available to the general public, and (III) is placed in service in connection with the taxpayer’s active conduct of a trade or business within an Indian reservation. Such term includes, but is not limited to, roads, power lines, water systems, railroad spurs, and communications facilities.

“qualified product” applies in that section

The term “qualified product” means any tangible personal property if such property is not a food or beverage prepared in the same building as a retail establishment in which such property is sold. (G) Syndication For purposes of subparagraph (A)(iv), rules similar to the rules of subsection (k)(2)(E)(iii) shall apply.

“qualified production activity” applies in that section

The term “qualified production activity” means the manufacturing, production, or refining of a qualified product. The activities of any taxpayer do not constitute manufacturing, production, or refining of a qualified product unless the activities of such taxpayer result in a substantial transformation of the property comprising the product. (E) Production The term “production” shall not include activities other than agricultural production and chemical production. (F) Qualified product

“qualified production property” applies in that section

The term “qualified production property” means that portion of any nonresidential real property— (i) to which this section applies, (ii) which is used by the taxpayer as an integral part of a qualified production activity, (iii) which is placed in service in the United States or any possession of the United States, (iv) the original use of which commences with the taxpayer, (v) the construction of which begins after January 19, 2025 , and before January 1, 2029 , (vi) which is designated by the taxpayer in the election made under this subsection, and (vii) which is placed in service before January 1, 2031 .

“qualified property” applies in that section

The term “qualified property” means property— (i) (I) to which this section applies which has a recovery period of 20 years or less, (II) which is computer software (as defined in section 167(f)(1)(B)) for which a deduction is allowable under section 167(a) without regard to this subsection, (III) which is water utility property, or 2 (IV) which is a qualified film or television production (as defined in subsection (d) of section 181) for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (h) of such section or this subsection, (V) which is a qualified live theatrical production (as defined in subsection (e) of section 181) for which a …

“qualified rent-to-own property” applies in that section

The term “qualified rent-to-own property” means property held by a rent-to-own dealer for purposes of being subject to a rent-to-own contract. (B) Rent-to-own dealer

“qualified reuse and recyclable materials” applies in that section

The term “qualified reuse and recyclable materials” means scrap plastic, scrap glass, scrap textiles, scrap rubber, scrap packaging, recovered fiber, scrap ferrous and nonferrous metals, or electronic scrap generated by an individual or business. (ii) Electronic scrap For purposes of clause (i),

“qualified reuse and recycling property” applies in that section

The term “qualified reuse and recycling property” means any reuse and recycling property— (i) to which this section applies, (ii) which has a useful life of at least 5 years, (iii) the original use of which commences with the taxpayer after August 31, 2008 , and (iv) which is— (I) acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after August 31, 2008 , but only if no written binding contract for the acquisition was in effect before September 1, 2008 , or (II) acquired by the taxpayer pursuant to a written binding contract which was entered into after August 31, 2008 .

“qualified second generation biofuel plant property” applies in that section

The term “qualified second generation biofuel plant property” means property of a character subject to the allowance for depreciation— (A) which is used in the United States solely to produce second generation biofuel (as defined in section 40(b)(6)(E)), (B) the original use of which commences with the taxpayer after the date of the enactment of this subsection, (C) which is acquired by the taxpayer by purchase (as defined in section 179(d)) after the date of the enactment of this subsection, but only if no written binding contract for the acquisition was in effect on or before the date of the enactment of this subsection, and (D) which is placed in service by the taxpayer before January 1, …

“qualified smart electric grid system” applies in that section

The term “qualified smart electric grid system” means any smart grid property which— (i) is used as part of a system for electric distribution grid communications, monitoring, and management placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services, and (ii) does not have a class life (determined without regard to subsection (e)) of less than 16 years. (B) Smart grid property For the purposes of subparagraph (A),

“qualified smart electric meter” applies in that section

The term “qualified smart electric meter” means any smart electric meter which— (i) is placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services, and (ii) does not have a class life (determined without regard to subsection (e)) of less than 16 years. (B) Smart electric meter For purposes of subparagraph (A),

“qualified technological equipment” applies in that section

The term “qualified technological equipment” means— (i) any computer or peripheral equipment, (ii) any high technology telephone station equipment installed on the customer’s premises, and (iii) any high technology medical equipment. (B) Computer or peripheral equipment defined For purposes of this paragraph— (i) In general

“railroad grading or tunnel bore” applies in that section

The term “railroad grading or tunnel bore” means all improvements resulting from excavations (including tunneling), construction of embankments, clearings, diversions of roads and streams, sodding of slopes, and from similar work necessary to provide, construct, reconstruct, alter, protect, improve, replace, or restore a roadbed or right-of-way for railroad track. (5) Water utility property

“recycle” applies in that section

The term “recycling” or “recycle” means that process (including sorting) by which worn or superfluous materials are manufactured or processed into specification grade commodities that are suitable for use as a replacement or substitute for virgin materials in manufacturing tangible consumer and commercial products, including packaging.

“recycling” applies in that section

The term “recycling” or “recycle” means that process (including sorting) by which worn or superfluous materials are manufactured or processed into specification grade commodities that are suitable for use as a replacement or substitute for virgin materials in manufacturing tangible consumer and commercial products, including packaging.

“related peripheral equipment” applies in that section

The term “related peripheral equipment” means any auxiliary machine (whether on-line or off-line) which is designed to be placed under the control of the central processing unit of a computer. (iv) Exceptions The term “computer or peripheral equipment” shall not include— (I) any equipment which is an integral part of other property which is not a computer, (II) typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment, and (III) equipment of a kind used primarily for amusement or entertainment of the user. (C) High technology medical equipment For purposes of this paragraph,

“rent-to-own contract” applies in that section

The term “rent-to-own contract” means any lease for the use of consumer property between a rent-to-own dealer and a customer who is an individual which— (i) is titled “Rent-to-Own Agreement” or “Lease Agreement with Ownership Option,” or uses other similar language, (ii) provides for level (or decreasing where no payment is less than 40 percent of the largest payment), regular periodic payments (for a payment period which is a week or month), (iii) provides that legal title to such property remains with the rent-to-own dealer until the customer makes all the payments described in clause (ii) or early purchase payments required under the contract to acquire legal title to the item of …

“rent-to-own dealer” applies in that section

The term “rent-to-own dealer” means a person that, in the ordinary course of business, regularly enters into rent-to-own contracts with customers for the use of consumer property, if a substantial portion of those contracts terminate and the property is returned to such person before the receipt of all payments required to transfer ownership of the property from such person to the customer. (C) Consumer property

“research and experimentation” applies in that section

The term “research and experimentation” has the same meaning as the term research and experimental has under section 174. (12) Section 1245 and 1250 property

“residential rental property” applies in that section

The term “residential rental property” means any building or structure if 80 percent or more of the gross rental income from such building or structure for the taxable year is rental income from dwelling units. (ii) Definitions For purposes of clause (i)—;

“reuse and recycling property” applies in that section

The term “reuse and recycling property” means any machinery and equipment (not including buildings or real estate), along with all appurtenances thereto, including software necessary to operate such equipment, which is used exclusively to collect, distribute, or recycle qualified reuse and recyclable materials. (ii) Exclusion Such term does not include rolling stock or other equipment used to transport reuse and recyclable materials. (B) Qualified reuse and recyclable materials (i) In general

“section 1245 property” applies in that section

The terms “section 1245 property” and “section 1250 property” have the meanings given such terms by sections 1245(a)(3) and 1250(c), respectively. (13) Single purpose agricultural or horticultural structure (A) In general

“section 1250 property” applies in that section

The terms “section 1245 property” and “section 1250 property” have the meanings given such terms by sections 1245(a)(3) and 1250(c), respectively. (13) Single purpose agricultural or horticultural structure (A) In general

“short-term lease” applies in that section

the term “short-term lease” means any lease the term of which is— (I) less than 3 years, and (II) less than the greater of 1 year or 30 percent of the property’s present class life. In the case of nonresidential real property and property with no present class life, subclause (II) shall not apply. (D) Exception where property used in unrelated trade or business The term “tax-exempt use property” shall not include any portion of a property if such portion is predominantly used by the tax-exempt entity (directly or through a partnership of which such entity is a partner) in an unrelated trade or business the income of which is subject to tax under section 511.

“single purpose agricultural or horticultural structure” applies in that section

The term “single purpose agricultural or horticultural structure” means— (i) a single purpose livestock structure, and (ii) a single purpose horticultural structure. (B) Definitions For purposes of this paragraph— (i) Single purpose livestock structure

“single purpose horticultural structure” applies in that section

The term “single purpose horticultural structure” means— (I) a greenhouse specifically designed, constructed, and used for the commercial production of plants, and (II) a structure specifically designed, constructed, and used for the commercial production of mushrooms.

“single purpose livestock structure” applies in that section

The term “single purpose livestock structure” means any enclosure or structure specifically designed, constructed, and used— (I) for housing, raising, and feeding a particular type of livestock and their produce, and (II) for housing the equipment (including any replacements) necessary for the housing, raising, and feeding referred to in subclause (I). (ii) Single purpose horticultural structure

“smart electric meter” applies in that section

the term “smart electric meter” means any time-based meter and related communication equipment which is capable of being used by the taxpayer as part of a system that— (i) measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day, (ii) provides for the exchange of information between supplier or provider and the customer’s electric meter in support of time-based rates or other forms of demand response, (iii) provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and (iv) provides net metering.

“smart grid property” applies in that section

the term “smart grid property” means electronics and related equipment that is capable of— (i) sensing, collecting, and monitoring data of or from all portions of a utility’s electric distribution grid, (ii) providing real-time, two-way communications to monitor or manage such grid, and (iii) providing real time analysis of and event prediction based upon collected data that can be used to improve electric distribution system reliability, quality, and performance.

“specified plant” applies in that section

the term “specified plant” means— (i) any tree or vine which bears fruits or nuts, and (ii) any other plant which will have more than one crop or yield of fruits or nuts and which generally has a pre-productive period of more than 2 years from the time of planting or grafting to the time at which such plant begins bearing a marketable crop or yield of fruits or nuts. Such term shall not include any property which is planted or grafted outside of the United States. (C) Election revocable only with consent An election under this paragraph may be revoked only with the consent of the Secretary.

“tax-exempt bond financed property” applies in that section

the term “tax-exempt bond financed property” means any property to the extent such property is financed (directly or indirectly) by an obligation the interest on which is exempt from tax under section 103(a). (B) Allocation of bond proceeds For purposes of subparagraph (A), the proceeds of any obligation shall be treated as used to finance property acquired in connection with the issuance of such obligation in the order in which such property is placed in service. (C) Qualified residential rental projects The term “tax-exempt bond financed property” shall not include any qualified residential rental project (within the meaning of section 142(a)(7)).

“tax-exempt controlled entity” applies in that section

The term “tax-exempt controlled entity” means any corporation (which is not a tax-exempt entity determined without regard to this subparagraph and paragraph (2)(E)) if 50 percent or more (in value) of the stock in such corporation is held by 1 or more tax-exempt entities (other than a foreign person or entity). (II) Only 5-percent shareholders taken into account in case of publicly traded stock For purposes of subclause (I), in the case of a corporation the stock of which is publicly traded on an established securities market, stock held by a tax-exempt entity shall not be taken into account unless such entity holds at least 5 percent (in value) of the stock in such corporation.

“tax-exempt entity” applies in that section

the term “tax-exempt entity” means— (i) the United States, any State or political subdivision thereof, any possession of the United States, or any agency or instrumentality of any of the foregoing, (ii) an organization (other than a cooperative described in section 521) which is exempt from tax imposed by this chapter, (iii) any foreign person or entity, and (iv) any Indian tribal government described in section 7701(a)(40). For purposes of applying this subsection, any Indian tribal government referred to in clause (iv) shall be treated in the same manner as a State.

“tax-exempt use period” applies in that section

the term “tax-exempt use period” means the period beginning with the taxable year in which the property described in subclause (I) is first used by the organization and ending with the close of the 15th taxable year following the last taxable year of the applicable recovery period of such property. (III) Election Any election under subclause (I), once made, shall be irrevocable. (iii) Treatment of successor organizations Any organization which is engaged in activities substantially similar to those engaged in by a predecessor organization shall succeed to the treatment under this subparagraph of such predecessor organization.

“tax-exempt use property” applies in that section

the term “tax-exempt use property” means that portion of any tangible property (other than nonresidential real property) leased to a tax-exempt entity. (B) Nonresidential real property (i) In general In the case of nonresidential real property,

“transportation property” applies in that section

the term “transportation property” means tangible personal property used in the trade or business of transporting persons or property. (iii) Application of subparagraph This subparagraph shall not apply to any property which is described in subparagraph (C). (C) Certain aircraft

“United States” applies in that section

the term “United States” includes the Commonwealth of Puerto Rico and the possessions of the United States. (7) Election to use alternative depreciation system (A) In general If the taxpayer makes an election under this paragraph with respect to any class of property for any taxable year, the alternative depreciation system under this subsection shall apply to all property in such class placed in service during such taxable year. Notwithstanding the preceding sentence, in the case of nonresidential real property or residential rental property, such election may be made separately with respect to each property.

“water utility property” applies in that section

The term “water utility property” means property— (A) which is an integral part of the gathering, treatment, or commercial distribution of water, and which, without regard to this paragraph, would be 20-year property, and (B) any municipal sewer. (6) Qualified improvement property (A) In general

“amortizable basis” applies in that section

the term “amortizable basis” means that portion of the adjusted basis (for determining gain) of a certified pollution control facility which may be amortized under this section. (2) Special rules (A) If a certified pollution control facility has a useful life (determined as of the first day of the first month for which a deduction is allowable under this section) in excess of 15 years, the amortizable basis of such facility shall be equal to an amount which bears the same ratio to the portion of the adjusted basis of such facility, which would be eligible for amortization but for the application of this subparagraph, as 15 bears to the number of years of useful life of such facility.

“certified pollution control facility” applies in that section

The term “certified pollution control facility” means a new identifiable treatment facility which is used, in connection with a plant or other property in operation before January 1, 1976 , to abate or control water or atmospheric pollution or contamination by removing, altering, disposing, storing, or preventing the creation or emission of pollutants, contaminants, wastes, or heat and which— (A) the State certifying authority having jurisdiction with respect to such facility has certified to the Federal certifying authority as having been constructed, reconstructed, erected, or acquired in conformity with the State program or requirements for abatement or control of water or atmospheric …

“Federal certifying authority” applies in that section

The term “Federal certifying authority” means, in the case of water pollution, the Secretary of the Interior and, in the case of air pollution, the Secretary of Health and Human Services. (4) New identifiable treatment facility (A) In general For purposes of paragraph (1),

“new identifiable treatment facility” applies in that section

the term “new identifiable treatment facility” includes only tangible property (not including a building and its structural components, other than a building which is exclusively a treatment facility) which is of a character subject to the allowance for depreciation provided in section 167, which is identifiable as a treatment facility, and which is property— (i) the construction, reconstruction, or erection of which is completed by the taxpayer after December 31, 1968 , or (ii) acquired after December 31, 1968 , if the original use of the property commences with the taxpayer and commences after such date.

“State certifying authority” applies in that section

The term “State certifying authority” means, in the case of water pollution, the State water pollution control agency as defined in section 13(a) of the Federal Water Pollution Control Act and, in the case of air pollution, the air pollution control agency as defined in section 302(b) of the Clean Air Act.

“additional contribution” applies in that section

The term “additional contribution” means any charitable contribution by the taxpayer of any interest in property with respect to which the taxpayer has previously made an initial fractional contribution. (B) Initial fractional contribution

“apparently wholesome food” applies in that section

the term “apparently wholesome food” has the meaning given to such term by section 22(b)(2) of the Bill Emerson Good Samaritan Food Donation Act ( 42 U.S.C. 1791(b)(2) ), as in effect on the date of the enactment of this subparagraph. (D) This paragraph shall not apply to so much of the amount of the gain described in paragraph (1)(A) which would be long-term capital gain but for the application of sections 617, 1245, 1250, or 1252. (4) Special rule for contributions of scientific property used for research (A) Limit on reduction In the case of a qualified research contribution, the reduction under paragraph (1)(A) shall be no greater than the amount determined under paragraph (3)(B).

“applicable carryover rule” applies in that section

the term “applicable carryover rule” means any carryover rule applicable to charitable contributions which were (in whole or in part) not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I).

“applicable disposition” applies in that section

the term “applicable disposition” means any sale, exchange, or other disposition by the donee of applicable property— (i) after the last day of the taxable year of the donor in which such property was contributed, and (ii) before the last day of the 3-year period beginning on the date of the contribution of such property, unless the donee makes a certification in accordance with subparagraph (D). (C) Applicable property For purposes of this paragraph,

“applicable percentage” applies in that section

the term “applicable percentage” means the percentage determined under the following table which corresponds to a taxable year of the donor ending on or after the date of the qualified intellectual property contribution: Taxable Year of Donor Ending on or After Date of Contribution: Applicable Percentage: 1st 100 2nd 100 3rd 90 4th 80 5th 70 6th 60 7th 50 8th 40 9th 30 10th 20 11th 10 12th 10. (8) Qualified intellectual property contribution For purposes of this subsection,

“applicable property” applies in that section

the term “applicable property” means charitable deduction property (as defined in section 6050L(a)(2)(A))— (i) which is tangible personal property the use of which is identified by the donee as related to the purpose or function constituting the basis of the donee’s exemption under section 501, and (ii) for which a deduction in excess of the donor’s basis is allowed.

“bond” applies in that section

the term “bond” means any bond, debenture, note, or certificate or other evidence of indebtedness. (6) Deductions for out-of-pocket expenditures No deduction shall be allowed under this section for an out-of-pocket expenditure made by any person on behalf of an organization described in subsection (c) (other than an organization described in section 501(h)(5) (relating to churches, etc.)) if the expenditure is made for the purpose of influencing legislation (within the meaning of section 501(c)(3)).

“capital gain property” applies in that section

the term “capital gain property” means, with respect to any contribution, any capital asset the sale of which at its fair market value at the time of the contribution would have resulted in gain which would have been long-term capital gain. For purposes of the preceding sentence, any property which is property used in the trade or business (as defined in section 1231(b)) shall be treated as a capital asset.

“carryover rule” applies in that section

the term “carryover rule” means— (I) subparagraph (A) of this paragraph, (II) subparagraphs (C)(ii), (D)(ii), (E)(ii), and (G)(ii) of subsection (b)(1), and (III) the second sentence of subsection (b)(1)(B). (iii) Applicable carryover rule For purposes of this subparagraph,

“certified historic structure” applies in that section

the term “certified historic structure” means— (i) any building, structure, or land area which is listed in the National Register, or (ii) any building which is located in a registered historic district (as defined in section 47(c)(3)(B)) and is certified by the Secretary of the Interior to the Secretary as being of historic significance to the district. A building, structure, or land area satisfies the preceding sentence if it satisfies such sentence either at the time of the transfer or on the due date (including extensions) for filing the transferor’s return under this chapter for the taxable year in which the transfer is made.

“charitable contribution” applies in that section

the term “charitable contribution” means a contribution or gift to or for the use of— (1) A State, a possession of the United States, or any political subdivision of any of the foregoing, or the United States or the District of Columbia, but only if the contribution or gift is made for exclusively public purposes.

“conservation purpose” applies in that section

the term “conservation purpose” means— (i) the preservation of land areas for outdoor recreation by, or the education of, the general public, (ii) the protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem, (iii) the preservation of open space (including farmland and forest land) where such preservation is— (I) for the scenic enjoyment of the general public, or (II) pursuant to a clearly delineated Federal, State, or local governmental conservation policy, and will yield a significant public benefit, or (iv) the preservation of an historically important land area or a certified historic structure.

“contribution base” applies in that section

the term “contribution base” means adjusted gross income (computed without regard to any net operating loss carryback to the taxable year under section 172). (I) 0.5-percent floor Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer’s contribution base for the taxable year.

“household items” applies in that section

The term “household items” includes furniture, furnishings, electronics, appliances, linens, and other similar items. (ii) Excluded items Such term does not include— (I) food, (II) paintings, antiques, and other objects of art, (III) jewelry and gems, and (IV) collections. (E) Special rule for pass-thru entities In the case of a partnership or S corporation, this paragraph shall be applied at the entity level, except that the deduction shall be denied at the partner or shareholder level.

“initial fractional contribution” applies in that section

The term “initial fractional contribution” means, with respect to any taxpayer, the first charitable contribution of an undivided portion of the taxpayer’s entire interest in any tangible personal property.

“intangible religious benefit” applies in that section

the term “intangible religious benefit” means any intangible religious benefit which is provided by an organization organized exclusively for religious purposes and which generally is not sold in a commercial transaction outside the donative context. (C) Contemporaneous For purposes of subparagraph (A), an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return.

“members of the family” applies in that section

the term “members of the family” means, with respect to any individual— (I) the spouse of such individual, and (II) any individual who bears a relationship to such individual which is described in subparagraphs (A) through (G) of section 152(d)(2). (E) Exception for contributions to preserve certified historic structures Subparagraph (A) shall not apply to any qualified conservation contribution the conservation purpose of which is the preservation of any building which is a certified historic structure (as defined in paragraph (4)(C)).

“modified basis” applies in that section

The term “modified basis” means, with respect to any partner, such partner’s adjusted basis in the partnership as determined— (I) immediately before the contribution described in subparagraph (A), (II) without regard to section 752, and (III) by the partnership after taking into account the adjustments described in subclauses (I) and (II) and such other adjustments as the Secretary may provide.

“Native Corporation” applies in that section

the term “Native Corporation” has the meaning given such term by section 3(m) of the Alaska Native Claims Settlement Act. (D) Taxable income For purposes of this paragraph, taxable income shall be computed without regard to— (i) this section, (ii) part VIII (except section 248), (iii) any net operating loss carryback to the taxable year under section 172, (iv) any capital loss carryback to the taxable year under section 1212(a)(1) 1 (v) section 199A(g). (c) Charitable contribution defined For purposes of this section,

“personal benefit contract” applies in that section

the term “personal benefit contract” means, with respect to the transferor, any life insurance, annuity, or endowment contract if any direct or indirect beneficiary under such contract is the transferor, any member of the transferor’s family, or any other person (other than an organization described in subsection (c)) designated by the transferor. (C) Application to charitable remainder trusts In the case of a transfer to a trust referred to in subparagraph (E), references in subparagraphs (A) and (F) to an organization described in subsection (c) shall be treated as a reference to such trust.

“qualified appraisal” applies in that section

The term “qualified appraisal” means, with respect to any property, an appraisal of such property which— (I) is treated for purposes of this paragraph as a qualified appraisal under regulations or other guidance prescribed by the Secretary, and (II) is conducted by a qualified appraiser in accordance with generally accepted appraisal standards and any regulations or other guidance prescribed under subclause (I). (ii) Qualified appraiser Except as provided in clause (iii),

“qualified appraiser” applies in that section

the term “qualified appraiser” means an individual who— (I) has earned an appraisal designation from a recognized professional appraiser organization or has otherwise met minimum education and experience requirements set forth in regulations prescribed by the Secretary, (II) regularly performs appraisals for which the individual receives compensation, and (III) meets such other requirements as may be prescribed by the Secretary in regulations or other guidance.

“qualified appreciated stock” applies in that section

the term “qualified appreciated stock” means any stock of a corporation— (i) for which (as of the date of the contribution) market quotations are readily available on an established securities market, and (ii) which is capital gain property (as defined in subsection (b)(1)(C)(iv)).

“qualified conservation contribution” applies in that section

the term “qualified conservation contribution” means a contribution— (A) of a qualified real property interest, (B) to a qualified organization, (C) exclusively for conservation purposes. (2) Qualified real property interest For purposes of this subsection,

“qualified donee income” applies in that section

the term “qualified donee income” means any net income received by or accrued to the donee which is properly allocable to the qualified intellectual property. (4) Allocation of qualified donee income to taxable years of donor For purposes of this subsection, qualified donee income shall be treated as properly allocable to a taxable year of the donor if such income is received by or accrued to the donee for the taxable year of the donee which ends within or with such taxable year of the donor.

“qualified farmer or rancher” applies in that section

the term “qualified farmer or rancher” means a taxpayer whose gross income from the trade or business of farming (within the meaning of section 2032A(e)(5)) is greater than 50 percent of the taxpayer’s gross income for the taxable year.

“qualified intellectual property” applies in that section

the term “qualified intellectual property” means property described in subsection (e)(1)(B)(iii) (other than property contributed to or for the use of an organization described in subsection (e)(1)(B)(ii)). (10) Other special rules (A) Application of limitations on charitable contributions Any increase under this subsection of the deduction provided under subsection (a) shall be treated for purposes of subsection (b) as a deduction which is attributable to a charitable contribution to the donee to which such increase relates. (B) Net income determined by donee The net income taken into account under paragraph (3) shall not exceed the amount of such income reported under section 6050L(b)(1).

“qualified intellectual property contribution” applies in that section

the term “qualified intellectual property contribution” means any charitable contribution of qualified intellectual property— (A) the amount of which taken into account under this section is reduced by reason of subsection (e)(1), and (B) with respect to which the donor informs the donee at the time of such contribution that the donor intends to treat such contribution as a qualified intellectual property contribution for purposes of this subsection and section 6050L. (9) Qualified intellectual property For purposes of this subsection,

“qualified mineral interest” applies in that section

the term “qualified mineral interest” means— (A) subsurface oil, gas, or other minerals, and (B) the right to access to such minerals. (7) Limitation on deduction for qualified conservation contributions made by pass-through entities (A) In general A contribution by a partnership (whether directly or as a distributive share of a contribution of another partnership) shall not be treated as a qualified conservation contribution for purposes of this section if the amount of such contribution exceeds 2.5 times the sum of each partner’s relevant basis in such partnership. (B) Relevant basis For purposes of this paragraph— (i) In general

“qualified organization” applies in that section

the term “qualified organization” means an organization which— (A) is described in clause (v) or (vi) of subsection (b)(1)(A), or (B) is described in section 501(c)(3) and— (i) meets the requirements of section 509(a)(2), or (ii) meets the requirements of section 509(a)(3) and is controlled by an organization described in subparagraph (A) or in clause (i) of this subparagraph. (4) Conservation purpose defined (A) In general For purposes of this subsection,

“qualified real property interest” applies in that section

the term “qualified real property interest” means any of the following interests in real property: (A) the entire interest of the donor other than a qualified mineral interest, (B) a remainder interest, and (C) a restriction (granted in perpetuity) on the use which may be made of the real property. (3) Qualified organization For purposes of paragraph (1),

“qualified research contribution” applies in that section

the term “qualified research contribution” means a charitable contribution by a corporation of tangible personal property described in paragraph (1) of section 1221(a), but only if— (i) the contribution is to an organization described in subparagraph (A) or subparagraph (B) of section 41(e)(6), (ii) the property is constructed or assembled by the taxpayer, (iii) the contribution is made not later than 2 years after the date the construction or assembly of the property is substantially completed, (iv) the original use of the property is by the donee, (v) the property is scientific equipment or apparatus substantially all of the use of which by the donee is for research or experimentation …

“qualified vehicle” applies in that section

the term “qualified vehicle” means any— (i) motor vehicle manufactured primarily for use on public streets, roads, and highways, (ii) boat, or (iii) airplane. Such term shall not include any property which is described in section 1221(a)(1). (F) Regulations or other guidance The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this paragraph. The Secretary may prescribe regulations or other guidance which exempts sales by the donee organization which are in direct furtherance of such organization’s charitable purpose from the requirements of subparagraphs (A)(ii) and (B)(iv)(II).

“relative of the taxpayer” applies in that section

the term “relative of the taxpayer” means an individual who, with respect to the taxpayer, bears any of the relationships described in subparagraphs (A) through (G) of section 152(d)(2). (4) No other amount allowed as deduction No deduction shall be allowed under subsection (a) for any amount paid by a taxpayer to maintain an individual as a member of his household under a program described in paragraph (1)(A) except as provided in this subsection. (h) Qualified conservation contribution (1) In general For purposes of subsection (f)(3)(B)(iii),

“relevant basis” applies in that section

The term “relevant basis” means, with respect to any partner, the portion of such partner’s modified basis in the partnership which is allocable (under rules similar to the rules of section 755) to the portion of the real property with respect to which the contribution described in subparagraph (A) is made. (ii) Modified basis

“sanctioned whaling activities” applies in that section

the term “sanctioned whaling activities” means subsistence bowhead whale hunting activities conducted pursuant to the management plan of the Alaska Eskimo Whaling Commission. (4) Substantiation of expenses The Secretary shall issue guidance requiring that the taxpayer substantiate the whaling expenses for which a deduction is claimed under this subsection, including by maintaining appropriate written records with respect to the time, place, date, amount, and nature of the expense, as well as the taxpayer’s eligibility for such deduction, and that (to the extent provided by the Secretary) such substantiation be provided as part of the taxpayer’s return of tax.

“taxidermy property” applies in that section

the term “taxidermy property” means any work of art which— (i) is the reproduction or preservation of an animal, in whole or in part, (ii) is prepared, stuffed, or mounted for purposes of recreating one or more characteristics of such animal, and (iii) contains a part of the body of the dead animal. (16) Contributions of clothing and household items (A) In general In the case of an individual, partnership, or corporation, no deduction shall be allowed under subsection (a) for any contribution of clothing or a household item unless such clothing or household item is in good used condition or better.

“whaling expenses” applies in that section

the term “whaling expenses” includes expenses for— (i) the acquisition and maintenance of whaling boats, weapons, and gear used in sanctioned whaling activities, (ii) the supplying of food for the crew and other provisions for carrying out such activities, and (iii) storage and distribution of the catch from such activities. (3) Sanctioned whaling activities For purposes of this subsection,

“bond” applies in that section

the term “bond” means any bond, debenture, note, or certificate or other evidence of indebtedness, but does not include any such obligation which constitutes stock in trade of the taxpayer or any such obligation of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year, or any such obligation held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business.

“taxable bond” applies in that section

the term “taxable bond” means any bond the interest of which is not excludable from gross income. (f) Dealers in tax-exempt securities For special rules applicable, in the case of dealers in securities, with respect to premium attributable to certain wholly tax-exempt securities, see section 75.

“farming loss” applies in that section

the term “farming loss” means the lesser of— (I) the amount which would be the net operating loss for the taxable year if only income and deductions attributable to farming businesses (as defined in section 263A(e)(4)) are taken into account, or (II) the amount of the net operating loss for such taxable year. (iii) Coordination with paragraph (2) For purposes of applying paragraph (2), a farming loss for any taxable year shall be treated as a separate net operating loss for such taxable year to be taken into account after the remaining portion of the net operating loss for such taxable year.

“net operating loss” applies in that section

the term “net operating loss” means the excess of the deductions allowed by this chapter over the gross income. Such excess shall be computed with the modifications specified in subsection (d). (d) Modifications The modifications referred to in this section are as follows: (1) Net operating loss deduction No net operating loss deduction shall be allowed.

“net operating loss deduction” applies in that section

the term “net operating loss deduction” means the deduction allowed by this subsection. (b) Net operating loss carrybacks and carryovers (1) Years to which loss may be carried (A) General rule A net operating loss for any taxable year— (i) shall be a net operating loss carryback to the extent provided in subparagraphs (B), (C)(i), and (D), and (ii) except as provided in subparagraph (C)(ii), shall be a net operating loss carryover— (I) in the case of a net operating loss arising in a taxable year beginning before January 1, 2018 , to each of the 20 taxable years following the taxable year of the loss, and (II) in the case of a net operating loss arising in a taxable year beginning after …

“REIT year” applies in that section

the term “REIT year” means any taxable year for which the provisions of part II of subchapter M (relating to real estate investment trusts) apply to the taxpayer. (iii) Special rule for life insurance companies In the case of a life insurance company, if a net operating loss is carried pursuant to clause (i)(I) to a life insurance company taxable year beginning before January 1, 2018 , such net operating loss carryback shall be treated in the same manner as an operations loss carryback (within the meaning of section 810 as in effect before its repeal) of such company to such taxable year.

“foreign research or experimental expenditures” applies in that section

the term “foreign research or experimental expenditures” means, with respect to any taxable year, research or experimental expenditures which are paid or incurred by the taxpayer during such taxable year in connection with the taxpayer’s trade or business and which are attributable to foreign research (within the meaning of section 41(d)(4)(F)).

“domestic research or experimental expenditures” applies in that section

the term “domestic research or experimental expenditures” means research or experimental expenditures paid or incurred by the taxpayer in connection with the taxpayer’s trade or business other than such expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)).

“land used in farming” applies in that section

The term “land used in farming” means land used (before or simultaneously with the expenditures described in paragraph (1)) by the taxpayer or his tenant for the production of crops, fruits, or other agricultural products or for the sustenance of livestock.

“controlled group” applies in that section

the term “controlled group” has the meaning assigned to it by section 1563(a), except that, for such purposes, the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” each place it appears in section 1563(a)(1). (8) Treatment of partnerships and S corporations In the case of a partnership, the limitations of subsection (b) shall apply with respect to the partnership and with respect to each partner. A similar rule shall apply in the case of an S corporation and its shareholders. (9) Coordination with section 38 No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).

“purchase” applies in that section

the term “purchase” means any acquisition of property, but only if— (A) the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267(b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants), (B) the property is not acquired by one component member of a controlled group from another component member of the same controlled group, and (C) the basis of the property in the hands of the person acquiring it is not determined— …

“qualified real property” applies in that section

the term “qualified real property” means— (1) any qualified improvement property described in section 168(e)(6), and (2) any of the following improvements to nonresidential real property placed in service after the date such property was first placed in service: (A) Roofs. (B) Heating, ventilation, and air-conditioning property. (C) Fire protection and alarm systems. (D) Security systems.

“section 179 property” applies in that section

the term “section 179 property” means property— (A) which is— (i) tangible property (to which section 168 applies), or (ii) computer software (as defined in section 197(e)(3)(B)) which is described in section 197(e)(3)(A)(i) and to which section 167 applies, (B) which is— (i) section 1245 property (as defined in section 1245(a)(3)), or (ii) at the election of the taxpayer, qualified real property (as defined in subsection (e)), and (C) which is acquired by purchase for use in the active conduct of a trade or business. Such term shall not include any property described in section 50(b) (other than paragraph (2) thereof). (2) Purchase defined For purposes of paragraph (1),

“sport utility vehicle” applies in that section

The term “sport utility vehicle” means any 4-wheeled vehicle— (I) which is primarily designed or which can be used to carry passengers over public streets, roads, or highways (except any vehicle operated exclusively on a rail or rails), (II) which is not subject to section 280F, and (III) which is rated at not more than 14,000 pounds gross vehicle weight.

“qualified refinery” applies in that section

the term “qualified refinery” means any refinery located in the United States which is designed to serve the primary purpose of processing liquid fuel from crude oil or qualified fuels (as defined in section 45K(c)), or directly from shale or tar sands.

“qualified refinery property” applies in that section

The term “qualified refinery property” means any portion of a qualified refinery— (A) the original use of which commences with the taxpayer, (B) which is placed in service by the taxpayer after the date of the enactment of this section and before January 1, 2014 , (C) in the case any portion of a qualified refinery (other than a qualified refinery which is separate from any existing refinery), which meets the requirements of subsection (e), (D) which meets all applicable environmental laws in effect on the date such portion was placed in service, (E) no written binding contract for the construction of which was in effect on or before June 14, 2005 , and (F) (i) the construction of which is …

“baseline energy use intensity” applies in that section

the term “baseline energy use intensity” means the energy use intensity certified under paragraph (2)(A), as adjusted to take into account weather. (B) Determination of adjustment For purposes of subparagraph (A), the adjustments described in such subparagraph shall be determined in such manner as the Secretary may provide. (7) Other definitions For purposes of this subsection— (A) Energy use intensity

“energy efficient building retrofit property” applies in that section

the term “energy efficient building retrofit property” means property— (A) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, (B) which is installed on or in any qualified building, (C) which is installed as part of— (i) the interior lighting systems, (ii) the heating, cooling, ventilation, and hot water systems, or (iii) the building envelope, and (D) which is certified in accordance with paragraph (2)(B) as meeting the requirements of subparagraphs (B) and (C). (4) Qualified building For purposes of this subsection,

“energy efficient commercial building property” applies in that section

The term “energy efficient commercial building property” means property— (A) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, (B) which is installed on or in any building which is— (i) located in the United States, and (ii) within the scope of Reference Standard 90.1, (C) which is installed as part of— (i) the interior lighting systems, (ii) the heating, cooling, ventilation, and hot water systems, or (iii) the building envelope, and (D) which is certified in accordance with subsection (d)(5) as being installed as part of a plan designed to reduce the total annual energy and power costs with respect to the interior lighting systems, heating, …

“energy use intensity” applies in that section

The term “energy use intensity” means the annualized, measured site energy use intensity determined in accordance with such regulations or other guidance as the Secretary may provide and measured in British thermal units. (B) Qualified professional

“qualified building” applies in that section

the term “qualified building” means any building which— (A) is located in the United States, and (B) was originally placed in service not less than 5 years before the establishment of the qualified retrofit plan with respect to such building. (5) Qualifying final certification For purposes of this subsection,

“qualified computer software” applies in that section

the term “qualified computer software” means software— (i) for which the software designer has certified that the software meets all procedures and detailed methods for calculating energy and power consumption and costs as required by the Secretary, (ii) which provides such forms as required to be filed by the Secretary in connection with energy efficiency of property and the deduction allowed under this section, and (iii) which provides a notice form which documents the energy efficiency features of the building and its projected annual energy costs.

“qualified professional” applies in that section

The term “qualified professional” means an individual who is a licensed architect or a licensed engineer and meets such other requirements as the Secretary may provide. (8) Coordination with deduction otherwise allowed under subsection (a) (A) In general In the case of any building with respect to which an election is made under paragraph (1), the term “energy efficient commercial building property” shall not include any energy efficient building retrofit property with respect to which a deduction is allowable under this subsection. (B) Certain rules not applicable (i) In general Except as provided in clause (ii), subsection (d) shall not apply for purposes of this subsection.

“qualified retrofit plan” applies in that section

the term “qualified retrofit plan” means a written plan prepared by a qualified professional which specifies modifications to a building which, in the aggregate, are expected to reduce such building’s energy use intensity by 25 percent or more in comparison to the baseline energy use intensity of such building.

“qualifying final certification” applies in that section

the term “qualifying final certification” means, with respect to any qualified retrofit plan, the certification described in paragraph (2)(C) if the energy use intensity certified in such certification is not more than 75 percent of the baseline energy use intensity of the building. (6) Baseline energy use intensity (A) In general For purposes of this subsection,

“Reference Standard 90.1” applies in that section

The term “Reference Standard 90.1” means, with respect to any property, the more recent of— (A) Standard 90.1-2007 published by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America, or (B) the most recent Standard 90.1 published by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America for which the Department of Energy has issued a final determination and which has been affirmed by the Secretary, after consultation with the Secretary of Energy, for purposes of this section not later than the date that is 4 years before the …