[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.50-1]

[Page 395-396]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.50-1  Restoration of credit.

    (a) In general. Section 49(a) (relating to termination of credit) 
does not apply to property--
    (1) The construction, reconstruction, or erection of which by the 
taxpayer--
    (i) Is completed after August 15, 1971, or
    (ii) Is begun after March 31, 1971, or
    (2) Which is acquired by the taxpayer--
    (i) After August 15, 1971, or
    (ii) After March 31, 1971, and before August 16, 1971, pursuant to 
an order which the taxpayer establishes was placed after March 31, 1971.
    (b) Transitional rule. In the case of property (other than 
pretermination property) the construction, reconstruction, or erection 
of which by the taxpayer is begun before April 1, 1971, and completed 
after August 15, 1971, there shall be taken into account as the basis of 
new section 38 property in determining qualified investment only that 
portion of the basis which is properly attributable to construction, 
reconstruction, or erection after August 15, 1971.

[[Page 396]]

    (c) Principles to be applied. The principles of Sec. 1.48-2 (b) and 
(c) shall be applied in determining when property is acquired and in 
determining that portion of the basis of property properly attributable 
to construction, reconstruction, or erection after August 15, 1971.

[T.D. 7203, 37 FR 17133, Aug. 25, 1972]

   rules for computing credit for expenses of work incentive programs