In the case of the demolition of any structure—
I.R.C. § 280B(1)
no deduction otherwise allowable under this chapter shall be allowed to the owner
or lessee of such structure for—
I.R.C. § 280B(2)
amounts described in paragraph (1)
shall be treated as properly chargeable to capital account with respect to the land
on which the demolished structure was located.
(Added Pub. L. 94-455, title XXI, 2124(b)(1), Oct. 4,
1976, 90 Stat. 1918, and amended Pub. L. 95-600, title VII, 701(f)(5),
Nov. 6, 1978, 92 Stat. 2902; Pub. L. 96-541, 2(b), Dec. 17, 1980, 94 Stat. 3204; Pub. L. 97-34, title II, 212(d)(2)(C), Aug. 13, 1981, 95 Stat. 239; Pub. L. 98-369, div. A, title X, 1063(a), (b)(1), July 18, 1984, 98 Stat. 1047.)
1984--Pub. L. 98-369 struck out “certain historic"
before “structures” in section catchline, struck out heading “(a)
General rule”, substituted “In the case of the demolition of any structure"
for “In the case of the demolition of a certified historic structure
(as defined in 48(g)(3)(A))” in text, and struck out subsecs. (b)
and (c) which contained provisions relating to a special rule for registered historic
districts and to the application of this section, respectively.
1981--Subsec. (a). Pub. L. 97-34, 212(d)(2)(C)(i), substituted “48(g)(3)(A)” for “section 191(d)(1)”
in provisions preceding par. (1).
Subsec. (b). Pub. L. 97-34, 212(d)(2)(C)(ii), substituted
“section 48(g)(3)(B)” for “section 191(d)(2)”.
1980--Subsec. (c). Pub. L. 96-541 added subsec.
1978--Subsec. (b). Pub. L. 95-600 substituted “registered historic district (as defined in section 191(d)(2))”
for “Registered Historic District” and “Secretary of the Interior
has certified that such structure is not a certified historic structure, and that
such structure is not of historic significance to the district, and if such certification
occurs after the beginning of the demolition of such structure, the taxpayer has certified
to the Secretary that, at the time of such demolition, he in good faith was not aware
of the certification requirement by the Secretary of the Interior” for
“Secretary of the Interior has certified, prior to the demolition of such structure,
that such structure is not of historic significance to the district”.
EFFECTIVE DATE OF 1984 AMENDMENT
Section 1063(c) of Pub. L. 98-369, as amended by Pub. L. 99-514, title XVIII, 1878(h), Oct. 22, 1986, 100 Stat. 2904, provided that:
“(1) The amendments made by this section [amending this section] shall apply
to taxable years ending after December 31, 1983, but shall not apply to any demolition
(other than of a certified historic structure) commencing before July 19, 1984.
“(2) For purposes of paragraph (1), if a demolition is delayed until the completion
of the replacement structure on the same site, the demolition shall be treated as
commencing when construction of the replacement structure commences.
“(3) The amendments made by this section [amending this section] shall not apply
to any demolition commencing before September 1, 1984, pursuant to a bank headquarters
building project if--
“(A) on April 1, 1984, a corporation was retained to advise the bank on the
final completion of the project, and
“(B) on June 12, 1984, the Comptroller of the Currency approved the project.
“(4) The amendments made by this section shall not apply to the remaining adjusted
basis at the time of demolition of any structure if--
“(A) such structure was used in the manufacture, storage, or distribution of
lead alkyl antiknock products and intermediate and related products at facilities
located in or near Baton Rouge, Louisiana, and Houston, Texas, owned by the same corporation,
“(B) demolition of at least one such structure at the Baton Rouge facility commenced
before January 1, 1984.”
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to expenditures incurred after Dec. 31, 1981, in taxable years ending
after such date, see section 212(e) of Pub. L. 97-34, set out as a note under section 46 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-600 effective as if included within the enactment of this section by section 2124 of
Pub. L. 94-455, see section 701(f)(8) of Pub. L. 95-600, set out as an Effective and Termination Dates of 1978 Amendments note under section
167 of this title.
Section 2124(b)(3) of Pub. L. 94-455, which had provided that enactment of this section by subsec. (b) shall apply with
respect to demolitions commencing after June 30, 1976, and before Jan. 1, 1981, was
repealed by Pub. L. 96-541, 2(e)(2), Dec. 17, 1980, 94 Stat. 3205. See subsec. (c) of this section.