§ 1.50-0. Table of contents.

§ 1.50-1 Lessee's income inclusion following election of lessor of investment credit property to treat lessee as acquirer.

(a) In general.

(b) Coordination with basis adjustment rules.

(1) Basis adjustment.

(2) Amount of credit included ratably in gross income.

(i) In general.

(ii) Special rule for the energy credit.

(3) Special rule for partnerships and S corporations.

(i) In general.

(ii) Definition of ultimate credit claimant.

(c) Coordination with the recapture rules.

(1) In general.

(2) Income inclusion exceeds unrecaptured credit.

(3) Special rule for the energy credit.

(4) Timing of income inclusion or reduction following recapture.

(d) Election to accelerate income inclusion outside of the recapture period.

(1) In general.

(2) Exceptions.

(3) Manner and time for making election.

(e) Examples.

(1) Example 1.

(2) Example 2.

(3) Example 3.

(4) Example 4.

(5) Example 5.

(6) Example 6.

(f) Applicability date.

§ 1.50-2 Recapture of the advanced manufacturing investment credit in the case of certain expansions.

(a) Recapture in connection with certain expansions.

(1) In general.

(2) Exception.

(3) Carrybacks and carryover adjusted.

(b) Definitions.

(1) Applicable period.

(2) Applicable taxpayer.

(i) In general.

(ii) Special rules for partnerships and S corporations and their partners and shareholders.

(iii) Examples.

(A) Example 1: Applicable taxpayer: In general.

(B) Example 2: Applicable taxpayer: In general.

(C) Example 3: Applicable taxpayer: Special rules for partnerships and S corporations and their partners and shareholders.

(D) Example 4: Applicable taxpayer: Special rules for partnerships and S corporations and their partners and shareholders.

(E) Example 5: Applicable taxpayer: Special rules for partnerships and S corporations and their partners and shareholders.

(F) Example 6: Applicable taxpayer: Special rules for partnerships and S corporations and their partners and shareholders.

(iv) Affiliated groups.

(3) Applicable transaction.

(4) Applicable transaction recapture amount.

(5) Existing facility.

(6) Foreign country of concern.

(7) Material expansion.

(8) Semiconductor manufacturing capacity.

(9) Significant renovations.

(10) Significant transaction.

(i) In general.

(ii) Required agreement.

(11) Technology licensing.

(12) Technology or product that raises national security concerns.

(c) Exception from the definition of applicable transaction for the manufacturing of legacy semiconductors.

(1) In general.

(2) Legacy semiconductor.

(d) Example: Applicable transaction credit claimed.

(e) Applicability date.