LAW 98-369—JULY 18, 1984 98 STAT. 715

"(1) LESSOR'S CREDITS AND DEDUCTIONS NOT AFFECTED.—This
section shall not apply to any listed property leased or held for
leasing by any person regularly engaged in the business of
leasing such property.

"(2) LESSEE'S DEDUCTIONS REDUCED.—For purposes of deter-
mining the amount allowable as a deduction under this chapter
for rentals or other payments under a lease for a period of 30
days or more of listed property, only the allowable percentage of
such payments shall be taken into account.

"(3) ALLOWABLE PERCENTAGE.—For purposes of paragraph (2),
the allowable percentage shall be determined under tables pre-
scribed by the Secretary. Such tables shall be prescribed so that
the reduction in the deduction under paragraph (2) is substan-
tially equivalent to the applicable restrictions contained in
subsections (a) and (b).

"(4) LEASE TERM.—In determining the term of any lease for
purposes of paragraph (2), the rules of section 168(j)(6)(B) shall Ante, p. 509.
apply.

X5) LESSEE RECAPTURE.—-Under regulations prescribed by the
Secretary, rules similar to the rules of subsection (b)(3) shall
apply to any lessee to which paragraph (2) applies.
"(d) DEFINITIONS AND SPECIAL RuLES.—For purposes of this
section—

"(1) COORDINATION WITH SECTION 179.—Any deduction allow-
able under section 179 with respect to any listed property shall
be subject to the limitations of subsections (a) and (b) in the
same manner as if it were a recovery deduction allowable under
section 168.

"(2) SUBSEQUENT DEPRECIATION DEDUCTIONS REDUCED FOR DE-
DUCTIONS ALLOCABLE TO PERSONAL USE.—Solely for purposes of
determining the amount of the recovery deduction for subse-
quent taxable years, if less than 100 percent of the use of any
listed property during any taxable year is not use described in
section 168(c)(l) (defining recovery property), all of the use of
such property during such taxable year shall be treated as use
so described.
"(3) DEDUCTIONS OF EMPLOYEE.—

"(A) IN GENERAL.—Any employee use of listed property
shall not be treated as use in a trade or business for
purposes of determining the amount of any credit allowable
under section 38 to the employee or the amount of any Post, p. 827.
recovery deduction allowable to the employee unless such
use is for the convenience of the employer and required as a
condition of employment.

"(B) EMPLOYEE USE.—For purposes of subparagraph (A),
the term 'employee use' means any use in connection with
the performance of services as an employee.
"(4) LISTED PROPERTY.—

"(A) IN GENERAL,—Except as provided in subparagraph
(B), the term listed property' means—
"(i) any passenger automobile,

"(ii) any other property used as a means of transpor-
tation,

"(iii) any property of a type generally used for pur-
poses of entertainment, recreation, or amusement,

"(iv) any computer or peripheral equipment (as de-
fined in section 168(J)(5)(D)X and Ante, P. 509.