PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3371

(D) Paragraph (2) of section 168(d) of the 1986 Code is
amended by striking out "and" at the end of subparagraph (A),
by inserting "and" at the end of subparagraph (B), and by
inserting after subparagraph (B) the following new subpara-
graph:

"(C) any railroad grading or tunnel bore,".

(E) Clause (i) of section 168(d)(3)(B) of the 1986 Code (as
amended by section 102(a)) is amended by striking out "and
residential rental property" and inserting in lieu thereof "resi-
dential rental property, and railroad grading or tunnel bore".

(P) The table contained in paragraph (2)(C) of section 168(g) of
the 1986 Code is amended by adding at the end thereof the
following new item:

"(iv) Any railroad grading or tunnel bore ................................................ 50 years."

(G) Subparagraph (E) of section 168(i)(l) of the 1986 Code is

amended by adding at the end thereof the following new clause:

"(iii) SPECIAL RULE FOR RAILROAD GRADING OR TUNNEL

BORES.—In the case of any property which is a railroad

grading or tunnel bore—

"(I) such property shall be treated as an assigned
property,

"(II) the recovery period applicable to such property
shall be treated as an assigned item, and

"(III) clause (ii) of subparagraph (D) shall not apply."
(H) The table contained in subparagraph (A) of section
467(eX3) of the 1986 Code is amended by adding at the end
thereof the following new item:

"Any railroad grading or tunnel bore......................................................... 50 years."

(I) Paragraph (3) of section 1245(a) of the 1986 Code is
amended by striking out "or" at the end of subparagraph (D), by
striking out the period at the end of subparagraph (E), and
inserting in lieu thereof ", or", and by adding at the end thereof
the following new subparagraph:

"(F) any railroad grading or tunnel bore (as defined in section
168feX4))."
(j) AMENDMENTS RELATED TO SECTION 243 OF THE REFORM ACT.—

(1) Section 243 of the Reform Act (related to deduction of bus 26 USC 165 note.
and freight forwarder operating authority) is amended by
redesignating subsection (d) as subsection (e) and by inserting

after subsection (c) the following new subsection:
"(d) APPLICATION OF SECTION 334(bX2).—For purposes of subsec-
tions (a) and (b), the reference to section 334(t>X2) in section
266(cX2XAXii) of the Economic Recovery Tax Act of 1981 shall be a
reference to such section as in effect before its repeal."

(2) The heading of subparagraph (A) of section 243(b)(2) of the
Reform Act is amended by striking out "TO BEGIN IN 198?".

(k) AMENDMENTS RELATED TO SECTION 251 OF THE REFORM ACT.—

(1) Paragraph (2)(B) of section 251(d) of the Reform Act is 26 USC 46 note.
amended by striking out clause (i) and redesignating clauses (ii)

and (iii) as clauses (i) and (ii), respectively.

(2) Subparagraph (P) of section 251(dX3) of the Reform Act is California.
amended by striking out "San Francisco" and inserting " lieu

thereof "San Jose, California".

(3) Paragraph (4) of section 251(d) of the Reform Act is
amended—