102 STAT. 3694

PUBLIC LAW 100-647—NOV. 10, 1988

(A) is constructed, reconstructed, or acquired by the tax-
payer pursuant to a written contract which was binding on
July 14,1988, or

(B) is constructed or reconstructed by the taxpayer and
such construction or reconstruction began by July 14,1988.

SEC. 6028. TREATMENT OF PROPERTY USED IN A FARMING BUSINESS.

(a) IN GENERAL.—Paragraph (2) of section 168(b) of the 1986 Code
(as amended by title I) is amended by striking out "or" at the end of
subparagraph (A), by redesignating subparagraph (B) as subpara-
graph (C), and by inserting after subparagraph (A) the following new
subparagraph:

"(B) any property used in a farming business (within the
meaning of section 263A(e)(4)), or".
26 USC 168 note. (b) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to property placed
in service after December 31,1988.

(2) EXCEPTION.—The amendments made by this section shall
not apply to any property if such property is placed in service
before July 1,1989, and if such property—

(A) is constructed, reconstructed, or acquired by the tax-
payer pursuant to a written contract which was binding on
July 14,1988, or

(B) is constructed or reconstructed by the taxpayer and
such construction or reconstruction began by July 14, 1988.

SEC. 6029. TREATMENT OF CERTAIN TREES.

(a) IN GENERAL,—Subparagraph (D) of section 168(e)(3) of the 1986
Code (relating to classification of certain property), as amended by
section 6027 of this Act, is amended to read as follows:

"(D) 10-YEAR PROPERTY.—The term '10-year property'
includes—

"(i) any single purpose agricultural or horticultural
structure (within the meaning of section 48(p)), and
"(ii) any tree or vine bearing fruit or nuts."

(b) ONLY STRAIGHT-LINE DEPRECIATION ALLOWED.—Paragraph (3)
of section 168(b) of the 1986 Code is amended by adding at the end
thereof the following new subparagraph:

"(D) Property described in subsection (eXSXDXii)."

(c) CLASS LIFE DETERMINATION.—The table contained in subpara-
graph (B) of section 168(gX3) of the 1986 Code, as amended by section
6027 of this Act, is amended by striking out the item relating to
subparagraph (D) and inserting in lieu thereof the following new
item:

"(DXi)................................................................................................................................. 15

"(DXii)............................................................................................................................... 20".

26 USC 168 note. (d) EFFECTIVE DATE.—The amendments made by this section shall
apply to property placed in service after December 31,1988.

SEC. 6030. ONE-YEAR DEFERRAL OF PROCEEDS FROM LIVESTOCK SOLD
ON ACCOUNT OF DROUGHT.

(a) IN GENERAL.—Paragraph (1) of section 451(e) of the 1986 Code
(relating to special rule for proceeds from livestock sold on account

of drought) is amended by striking out ''(other than livestock de-
scribed in section 1231(bX3))".

26 USC 451 note. (b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to sales or exchanges occurring after December 31, 1987.