§ 606. Credits against tax. (a) Investment tax credit (ITC). (1) A\ntaxpayer shall be allowed a credit, to be computed as hereinafter\nprovided, against the tax imposed by this article. The amount of the\ncredit shall be the per cent provided for hereinbelow of the investment\ncredit base. The investment credit base is the cost or other basis, for\nfederal income tax purposes, of tangible personal property and other\ntangible property, including buildings and structural components of\nbuildings, described in paragraph two of this subsection, less the\namount of the nonqualified nonrecourse financing with respect to such\nproperty to the extent such financing would be excludible from the\ncredit base pursuant to section 46(c)(8) of the internal revenue code\n(treating such property as section thirty-eight property irrespective of\nwhether or not it in fact constitutes section thirty-eight property).\nIf, at the close of a taxable year following the taxable year in which\nsuch property was placed in service, there is a net decrease in the\namount of nonqualified nonrecourse financing with respect to such\nproperty, such net decrease shall be treated as if it were the cost or\nother basis of property described in paragraph two of this subsection\nacquired, constructed, reconstructed or erected during the year of the\ndecrease in the amount of nonqualified nonrecourse financing. The\npercentage to be used to compute the credit allowed pursuant to this\nsubsection shall be that percentage appearing in column two which is\nopposite the appropriate period in column one in which the tangible\npersonal property was acquired, constructed, reconstructed or erected,\nas the case may be:\nColumn 1 Column 2\nAfter December 31, 1968 and\nprior to January 1, 1974 one per cent\nAfter December 31, 1973 and\nprior to January 1, 1978 two per cent\nAfter December 31, 1977 and\nprior to January 1, 1979 three per cent\nAfter December 31, 1978 and\nprior to June 1, 1981 four per cent\nAfter May 31, 1981 and\nprior to July 1, 1982 five per cent\nAfter June 30, 1982 and\nbefore January 1, 1987 six per cent\nAfter December 31, 1986 four per cent, except that in the\n case of research and development\n property the applicable percentage\n shall be seven\nProvided, however, that in the case of an acquisition, construction,\nreconstruction or erection which was commenced in any one period and\ncontinued or completed in any subsequent period the credit shall be the\nsum of the portions of the investment credit base attributable to each\nsuch period, which portion with respect to each such period shall be\nascertained by multiplying such investment credit base by a fraction the\nnumerator of which shall be the expenditures paid or incurred during\nsuch period for such purposes and the denominator of which shall be the\ntotal of all expenditures paid or incurred for such acquisition,\nconstruction, reconstruction or erection, multiplied by the allowable\npercentage for each such period.\n (1-a) For a taxpayer that is an eligible farmer, as defined in\nsubsection (n) of this section, the percentage to be used to compute the\ncredit allowed under this subsection shall be twenty percent for\nproperty described in subparagraph (A) of paragraph two of this\nsubsection that is principally used by the taxpayer in the production of\ngoods by farming, agriculture, horticulture, floriculture or\nviticulture.\n (2) (A) A credit shall be allowed under this subsection with respect\nto tangible personal property and other tangible property, including\nbuildings and structural components of buildings, which are: depreciable\npursuant to section one hundred sixty-seven of the internal revenue\ncode, have a usefu
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