subsidized energy financing
(4) Special rule for property financed by subsidized energy financing or industrial development bonds (A) Reduction of basis For purposes of applying the energy percentage to any property, if such property is financed in whole or in part by— (i) subsidized energy financing, or (ii) the proceeds of a private activity bond (within the meaning of section 141 ) the interest on which is exempt from tax under section 103, the amount taken into account as the basis of such property shall not exceed the amount which (but for this subparagraph) would be so taken into account multiplied by the fraction determined under subparagraph (B). (B) Determination of fraction For purposes of subparagraph (A), the fraction determined under this subparagraph is 1 reduced by a fraction— (i) the numerator of which is that portion of the basis of the property which is allocable to such financing or proceeds, and (ii) the denominator of which is the basis of the property. (C) Subsidized energy financing For purposes of subparagraph (A), the term “subsidized energy financing” means financing provided under a Federal, State, or local program a principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy. (D) Termination This paragraph shall not apply to periods after December 31, 2008 , under rules similar to the rules of section 48(m) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
26 USC § 48(a)(4)
None identified, default scope is assumed to be the parent (subpart E) of this section.