qualified rehabilitation expenditure
(B)The term “qualified rehabilitation expenditure” does not include— (i)Any expenditure with respect to which the taxpayer does not use the straight line method over a recovery period determined under subsection (c) or (g) ofThe preceding sentence shall not apply to any expenditure to the extent the alternative depreciation system of section 168(g) applies to such expenditure by reason of subparagraph (B) or (C) of section 168(g)(1). (ii)The cost of acquiring any building or interest therein. (iii)Any expenditure attributable to the enlargement of an existing building. (iv)Any expenditure attributable to the rehabilitation of a qualified rehabilitated building unless the rehabilitation is a certified rehabilitation (within the meaning of subparagraph (C)). (v) (I)Any expenditure in connection with the rehabilitation of a building which is allocable to the portion of such property which is (or may reasonably be expected to be) tax-exempt use property (within the meaning of section 168(h), except that “50 percent” shall be substituted for “35 percent” in paragraph (1)(B)(iii) thereof). (II)This clause shall not apply for purposes of determining under paragraph (1)(C) whether a building has been substantially rehabilitated. (vi)Any expenditure of a lessee of a building if, on the date the rehabilitation is completed, the remaining term of the lease (determined without regard to any renewal periods) is less than the recovery period determined under section 168(c).