### Question
How does the law define qualified property?


### Answer
Under *26 U.S.C. § 48*, **qualified property** is defined as:

> property—


(i) which is—


(I) tangible personal property, or


(II) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility,


  

(ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable,


(iii) which is constructed, reconstructed, erected, or acquired by the taxpayer, and


(iv) the original use of which commences with the taxpayer

#### Citation:
  - *26 U.S.C. § 48*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart E-Rules for Computing Investment Credit**

