### Question
How does the law define tax-exempt use property?


### Answer
Under *26 U.S.C. § 470*, **tax-exempt use property** is defined as:

> given to such term by section 168(h), except that such section shall be applied—


(i) without regard to paragraphs (1)(C) and (3) thereof, and


(ii) as if section 197 intangible property (as defined in section 197), and property described in paragraph (1)(B) or (2) of section 167(f), were tangible property.

#### Citation:
  - *26 U.S.C. § 470*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

