dry or wet cleaning property placed in service during
such year at each business premise of the taxpayer.
‘‘(3) QUALIFIED DRY OR WET CLEANING PROP-
ERTY.—For purposes of this subsection, the term
‘qualified dry or wet cleaning property’ means equip-
ment designed primarily to clean textiles by profes-
sionals using special technology, detergents and ad-
ditives to minimize potential for adverse effects, or
appropriately dry or apply restorative finishing pro-
cedures to such textiles if—
‘‘(A) such equipment does not use any haz-
ardous solvent as the primary process solvent,
‘‘(B) the original use of such property
commences with the taxpayer, and
‘‘(C) with respect to which depreciation (or
amortization in lieu of depreciation) is allow-
able.
‘‘(4) PRIMARY
PROCESS
SOLVENT.—For pur-
poses of paragraph (3), the term ‘primary process
solvent’ means the primary liquid in which clothing,
other fabric, and sensitive textiles are cleaned or
which is used to appropriately dry or apply restora-
tive finishing procedures to textiles, cleaned, exclud-
ing detergent formulations.
‘‘(5) HAZARDOUS SOLVENT.—For purposes of
paragraph (3), the term ‘hazardous solvent’ means
any solvent any portion of which consists of a
chlorinated solvent, a volatile organic compound, or
any other hazardous regulated substance, or which
contains any substance determined by the Adminis-
trator of the Environmental Protection Agency, the
Director of the National Institute for Occupational
Safety and Health, the Director of the International
Agency for Research on Cancer, the Director of the
National 
Institute 
of 
Environmental 
Health
Sciences’ National Toxicology Program, or the direc-
tor of any other appropriate Federal agency to
possess—
‘‘(A) carcinogenic potential in humans, or
‘‘(B) bioaccumulative properties.’’.
(c) CREDIT ALLOWED AGAINST REGULAR AND MIN-
IMUM TAX.—
(1) IN GENERAL.—Subsection (c) of section 38
of such Code (relating to limitation based on amount
of tax) is amended by redesignating paragraph (3)
as paragraph (4) and by inserting after paragraph
(2) the following:
‘‘(3) SPECIAL RULES FOR DRY OR WET CLEAN-
ING EQUIPMENT CREDIT.—
‘‘(A) IN GENERAL.—In the case of the dry
or wet cleaning equipment credit—
‘‘(i) this section and section 39 shall
be applied separately with respect to the
credit, and
‘‘(ii) in applying paragraph (1) to the
credit—
‘‘(I) subparagraph (A) thereof
shall not apply, and
‘‘(II) the limitation under para-
graph (1) (as modified by subclause
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the
taxable year (other than the dry or
wet cleaning equipment credit).
‘‘(B) DRY OR WET CLEANING EQUIPMENT
CREDIT.—For purposes of this subsection, the
term ‘dry or wet cleaning equipment credit’
means the credit allowable under subsection (a)
by reason of section 46(4).’’.
(2) CONFORMING AMENDMENT.—Subclause (II)
of section 38(c)(2)(A)(ii) of such Code is amended
by inserting ‘‘or the dry or wet cleaning equipment
credit’’ after ‘‘employment credit’’.
(d) CLERICAL AMENDMENTS.—
(1) The section heading for section 48 of such
Code is amended to read as follows:
‘‘SEC. 48. ENERGY CREDIT; REFORESTATION CREDIT; DRY
OR WET CLEANING EQUIPMENT CREDIT.’’.
(2) The item relating to section 48 in the table
of sections for subpart E of part IV of subchapter
A of chapter 1 of such Code is amended to read as
follows:
‘‘Sec. 48. Energy credit; reforestation credit; dry or wet cleaning
equipment credit.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service on
or after January 1, 2001.
Æ