(b)__In the case of construction in progress or inventory parts, would be subject under the Code to an allowance for depreciation when placed in service or would have been subject to an allowance for depreciation under the Code as of that date but for the fact that the property has been fully depreciated.

"Qualified business property" also includes all property that is affixed or attached to a building or other real estate if it is used primarily to further a particular trade or business activity taking place in that building or on that real estate.__"Qualified business property" does not include components or attachments to a building if used primarily to serve the building as a building, regardless of the particular trade or activity taking place in or on the building.__"Qualified business property" also does not include land improvements if used primarily to further the use of the land as land, regardless of the particular trade or business activities taking place in or on the land.__In the case of construction in progress or inventory parts, the term "used" means intended to be used.__"Qualified business property" also does not include any vehicle registered for on-road use on which a tax assessed pursuant to chapter 111 has been paid or any watercraft registered for use on state waters on which a tax assessed pursuant to chapter 112 has been paid.

3.__Additional limitations.__The exemptions provided pursuant to this section are limited as follows.

A.__Exemption for certain energy facilities under this section is limited as follows.

(1)__The exemption provided by this section does not apply to a natural gas pipeline, including pumping or compression stations, storage depots and appurtenant facilities used in the transportation, delivery or sale of natural gas but not including a pipeline that is less than a mile in length and is owned by a consumer of natural gas delivered through the pipeline.

(2)__Except as provided in subparagraph (3), the exemption provided by this section does not apply to property used to produce or transmit energy primarily for sale.__For purposes of this subparagraph, energy is primarily for sale if during the immediately preceding