Governmental Lease Financing Reform Act of 1983

Governmental Lease Financing Reform Act of 1983 - Amends the Internal Revenue Code to deny property used by governments, tax-exempt foreign individuals, and other tax-exempt entities accelerated depreciation deductions. Requires that any deductions for depreciation of such property be calculated according to the straight line method. Exempts from such limitation short-term leases of personal property, short-lived property (property with a present class life of six years and subject to a lease which is 75 percent or less of such present class life), and property which is used in an unrelated trade or business.

Denies the investment tax credit for property used by foreign governments and other foreign persons. Allows an investment tax credit for property used by governments or other tax-exempt entities which is subject to a short-term lease.

Denies the investment tax credit for rehabilitation expenditures for property which is used by governments or tax-exempt entities. Requires the recapture of tax on rehabilitated buildings which become tax-exempt use property.

States that the provisions of this Act shall be effective for property placed in service after May 23, 1983, with an exception for binding contracts.