#### § 1.141-0 Table of contents.

This section lists the captioned paragraphs contained in §§ 1.141-1 through 1.141-16.

## § 1.141-1 Definitions and rules of general application.

(a) In general.

(b) Certain general definitions.

(c) Elections.

(d) Related parties.

(e) Partnerships.

## § 1.141-2 Private activity bond tests.

(a) Overview.

(b) Scope.

(c) General definition of private activity bond.

(d) Reasonable expectations and deliberate actions.

(1) In general.

(2) Reasonable expectations test.

(3) Deliberate action defined.

(4) Special rule for dispositions of personal property in the ordinary course of an established governmental program.

(5) Special rule for general obligation bond programs that finance a large number of separate purposes.

(e) When a deliberate action occurs.

(f) Certain remedial actions.

(g) Examples.

## § 1.141-3 Definition of private business use.

(a) General rule.

(1) In general.

(2) Indirect use.

(3) Aggregation of private business use.

(b) Types of private business use arrangements.

(1) In general.

(2) Ownership.

(3) Leases.

(4) Management contracts.

(5) Output contracts.

(6) Research agreements.

(7) Other actual or beneficial use.

(c) Exception for general public use.

(1) In general.

(2) Use on the same basis.

(3) Long-term arrangements not treated as general public use.

(4) Relation to other use.

(d) Other exceptions.

(1) Agents.

(2) Use incidental to financing arrangements.

(3) Exceptions for arrangements other than arrangements resulting in ownership of financed property by a nongovernmental person.

(4) Temporary use by developers.

(5) Incidental use.

(6) Qualified improvements.

(e) Special rule for tax assessment bonds.

(f) Examples.

(g) Measurement of private business use.

(1) In general.

(2) Measurement period.

(3) Determining average percentage of private business use.

(4) Determining the average amount of private business use for a 1-year period.

(5) Common areas.

(6) Allocation of neutral costs.

(7) Commencement of measurement of private business use.

(8) Examples.

## § 1.141-4 Private security or payment test.

(a) General rule.

(1) Private security or payment.

(2) Aggregation of private payments and security.

(3) Underlying arrangement.

(b) Measurement of private payments and security.

(1) Scope.

(2) Present value measurement.

(c) Private payments.

(1) In general.

(2) Payments taken into account.

(3) Allocation of payments.

(d) Private security.

(1) In general.

(2) Security taken into account.

(3) Pledge of unexpended proceeds.

(4) Secured by any interest in property or payments.

(5) Payments in respect of property.

(6) Allocation of security among issues.

(e) Generally applicable taxes.

(1) General rule.

(2) Definition of generally applicable taxes.

(3) Special charges.

(4) Manner of determination and collection.

(5) Payments in lieu of taxes.

(f) Certain waste remediation bonds.

(1) Scope.

(2) Persons that are not private users.

(3) Persons that are private users.

(g) Examples.

## § 1.141-5 Private loan financing test.

(a) In general.

(b) Measurement of test.

(c) Definition of private loan.

(1) In general.

(2) Application only to purpose investments.

(3) Grants.

(4) Hazardous waste remediation bonds.

(d) Tax assessment loan exception.

(1) General rule.

(2) Tax assessment loan defined.

(3) Mandatory tax or other assessment.

(4) Specific essential governmental function.

(5) Equal basis requirement.

(6) Coordination with private business tests.

(e) Examples.

## § 1.141-6 Allocation and accounting rules.

(a) Allocation of proceeds to expenditures, projects, and uses in general.

(1) Allocations to expenditures.

(2) Allocations of sources to a project and its uses.

(3) Definition of project.

(b) Special allocation rules for eligible mixed-use projects.

(1) In general.

(2) Definition of eligible mixed-use project.

(3) Definition of qualified equity.

(4) Same plan of financing.

(c) Allocations of private payments.

(d) Allocations of proceeds to common costs of an issue.

(e) Allocations of proceeds to bonds.

(f) Examples.

## § 1.141-7 Special rules for output facilities.

(a) Overview.

(b) Definitions.

(1) Available output.

(2) Measurement period.

(3) Sale at wholesale.

(4) Take contract and take or pay contract.

(5) Requirements contract.

(6) Nonqualified amount.

(c) Output contracts.

(1) General rule.

(2) Take contract or take or pay contract.

(3) Requirements contract.

(4) Output contract properly characterized as a lease.

(d) Measurement of private business use.

(e) Measurement of private security or payment.

(f) Exceptions for certain contracts.

(1) Small purchases of output.

(2) Swapping and pooling arrangements.

(3) Short-term output contracts.

(4) Certain conduit parties disregarded.

(g) Special rules for electric output facilities used to provide open access.

(1) Operation of transmission facilities by nongovernmental persons.

(2) Certain use by nongovernmental persons under output contracts.

(3) Ancillary services.

(4) Exceptions to deliberate action rules.

(5) Additional transactions as permitted by the Commissioner.

(h) Allocations of output facilities and systems.

(1) Facts and circumstances analysis.

(2) Illustrations.

(3) Transmission and distribution contracts.

(4) Allocation of payments.

(i) Examples.

## § 1.141-8 $15 million limitation for output facilities.

(a) In general.

(1) General rule.

(2) Reduction in $15 million output limitation for outstanding issues.

(3) Benefits and burdens test applicable.

(b) Definition of project.

(1) General rule.

(2) Separate ownership.

(3) Generating property.

(4) Transmission and distribution.

(5) Subsequent improvements.

(6) Replacement property.

(c) Examples.

## § 1.141-9 Unrelated or disproportionate use test.

(a) General rules.

(1) Description of test.

(2) Application of unrelated or disproportionate use test.

(b) Unrelated use.

(1) In general.

(2) Use for the same purpose as government use.

(c) Disproportionate use.

(1) Definition of disproportionate use.

(2) Aggregation of related uses.

(3) Allocation rule.

(d) Maximum use taken into account.

(e) Examples.

## § 1.141-10 Coordination with volume cap. [Reserved]

## § 1.141-11 Acquisition of nongovernmental output property. [Reserved]

## § 1.141-12 Remedial actions.

(a) Conditions to taking remedial action.

(1) Reasonable expectations test met.

(2) Maturity not unreasonably long.

(3) Fair market value consideration.

(4) Disposition proceeds treated as gross proceeds for arbitrage purposes.

(5) Proceeds expended on a governmental purpose.

(b) Effect of a remedial action.

(1) In general.

(2) Effect on bonds that have been advance refunded.

(c) Disposition proceeds.

(1) Definition.

(2) Allocating disposition proceeds to an issue.

(3) Allocating disposition proceeds to different sources of funding.

(d) Redemption or defeasance of nonqualified bonds.

(1) In general.

(2) Special rule for dispositions for cash.

(3) Anticipatory remedial action.

(4) Notice of defeasance.

(5) Special limitation.

(6) Defeasance escrow defined.

(e) Alternative use of disposition proceeds.

(1) In general.

(2) Special rule for use by 501(c)(3) organizations.

(f) Alternative use of facility.

(g) Rules for deemed reissuance.

(h) Authority of Commissioner to provide for additional remedial actions.

(i) Effect of remedial action on continuing compliance.

(j) Nonqualified bonds.

(1) Amount of nonqualified bonds.

(2) Allocation of nonqualified bonds.

(k) Examples.

## § 1.141-13 Refunding issues.

(a) In general.

(b) Application of private business use test and private loan financing test.

(1) Allocation of proceeds.

(2) Determination of amount of private business use.

(c) Application of private security or payment test.

(1) Separate issue treatment.

(2) Combined issue treatment.

(3) Special rule for arrangements not entered into in contemplation of the refunding issue.

(d) Multipurpose issue allocations.

(1) In general.

(2) Exceptions.

(e) Application of reasonable expectations test to certain refunding bonds.

(f) Special rule for refundings of certain general obligation bonds.

(g) Examples.

## § 1.141-14 Anti-abuse rules.

(a) Authority of Commissioner to reflect substance of transactions.

(b) Examples.

## § 1.141-15 Effective/applicability dates.

(a) Scope.

(b) Effective dates.

(1) In general.

(2) Certain short-term arrangements.

(3) Certain prepayments.

(4) Certain remedial actions.

(c) Refunding bonds.

(d) Permissive application of regulations.

(e) Permissive retroactive application of certain sections.

(1) In general.

(2) Transition rule for pre-effective date bonds.

(f) Effective dates for certain regulations relating to output facilities.

(1) General rule.

(2) Transition rule for requirements contracts.

(g) Refunding bonds for output facilities.

(h) Permissive retroactive application.

(i) Permissive application of certain regulations relating to output facilities.

(j) Effective dates for certain regulations relating to refundings.

(k) Effective/applicability dates for certain regulations relating to generally applicable taxes and payments in lieu of tax.

(l) Applicability date for certain regulations related to allocation and accounting.

(1) In general.

(2) Refunding bonds.

(3) Permissive application.

(m) Permissive retroactive application of certain regulations.

(n) Effective/applicability dates for certain regulations relating to certain definitions.

## § 1.141-16 Effective dates for qualified private activity bond provisions.

(a) Scope.

(b) Effective dates.

(c) Permissive application.

(d) Certain remedial actions.

(1) General rule.

(2) Special rule for allocations of nonqualified bonds.

[T.D. 8712, 62 FR 2283, Jan. 16, 1997, as amended by T.D. 8757, 63 FR 3259, Jan. 22, 1998; T.D. 8941, 66 FR 4664, Jan. 18, 2001; T.D. 9016, 67 FR 59759, Sept. 23, 2002; T.D. 9085, 68 FR 45775, Aug. 4, 2003; T.D. 9150, 69 FR 50066, Aug. 13, 2004; T.D. 9234, 70 FR 75031, Dec. 19, 2005; T.D. 9429, 73 FR 63374, Oct. 24, 2008; T.D. 9741, 80 FR 65642, Oct. 27, 2015; T.D. 9777, 81 FR 46591, July 18, 2016]

###### Editorial Note on Part 1

#### Editorial Note:

IRS redesignated the following sections to appear below the undesignated center heading “Regulations Applicable to Certain Bonds Sold Prior to July 8, 1997” and preceding the undesignated center heading “Deductions for Personal Exemptions.” See 62 FR 25507 and 25513, May 9, 1997 for the specific sections involved in the redesignation.