Source: http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section45D&num=0&edition=prelim
Timestamp: 2019-04-18 21:07:39+00:00

Document:
For purposes of section 38, in the case of a taxpayer who holds a qualified equity investment on a credit allowance date of such investment which occurs during the taxable year, the new markets tax credit determined under this section for such taxable year is an amount equal to the applicable percentage of the amount paid to the qualified community development entity for such investment at its original issue.
(B) 6 percent with respect to the remainder of the credit allowance dates.
(B) each of the 6 anniversary dates of such date thereafter.
(C) such investment is designated for purposes of this section by the qualified community development entity.
Such term shall not include any equity investment issued by a qualified community development entity more than 5 years after the date that such entity receives an allocation under subsection (f). Any allocation not used within such 5-year period may be reallocated by the Secretary under subsection (f).
The maximum amount of equity investments issued by a qualified community development entity which may be designated under paragraph (1)(C) by such entity shall not exceed the portion of the limitation amount allocated under subsection (f) to such entity.
The requirement of paragraph (1)(B) shall be treated as met if at least 85 percent of the aggregate gross assets of the qualified community development entity are invested in qualified low-income community investments.
The term "qualified equity investment" includes any equity investment which would (but for paragraph (1)(A)) be a qualified equity investment in the hands of the taxpayer if such investment was a qualified equity investment in the hands of a prior holder.
A rule similar to the rule of section 1202(c)(3) shall apply for purposes of this subsection.
(B) any capital interest in an entity which is a partnership.
(C) the entity is certified by the Secretary for purposes of this section as being a qualified community development entity.
(B) any community development financial institution (as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702)).
(D) any equity investment in, or loan to, any qualified community development entity.
(v) less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to nonqualified financial property (as defined in section 1397C(e)).
Such term shall include any business carried on by an individual as a proprietor if such business would meet the requirements of subparagraph (A) were it incorporated.
The term "qualified active low-income community business" includes any trades or businesses which would qualify as a qualified active low-income community business if such trades or businesses were separately incorporated.
(B) paragraph (3) thereof shall not apply.
(ii) in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income.
Subparagraph (B) shall be applied using possessionwide median family income in the case of census tracts located within a possession of the United States.
The Secretary shall prescribe regulations under which 1 or more targeted populations (within the meaning of section 103(20) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702(20))) may be treated as low-income communities. Such regulations shall include procedures for determining which entities are qualified active low-income community businesses with respect to such populations.
In the case of an area which is not tracted for population census tracts, the equivalent county divisions (as defined by the Bureau of the Census for purposes of defining poverty areas) shall be used for purposes of determining poverty rates and median family income.
(B) is contiguous to 1 or more low-income communities (determined without regard to this paragraph).
In the case of a population census tract located within a high migration rural county, paragraph (1)(B)(i) shall be applied by substituting "85 percent" for "80 percent".
For purposes of this paragraph, the term "high migration rural county" means any county which, during the 20-year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period.
(G) $3,500,000,000 for each of calendar years 2010 through 2019.
(B) which intends to satisfy the requirement under subsection (b)(1)(B) by making qualified low-income community investments in 1 or more businesses in which persons unrelated to such entity (within the meaning of section 267(b) or 707(b)(1)) hold the majority equity interest.
If the new markets tax credit limitation for any calendar year exceeds the aggregate amount allocated under paragraph (2) for such year, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2024.
If, at any time during the 7-year period beginning on the date of the original issue of a qualified equity investment in a qualified community development entity, there is a recapture event with respect to such investment, then the tax imposed by this chapter for the taxable year in which such event occurs shall be increased by the credit recapture amount.
(B) interest at the underpayment rate established under section 6621 on the amount determined under subparagraph (A) for each prior taxable year for the period beginning on the due date for filing the return for the prior taxable year involved.
No deduction shall be allowed under this chapter for interest described in subparagraph (B).
(C) such investment is redeemed by such entity.
The tax for the taxable year shall be increased under paragraph (1) only with respect to credits allowed by reason of this section which were used to reduce tax liability. In the case of credits not so used to reduce tax liability, the carryforwards and carrybacks under section 39 shall be appropriately adjusted.
Any increase in tax under this subsection shall not be treated as a tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section 55.
The basis of any qualified equity investment shall be reduced by the amount of any credit determined under this section with respect to such investment. This subsection shall not apply for purposes of section 1202.
(6) which ensure that non-metropolitan counties receive a proportional allocation of qualified equity investments.
Section 1044, referred to in subsec. (c)(2)(A), was repealed by Pub. L. 115–97, title I, §13313(a), Dec. 22, 2017, 131 Stat. 2133 .
2018-Subsec. (f)(1)(F). Pub. L. 115–141, §401(a)(18), inserted ", and" at end.
Subsec. (h). Pub. L. 115–141, §401(d)(4)(B)(iii), substituted "section 1202" for "sections 1202, 1400B, and 1400F".
2015-Subsec. (f)(1)(G). Pub. L. 114–113, §141(a), substituted "for each of calendar years 2010 through 2019" for "for 2010, 2011, 2012, 2013, and 2014".
Subsec. (f)(3). Pub. L. 114–113, §141(b), substituted "2024" for "2019".
2014-Subsec. (f)(1)(G). Pub. L. 113–295, §115(a), substituted "2013, and 2014" for "and 2013".
Subsec. (f)(3). Pub. L. 113–295, §115(b), substituted "2019" for "2018".
2013-Subsec. (f)(1)(G). Pub. L. 112–240, §305(a), substituted "2010, 2011, 2012, and 2013" for "2010 and 2011".
Subsec. (f)(3). Pub. L. 112–240, §305(b), substituted "2018" for "2016".
2010-Subsec. (f)(1)(G). Pub. L. 111–312, §733(a), added subpar. (G).
Subsec. (f)(3). Pub. L. 111–312, §733(b), substituted "2016" for "2014".
2009-Subsec. (f)(1)(D). Pub. L. 111–5, §1403(a)(2), substituted "and 2007," for ", 2007, 2008, and 2009."
Subsec. (f)(1)(E), (F). Pub. L. 111–5, §1403(a)(1), (3), added subpars. (E) and (F).
2008-Subsec. (f)(1)(D). Pub. L. 110–343 substituted "2008, and 2009" for "and 2008".
2006-Subsec. (f)(1)(D). Pub. L. 109–432, §102(a), substituted ", 2007, and 2008" for "and 2007".
Subsec. (i)(6). Pub. L. 109–432, §102(b), added par. (6).
2004-Subsec. (e)(2). Pub. L. 108–357, §221(a), amended heading and text of par. (2) generally, substituting provisions relating to regulations under which 1 or more targeted populations could be treated as low-income communities for provisions authorizing Secretary to designate any area within any census tract as a low-income community if certain conditions were met.
Subsec. (e)(4). Pub. L. 108–357, §221(b), added par. (4).
Subsec. (e)(5). Pub. L. 108–357, §223(a), added par. (5).
Pub. L. 114–113, div. Q, title I, §141(c), Dec. 18, 2015, 129 Stat. 3056 , provided that: "The amendments made by this section [amending this section] shall apply to calendar years beginning after December 31, 2014."
Pub. L. 113–295, div. A, title I, §115(c), Dec. 19, 2014, 128 Stat. 4014 , provided that: "The amendments made by this section [amending this section] shall apply to calendar years beginning after December 31, 2013."
Pub. L. 112–240, title III, §305(c), Jan. 2, 2013, 126 Stat. 2329 , provided that: "The amendments made by this section [amending this section] shall apply to calendar years beginning after December 31, 2011."
Pub. L. 111–312, title VII, §733(c), Dec. 17, 2010, 124 Stat. 3318 , provided that: "The amendments made by this section [amending this section] shall apply to calendar years beginning after 2009."
Pub. L. 109–432, div. A, title I, §102(c), Dec. 20, 2006, 120 Stat. 2934 , provided that: "The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [Dec. 20, 2006]."
"(1) Targeted areas.-The amendment made by subsection (a) [amending this section] shall apply to designations made by the Secretary of the Treasury after the date of the enactment of this Act [Oct. 22, 2004].
"(2) Tracts with low population.-The amendment made by subsection (b) [amending this section] shall apply to investments made after the date of the enactment of this Act [Oct. 22, 2004]."
Pub. L. 108–357, title II, §223(b), Oct. 22, 2004, 118 Stat. 1432 , provided that: "The amendment made by this section [amending this section] shall take effect as if included in the amendment made by section 121(a) of the Community Renewal Tax Relief Act of 2000 [Pub. L. 106–554, §1(a)(7) [title I, §121(a)], enacting this section]."
Section applicable to investments made after Dec. 31, 2000, see §1(a)(7) [title I, §121(e)] of Pub. L. 106–554, set out as a Effective Date of 2000 Amendment note under section 38 of this title.
Amendment by section 401(d)(4)(B)(iii) of Pub. L. 115–141 not applicable to certain obligations issued, DC Zone assets acquired, or principal residences acquired before Jan. 1, 2012, see section 401(d)(4)(C) of Pub. L. 115–141, set out as a note under former section 1400 of this title.
For provisions that nothing in amendment by section 401(d)(4)(B)(iii) of Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title.
"(B) received an allocation for such calendar year in an amount less than the amount requested in the allocation application."
"(3) the actions that such Secretary or delegate shall take to ensure that such allocations are properly made to appropriate entities."
Pub. L. 106–554, §1(a)(7) [title I, §121(g)], Dec. 21, 2000, 114 Stat. 2763 , 2763A-610, provided that: "Not later than January 31 of 2004, 2007, and 2010, the Comptroller General of the United States shall, pursuant to an audit of the new markets tax credit program established under section 45D of the Internal Revenue Code of 1986 (as added by subsection (a)), report to Congress on such program, including all qualified community development entities that receive an allocation under the new markets credit under such section."

References: §13313
 §401
 §401
 §141
 §141
 §115
 §115
 §305
 §305
 §733
 §733
 §1403
 §1403
 §102
 §102
 §221
 §221
 §223
 §141
 §115
 §305
 §733
 §102
 §223
 §1
 §121
 §1
 §121
 §1
 §121