Source: http://www.law.cornell.edu/uscode/text/26/150?quicktabs_8=3
Timestamp: 2013-05-26 04:07:31
Document Index: 64426289

Matched Legal Cases: ['§ 150', '§ 150', '§ 150', '§ 1301', '§ 1013', '§ 6182', '§ 1614', '§ 1001', '§ 2751', '§ 1013', '§ 1013', '§ 1013', '§ 1013', '§ 1013', '§ 1013', '§ 6182', '§ 6182', '§ 1013']

26 USC § 150 - Definitions and special rules | Title 26 - Internal Revenue Code | U.S. Code | LII / Legal Information Institute
USC › Title 26 › Subtitle A › Chapter 1 › Subchapter B › Part IV › Subpart C › § 150	prevnext
26 USC § 150 - Definitions and special rules
Governmental unit not to include Federal Government The term “governmental unit” does not include the United States or any agency or instrumentality thereof.
Net proceeds The term “net proceeds” means, with respect to any issue, the proceeds of such issue reduced by amounts in a reasonably required reserve or replacement fund.
501(c)(3) organization The term “501(c)(3) organization” means any organization described in section 501
Ownership of property Property shall be treated as owned by a governmental unit if it is owned on behalf of such unit.
Tax-exempt bond The term “tax-exempt” means, with respect to any bond (or issue), that the interest on such bond (or on the bonds issued as part of such issue) is excluded from gross income.
Change in use of facilities financed with tax-exempt private activity bonds (1)
Mortgage revenue bonds (A)
In general In the case of any residence with respect to which financing is provided from the proceeds of a tax-exempt qualified mortgage bond or qualified veterans’ mortgage bond, if there is a continuous period of at least 1 year during which such residence is not the principal residence of at least 1 of the mortgagors who received such financing, then no deduction shall be allowed under this chapter for interest on such financing which accrues on or after the date such period began and before the date such residence is again the principal residence of at least 1 of the mortgagors who received such financing.
Exception Subparagraph (A) shall not apply to the extent the Secretary determines that its application would result in undue hardship and that the failure to meet the requirements of subparagraph (A) resulted from circumstances beyond the mortgagor’s control.
Qualified residential rental projects In the case of any project for residential rental property—
with respect to which financing is provided from the proceeds of any private activity bond which, when issued, purported to be a tax-exempt bond described in paragraph (7) of section 142
which does not meet the requirements of section 142
no deduction shall be allowed under this chapter for interest on such financing which accrues during the period beginning on the 1st day of the taxable year in which such project fails to meet such requirements and ending on the date such project meets such requirements. If the provisions of prior law corresponding to section 142
(d) apply to a refunded bond, such provisions shall apply (in lieu of section 142
(d)) to the refunding bond.
Qualified 501(c)(3) bonds (A)
In general In the case of any facility with respect to which financing is provided from the proceeds of any private activity bond which, when issued, purported to be a tax-exempt qualified 501(c)(3) bond, if any portion of such facility—
Denial of deduction for interest No deduction shall be allowed under this chapter for interest on financing described in subparagraph (A) which accrues during the period beginning on the date such facility is used as described in subparagraph (A)(i) and ending on the date such facility is not so used.
Certain exempt facility bonds and small issue bonds (A)
In general In the case of any facility with respect to which financing is provided from the proceeds of any private activity bond to which this paragraph applies, if such facility is not used for a purpose for which a tax-exempt bond could be issued on the date of such issue, no deduction shall be allowed under this chapter for interest on such financing which accrues during the period beginning on the date such facility is not so used and ending on the date such facility is so used.
Bonds to which paragraph applies This paragraph applies to any private activity bond which, when issued, purported to be a tax-exempt exempt facility bond described in a paragraph (other than paragraph (7)) of section 142
(a) or a qualified small issue bond.
Facilities required to be owned by governmental units or 501(c)(3) organizations If—
Small issue bonds which exceed capital expenditure limitation In the case of any financing provided from the proceeds of any bond which, when issued, purported to be a qualified small issue bond, no deduction shall be allowed under this chapter for interest on such financing which accrues during the period such bond is not a qualified small issue bond.
Exception and special rules for purposes of subsection (b) For purposes of subsection (b)—
Exception Any use with respect to facilities financed with proceeds of an issue which are not required to be used for the exempt purpose of such issue shall not be taken into account.
Treatment of amounts other than interest If the amounts payable for the use of a facility are not interest, subsection (b) shall apply to such amounts as if they were interest but only to the extent such amounts for any period do not exceed the amount of interest accrued on the bond financing for such period.
Use of portion of facility In the case of any person which uses only a portion of the facility, only the interest accruing on the financing allocable to such portion shall be taken into account by such person.
Cessation with respect to portion of facility In the case of any facility where part but not all of the facility is not used for an exempt purpose, only the interest accruing on the financing allocable to such part shall be taken into account.
Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection and subsection (b).
Qualified scholarship funding bond For purposes of this part and section 103—
Treatment as State or local bond A qualified scholarship funding bond shall be treated as a State or local bond.
Qualified scholarship funding bond defined The term “qualified scholarship funding bond” means a bond issued by a corporation which—
Election to cease status as qualified scholarship funding corporation (A)
In general Any qualified scholarship funding bond, and qualified student loan bond, outstanding on the date of the issuer’s election under this paragraph (and any bond (or series of bonds) issued to refund such a bond) shall not fail to be a tax-exempt bond solely because the issuer ceases to be described in subparagraphs (A) and (B) of paragraph (2) if the issuer meets the requirements of subparagraphs (B) and (C) of this paragraph.
Assets and liabilities of issuer transferred to taxable subsidiary The requirements of this subparagraph are met by an issuer if—
Issuer to operate as independent organization described in section 501(c)(3) The requirements of this subparagraph are met by an issuer if, within a reasonable period after the transfer referred to in subparagraph (B)—
the issuer is described in section 501
Senior stock For purposes of this paragraph, the term “senior stock” means stock—
which has a fixed right upon liquidation and upon redemption to an amount equal to the greater of—
Independent member The term “independent member” means a member of the board of directors of the issuer who (except for services as a member of such board) receives no compensation directly or indirectly—
Coordination with certain private foundation taxes For purposes of sections 4942 (relating to the excise tax on a failure to distribute income) and 4943 (relating to the excise tax on excess business holdings), the transferee corporation referred to in subparagraph (B) shall be treated as a functionally related business (within the meaning of section 4942
(j)(4)) with respect to the issuer during the period commencing with the date on which an election is made under this paragraph and ending on the date that is the earlier of—
Election An election under this paragraph may be revoked only with the consent of the Secretary.
Bonds of certain volunteer fire departments For purposes of this part and section 103—
In general A bond of a volunteer fire department shall be treated as a bond of a political subdivision of a State if—
Qualified volunteer fire department For purposes of this subsection, the term “qualified volunteer fire department” means, with respect to a political subdivision of a State, any organization—
Treatment as private activity bonds only for certain purposes Bonds which are part of an issue which meets the requirements of paragraph (1) shall not be treated as private activity bonds except for purposes of sections 147
(f) and 149
(Added Pub. L. 99–514, title XIII, § 1301(b),Oct. 22, 1986, 100 Stat. 2651; amended Pub. L. 100–647, title I, § 1013(a)(23), (24)(A), (30)–(33), title VI, § 6182(a), (b),Nov. 10, 1988, 102 Stat. 3542, 3543, 3729; Pub. L. 104–188, title I, § 1614(a),Aug. 20, 1996, 110 Stat. 1851.)
The Higher Education Act of 1965, referred to in subsec. (d)(2)(A), (3)(F)(i), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219, which is classified generally to chapter 28 (§ 1001 et seq.) of Title 20, Education, and part C (§ 2751 et seq.) of subchapter I of chapter 34 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables.
1996—Subsec. (d)(3). Pub. L. 104–188added par. (3).
1988—Subsec. (b)(1)(A). Pub. L. 100–647, § 1013(a)(23)(C), inserted “tax-exempt” before “qualified mortgage bond”.
Pub. L. 100–647, § 1013(a)(30), inserted before period at end “and before the date such residence is again the principal residence of at least 1 of the mortgagors who received such financing”.
Subsec. (b)(2). Pub. L. 100–647, § 1013(a)(32), inserted at end “If the provisions of prior law corresponding to section 142
(d)) to the refunding bond.”
Subsec. (b)(2)(A). Pub. L. 100–647, § 1013(a)(31), substituted “described in paragraph” for “described paragraph”.
Subsec. (b)(4). Pub. L. 100–647, § 1013(a)(23)(A), (B), inserted “and small issue bonds” after “bonds” in heading, and “or a qualified small issue bond” before period at end of subpar. (B).
Subsec. (b)(6). Pub. L. 100–647, § 1013(a)(33), added par. (6).
Subsec. (e)(1)(B). Pub. L. 100–647, § 6182(b), inserted “(including land which is functionally related and subordinate thereto)” after “a firehouse”.
Subsec. (e)(2). Pub. L. 100–647, § 6182(a), inserted at end “For purposes of subparagraph (A), other firefighting services provided in an area shall be disregarded in determining whether an organization is a qualified volunteer fire department if such other firefighting services are provided by a qualified volunteer fire department (determined with the application of this sentence) and such organization and the provider of such other services have been continuously providing firefighting services to such area since January 1, 1981.”
Subsec. (e)(3). Pub. L. 100–647, § 1013(a)(24)(A), added par. (3).
Section 1614(b) ofPub. L. 104–188provided that: “The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [Aug. 20, 1996].”
Section 1013(a)(24)(B) ofPub. L. 100–647provided that: “The amendment made by subparagraph (A) [amending this section] shall apply to bonds issued after October 21, 1988.”
(a)(23), (30)–(33) of Pub. L. 100–647effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) ofPub. L. 100–647, set out as a note under section 1 of this title.
Section 6182(c) ofPub. L. 100–647provided that: “The amendments made by this section [amending this section] shall apply to bonds issued after the date of the enactment of this Act [Nov. 10, 1988].”
Section applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, with subsec. (b) applicable to changes in use (and ownership) after Aug. 15, 1986, but only with respect to financing (including refinancings) provided after such date, and with subsec. (d) applicable to payments made after Aug. 15, 1986, see sections 1311 to 1318 ofPub. L. 99–514, as amended, set out as an Effective Date; Transitional Rules note under section 141 of this title.