Source: http://taxtv.com/code/00838-USCODE-2011-title26-subtitleA-chap1-subchapU-partII-sec1394/
Timestamp: 2017-06-28 02:11:58
Document Index: 118871618

Matched Legal Cases: ['§1394', '§1394', '§1394', '§13301', '§1703', '§953', '§1', '§115', '§417', '§601', '§3', '§1303', '§601', '§1303', '§1', '§116', '§1', '§116', '§1', '§116', '§1', '§116', '§1', '§115', '§955', '§955', '§953', '§1', '§115', '§116', '§116', '§1394']

IRC §1394. Tax-exempt enterprise zone facility bonds - TaxTV.com
IRC §1394. Tax-exempt enterprise zone facility bonds
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(b) Enterprise zone facility
(2) Qualified zone property
The term “qualified zone property” has the meaning given such term by section 1397D; except that—
(A) the references to empowerment zones shall be treated as including references to enterprise communities, and
(B) section 1397D(a)(2) shall be applied by substituting “an amount equal to 15 percent of the adjusted basis” for “an amount equal to the adjusted basis”.
In applying section 1397C for purposes of this section—
(ii) Waiver of requirements during startup period
(I) as of the beginning of the startup period, it is reasonably expected that such business will be an enterprise zone business (as defined in section 1397C as modified by this paragraph) at the end of such period, and
(II) such business makes bona fide efforts to be such a business.
(C) Definitions relating to subparagraph (B)
(i) Startup period
(I) the date of issuance of the issue providing such property, or
(II) the date such property is first placed in service after such issuance (or, if earlier, the date which is 3 years after the date described in subclause (I)).
(D) Portions of business may be enterprise zone business
Subsection (a) shall not apply to any issue if the aggregate amount of outstanding enterprise zone facility bonds allocable to any person (taking into account such issue) exceeds—
(A) $3,000,000 with respect to any 1 empowerment zone or enterprise community, or
(B) $20,000,000 with respect to all empowerment zones and enterprise communities.
(1) Failures corrected
An issue which fails to meet 1 or more of the requirements of subsections (a) and (b) shall be treated as meeting such requirements if—
(A) the issuer and any principal user in good faith attempted to meet such requirements, and
(B) any failure to meet such requirements is corrected within a reasonable period after such failure is first discovered.
(2) Loss of deductions where facility ceases to be qualified
No deduction shall be allowed under this chapter for interest on any financing provided from any bond to which subsection (a) applies with respect to any facility to the extent such interest accrues during the period beginning on the first day of the calendar year which includes the date on which—
(A) substantially all of the facility with respect to which the financing was provided ceases to be used in an empowerment zone or enterprise community, or
(B) the principal user of such facility ceases to be an enterprise zone business (as defined in subsection (b)).
(f) Bonds for empowerment zones designated under section 1391(g)
In the case of a new empowerment zone facility bond—
(A) such bond shall not be treated as a private activity bond for purposes of section 146, and
(B) subsection (c) of this section shall not apply.
(B) Limitation on bonds designated
The aggregate face amount of bonds which may be designated under subparagraph (A) with respect to any empowerment zone shall not exceed—
(i) $60,000,000 if such zone is in a rural area,
(ii) $130,000,000 if such zone is in an urban area and the zone has a population of less than 100,000, and
(iii) $230,000,000 if such zone is in an urban area and the zone has a population of at least 100,000.
(ii) Current refunding not taken into account
(I) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and
(II) the refunded bond is redeemed not later than 90 days after the date of issuance of the refunding bond.
(3) Empowerment zone facility bond
For purposes of this subsection, the term “empowerment zone facility bond” means any bond which would be described in subsection (a) if—
(A) in the case of obligations issued before January 1, 2002, only empowerment zones designated under section 1391(g) were taken into account under sections 1397C and 1397D, and
(B) in the case of obligations issued after December 31, 2001, all empowerment zones (other than the District of Columbia Enterprise Zone) were taken into account under sections 1397C and 1397D.
(Added Pub. L. 103–66, title XIII, §13301(a), Aug. 10, 1993, 107 Stat. 548; amended Pub. L. 104–188, title I, §1703(n)(7), Aug. 20, 1996, 110 Stat. 1877; Pub. L. 105–34, title IX, §§953(a), 955(a), (b), Aug. 5, 1997, 111 Stat. 887, 889, 890; Pub. L. 106–554, §1(a)(7) [title I, §§115(a), 116(b)(3), (4)], Dec. 21, 2000, 114 Stat. 2763, 2763A–601, 2763A–603; Pub. L. 107–147, title IV, §417(16), Mar. 9, 2002, 116 Stat. 56.)
A prior section 1394, added Pub. L. 95–600, title VI, §601(a), Nov. 6, 1978, 92 Stat. 2895; amended Pub. L. 96–595, §3(a)(6)–(8), Dec. 24, 1980, 94 Stat. 3465, related to rules applicable to distributions of an electing general stock ownership corporation, prior to repeal by Pub. L. 99– 4, title XIII, §1303(a), Oct. 22, 1986, 100 Stat. 2658.
A prior section 1395, added Pub. L. 95–600, title VI, §601(a), Nov. 6, 1978, 92 Stat. 2895, related to adjustment to basis of stock of shareholders, prior to repeal by Pub. L. 99– 4, title XIII, §1303(a), Oct. 22, 1986, 100 Stat. 2658.
2000—Subsec. (b)(2). Pub. L. 106–554, §1(a)(7) [title I, §116(b)(3)(A)], substituted “section 1397D” for “section 1397C” in introductory provisions.
Subsec. (b)(2)(B). Pub. L. 106–554, §1(a)(7) [title I, §116(b)(3)(B)], substituted “section 1397D(a)(2)” for “section 1397C(a)(2)”.
Subsec. (b)(3). Pub. L. 106–554, §1(a)(7) [title I, §116(b)(4)(A)], substituted “section 1397C” for “section 1397B” wherever appearing.
Subsec. (b)(3)(B)(iii). Pub. L. 106–554, §1(a)(7) [title I, §116(b)(4)(B)], substituted “section 1397C(d)” for “section 1397B(d)”.
Subsec. (f)(3). Pub. L. 106–554, §1(a)(7) [title I, §115(a)], amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘new empowerment zone facility bond’ means any bond which would be described in subsection (a) if only empowerment zones designated under section 1391(g) were taken into account under sections 1397B and 1397C.”
1997—Subsec. (b)(2). Pub. L. 105–34, §955(b), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘qualified zone property’ has the meaning given such term by section 1397C; except that the references to empowerment zones shall be treated as including references to enterprise communities.”
Subsec. (b)(3). Pub. L. 105–34, §955(b), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The term ‘enterprise zone business’ has the meaning given to such term by section 1397B, except that—
Subsec. (f). Pub. L. 105–34, §953(a), added subsec. (f).
Pub. L. 106–554, §1(a)(7) [title I, §115(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–602, provided that: “The amendments made by this section [amending this section] shall apply to obligations issued after December 31, 2001.”
Amendment by section 1(a)(7) [title I, §116(b)(3), (4)] of Pub. L. 106–554 applicable to qualified empowerment zone assets acquired after Dec. 21, 2000, see section 1(a)(7) [title I, §116(c)] of Pub. L. 106–554, set out as a note under section 1016 of this title.
Section 953(b) of Pub. L. 105–34 provided that: “The amendment made by this section [amending this section] shall apply to obligations issued after the date of the enactment of this Act [Aug. 5, 1997].”
Section 955(c) of Pub. L. 105–34 provided that: “The amendments made by this section [amending this section] shall apply to obligations issued after the date of the enactment of this Act [Aug. 5, 1997].”
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