Source: http://www.law.cornell.edu/uscode/text/26/42
Timestamp: 2014-09-22 20:04:28
Document Index: 788830441

Matched Legal Cases: ['§ 42', '§ 42', '§ 42', '§ 252', '§ 8072', '§ 1002', '§ 4003', '§ 7108', '§ 11407', '§ 107', '§ 13142', '§ 1704', '§ 6004', '§ 2', '§ 1', '§ 131', '§ 417', '§ 207', '§ 408', '§ 6', '§ 3001', '§ 1404', '§ 302', '§ 289', '§ 11361', '§ 601', '§ 620', '§ 670', '§ 1501', '§ 199', '§ 203', '§ 3', '§ 401', '§ 503', '§ 1906', '§ 101', '§ 209', '§ 2', '§ 3', '§ 401', '§ 103', '§ 401', '§ 103', '§ 103', '§ 3002', '§ 3004', '§ 3003', '§ 3003', '§ 3003', '§ 3003', '§ 3003', '§ 3003', '§ 3003', '§ 3003', '§ 3003', '§ 3003', '§ 3003', '§ 3004', '§ 3004', '§ 3001', '§ 3007', '§ 3002', '§ 3002', '§ 3002', '§ 3002', '§ 3002', '§ 3002', '§ 3004', '§ 3004', '§ 3004', '§ 3004', '§ 408', '§ 207', '§ 417', '§ 417', '§ 1', '§ 134', '§ 1', '§ 134', '§ 1', '§ 135', '§ 1', '§ 135', '§ 1', '§ 136', '§ 1', '§ 131', '§ 1', '§ 135', '§ 1', '§ 131', '§ 1', '§ 131', '§ 1', '§ 136', '§ 1', '§ 131', '§ 1', '§ 131', '§ 1', '§ 134', '§ 1', '§ 134', '§ 1', '§ 133', '§ 1', '§ 132', '§ 1', '§ 133', '§ 1', '§ 132', '§ 1', '§ 132', '§ 1704', '§ 1704', '§ 13142', '§ 13142', '§ 13142', '§ 13142', '§ 13142', '§ 13142', '§ 107', '§ 107', '§ 11701', '§ 11701', '§ 11407', '§ 11812', '§ 11407', '§ 11812', '§ 11407', '§ 11701', '§ 11701', '§ 11407', '§ 11701', '§ 11701', '§ 11701', '§ 11701', '§ 11701', '§ 11407', '§ 11407', '§ 11407', '§ 11701', '§ 11701', '§ 11701', '§ 11701', '§ 11701', '§ 11701', '§ 11701', '§ 11407', '§ 11701', '§ 11407', '§ 11701', '§ 11813', '§ 11813', '§ 11407', '§ 11407', '§ 11407', '§ 11407', '§ 11407', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7811', '§ 7108', '§ 7108', '§ 7841', '§ 7108', '§ 7831', '§ 7841', '§ 7841', '§ 7108', '§ 7108', '§ 7831', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7811', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7831', '§ 7108', '§ 7831', '§ 7108', '§ 7831', '§ 7108', '§ 7108', '§ 7108', '§ 7108', '§ 7831', '§ 7108', '§ 7108', '§ 7108', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 4003', '§ 4003', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1007', '§ 1002', '§ 4004', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 1002', '§ 4003', '§ 1002', '§ 302', '§ 3002', '§ 3003', '§ 3004', '§ 3007', '§ 6', '§ 1', '§ 131', '§ 1', '§ 137', '§ 13142', '§ 13142', '§ 1703', '§ 107', '§ 11407', '§ 11407', '§ 11701', '§ 11701', '§ 11812', '§ 7108', '§ 11701', '§ 1702', '§ 1702', '§ 4003', '§ 4004', '§ 8072', '§ 252', '§ 1602', '§ 13142', '§ 11407', '§ 11701', '§ 7108', '§ 11407', '§ 252', '§ 1002']

26 U.S. Code § 42 - Low-income housing credit | LII / Legal Information Institute
U.S. Code › Title 26 › Subtitle A › Chapter 1 › Subchapter A › Part IV › Subpart D › § 42 26 U.S. Code § 42 - Low-income housing credit
In general For purposes of section 38, the amount of the low-income housing credit determined under this section for any taxable year in the credit period shall be an amount equal to—
the applicable percentage of
the qualified basis of each qualified low-income building.
Applicable percentage: 70 percent present value credit for certain new buildings; 30 percent present value credit for certain other buildings (1)
Determination of applicable percentage For purposes of this section, the term “applicable percentage” means, with respect to any building, the appropriate percentage prescribed by the Secretary for the earlier of—
the month in which such building is placed in service, or
the month in which the taxpayer and the housing credit agency enter into an agreement with respect to such building (which is binding on such agency, the taxpayer, and all successors in interest) as to the housing credit dollar amount to be allocated to such building, or
in the case of any building to which subsection (h)(4)(B) applies, the month in which the tax-exempt obligations are issued.
1 Method of prescribing percentages The percentages prescribed by the Secretary for any month shall be percentages which will yield over a 10-year period amounts of credit under subsection (a) which have a present value equal to—
70 percent of the qualified basis of a new building which is not federally subsidized for the taxable year, and
30 percent of the qualified basis of a building not described in clause (i).
Method of discounting The present value under subparagraph (B) shall be determined—
as of the last day of the 1st year of the 10-year period referred to in subparagraph (B),
by using a discount rate equal to 72 percent of the average of the annual Federal mid-term rate and the annual Federal long-term rate applicable under section 1274
(d)(1) to the month applicable under clause (i) or (ii) of subparagraph (A) [1]
and compounded annually, and
by assuming that the credit allowable under this section for any year is received on the last day of such year.
Temporary minimum credit rate for non-federally subsidized new buildings In the case of any new building—
which is placed in service by the taxpayer after the date of the enactment of this paragraph with respect to housing credit dollar amount allocations made before January 1, 2014, and
For treatment of certain rehabilitation expenditures as separate new buildings, see subsection (e).
For determination of applicable percentage for increases in qualified basis after the 1st year of the credit period, see subsection (f)(3).
For authority of housing credit agency to limit applicable percentage and qualified basis which may be taken into account under this section with respect to any building, see subsection (h)(7).
Qualified basis; qualified low-income building For purposes of this section—
Qualified basis (A)
Determination The qualified basis of any qualified low-income building for any taxable year is an amount equal to—
the applicable fraction (determined as of the close of such taxable year) of
the eligible basis of such building (determined under subsection (d)(5)).
Applicable fraction For purposes of subparagraph (A), the term “applicable fraction” means the smaller of the unit fraction or the floor space fraction.
Unit fraction For purposes of subparagraph (B), the term “unit fraction” means the fraction—
the numerator of which is the number of low-income units in the building, and
the denominator of which is the number of residential rental units (whether or not occupied) in such building.
Floor space fraction For purposes of subparagraph (B), the term “floor space fraction” means the fraction—
the numerator of which is the total floor space of the low-income units in such building, and
the denominator of which is the total floor space of the residential rental units (whether or not occupied) in such building.
Qualified basis to include portion of building used to provide supportive services for homeless In the case of a qualified low-income building described in subsection (i)(3)(B)(iii), the qualified basis of such building for any taxable year shall be increased by the lesser of—
so much of the eligible basis of such building as is used throughout the year to provide supportive services designed to assist tenants in locating and retaining permanent housing, or
20 percent of the qualified basis of such building (determined without regard to this subparagraph).
Qualified low-income building The term “qualified low-income building” means any building—
which is part of a qualified low-income housing project at all times during the period—
beginning on the 1st day in the compliance period on which such building is part of such a project, and
ending on the last day of the compliance period with respect to such building, and
to which the amendments made by section 201(a) of the Tax Reform Act of 1986 apply.
Eligible basis For purposes of this section—
New buildings The eligible basis of a new building is its adjusted basis as of the close of the 1st taxable year of the credit period.
Existing buildings (A)
In general The eligible basis of an existing building is—
in the case of a building which meets the requirements of subparagraph (B), its adjusted basis as of the close of the 1st taxable year of the credit period, and
zero in any other case.
Requirements A building meets the requirements of this subparagraph if—
the building is acquired by purchase (as defined in section 179
(d)(2)),
there is a period of at least 10 years between the date of its acquisition by the taxpayer and the date the building was last placed in service,
the building was not previously placed in service by the taxpayer or by any person who was a related person with respect to the taxpayer as of the time previously placed in service, and
except as provided in subsection (f)(5), a credit is allowable under subsection (a) by reason of subsection (e) with respect to the building.
Adjusted basis For purposes of subparagraph (A), the adjusted basis of any building shall not include so much of the basis of such building as is determined by reference to the basis of other property held at any time by the person acquiring the building.
Special rules for subparagraph (B) (i)
Special rules for certain transfers
in connection with the acquisition of the building in a transaction in which the basis of the building in the hands of the person acquiring it is determined in whole or in part by reference to the adjusted basis of such building in the hands of the person from whom acquired,
by a person whose basis in such building is determined under section 1014
by any governmental unit or qualified nonprofit organization (as defined in subsection (h)(5)) if the requirements of subparagraph (B)(ii) are met with respect to the placement in service by such unit or organization and all the income from such property is exempt from Federal income taxation,
by any person who acquired such building by foreclosure (or by instrument in lieu of foreclosure) of any purchase-money security interest held by such person if the requirements of subparagraph (B)(ii) are met with respect to the placement in service by such person and such building is resold within 12 months after the date such building is placed in service by such person after such foreclosure, or
of a single-family residence by any individual who owned and used such residence for no other purpose than as his principal residence.
For purposes of subparagraph (B)(iii), a person (hereinafter in this subclause referred to as the “related person”) is related to any person if the related person bears a relationship to such person specified in section 267
(b)(1), or the related person and such person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) ofsection 52).
Eligible basis reduced where disproportionate standards for units (A)
In general Except as provided in subparagraph (B), the eligible basis of any building shall be reduced by an amount equal to the portion of the adjusted basis of the building which is attributable to residential rental units in the building which are not low-income units and which are above the average quality standard of the low-income units in the building.
Exception where taxpayer elects to exclude excess costs (i)
the excess described in clause (ii) with respect to such unit is not greater than 15 percent of the cost described in clause (ii)(II), and
the taxpayer elects to exclude from the eligible basis of such building the excess described in clause (ii) with respect to such unit.
the cost of such unit, over
the amount which would be the cost of such unit if the average cost per square foot of low-income units in the building were substituted for the cost per square foot of such unit.
Special rules relating to determination of adjusted basis For purposes of this subsection—
In general Except as provided in subparagraphs (B) and (C), the adjusted basis of any building shall be determined without regard to the adjusted basis of any property which is not residential rental property.
Basis of property in common areas, etc., included The adjusted basis of any building shall be determined by taking into account the adjusted basis of property (of a character subject to the allowance for depreciation) used in common areas or provided as comparable amenities to all residential rental units in such building.
Inclusion of basis of property used to provide services for certain nontenants (i)
25 percent of so much of the eligible basis of the qualified low-income housing project of which it is a part as does not exceed $15,000,000, plus
10 percent of so much of the eligible basis of such project as is not taken into account under subclause (I).
No reduction for depreciation The adjusted basis of any building shall be determined without regard to paragraphs (2) and (3) of section 1016
Special rules for determining eligible basis (A)
Federal grants not taken into account in determining eligible basis The eligible basis of a building shall not include any costs financed with the proceeds of a federally funded grant.
Increase in credit for buildings in high cost areas (i)
in the case of a new building, the eligible basis of such building shall be 130 percent of such basis determined without regard to this subparagraph, and
in the case of an existing building, the rehabilitation expenditures taken into account under subsection (e) shall be 130 percent of such expenditures determined without regard to this subparagraph.
Limit on MSA’s designated
Limit on areas designated
population shall be determined on the basis of the most recent decennial census for which data are available,
area median gross income shall be determined in accordance with subsection (g)(4),
the term “metropolitan statistical area” has the same meaning as when used in section 143
(k)(2)(B), and
the term “nonmetropolitan area” means any county (or portion thereof) which is not within a metropolitan statistical area.
Buildings designated by State housing credit agency
Credit allowable for certain buildings acquired during 10-year period described in paragraph (2)(B)(ii) (A)
In general Paragraph (2)(B)(ii) shall not apply to any federally- or State-assisted building.
Buildings acquired from insured depository institutions in default On application by the taxpayer, the Secretary may waive paragraph (2)(B)(ii) with respect to any building acquired from an insured depository institution in default (as defined in section 3 of the Federal Deposit Insurance Act) or from a receiver or conservator of such an institution.
Federally- or State-assisted building For purposes of this paragraph—
Federally-assisted building
The term “federally-assisted building” means any building which is substantially assisted, financed, or operated under section 8 of the United States Housing Act of 1937, section 221(d)(3), 221(d)(4), or 236 of the National Housing Act, section 515 of the Housing Act of 1949, or any other housing program administered by the Department of Housing and Urban Development or by the Rural Housing Service of the Department of Agriculture.
State-assisted building
Acquisition of building before end of prior compliance period (A)
In general Under regulations prescribed by the Secretary, in the case of a building described in subparagraph (B) (or interest therein) which is acquired by the taxpayer—
paragraph (2)(B) shall not apply, but
the credit allowable by reason of subsection (a) to the taxpayer for any period after such acquisition shall be equal to the amount of credit which would have been allowable under subsection (a) for such period to the prior owner referred to in subparagraph (B) had such owner not disposed of the building.
Description of building A building is described in this subparagraph if—
a credit was allowed by reason of subsection (a) to any prior owner of such building, and
the taxpayer acquired such building before the end of the compliance period for such building with respect to such prior owner (determined without regard to any disposition by such prior owner).
Rehabilitation expenditures treated as separate new building (1)
In general Rehabilitation expenditures paid or incurred by the taxpayer with respect to any building shall be treated for purposes of this section as a separate new building.
Rehabilitation expenditures For purposes of paragraph (1)—
In general The term “rehabilitation expenditures” means amounts chargeable to capital account and incurred for property (or additions or improvements to property) of a character subject to the allowance for depreciation in connection with the rehabilitation of a building.
Cost of acquisition, etc,2 not included Such term does not include the cost of acquiring any building (or interest therein) or any amount not permitted to be taken into account under paragraph (3) or (4) of subsection (d).
Minimum expenditures to qualify (A)
In general Paragraph (1) shall apply to rehabilitation expenditures with respect to any building only if—
the expenditures are allocable to 1 or more low-income units or substantially benefit such units, and
the amount of such expenditures during any 24-month period meets the requirements of whichever of the following subclauses requires the greater amount of such expenditures:
The requirement of this subclause is met if such amount is not less than 20 percent of the adjusted basis of the building (determined as of the 1st day of such period and without regard to paragraphs (2) and (3) of section 1016
The requirement of this subclause is met if the qualified basis attributable to such amount, when divided by the number of low-income units in the building, is $6,000 or more.
Exception from 10 percent rehabilitation In the case of a building acquired by the taxpayer from a governmental unit, at the election of the taxpayer, subparagraph (A)(ii)(I) shall not apply and the credit under this section for such rehabilitation expenditures shall be determined using the percentage applicable under subsection (b)(2)(B)(ii).
Date of determination The determination under subparagraph (A) shall be made as of the close of the 1st taxable year in the credit period with respect to such expenditures.
Inflation adjustment In the case of any expenditures which are treated under paragraph (4) as placed in service during any calendar year after 2009, the $6,000 amount in subparagraph (A)(ii)(II) shall be increased by an amount equal to—
(f)(3) for such calendar year by substituting “calendar year 2008” for “calendar year 1992” in subparagraph (B) thereof.
Special rules For purposes of applying this section with respect to expenditures which are treated as a separate building by reason of this subsection—
such expenditures shall be treated as placed in service at the close of the 24-month period referred to in paragraph (3)(A), and
the applicable fraction under subsection (c)(1) shall be the applicable fraction for the building (without regard to paragraph (1)) with respect to which the expenditures were incurred.
No double counting Rehabilitation expenditures may, at the election of the taxpayer, be taken into account under this subsection or subsection (d)(2)(A)(i) but not under both such subsections.
Regulations to apply subsection with respect to group of units in building The Secretary may prescribe regulations, consistent with the purposes of this subsection, treating a group of units with respect to which rehabilitation expenditures are incurred as a separate new building.
Definition and special rules relating to credit period (1)
Credit period defined For purposes of this section, the term “credit period” means, with respect to any building, the period of 10 taxable years beginning with—
at the election of the taxpayer, the succeeding taxable year,
Special rule for 1st year of credit period (A)
In general The credit allowable under subsection (a) with respect to any building for the 1st taxable year of the credit period shall be determined by substituting for the applicable fraction under subsection (c)(1) the fraction—
the numerator of which is the sum of the applicable fractions determined under subsection (c)(1) as of the close of each full month of such year during which such building was in service, and
Disallowed 1st year credit allowed in 11th year Any reduction by reason of subparagraph (A) in the credit allowable (without regard to subparagraph (A)) for the 1st taxable year of the credit period shall be allowable under subsection (a) for the 1st taxable year following the credit period.
Determination of applicable percentage with respect to increases in qualified basis after 1st year of credit period (A)
In general In the case of any building which was a qualified low-income building as of the close of the 1st year of the credit period, if—
as of the close of any taxable year in the compliance period (after the 1st year of the credit period) the qualified basis of such building exceeds
the qualified basis of such building as of the close of the 1st year of the credit period,
1st year computation applies A rule similar to the rule of paragraph (2)(A) shall apply to any increase in qualified basis to which subparagraph (A) applies for the 1st year of such increase.
Dispositions of property If a building (or an interest therein) is disposed of during any year for which credit is allowable under subsection (a), such credit shall be allocated between the parties on the basis of the number of days during such year the building (or interest) was held by each. In any such case, proper adjustments shall be made in the application of subsection (j).
Credit period for existing buildings not to begin before rehabilitation credit allowed (A)
In general The credit period for an existing building shall not begin before the 1st taxable year of the credit period for rehabilitation expenditures with respect to the building.
Acquisition credit allowed for certain buildings not allowed a rehabilitation credit (i)
subsection (d)(2)(B)(iv) shall not apply, and
the credit period for such building shall not begin before the taxable year which would be the 1st taxable year of the credit period for rehabilitation expenditures with respect to the building under the modifications described in clause (ii)(II).
a waiver is granted under subsection (d)(6)(C) with respect to the acquisition of the building, and
a credit would be allowed for rehabilitation expenditures with respect to such building if subsection (e)(3)(A)(ii)(I) did not apply and if the dollar amount in effect under subsection (e)(3)(A)(ii)(II) were two-thirds of such amount.
Qualified low-income housing project For purposes of this section—
In general The term “qualified low-income housing project” means any project for residential rental property if the project meets the requirements of subparagraph (A) or (B) whichever is elected by the taxpayer:
20–50 test The project meets the requirements of this subparagraph if 20 percent or more of the residential units in such project are both rent-restricted and occupied by individuals whose income is 50 percent or less of area median gross income.
40–60 test The project meets the requirements of this subparagraph if 40 percent or more of the residential units in such project are both rent-restricted and occupied by individuals whose income is 60 percent or less of area median gross income.
Rent-restricted units (A)
In general For purposes of paragraph (1), a residential unit is rent-restricted if the gross rent with respect to such unit does not exceed 30 percent of the imputed income limitation applicable to such unit. For purposes of the preceding sentence, the amount of the income limitation under paragraph (1) applicable for any period shall not be less than such limitation applicable for the earliest period the building (which contains the unit) was included in the determination of whether the project is a qualified low-income housing project.
Gross rent For purposes of subparagraph (A), gross rent—
does not include any payment under section 8 of the United States Housing Act of 1937 or any comparable rental assistance program (with respect to such unit or occupants thereof),
includes any utility allowance determined by the Secretary after taking into account such determinations under section 8 of the United States Housing Act of 1937,
does not include any fee for a supportive service which is paid to the owner of the unit (on the basis of the low-income status of the tenant of the unit) by any governmental program of assistance (or by an organization described in section 501
(a)) if such program (or organization) provides assistance for rent and the amount of assistance provided for rent is not separable from the amount of assistance provided for supportive services, and
does not include any rental payment to the owner of the unit to the extent such owner pays an equivalent amount to the Farmers’ Home Administration under section 515 of the Housing Act of 1949.
Imputed income limitation applicable to unit For purposes of this paragraph, the imputed income limitation applicable to a unit is the income limitation which would apply under paragraph (1) to individuals occupying the unit if the number of individuals occupying the unit were as follows:
In the case of a project with respect to which a credit is allowable by reason of this section and for which financing is provided by a bond described in section 142
(a)(7), the imputed income limitation shall apply in lieu of the otherwise applicable income limitation for purposes of applying section 142
(d)(4)(B)(ii).
Treatment of units occupied by individuals whose incomes rise above limit (i)
Next available unit must be rented to low-income tenant if income rises above 140 percent of income limit
If the income of the occupants of the unit increases above 140 percent of the income limitation applicable under paragraph (1), clause (i) shall cease to apply to such unit if any residential rental unit in the building (of a size comparable to, or smaller than, such unit) is occupied by a new resident whose income exceeds such income limitation. In the case of a project described in section 142
(d)(4)(B), the preceding sentence shall be applied by substituting “170 percent” for “140 percent” and by substituting “any low-income unit in the building is occupied by a new resident whose income exceeds 40 percent of area median gross income” for “any residential unit in the building (of a size comparable to, or smaller than, such unit) is occupied by a new resident whose income exceeds such income limitation”.
Units where Federal rental assistance is reduced as tenant’s income increases If the gross rent with respect to a residential unit exceeds the limitation under subparagraph (A) by reason of the fact that the income of the occupants thereof exceeds the income limitation applicable under paragraph (1), such unit shall, nevertheless, be treated as a rent-restricted unit for purposes of paragraph (1) if—
a Federal rental assistance payment described in subparagraph (B)(i) is made with respect to such unit or its occupants, and
the sum of such payment and the gross rent with respect to such unit does not exceed the sum of the amount of such payment which would be made and the gross rent which would be payable with respect to such unit if—
the income of the occupants thereof did not exceed the income limitation applicable under paragraph (1), and
such units were rent-restricted within the meaning of subparagraph (A).
Date for meeting requirements (A)
In general Except as otherwise provided in this paragraph, a building shall be treated as a qualified low-income building only if the project (of which such building is a part) meets the requirements of paragraph (1) not later than the close of the 1st year of the credit period for such building.
Buildings which rely on later buildings for qualification (i)
Treatment of elected buildings
Date prior building is treated as placed in service
Special rule A building—
other than the 1st building placed in service as part of a project, and
other than a building which is placed in service during the 12-month period described in subparagraph (A) with respect to a prior building which becomes a qualified low-income building,
Projects with more than 1 building must be identified For purposes of this section, a project shall be treated as consisting of only 1 building unless, before the close of the 1st calendar year in the project period (as defined in subsection (h)(1)(F)(ii)), each building which is (or will be) part of such project is identified in such form and manner as the Secretary may provide.
Certain rules made applicable Paragraphs (2) (other than subparagraph (A) thereof), (3), (4), (5), (6), and (7) of section 142
(d), andsection 6652
(j), shall apply for purposes of determining whether any project is a qualified low-income housing project and whether any unit is a low-income unit; except that, in applying such provisions for such purposes, the term “gross rent” shall have the meaning given such term by paragraph (2)(B) of this subsection.
Election to treat building after compliance period as not part of a project For purposes of this section, the taxpayer may elect to treat any building as not part of a qualified low-income housing project for any period beginning after the compliance period for such building.
Special rule where de minimis equity contribution Property shall not be treated as failing to be residential rental property for purposes of this section merely because the occupant of a residential unit in the project pays (on a voluntary basis) to the lessor a de minimis amount to be held toward the purchase by such occupant of a residential unit in such project if—
all amounts so paid are refunded to the occupant on the cessation of his occupancy of a unit in the project, and
the purchase of the unit is not permitted until after the close of the compliance period with respect to the building in which the unit is located.
Scattered site projects Buildings which would (but for their lack of proximity) be treated as a project for purposes of this section shall be so treated if all of the dwelling units in each of the buildings are rent-restricted (within the meaning of paragraph (2)) residential rental units.
Waiver of certain de minimis errors and recertifications On application by the taxpayer, the Secretary may waive—
any recapture under subsection (j) in the case of any de minimis error in complying with paragraph (1), or
any annual recertification of tenant income for purposes of this subsection, if the entire building is occupied by low-income tenants.
Clarification of general public use requirement A project does not fail to meet the general public use requirement solely because of occupancy restrictions or preferences that favor tenants—
who are members of a specified group under a Federal program or State program or policy that supports housing for such a specified group, or
who are involved in artistic or literary activities.
Limitation on aggregate credit allowable with respect to projects located in a State (1)
Credit may not exceed credit amount allocated to building (A)
In general The amount of the credit determined under this section for any taxable year with respect to any building shall not exceed the housing credit dollar amount allocated to such building under this subsection.
Time for making allocation Except in the case of an allocation which meets the requirements of subparagraph (C), (D), (E), or (F), an allocation shall be taken into account under subparagraph (A) only if it is made not later than the close of the calendar year in which the building is placed in service.
Exception where binding commitment An allocation meets the requirements of this subparagraph if there is a binding commitment (not later than the close of the calendar year in which the building is placed in service) by the housing credit agency to allocate a specified housing credit dollar amount to such building beginning in a specified later taxable year.
Exception where increase in qualified basis (i)
the qualified basis of such building as of the close of the 1st taxable year to which such allocation will apply, over
the qualified basis of such building as of the close of the 1st taxable year to which the most recent prior housing credit allocation with respect to such building applied.
Housing credit dollar amount reduced by full allocation
Exception where 10 percent of cost incurred (i)
Allocation of credit on a project basis (i)
the allocation is made to the project for a calendar year during the project period,
the allocation only applies to buildings placed in service during or after the calendar year for which the allocation is made, and
the portion of such allocation which is allocated to any building in such project is specified not later than the close of the calendar year in which the building is placed in service.
beginning with the 1st calendar year for which an allocation may be made for the 1st building placed in service as part of such project, and
ending with the calendar year the last building is placed in service as part of such project.
Allocated credit amount to apply to all taxable years ending during or after credit allocation year Any housing credit dollar amount allocated to any building for any calendar year—
shall apply to such building for all taxable years in the compliance period ending during or after such calendar year, and
shall reduce the aggregate housing credit dollar amount of the allocating agency only for such calendar year.
Housing credit dollar amount for agencies (A)
In general The aggregate housing credit dollar amount which a housing credit agency may allocate for any calendar year is the portion of the State housing credit ceiling allocated under this paragraph for such calendar year to such agency.
State ceiling initially allocated to State housing credit agencies Except as provided in subparagraphs (D) and (E), the State housing credit ceiling for each calendar year shall be allocated to the housing credit agency of such State. If there is more than 1 housing credit agency of a State, all such agencies shall be treated as a single agency.
State housing credit ceiling The State housing credit ceiling applicable to any State for any calendar year shall be an amount equal to the sum of—
the unused State housing credit ceiling (if any) of such State for the preceding calendar year,
$1.75 ($1.50 for 2001) multiplied by the State population, or
the amount of State housing credit ceiling returned in the calendar year, plus
the amount (if any) allocated under subparagraph (D) to such State by the Secretary.
Unused housing credit carryovers allocated among certain States (i)
Unused housing credit carryover
the unused State housing credit ceiling for the year preceding such year, over
the aggregate housing credit dollar amount allocated for such year.
Formula for allocation of unused housing credit carryovers among qualified States
The amount allocated under this subparagraph to a qualified State for any calendar year shall be the amount determined by the Secretary to bear the same ratio to the aggregate unused housing credit carryovers of all States for the preceding calendar year as such State’s population for the calendar year bears to the population of all qualified States for the calendar year. For purposes of the preceding sentence, population shall be determined in accordance with section 146
which allocated its entire State housing credit ceiling for the preceding calendar year, and
for which a request is made (not later than May 1 of the calendar year) to receive an allocation under clause (iii).
Special rule for States with constitutional home rule cities For purposes of this subsection—
the population of such city, bears to
Coordination with other allocations
Constitutional home rule city
For purposes of this paragraph, the term “constitutional home rule city” has the meaning given such term by section 146
(d)(3)(C).
State may provide for different allocation Rules similar to the rules of section 146
(e) (other than paragraph (2)(B) thereof) shall apply for purposes of this paragraph.
Population For purposes of this paragraph, population shall be determined in accordance with section 146
In the case of the $1.75 amount, any increase under clause (i) which is not a multiple of 5 cents shall be rounded to the next lowest multiple of 5 cents.
Increase in State housing credit ceiling for 2008 and 2009 In the case of calendar years 2008 and 2009—
the dollar amount in effect under subparagraph (C)(ii)(I) for such calendar year (after any increase under subparagraph (H)) shall be increased by $0.20, and
the dollar amount in effect under subparagraph (C)(ii)(II) for such calendar year (after any increase under subparagraph (H)) shall be increased by an amount equal to 10 percent of such dollar amount (rounded to the next lowest multiple of $5,000).
Credit for buildings financed by tax-exempt bonds subject to volume cap not taken into account (A)
In general Paragraph (1) shall not apply to the portion of any credit allowable under subsection (a) which is attributable to eligible basis financed by any obligation the interest on which is exempt from tax under section 103 if—
such obligation is taken into account under section 146, and
principal payments on such financing are applied within a reasonable period to redeem obligations the proceeds of which were used to provide such financing or such financing is refunded as described in section 146
(i)(6).
Special rule where 50 percent or more of building is financed with tax-exempt bonds subject to volume cap For purposes of subparagraph (A), if 50 percent or more of the aggregate basis of any building and the land on which the building is located is financed by any obligation described in subparagraph (A), paragraph (1) shall not apply to any portion of the credit allowable under subsection (a) with respect to such building.
Portion of State ceiling set-aside for certain projects involving qualified nonprofit organizations (A)
In general Not more than 90 percent of the State housing credit ceiling for any State for any calendar year shall be allocated to projects other than qualified low-income housing projects described in subparagraph (B).
Projects involving qualified nonprofit organizations For purposes of subparagraph (A), a qualified low-income housing project is described in this subparagraph if a qualified nonprofit organization is to own an interest in the project (directly or through a partnership) and materially participate (within the meaning of section 469
(h)) in the development and operation of the project throughout the compliance period.
Qualified nonprofit organization For purposes of this paragraph, the term “qualified nonprofit organization” means any organization if—
such organization is described in paragraph (3) or (4) of section 501
(c) and is exempt from tax under section 501
such organization is determined by the State housing credit agency not to be affiliated with or controlled by a for-profit organization; [3]
1 of the exempt purposes of such organization includes the fostering of low-income housing.
Treatment of certain subsidiaries (i)
State may not override set-aside Nothing in subparagraph (F) of paragraph (3) shall be construed to permit a State not to comply with subparagraph (A) of this paragraph.
Buildings eligible for credit only if minimum long-term commitment to low-income housing (A)
In general No credit shall be allowed by reason of this section with respect to any building for the taxable year unless an extended low-income housing commitment is in effect as of the end of such taxable year.
Extended low-income housing commitment For purposes of this paragraph, the term “extended low-income housing commitment” means any agreement between the taxpayer and the housing credit agency—
which requires that the applicable fraction (as defined in subsection (c)(1)) for the building for each taxable year in the extended use period will not be less than the applicable fraction specified in such agreement and which prohibits the actions described in subclauses (I) and (II) of subparagraph (E)(ii),
which allows individuals who meet the income limitation applicable to the building under subsection (g) (whether prospective, present, or former occupants of the building) the right to enforce in any State court the requirement and prohibitions of clause (i),
which prohibits the disposition to any person of any portion of the building to which such agreement applies unless all of the building to which such agreement applies is disposed of to such person,
which prohibits the refusal to lease to a holder of a voucher or certificate of eligibility under section 8 of the United States Housing Act of 1937 because of the status of the prospective tenant as such a holder,
which is binding on all successors of the taxpayer, and
which, with respect to the property, is recorded pursuant to State law as a restrictive covenant.
Allocation of credit may not exceed amount necessary to support commitment (i)
Buildings financed by tax-exempt bonds
Extended use period For purposes of this paragraph, the term “extended use period” means the period—
beginning on the 1st day in the compliance period on which such building is part of a qualified low-income housing project, and
ending on the later of—
the date specified by such agency in such agreement, or
the date which is 15 years after the close of the compliance period.
Exceptions if foreclosure or if no buyer willing to maintain low-income status (i)
on the date the building is acquired by foreclosure (or instrument in lieu of foreclosure) unless the Secretary determines that such acquisition is part of an arrangement with the taxpayer a purpose of which is to terminate such period, or
on the last day of the period specified in subparagraph (I) if the housing credit agency is unable to present during such period a qualified contract for the acquisition of the low-income portion of the building by any person who will continue to operate such portion as a qualified low-income building.
Eviction, etc. of existing low-income tenants not permitted
the eviction or the termination of tenancy (other than for good cause) of an existing tenant of any low-income unit, or
any increase in the gross rent with respect to such unit not otherwise permitted under this section.
Qualified contract For purposes of subparagraph (E), the term “qualified contract” means a bona fide contract to acquire (within a reasonable period after the contract is entered into) the nonlow-income portion of the building for fair market value and the low-income portion of the building for an amount not less than the applicable fraction (specified in the extended low-income housing commitment) of—
the outstanding indebtedness secured by, or with respect to, the building,
the adjusted investor equity in the building, plus
other capital contributions not reflected in the amounts described in subclause (I) or (II), reduced by
Adjusted investor equity (i)
the cost-of-living adjustment for such calendar year, determined under section 1
(f)(3) by substituting the base calendar year for “calendar year 1987”.
Cost-of-living increases in excess of 5 percent not taken into account
Under regulations prescribed by the Secretary, if the CPI for any calendar year (as defined in section 1
(f)(4)) exceeds the CPI for the preceding calendar year by more than 5 percent, the CPI for the base calendar year shall be increased such that such excess shall never be taken into account under clause (i).
Low-income portion For purposes of this paragraph, the low-income portion of a building is the portion of such building equal to the applicable fraction specified in the extended low-income housing commitment for the building.
Period for finding buyer The period referred to in this subparagraph is the 1-year period beginning on the date (after the 14th year of the compliance period) the taxpayer submits a written request to the housing credit agency to find a person to acquire the taxpayer’s interest in the low-income portion of the building.
Effect of noncompliance If, during a taxable year, there is a determination that an extended low-income housing agreement was not in effect as of the beginning of such year, such determination shall not apply to any period before such year and subparagraph (A) shall be applied without regard to such determination if the failure is corrected within 1 year from the date of the determination.
Projects which consist of more than 1 building The application of this paragraph to projects which consist of more than 1 building shall be made under regulations prescribed by the Secretary.
Building must be located within jurisdiction of credit agency A housing credit agency may allocate its aggregate housing credit dollar amount only to buildings located in the jurisdiction of the governmental unit of which such agency is a part.
Agency allocations in excess of limit If the aggregate housing credit dollar amounts allocated by a housing credit agency for any calendar year exceed the portion of the State housing credit ceiling allocated to such agency for such calendar year, the housing credit dollar amounts so allocated shall be reduced (to the extent of such excess) for buildings in the reverse of the order in which the allocations of such amounts were made.
Credit reduced if allocated credit dollar amount is less than credit which would be allowable without regard to placed in service convention, etc. (i)
the housing credit dollar amount allocated to such building bears to
the credit amount determined in accordance with clause (iii).
this section were applied without regard to paragraphs (2)(A) and (3)(B) of subsection (f), and
subsection (f)(3)(A) were applied without regard to “the percentage equal to 2/3 of”.
Housing credit agency to specify applicable percentage and maximum qualified basis In allocating a housing credit dollar amount to any building, the housing credit agency shall specify the applicable percentage and the maximum qualified basis which may be taken into account under this section with respect to such building. The applicable percentage and maximum qualified basis so specified shall not exceed the applicable percentage and qualified basis determined under this section without regard to this subsection.
Housing credit agency The term “housing credit agency” means any agency authorized to carry out this subsection.
Possessions treated as States The term “State” includes a possession of the United States.
Compliance period The term “compliance period” means, with respect to any building, the period of 15 taxable years beginning with the 1st taxable year of the credit period with respect thereto.
Determination of whether building is federally subsidized (A)
In general Except as otherwise provided in this paragraph, for purposes of subsection (b)(1), a new building shall be treated as federally subsidized for any taxable year if, at any time during such taxable year or any prior taxable year, there is or was outstanding any obligation the interest on which is exempt from tax under section 103 the proceeds of which [4]
are or were used (directly or indirectly) with respect to such building or the operation thereof.
Election to reduce eligible basis by proceeds of obligations A tax-exempt obligation shall not be taken into account under subparagraph (A) if the taxpayer elects to exclude from the eligible basis of the building for purposes of subsection (d) the proceeds of such obligation.
Special rule for subsidized construction financing Subparagraph (A) shall not apply to any tax-exempt obligation used to provide construction financing for any building if—
such obligation (when issued) identified the building for which the proceeds of such obligation would be used, and
such obligation is redeemed before such building is placed in service.
Low-income unit (A)
In general The term “low-income unit” means any unit in a building if—
such unit is rent-restricted (as defined in subsection (g)(2)), and
the individuals occupying such unit meet the income limitation applicable under subsection (g)(1) to the project of which such building is a part.
which is used exclusively to facilitate the transition of homeless individuals (within the meaning of section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302), as in effect on the date of the enactment of this clause) to independent living within 24 months, and
in which a governmental entity or qualified nonprofit organization (as defined in subsection (h)(5)) provides such individuals with temporary housing and supportive services designed to assist such individuals in locating and retaining permanent housing.
Special rule for buildings having 4 or fewer units In the case of any building which has 4 or fewer residential rental units, no unit in such building shall be treated as a low-income unit if the units in such building are owned by—
any person who is related (as defined in subsection (d)(2)(D)(iii)) to such individual.
Certain students not to disqualify unit A unit shall not fail to be treated as a low-income unit merely because it is occupied—
by an individual who is—
a student and receiving assistance under title IV of the Social Security Act,
a student who was previously under the care and placement responsibility of the State agency responsible for administering a plan under part B or part E of title IV of the Social Security Act, or
enrolled in a job training program receiving assistance under the Job Training Partnership Act or under other similar Federal, State, or local laws, or
entirely by full-time students if such students are—
single parents and their children and such parents are not dependents (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of another individual and such children are not dependents (as so defined) of another individual other than a parent of such children, or.
Owner-occupied buildings having 4 or fewer units eligible for credit where development plan (i)
Certain unrented units treated as owner-occupied
New building The term “new building” means a building the original use of which begins with the taxpayer.
Existing building The term “existing building” means any building which is not a new building.
Application to estates and trusts In the case of an estate or trust, the amount of the credit determined under subsection (a) and any increase in tax under subsection (j) shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each.
Impact of tenant’s right of 1st refusal to acquire property (A)
In general No Federal income tax benefit shall fail to be allowable to the taxpayer with respect to any qualified low-income building merely by reason of a right of 1st refusal held by the tenants (in cooperative form or otherwise) or resident management corporation of such building or by a qualified nonprofit organization (as defined in subsection (h)(5)(C)) or government agency to purchase the property after the close of the compliance period for a price which is not less than the minimum purchase price determined under subparagraph (B).
Minimum purchase price For purposes of subparagraph (A), the minimum purchase price under this subparagraph is an amount equal to the sum of—
the principal amount of outstanding indebtedness secured by the building (other than indebtedness incurred within the 5-year period ending on the date of the sale to the tenants), and
all Federal, State, and local taxes attributable to such sale.
Treatment of rural projects For purposes of this section, in the case of any project for residential rental property located in a rural area (as defined in section 520 of the Housing Act of 1949), any income limitation measured by reference to area median gross income shall be measured by reference to the greater of area median gross income or national non-metropolitan median income. The preceding sentence shall not apply with respect to any building if paragraph (1) of section 42
(h) does not apply by reason of paragraph (4) thereof to any portion of the credit determined under this section with respect to such building.
Coordination with low-income housing grants (A)
Reduction in State housing credit ceiling for low-income housing grants received in 2009 For purposes of this section, the amounts described in clauses (i) through (iv) of subsection (h)(3)(C) with respect to any State for 2009 shall each be reduced by so much of such amount as is taken into account in determining the amount of any grant to such State under section 1602 of the American Recovery and Reinvestment Tax Act of 2009.
Special rule for basis Basis of a qualified low-income building shall not be reduced by the amount of any grant described in subparagraph (A).
as of the close of any taxable year in the compliance period, the amount of the qualified basis of any building with respect to the taxpayer is less than
the amount of such basis as of the close of the preceding taxable year,
Credit recapture amount For purposes of paragraph (1), the credit recapture amount is an amount equal to the sum of—
the aggregate decrease in the credits allowed to the taxpayer under section 38 for all prior taxable years which would have resulted if the accelerated portion of the credit allowable by reason of this section were not allowed for all prior taxable years with respect to the excess of the amount described in paragraph (1)(B) over the amount described in paragraph (1)(A), plus
interest at the overpayment 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.
Accelerated portion of credit For purposes of paragraph (2), the accelerated portion of the credit for the prior taxable years with respect to any amount of basis is the excess of—
the aggregate credit allowed by reason of this section (without regard to this subsection) for such years with respect to such basis, over
the aggregate credit which would be allowable by reason of this section for such years with respect to such basis if the aggregate credit which would (but for this subsection) have been allowable for the entire compliance period were allowable ratably over 15 years.
Only basis for which credit allowed taken into account Qualified basis shall be taken into account under paragraph (1)(B) only to the extent such basis was taken into account in determining the credit under subsection (a) for the preceding taxable year referred to in such paragraph.
No recapture of additional credit allowable by reason of subsection (f)(3) Paragraph (1) shall apply to a decrease in qualified basis only to the extent such decrease exceeds the amount of qualified basis with respect to which a credit was allowable for the taxable year referred to in paragraph (1)(B) by reason of subsection (f)(3).
No credits against tax 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.
No recapture by reason of casualty loss The increase in tax under this subsection shall not apply to a reduction in qualified basis by reason of a casualty loss to the extent such loss is restored by reconstruction or replacement within a reasonable period established by the Secretary.
No recapture where de minimis changes in floor space The Secretary may provide that the increase in tax under this subsection shall not apply with respect to any building if—
such increase results from a de minimis change in the floor space fraction under subsection (c)(1), and
Certain partnerships treated as the taxpayer (A)
In general For purposes of applying this subsection to a partnership to which this paragraph applies—
such partnership shall be treated as the taxpayer to which the credit allowable under subsection (a) was allowed,
the amount of such credit allowed shall be treated as the amount which would have been allowed to the partnership were such credit allowable to such partnership,
paragraph (4)(A) shall not apply, and
the amount of the increase in tax under this subsection for any taxable year shall be allocated among the partners of such partnership in the same manner as such partnership’s taxable income for such year is allocated among such partners.
Partnerships to which paragraph applies This paragraph shall apply to any partnership which has 35 or more partners unless the partnership elects not to have this paragraph apply.
Husband and wife treated as 1 partner
No recapture on disposition of building which continues in qualified use (A)
In general The increase in tax under this subsection shall not apply solely by reason of the disposition of a building (or an interest therein) if it is reasonably expected that such building will continue to be operated as a qualified low-income building for the remaining compliance period with respect to such building.
Statute of limitations If a building (or an interest therein) is disposed of during any taxable year and there is any reduction in the qualified basis of such building which results in an increase in tax under this subsection for such taxable or any subsequent taxable year, then—
the statutory period for the assessment of any deficiency with respect to such increase in tax shall not expire before the expiration of 3 years from the date the Secretary is notified by the taxpayer (in such manner as the Secretary may prescribe) of such reduction in qualified basis, and
Application of at-risk rules For purposes of this section—
In general Except as otherwise provided in this subsection, rules similar to the rules of section 49
(a)(1) (other than subparagraphs (D)(ii)(II) and (D)(iv)(I) thereof), section 49
(a)(2), andsection 49
(b)(1) shall apply in determining the qualified basis of any building in the same manner as such sections apply in determining the credit base of property.
Special rules for determining qualified person For purposes of paragraph (1)—
In general If the requirements of subparagraphs (B), (C), and (D) are met with respect to any financing borrowed from a qualified nonprofit organization (as defined in subsection (h)(5)), the determination of whether such financing is qualified commercial financing with respect to any qualified low-income building shall be made without regard to whether such organization—
is actively and regularly engaged in the business of lending money, or
is a person described in section 49
(a)(1)(D)(iv)(II).
Financing secured by property The requirements of this subparagraph are met with respect to any financing if such financing is secured by the qualified low-income building, except that this subparagraph shall not apply in the case of a federally assisted building described in subsection (d)(6)(B) if—
a security interest in such building is not permitted by a Federal agency holding or insuring the mortgage secured by such building, and
the proceeds from the financing (if any) are applied to acquire or improve such building..
Portion of building attributable to financing The requirements of this subparagraph are met with respect to any financing for any taxable year in the compliance period if, as of the close of such taxable year, not more than 60 percent of the eligible basis of the qualified low-income building is attributable to such financing (reduced by the principal and interest of any governmental financing which is part of a wrap-around mortgage involving such financing).
Repayment of principal and interest The requirements of this subparagraph are met with respect to any financing if such financing is fully repaid on or before the earliest of—
the date on which such financing matures,
the 90th day after the close of the compliance period with respect to the qualified low-income building, or
the date of its refinancing or the sale of the building to which such financing relates.
In the case of a qualified nonprofit organization which is not described in section 49
(a)(1)(D)(iv)(II) with respect to a building, clause (ii) of this subparagraph shall be applied as if the date described therein were the 90th day after the earlier of the date the building ceases to be a qualified low-income building or the date which is 15 years after the close of a compliance period with respect thereto.
Present value of financing If the rate of interest on any financing described in paragraph (2)(A) is less than the rate which is 1 percentage point below the applicable Federal rate as of the time such financing is incurred, then the qualified basis (to which such financing relates) of the qualified low-income building shall be the present value of the amount of such financing, using as the discount rate such applicable Federal rate. For purposes of the preceding sentence, the rate of interest on any financing shall be determined by treating interest to the extent of government subsidies as not payable.
Failure to fully repay (A)
In general To the extent that the requirements of paragraph (2)(D) are not met, then the taxpayer’s tax under this chapter for the taxable year in which such failure occurs shall be increased by an amount equal to the applicable portion of the credit under this section with respect to such building, increased by an amount of interest for the period—
beginning with the due date for the filing of the return of tax imposed by chapter 1 for the 1st taxable year for which such credit was allowable, and
ending with the due date for the taxable year in which such failure occurs,
Applicable portion For purposes of subparagraph (A), the term “applicable portion” means the aggregate decrease in the credits allowed to a taxpayer under section 38 for all prior taxable years which would have resulted if the eligible basis of the building were reduced by the amount of financing which does not meet requirements of paragraph (2)(D).
Certain rules to apply Rules similar to the rules of subparagraphs (A) and (D) of subsection (j)(4) shall apply for purposes of this subsection.
Certifications and other reports to Secretary (1)
Certification with respect to 1st year of credit period Following the close of the 1st taxable year in the credit period with respect to any qualified low-income building, the taxpayer shall certify to the Secretary (at such time and in such form and in such manner as the Secretary prescribes)—
the taxable year, and calendar year, in which such building was placed in service,
the adjusted basis and eligible basis of such building as of the close of the 1st year of the credit period,
the maximum applicable percentage and qualified basis permitted to be taken into account by the appropriate housing credit agency under subsection (h),
the election made under subsection (g) with respect to the qualified low-income housing project of which such building is a part, and
Annual reports to the Secretary The Secretary may require taxpayers to submit an information return (at such time and in such form and manner as the Secretary prescribes) for each taxable year setting forth—
the qualified basis for the taxable year of each qualified low-income building of the taxpayer,
the information described in paragraph (1)(C) for the taxable year, and
The penalty under section 6652
(j) shall apply to any failure to submit the return required by the Secretary under the preceding sentence on the date prescribed therefor.
Annual reports from housing credit agencies Each agency which allocates any housing credit amount to any building for any calendar year shall submit to the Secretary (at such time and in such manner as the Secretary shall prescribe) an annual report specifying—
the amount of housing credit amount allocated to each building for such year,
sufficient information to identify each such building and the taxpayer with respect thereto, and
(j) shall apply to any failure to submit the report required by the preceding sentence on the date prescribed therefor.
Responsibilities of housing credit agencies (1)
Plans for allocation of credit among projects (A)
In general Notwithstanding any other provision of this section, the housing credit dollar amount with respect to any building shall be zero unless—
such amount was allocated pursuant to a qualified allocation plan of the housing credit agency which is approved by the governmental unit (in accordance with rules similar to the rules of section 147
(f)(2) (other than subparagraph (B)(ii) thereof)) of which such agency is a part,
such agency notifies the chief executive officer (or the equivalent) of the local jurisdiction within which the building is located of such project and provides such individual a reasonable opportunity to comment on the project,
a comprehensive market study of the housing needs of low-income individuals in the area to be served by the project is conducted before the credit allocation is made and at the developer’s expense by a disinterested party who is approved by such agency, and
a written explanation is available to the general public for any allocation of a housing credit dollar amount which is not made in accordance with established priorities and selection criteria of the housing credit agency.
Qualified allocation plan For purposes of this paragraph, the term “qualified allocation plan” means any plan—
which sets forth selection criteria to be used to determine housing priorities of the housing credit agency which are appropriate to local conditions,
which also gives preference in allocating housing credit dollar amounts among selected projects to—
projects serving the lowest income tenants,
projects obligated to serve qualified tenants for the longest periods, and
projects which are located in qualified census tracts (as defined in subsection (d)(5)(C)) and the development of which contributes to a concerted community revitalization plan, and
which provides a procedure that the agency (or an agent or other private contractor of such agency) will follow in monitoring for noncompliance with the provisions of this section and in notifying the Internal Revenue Service of such noncompliance which such agency becomes aware of and in monitoring for noncompliance with habitability standards through regular site visits.
Certain selection criteria must be used The selection criteria set forth in a qualified allocation plan must include
project characteristics, including whether the project includes the use of existing housing as part of a community revitalization plan,
public housing waiting lists,
tenant populations of individuals with children,
projects intended for eventual tenant ownership,
the energy efficiency of the project, and
the historic nature of the project.
Application to bond financed projects Subsection (h)(4) shall not apply to any project unless the project satisfies the requirements for allocation of a housing credit dollar amount under the qualified allocation plan applicable to the area in which the project is located.
Credit allocated to building not to exceed amount necessary to assure project feasibility (A)
In general The housing credit dollar amount allocated to a project shall not exceed the amount the housing credit agency determines is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the credit period.
Agency evaluation In making the determination under subparagraph (A), the housing credit agency shall consider—
the sources and uses of funds and the total financing planned for the project,
any proceeds or receipts expected to be generated by reason of tax benefits,
the percentage of the housing credit dollar amount used for project costs other than the cost of intermediaries, and
the reasonableness of the developmental and operational costs of the project.
Determination made when credit amount applied for and when building placed in service (i)
The application for the housing credit dollar amount.
The allocation of the housing credit dollar amount.
The date the building is placed in service.
Certification as to amount of other subsidies
Application to bond financed projects Subsection (h)(4) shall not apply to any project unless the governmental unit which issued the bonds (or on behalf of which the bonds were issued) makes a determination under rules similar to the rules of subparagraphs (A) and (B).
dealing with—
projects which include more than 1 building or only a portion of a building,
buildings which are placed in service in portions,
providing for the application of this section to short taxable years,
preventing the avoidance of the rules of this section, and
providing the opportunity for housing credit agencies to correct administrative errors and omissions with respect to allocations and record keeping within a reasonable period after their discovery, taking into account the availability of regulations and other administrative guidance from the Secretary.
So in original. Probably should be “etc.,”.
(Added Pub. L. 99–514, title II, § 252(a),Oct. 22, 1986, 100 Stat. 2189; amended Pub. L. 99–509, title VIII, § 8072(a),Oct. 21, 1986, 100 Stat. 1964; Pub. L. 100–647, title I, §§ 1002(l)(1)–(25), (32), 1007(g)(3)(B), title IV, §§ 4003(a), (b)(1), (3), 4004(a),Nov. 10, 1988, 102 Stat. 3373–3381, 3435, 3643, 3644; Pub. L. 101–239, title VII, §§ 7108(a)(1), (b)–(e)(2), (f)–(m), (n)(2)–(q), 7811(a), 7831(c), 7841(d)(13)–(15), Dec. 19, 1989, 103 Stat. 2306–2321, 2406, 2426, 2429; Pub. L. 101–508, title XI, §§ 11407(a)(1), (b)(1)–(9), 11701(a)(1)–(3)(A), (4), (5)(A), (6)–(10), 11812(b)(3), 11813(b)(3), Nov. 5, 1990, 104 Stat. 1388–474, 1388–475, 1388–505 to 1388–507, 1388–535, 1388–551; Pub. L. 102–227, title I, § 107(a),Dec. 11, 1991, 105 Stat. 1687; Pub. L. 103–66, title XIII, § 13142(a)(1), (b)(1)–(5), Aug. 10, 1993, 107 Stat. 437–439; Pub. L. 104–188, title I, § 1704(t)(53), (64),Aug. 20, 1996, 110 Stat. 1890; Pub. L. 105–206, title VI, § 6004(g)(5),July 22, 1998, 112 Stat. 796; Pub. L. 106–400, § 2,Oct. 30, 2000, 114 Stat. 1675; Pub. L. 106–554, § 1(a)(7) [title I, §§ 131(a)–(c), 132–136], Dec. 21, 2000, 114 Stat. 2763, 2763A–610 to 2763A–613; Pub. L. 107–147, title IV, § 417(2), (3),Mar. 9, 2002, 116 Stat. 56; Pub. L. 108–311, title II, § 207(8), title IV, § 408(a)(3),Oct. 4, 2004, 118 Stat. 1177, 1191; Pub. L. 110–142, § 6(a),Dec. 20, 2007, 121 Stat. 1806; Pub. L. 110–289, div. C, title I, §§ 3001–3002(b), 3003(a)–(g), 3004(a)–(g), 3007(b), July 30, 2008, 122 Stat. 2878–2884, 2886; Pub. L. 111–5, div. B, title I, § 1404,Feb. 17, 2009, 123 Stat. 352; Pub. L. 112–240, title III, § 302(a),Jan. 2, 2013, 126 Stat. 2328.)
Section 201(a) of the Tax Reform Act of 1986, referred to in subsec. (c)(2)(B), is section 201(a) ofPub. L. 99–514, which amended section 168 of this title generally.
Section 8 of the United States Housing Act of 1937, referred to in subsecs. (d)(6)(C)(i), (g)(2)(B), and (h)(6)(B)(iv), is classified to section 1437f of Title 42, The Public Health and Welfare. Section 8(e)(2) of the Act was repealed by Pub. L. 101–625, title II, § 289(b)(1),Nov. 28, 1990, 104 Stat. 4128, effective Oct. 1, 1991, but to remain in effect with respect to single room occupancy dwellings as authorized by subchapter IV (§ 11361 et seq.) of chapter 119 of Title 42. See section 12839
Sections 221(d)(3), (4) and 236 of the National Housing Act, referred to in subsec. (d)(6)(C)(i), are classified to sections 1715l
(d)(3), (4) and 1715z–1, respectively, of Title 12, Banks and Banking.
Sections 515, 502(c), and 520 of the Housing Act of 1949, referred to in subsecs. (d)(6)(C)(i), (g)(2)(B)(iv), and (i)(8), are classified to sections 1485, 1472
(c), and 1490, respectively, of Title 42, The Public Health and Welfare.
The Social Security Act, referred to in subsec. (i)(3)(D)(i)(I), (II), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title IV of the Act is classified generally to subchapter IV (§ 601 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. Parts B and E of title IV of the Act are classified generally to parts B (§ 620 et seq.) and E (§ 670 et seq.), respectively, of subchapter IV of chapter 7 of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
The Job Training Partnership Act, referred to in subsec. (i)(3)(D)(i)(III), is Pub. L. 97–300, Oct. 13, 1982, 96 Stat. 1322, which was classified generally to chapter 19 (§ 1501 et seq.) of Title 29, Labor, and was repealed by Pub. L. 105–220, title I, § 199(b)(2), (c)(2)(B),Aug. 7, 1998, 112 Stat. 1059, effective July 1, 2000. Pursuant to section 2940
Section 1602 of the American Recovery and Reinvestment Tax Act of 2009, referred to in subsec. (i)(9)(A), is section 1602 ofPub. L. 111–5, which is set out as a note below.
A prior section 42, added Pub. L. 94–12, title II, § 203(a),Mar. 29, 1975, 89 Stat. 29; amended Pub. L. 94–164, § 3(a)(1),Dec. 23, 1975, 89 Stat. 972; Pub. L. 94–455, title IV, § 401(a)(2)(A), (B), title V, § 503(b)(4), title XIX, § 1906(b)(13)(A),Oct. 4, 1976, 90 Stat. 1555, 1562, 1834; Pub. L. 95–30, title I, § 101(c),May 23, 1977, 91 Stat. 132, which related to general tax credit allowed to individuals in an amount equal to the greater of (1) 2% of taxable income not exceeding $9,000 or (2) $35 multiplied by each exemption the taxpayer was entitled to, expired Dec. 31, 1978, pursuant to the terms of: (1) Pub. L. 94–12, § 209(a) as amended by Pub. L. 94–164, § 2(e), set out as an Effective and Termination Dates of 1975 Amendment note under section 56 of this title; (2) Pub. L. 94–164, § 3(b), as amended by Pub. L. 94–455, § 401(a)(1) andPub. L. 95–30, § 103(a); and (3) Pub. L. 94–455, § 401(e), as amended by Pub. L. 95–30, § 103(c) andPub. L. 95–600, title I, § 103(b),Nov. 6, 1978, 92 Stat. 2771, set out as an Effective and Termination Dates of 1976 Amendment note under section 32 of this title.
2013—Subsec. (b)(2)(A). Pub. L. 112–240substituted “with respect to housing credit dollar amount allocations made before January 1, 2014” for “and before December 31, 2013”.
2009—Subsec. (i). Pub. L. 111–5added par. (9).
2008—Subsec. (b). Pub. L. 110–289, § 3002(a), redesignated par. (2) as (1), in heading, substituted “Determination of applicable percentage” for “Buildings placed in service after 1987”, in text, substituted “For purposes of this section, the term ‘applicable percentage’ means, with respect to any building, the appropriate percentage” for “(A) In general.—In the case of any qualified low-income building placed in service by the taxpayer after 1987, the term ‘applicable percentage’ means the appropriate percentage”, “a new building which is not federally subsidized for the taxable year” for “a building described in paragraph (1)(A)”, and “a building not described in clause (i)” for “a building described in paragraph (1)(B)”, added par. (2), and struck out “For purposes of this section—” after subsec. heading and former par. (1) which related to buildings placed in service during 1987.
Subsec. (c)(2). Pub. L. 110–289, § 3004(a), struck out concluding provisions which read as follows: “Such term does not include any building with respect to which moderate rehabilitation assistance is provided, at any time during the compliance period, under section 8(e)(2) of the United States Housing Act of 1937 (other than assistance under the McKinney-Vento Homeless Assistance Act (as in effect on the date of the enactment of this sentence)).”
Subsec. (d)(2)(B)(ii). Pub. L. 110–289, § 3003(g)(1), substituted “the date the building was last placed in service,” for “the later of—
Subsec. (d)(2)(D). Pub. L. 110–289, § 3003(e), (g)(2), redesignated cls. (ii) and (iii)(II) as (i) and (ii), respectively, in cl. (ii) struck out at end “For purposes of the preceding sentence, in applying section 267
(b)(1), ‘10 percent’ shall be substituted for ‘50 percent’.”, and struck out former cls. (i) and (iii)(I) which related to the term “nonqualified substantial improvement” and application of section 179 for purposes of subpar. (B)(i).
Subsec. (d)(4)(C)(ii). Pub. L. 110–289, § 3003(c), substituted “shall not exceed the sum of—” for “shall not exceed 10 percent of the eligible basis of the qualified low-income housing project of which it is a part.” and added subcls. (I) and (II).
Subsec. (d)(5)(A). Pub. L. 110–289, § 3003(d), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “If, during any taxable year of the compliance period, a grant is made with respect to any building or the operation thereof and any portion of such grant is funded with Federal funds (whether or not includible in gross income), the eligible basis of such building for such taxable year and all succeeding taxable years shall be reduced by the portion of such grant which is so funded.”
Subsec. (d)(5)(B), (C). Pub. L. 110–289, § 3003(g)(3), redesignated subpar. (C) as (B) and struck out heading and text of former subpar. (B). Text read as follows: “The eligible basis of any building shall not include any portion of its adjusted basis which is attributable to amounts with respect to which an election is made under section 167
(k) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).”
Subsec. (d)(5)(C)(v). Pub. L. 110–289, § 3003(a), added cl. (v).
Subsec. (d)(6). Pub. L. 110–289, § 3003(f), amended par. (6) generally. Prior to amendment, par. (6) consisted of subpars. (A) to (E) relating to general rule for waiver of par. (2)(B)(ii) with respect to any federally-assisted building, definition of “federally-assisted building”, waiver for buildings with low-income occupancy, waiver for buildings acquired from insured depository institutions in default, and definition of “appropriate Federal official”.
Subsec. (e)(3)(A)(ii)(I). Pub. L. 110–289, § 3003(b)(1)(A), substituted “20 percent” for “10 percent”.
Subsec. (e)(3)(A)(ii)(II). Pub. L. 110–289, § 3003(b)(1)(B), substituted “$6,000” for “$3,000”.
Subsec. (e)(3)(D). Pub. L. 110–289, § 3003(b)(2), added subpar. (D).
Subsec. (f)(5)(B)(ii)(II). Pub. L. 110–289, § 3003(b)(3), substituted “if the dollar amount in effect under subsection (e)(3)(A)(ii)(II) were two-thirds of such amount.” for “if subsection (e)(3)(A)(ii)(II) were applied by substituting ‘$2,000’ for ‘$3,000’.”
Subsec. (g)(9). Pub. L. 110–289, § 3004(g), added par. (9).
Subsec. (h)(1)(E)(ii). Pub. L. 110–289, § 3004(b), substituted “(as of the date which is 1 year after the date that the allocation was made)” for “(as of the later of the date which is 6 months after the date that the allocation was made or the close of the calendar year in which the allocation is made)”.
Subsec. (h)(3)(I). Pub. L. 110–289, § 3001, added subpar. (I).
Subsec. (h)(4)(A)(ii). Pub. L. 110–289, § 3007(b), inserted “or such financing is refunded as described in section 146
(i)(6)” before period at end.
Subsec. (i)(2)(A). Pub. L. 110–289, § 3002(b)(1), struck out “, or any below market Federal loan,” before “the proceeds of which”.
Subsec. (i)(2)(B). Pub. L. 110–289, § 3002(b)(2)(A), in heading, struck out “balance of loan or” before “proceeds” and in text, struck out “loan or” before “tax-exempt obligation” and substituted “for purposes of subsection (d) the proceeds of such obligation.” for “for purposes of subsection (d)—
Subsec. (i)(2)(C). Pub. L. 110–289, § 3002(b)(2)(B)(i), struck out “or below market Federal loan” after “tax-exempt obligation” in introductory provisions.
Subsec. (i)(2)(C)(i). Pub. L. 110–289, § 3002(b)(2)(B)(ii), substituted “(when issued)” for “or loan (when issued or made)” and “the proceeds of such obligation” for “the proceeds of such obligation or loan”.
Subsec. (i)(2)(C)(ii). Pub. L. 110–289, § 3002(b)(2)(B)(iii), struck out “, and such loan is repaid,” after “redeemed”.
Subsec. (i)(2)(D), (E). Pub. L. 110–289, § 3002(b)(2)(C), struck out subpars. (D) and (E) which related to below market Federal loan and buildings receiving HOME assistance or Native American housing assistance, respectively.
Subsec. (i)(3)(D)(i)(II), (III). Pub. L. 110–289, § 3004(e), added subcl. (II) and redesignated former subcl. (II) as (III).
Subsec. (i)(8). Pub. L. 110–289, § 3004(f), added par. (8).
Subsec. (j)(6). Pub. L. 110–289, § 3004(c), amended par. (6) generally. Prior to amendment, text read as follows: “In the case of a disposition of a building or an interest therein, the taxpayer shall be discharged from liability for any additional tax under this subsection by reason of such disposition if—
Subsec. (m)(1)(C)(ix), (x). Pub. L. 110–289, § 3004(d), added cls. (ix) and (x).
2007—Subsec. (i)(3)(D)(ii)(I). Pub. L. 110–142amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “single parents and their children and such parents and children are not dependents (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of another individual, or”.
2004—Subsec. (d)(2)(D)(iii)(I). Pub. L. 108–311, § 408(a)(3), substituted “section 179
(d)(7)” for “section 179
Subsec. (i)(3)(D)(ii)(I). Pub. L. 108–311, § 207(8), inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof” after “section 152”.
2002—Subsec. (h)(3)(C). Pub. L. 107–147, § 417(2), substituted “the amounts described in clauses (ii) through (iv) over the aggregate housing credit dollar amount allocated for such year” for “the amounts described in clauses (ii) and (iii) over the aggregate housing credit dollar amount allocated for such year” in concluding provisions.
Subsec. (m)(1)(B)(ii)(II), (III). Pub. L. 107–147, § 417(3), struck out second “and” at end of subcl. (II) and inserted “and” at end of subcl. (III).
2000—Subsec. (c)(2). Pub. L. 106–400substituted “McKinney-Vento Homeless Assistance Act” for “Stewart B. McKinney Homeless Assistance Act” in concluding provisions.
Subsec. (d)(4)(A). Pub. L. 106–554, § 1(a)(7) [title I, § 134(a)(1)], substituted “subparagraphs (B) and (C)” for “subparagraph (B)”.
Subsec. (d)(4)(C), (D). Pub. L. 106–554, § 1(a)(7) [title I, § 134(a)(2), (3)], added subpar. (C) and redesignated former subpar. (C) as (D).
Subsec. (d)(5)(C)(ii)(I). Pub. L. 106–554, § 1(a)(7) [title I, § 135(b)], in first sentence, inserted “either” before “in which 50 percent” and “or which has a poverty rate of at least 25 percent” before period at end.
Subsec. (h)(1)(E)(ii). Pub. L. 106–554, § 1(a)(7) [title I, § 135(a)(1)], in first sentence, substituted “(as of the later of the date which is 6 months after the date that the allocation was made or the close of the calendar year in which the allocation” for “(as of the close of the calendar year in which the allocation”.
Subsec. (h)(3)(C). Pub. L. 106–554, § 1(a)(7) [title I, § 136(b)], which directed the substitution of “clauses (i) through (iv)” for “clauses (i) and (iii)” in the first sentence of concluding provisions, could not be executed because the words “clauses (i) and (iii)” did not appear subsequent to the amendment by Pub. L. 106–554, § 1(a)(7) [title I, § 131(c)(1)(B)]. See below.
Pub. L. 106–554, § 1(a)(7) [title I, § 135(a)(2)], in last sentence of concluding provisions, substituted “project which fails to meet the 10 percent test under paragraph (1)(E)(ii) on a date after the close of the calendar year in which the allocation was made or which” for “project which”.
Pub. L. 106–554, § 1(a)(7) [title I, § 131(c)(1)], in first sentence of concluding provisions, substituted “clause (i)” for “clause (ii)” and “clauses (ii)” for “clauses (i)”.
Subsec. (h)(3)(C)(i), (ii). Pub. L. 106–554, § 1(a)(7) [title I, § 131(a)], amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) read as follows:
Subsec. (h)(3)(D)(ii). Pub. L. 106–554, § 1(a)(7) [title I, § 136(a)], substituted “the excess (if any) of—” for “the excess (if any) of the unused State housing credit ceiling for such year (as defined in subparagraph (C)(i)) over the excess (if any) of—” in introductory provisions, added subcls. (I) and (II), and struck out former subcls. (I) and (II) which read as follows:
Pub. L. 106–554, § 1(a)(7) [title I, § 131(c)(2)], substituted “subparagraph (C)(i)” for “subparagraph (C)(ii)” in introductory provisions and “clauses (ii)” for “clauses (i)” in subcl. (II).
Subsec. (h)(3)(H). Pub. L. 106–554, § 1(a)(7) [title I, § 131(b)], added subpar. (H).
Subsec. (i)(2)(E). Pub. L. 106–554, § 1(a)(7) [title I, § 134(b)(2)], inserted “or Native American housing assistance” after “HOME assistance” in heading.
Subsec. (i)(2)(E)(i). Pub. L. 106–554, § 1(a)(7) [title I, § 134(b)(1)], inserted “or the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.) (as in effect on October 1, 1997)” after “this subparagraph)”.
Subsec. (i)(3)(B)(iii)(I). Pub. L. 106–400substituted “McKinney-Vento Homeless Assistance Act” for “Stewart B. McKinney Homeless Assistance Act”.
Subsec. (m)(1)(A)(iii), (iv). Pub. L. 106–554, § 1(a)(7) [title I, § 133(a)], added cls. (iii) and (iv).
Subsec. (m)(1)(B)(ii)(III). Pub. L. 106–554, § 1(a)(7) [title I, § 132(b)], added subcl. (III).
Subsec. (m)(1)(B)(iii). Pub. L. 106–554, § 1(a)(7) [title I, § 133(b)], inserted “and in monitoring for noncompliance with habitability standards through regular site visits” before period at end.
Subsec. (m)(1)(C)(iii). Pub. L. 106–554, § 1(a)(7) [title I, § 132(a)(1)], inserted “, including whether the project includes the use of existing housing as part of a community revitalization plan” before comma at end.
Subsec. (m)(1)(C)(v) to (viii). Pub. L. 106–554, § 1(a)(7) [title I, § 132(a)(2)], added cls. (v) to (viii) and struck out former cls. (v) to (vii) which read as follows:
1998—Subsec. (j)(4)(D). Pub. L. 105–206substituted “this chapter” for “subpart A, B, D, or G of this part”.
1996—Subsec. (c)(2). Pub. L. 104–188, § 1704(t)(64), struck out “of 1988” after “Homeless Assistance Act”.
Subsec. (d)(5)(B). Pub. L. 104–188, § 1704(t)(53), provided that section 11812(b)(3) ofPub. L. 101–508shall be applied by not executing the amendment therein to the heading of subsec. (d)(5)(B) of this section. See 1990 Amendment note below.
1993—Subsec. (g)(8). Pub. L. 103–66, § 13142(b)(3), added par. (8).
Subsec. (h)(6)(B)(iv) to (vi). Pub. L. 103–66, § 13142(b)(4), added cl. (iv) and redesignated former cls. (iv) and (v) as (v) and (vi), respectively.
Subsec. (i)(2)(E). Pub. L. 103–66, § 13142(b)(5), added subpar. (E).
Subsec. (i)(3)(D). Pub. L. 103–66, § 13142(b)(2), amended heading and text of subpar. (D) generally. Prior to amendment, text read as follows: “A unit shall not fail to be treated as a low-income unit merely because it is occupied by an individual who is—
Subsec. (m)(2)(B)(iv). Pub. L. 103–66, § 13142(b)(1), added cl. (iv).
Subsec. (o). Pub. L. 103–66, § 13142(a)(1), struck out subsec. (o) which provided that subsec. (h)(3)(C)(i) would not apply to any amount allocated after June 30, 1992, and that subsec. (h)(4) would not apply to any building placed in service after June 30, 1992, with an exception for bond-financed buildings in progress.
1991—Subsec. (o)(1). Pub. L. 102–227, § 107(a)(1), struck out “, for any calendar year after 1991” after “paragraph (2)” in introductory provisions, inserted “to any amount allocated after June 30, 1992” before comma at end of subpar. (A), and substituted “June 30, 1992” for “1991” in subpar. (B).
Subsec. (o)(2). Pub. L. 102–227, § 107(a)(2), substituted “July 1, 1992” for “1992” in introductory provisions and subpar. (A), “June 30, 1992” for “December 31, 1991” and “June 30, 1994” for “December 31, 1993” in subpar. (B), and “July 1, 1994” for “January 1, 1994” in subpar. (C).
1990—Subsec. (b)(1). Pub. L. 101–508, § 11701(a)(1)(B), struck out at end “A building shall not be treated as described in subparagraph (B) if, at any time during the credit period, moderate rehabilitation assistance is provided with respect to such building under section 8(e)(2) of the United States Housing Act of 1937.”
Subsec. (c)(2). Pub. L. 101–508, § 11701(a)(1)(A), inserted at end “Such term does not include any building with respect to which moderate rehabilitation assistance is provided, at any time during the compliance period, under section 8(e)(2) of the United States Housing Act of 1937.”
Pub. L. 101–508, § 11407(b)(5)(A), inserted before period at end of last sentence “(other than assistance under the Stewart B. McKinney Homeless Assistance Act of 1988 (as in effect on the date of the enactment of this sentence))”.
Subsec. (d)(2)(D)(i)(I). Pub. L. 101–508, § 11812(b)(3), inserted “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “section 167
Subsec. (d)(2)(D)(ii)(V). Pub. L. 101–508, § 11407(b)(8), added subcl. (V).
Subsec. (d)(5)(B). Pub. L. 101–508, § 11812(b)(3), which directed the insertion of “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “section 167
(k)”, was executed to the text, and not the heading, of subpar. (B). See 1996 Amendment note above.
Subsec. (d)(5)(C)(ii)(I). Pub. L. 101–508, § 11407(b)(4), inserted at end “If the Secretary of Housing and Urban Development determines that sufficient data for any period are not available to apply this clause on the basis of census tracts, such Secretary shall apply this clause for such period on the basis of enumeration districts.”
Pub. L. 101–508, § 11701(a)(2)(B), inserted before period at end “for such year”.
Pub. L. 101–508, § 11701(a)(2)(A), which directed the insertion of “which is designated by the Secretary of Housing and Urban Development and, for the most recent year for which census data are available on household income in such tract,” after “census tract”, was executed by making the insertion after “any census tract” to reflect the probable intent of Congress.
Subsec. (g)(2)(B)(iv). Pub. L. 101–508, § 11407(b)(3), added cl. (iv).
Subsec. (g)(2)(D)(i). Pub. L. 101–508, § 11701(a)(3)(A), inserted before period at end “and such unit continues to be rent-restricted”.
Subsec. (g)(2)(D)(ii). Pub. L. 101–508, § 11701(a)(4), inserted at end “In the case of a project described in section 142
(d)(4)(B), the preceding sentence shall be applied by substituting ‘170 percent’ for ‘140 percent’ and by substituting ‘any low-income unit in the building is occupied by a new resident whose income exceeds 40 percent of area median gross income’ for ‘any residential unit in the building (of a size comparable to, or smaller than, such unit) is occupied by a new resident whose income exceeds such income limitation’.”
Subsec. (g)(3)(A). Pub. L. 101–508, § 11701(a)(5)(A), substituted “the 1st year of the credit period for such building” for “the 12-month period beginning on the date the building is placed in service”.
Subsec. (h)(3)(C). Pub. L. 101–508, § 11701(a)(6)(A), substituted “the sum of the amounts described in clauses (i) and (iii)” for “the amount described in clause (i)” in second sentence.
Subsec. (h)(3)(D)(ii)(II). Pub. L. 101–508, § 11701(a)(6)(B), substituted “the sum of the amounts described in clauses (i) and (iii)” for “the amount described in clause (i)”.
Subsec. (h)(5)(B). Pub. L. 101–508, § 11407(b)(9)(A), inserted “own an interest in the project (directly or through a partnership) and” after “nonprofit organization is to”.
Subsec. (h)(5)(C)(i) to (iii). Pub. L. 101–508, § 11407(b)(9)(B), added cl. (ii) and redesignated former cl. (ii) as (iii).
Subsec. (h)(5)(D)(i). Pub. L. 101–508, § 11407(b)(9)(C), inserted “ownership and” before “material participation”.
Subsec. (h)(6)(B)(i). Pub. L. 101–508, § 11701(a)(7)(A), inserted before comma at end “and which prohibits the actions described in subclauses (I) and (II) of subparagraph (E)(ii)”.
Subsec. (h)(6)(B)(ii). Pub. L. 101–508, § 11701(a)(7)(B), substituted “requirement and prohibitions” for “requirement”.
Subsec. (h)(6)(B)(iii) to (v). Pub. L. 101–508, § 11701(a)(8)(A), added cl. (iii) and redesignated former cls. (iii) and (iv) as (iv) and (v), respectively.
Subsec. (h)(6)(E)(i)(I). Pub. L. 101–508, § 11701(a)(9), inserted before comma “unless the Secretary determines that such acquisition is part of an arrangement with the taxpayer a purpose of which is to terminate such period”.
Subsec. (h)(6)(E)(ii)(II). Pub. L. 101–508, § 11701(a)(8)(C), inserted before period at end “not otherwise permitted under this section”.
Subsec. (h)(6)(F). Pub. L. 101–508, § 11701(a)(8)(D), inserted “the nonlow-income portion of the building for fair market value and” before “the low-income portion” in introductory provisions.
Subsec. (h)(6)(J) to (L). Pub. L. 101–508, § 11701(a)(8)(B), redesignated subpars. (K) and (L) as (J) and (K), respectively, and struck out former subpar. (J) which related to sales of less than the low-income portions of a building.
Subsec. (i)(3)(D). Pub. L. 101–508, § 11407(b)(6), substituted “Certain students” for “Students in government-supported job training programs” in heading and amended text generally. Prior to amendment, text read as follows: “A unit shall not fail to be treated as a low-income unit merely because it is occupied by an individual who is enrolled in a job training program receiving assistance under the Job Training Partnership Act or under other similar Federal, State, or local laws.”
Subsec. (i)(7). Pub. L. 101–508, § 11701(a)(10), redesignated par. (8) as (7).
Subsec. (i)(7)(A). Pub. L. 101–508, § 11407(b)(1), substituted “the tenants (in cooperative form or otherwise) or resident management corporation of such building or by a qualified nonprofit organization (as defined in subsection (h)(5)(C)) or government agency” for “the tenants of such building”.
Subsec. (i)(8). Pub. L. 101–508, § 11701(a)(10), redesignated par. (8) as (7).
Subsec. (k)(1). Pub. L. 101–508, § 11813(b)(3)(A), substituted “49(a)(1)” for “46(c)(8)”, “49(a)(2)” for “46(c)(9)”, and “49(b)(1)” for “47(d)(1)”.
Subsec. (k)(2)(A)(ii), (D). Pub. L. 101–508, § 11813(b)(3)(B), substituted “49(a)(1)(D)(iv)(II)” for “46(c)(8)(D)(iv)(II)”.
Subsec. (m)(1)(B)(ii) to (iv). Pub. L. 101–508, § 11407(b)(7)(B), redesignated cls. (iii) and (iv) as (ii) and (iii), respectively, and struck out former cl. (ii) which read as follows: “which gives the highest priority to those projects as to which the highest percentage of the housing credit dollar amount is to be used for project costs other than the cost of intermediaries unless granting such priority would impede the development of projects in hard-to-develop areas,”.
Pub. L. 101–508, § 11407(b)(2), amended cl. (iv) generally. Prior to amendment, cl. (iv) read as follows: “which provides a procedure that the agency will follow in notifying the Internal Revenue Service of noncompliance with the provisions of this section which such agency becomes aware of.”
Subsec. (m)(2)(B). Pub. L. 101–508, § 11407(b)(7)(A), added cl. (iii) and inserted provision that cl. (iii) not be applied so as to impede the development of projects in hard-to-develop areas.
Subsec. (o)(1). Pub. L. 101–508, § 11407(a)(1)(A), substituted “1991” for “1990” wherever appearing.
Subsec. (o)(2). Pub. L. 101–508, § 11407(a)(1)(B), added par. (2) and struck out former par. (2) which read as follows: “For purposes of paragraph (1)(B), a building shall be treated as placed in service before 1990 if—
1989—Subsec. (b)(1). Pub. L. 101–239, § 7108(h)(5), inserted at end “A building shall not be treated as described in subparagraph (B) if, at any time during the credit period, moderate rehabilitation assistance is provided with respect to such building under section 8(e)(2) of the United States Housing Act of 1937.”
Subsec. (b)(3)(C). Pub. L. 101–239, § 7108(c)(2), which directed amendment of subpar. (C) by substituting “subsection (h)(7)” for “subsection (h)(6))”, was executed by substituting “subsection (h)(7)” for “subsection (h)(6)”, as the probable intent of Congress.
Subsec. (c)(1)(E). Pub. L. 101–239, § 7108(i)(2), added subpar. (E).
Subsec. (d)(1). Pub. L. 101–239, § 7108(l)(1), inserted “as of the close of the 1st taxable year of the credit period” before period at end.
Subsec. (d)(2)(A). Pub. L. 101–239, § 7108(l)(2), substituted “subparagraph (B), its adjusted basis as of the close of the 1st taxable year of the credit period, and” for “subparagraph (B), the sum of—
Subsec. (d)(2)(B)(iv). Pub. L. 101–239, § 7108(d)(1), added cl. (iv).
Subsec. (d)(2)(C). Pub. L. 101–239, § 7108(l)(3)(A), substituted “Adjusted basis” for “Acquisition cost” in heading and “adjusted basis” for “cost” in text.
Subsec. (d)(5). Pub. L. 101–239, § 7108(l)(3)(B), substituted “Special rules for determining eligible basis” for “Eligible basis determined when building placed in service” in heading.
Subsec. (d)(5)(A). Pub. L. 101–239, § 7108(l)(3)(B), redesignated subpar. (B) as (A) and struck out former subpar. (A) which read as follows: “Except as provided in subparagraphs (B) and (C), the eligible basis of any building for the entire compliance period for such building shall be its eligible basis on the date such building is placed in service (increased, in the case of an existing building which meets the requirements of paragraph (2)(B), by the amounts described in paragraph (2)(A)(i)(II)).”
Subsec. (d)(5)(B). Pub. L. 101–239, § 7108(l)(3)(B), redesignated subpar. (C) as (B). Former subpar. (B) redesignated (A).
Subsec. (d)(5)(C). Pub. L. 101–239, § 7108(l)(3)(B), redesignated subpar. (D) as (C). Former subpar. (C) redesignated (B).
Pub. L. 101–239, § 7811(a)(1), inserted “section” before “167(k)” in heading.
Subsec. (d)(5)(D). Pub. L. 101–239, § 7108(l)(3)(B), redesignated subpar. (D) as (C).
Pub. L. 101–239, § 7108(g), added subpar. (D).
Subsec. (d)(6)(A)(i). Pub. L. 101–239, § 7841(d)(13), substituted “Farmers Home Administration” for “Farmers’ Home Administration”.
Subsec. (d)(6)(C) to (E). Pub. L. 101–239, § 7108(f), added subpars. (C) and (D) and redesignated former subpar. (C) as (E).
Subsec. (d)(7)(A). Pub. L. 101–239, § 7831(c)(6), inserted “(or interest therein)” after “subparagraph (B)” in introductory provisions.
Subsec. (d)(7)(A)(ii). Pub. L. 101–239, § 7841(d)(14), substituted “under subsection (a)” for “under sebsection (a)”.
Subsec. (e)(2)(A). Pub. L. 101–239, § 7841(d)(15), substituted “to capital account” for “to captial account”.
Subsec. (e)(3). Pub. L. 101–239, § 7108(d)(3), substituted “Minimum expenditures to qualify” for “Average of rehabilitation expenditures must be $2,000 or more” in heading, added subpars. (A) and (B), redesignated former subpar. (B) as (C), and struck out former subpar. (A) which read as follows: “Paragraph (1) shall apply to rehabilitation expenditures with respect to any building only if the qualified basis attributable to such expenditures incurred during any 24-month period, when divided by the low-income units in the building, is $2,000 or more.”
Subsec. (e)(5). Pub. L. 101–239, § 7108(l)(3)(C), substituted “subsection (d)(2)(A)(i)” for “subsection (d)(2)(A)(i)(II)”.
Subsec. (f)(4). Pub. L. 101–239, § 7831(c)(4), added par. (4).
Subsec. (f)(5). Pub. L. 101–239, § 7108(d)(2), added par. (5).
Subsec. (g)(2)(A). Pub. L. 101–239, § 7108(e)(2), inserted at end “For purposes of the preceding sentence, the amount of the income limitation under paragraph (1) applicable for any period shall not be less than such limitation applicable for the earliest period the building (which contains the unit) was included in the determination of whether the project is a qualified low-income housing project.”
Pub. L. 101–239, § 7108(e)(1)(B), substituted “the imputed income limitation applicable to such unit” for “the income limitation under paragraph (1) applicable to individuals occupying such unit”.
Subsec. (g)(2)(B). Pub. L. 101–239, § 7108(h)(2), added cl. (iii) and concluding provisions which defined “supportive service”.
Subsec. (g)(2)(C) to (E). Pub. L. 101–239, § 7108(e)(1)(A), added subpars. (C) and (D) and redesignated former subpar. (C) as (E).
Subsec. (g)(3)(D). Pub. L. 101–239, § 7108(m)(3), added subpar. (D).
Subsec. (g)(4). Pub. L. 101–239, § 7108(n)(2), struck out “(other than section 142
(d)(4)(B)(iii))” after “in applying such provisions”.
Subsec. (g)(7). Pub. L. 101–239, § 7108(h)(3), added par. (7).
Subsec. (h)(1)(B). Pub. L. 101–239, § 7108(m)(2), substituted “(E), or (F)” for “or (E)”.
Subsec. (h)(1)(F). Pub. L. 101–239, § 7108(m)(1), added subpar. (F).
Subsec. (h)(3)(C) to (G). Pub. L. 101–239, § 7108(b)(1), added subpars. (C) and (D), redesignated former subpars. (D) to (F) as (E) to (G), respectively, and struck out former subpar. (C) which read as follows: “The State housing credit ceiling applicable to any State for any calendar year shall be an amount equal to $1.25 multiplied by the State population.”
Subsec. (h)(4)(B). Pub. L. 101–239, § 7108(j), substituted “50 percent” for “70 percent” in heading and in text.
Subsec. (h)(5)(D)(ii). Pub. L. 101–239, § 7811(a)(2), substituted “clause (i)” for “clause (ii)”.
Subsec. (h)(5)(E). Pub. L. 101–239, § 7108(b)(2)(A), substituted “subparagraph (F)” for “subparagraph (E)”.
Subsec. (h)(6). Pub. L. 101–239, § 7108(c)(1), added par. (6). Former par. (6) redesignated (7).
Subsec. (h)(6)(B) to (E). Pub. L. 101–239, § 7108(b)(2)(B), redesignated subpars. (C) to (E) as (B) to (D), respectively, and struck out former subpar. (B) which provided that the housing credit dollar amount could not be carried over to any other calendar year.
Subsec. (h)(7), (8). Pub. L. 101–239, § 7108(c)(1), redesignated pars. (6) and (7) as (7) and (8), respectively.
Subsec. (i)(2)(D). Pub. L. 101–239, § 7108(k), inserted at end “Such term shall not include any loan which would be a below market Federal loan solely by reason of assistance provided under section 106, 107, or 108 of the Housing and Community Development Act of 1974 (as in effect on the date of the enactment of this sentence).”
Subsec. (i)(3)(B). Pub. L. 101–239, § 7108(i)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “A unit shall not be treated as a low-income unit unless the unit is suitable for occupancy (as determined under regulations prescribed by the Secretary taking into account local health, safety, and building codes) and used other than on a transient basis. For purposes of the preceding sentence, a single-room occupancy unit shall not be treated as used on a transient basis merely because it is rented on a month-by-month basis.”
Pub. L. 101–239, § 7831(c)(1), inserted “(as determined under regulations prescribed by the Secretary taking into account local health, safety, and building codes)” after “suitable for occupancy”.
Pub. L. 101–239, § 7108(h)(1), inserted at end “For purposes of the preceding sentence, a single-room occupancy unit shall not be treated as used on a transient basis merely because it is rented on a month-by-month basis.”
Subsec. (i)(3)(D). Pub. L. 101–239, § 7831(c)(2), added subpar. (D).
Subsec. (i)(3)(E). Pub. L. 101–239, § 7108(h)(4), added subpar. (E).
Subsec. (i)(6). Pub. L. 101–239, § 7831(c)(3), added par. (6).
Subsec. (i)(8). Pub. L. 101–239, § 7108(q), added par. (8).
Subsec. (k)(2)(D). Pub. L. 101–239, § 7108(o), added provision at end relating to the applicability of cl. (ii) to qualified nonprofit organizations not described in section 46
(c)(8)(D)(iv)(II) with respect to a building.
Subsec. (l)(1). Pub. L. 101–239, § 7108(p), in introductory provisions, substituted “Following” for “Not later than the 90th day following” and inserted “at such time and” before “in such form”.
Subsec. (m). Pub. L. 101–239, § 7108(o), added subsec. (m). Former subsec. (m) redesignated (n).
Subsec. (m)(4). Pub. L. 101–239, § 7831(c)(5), added par. (4).
Subsec. (n). Pub. L. 101–239, § 7108(o), redesignatedsubsec. (m) as (n). Former subsec. (n) redesignated (o).
Pub. L. 101–239, § 7108(a)(1), amended subsec. (n) generally. Prior to amendment, subsec. (n) read as follows: “The State housing credit ceiling under subsection (h) shall be zero for any calendar year after 1989 and subsection (h)(4) shall not apply to any building placed in service after 1989.”
Subsec. (o). Pub. L. 101–239, § 7108(o), redesignatedsubsec. (n) as (o).
1988—Subsec. (b)(2)(A). Pub. L. 100–647, § 1002(l)(1)(A), substituted “for the earlier of—” for “for the month in which such building is placed in service” and added cls. (i) and (ii) and concluding provisions.
Subsec. (b)(2)(C)(ii). Pub. L. 100–647, § 1002(l)(1)(B), substituted “the month applicable under clause (i) or (ii) of subparagraph (A)” for “the month in which the building was placed in service”.
Subsec. (b)(3). Pub. L. 100–647, § 1002(l)(9)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For treatment of certain rehabilitation expenditures as separate new buildings, see subsection (e).”
Subsec. (c)(2)(A). Pub. L. 100–647, § 1002(l)(2)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “which at all times during the compliance period with respect to such building is part of a qualified low-income housing project, and”.
Subsec. (d)(2)(D)(ii). Pub. L. 100–647, § 1002(l)(3), substituted “Special rules for certain transfers” for “Special rule for nontaxable exchanges” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of determining under subparagraph (B)(ii) when a building was last placed in service, there shall not be taken into account any placement in service in connection with the acquisition of the building in a transaction in which the basis of the building in the hands of the person acquiring it is determined in whole or in part by reference to the adjusted basis of such building in the hands of the person from whom aquired [sic].”
Subsec. (d)(3). Pub. L. 100–647, § 1002(l)(4), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The eligible basis of any building shall be reduced by an amount equal to the portion of the adjusted basis of the building which is attributable to residential rental units in the building which are not low-income units and which are above the average quality standard of the low-income units in the building.”
Subsec. (d)(5)(A). Pub. L. 100–647, § 1002(l)(6)(B), substituted “subparagraphs (B) and (C)” for “subparagraph (B)”.
Pub. L. 100–647, § 1002(l)(5), inserted “(increased, in the case of an existing building which meets the requirements of paragraph (2)(B), by the amounts described in paragraph (2)(A)(i)(II))” before period at end.
Subsec. (d)(5)(C). Pub. L. 100–647, § 1002(l)(6)(A), added subpar. (C).
Subsec. (d)(6)(A)(iii). Pub. L. 100–647, § 1002(l)(7), struck out cl. (iii) which related to other circumstances of financial distress.
Subsec. (d)(6)(B)(ii). Pub. L. 100–647, § 1002(l)(8), struck out “of 1934” after “Act”.
Subsec. (f)(1). Pub. L. 100–647, § 1002(l)(2)(B), substituted “beginning with—” for “beginning with” and subpars. (A) and (B) and concluding provisions for “the taxable year in which the building is placed in service or, at the election of the taxpayer, the succeeding taxable year. Such an election, once made, shall be irrevocable.”
Subsec. (f)(3). Pub. L. 100–647, § 1002(l)(9)(A), amended par. (3) generally. Prior to amendment, par. (3) “Special rule where increase in qualified basis after 1st year of credit period” read as follows:
Subsec. (g)(2)(B)(i). Pub. L. 100–647, § 1002(l)(10), struck out “Federal” after “comparable”.
Subsec. (g)(2)(C). Pub. L. 100–647, § 1002(l)(11), added subpar. (C).
Subsec. (g)(3). Pub. L. 100–647, § 1002(l)(12), amended par. (3) generally, substituting subpars. (A) to (C) for former subpars. (A) and (B).
Subsec. (g)(4). Pub. L. 100–647, § 1002(l)(13), inserted “; except that, in applying such provisions (other than section 142
(d)(4)(B)(iii)) for such purposes, the term ‘gross rent’ shall have the meaning given such term by paragraph (2)(B) of this subsection” before period at end.
Subsec. (g)(6). Pub. L. 100–647, § 1002(l)(32), added par. (6).
Subsec. (h)(1). Pub. L. 100–647, § 1002(l)(14)(A), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “No credit shall be allowed by reason of this section for any taxable year with respect to any building in excess of the housing credit dollar amount allocated to such building under this subsection. An allocation shall be taken into account under the preceding sentence only if it occurs not later than the earlier of—
Subsec. (h)(1)(B). Pub. L. 100–647, § 4003(b)(1), substituted “(C), (D), or (E)” for “(C) or (D)”.
Subsec. (h)(1)(E). Pub. L. 100–647, § 4003(a), added subpar. (E).
Subsec. (h)(4)(A). Pub. L. 100–647, § 1002(l)(15), substituted “if—” for “and which is taken into account under section 146” and added cls. (i) and (ii).
Subsec. (h)(5)(D), (E). Pub. L. 100–647, § 1002(l)(16), added subpar. (D) and redesignated former subpar. (D) as (E).
Subsec. (h)(6)(B)(ii). Pub. L. 100–647, § 1002(l)(14)(B), struck out cl. (ii) which read as follows:
Subsec. (h)(6)(D). Pub. L. 100–647, § 1002(l)(17), amended subpar. (D) generally. Prior to amendment, subpar. (D) “Credit allowable determined without regard to averaging convention, etc.” read as follows: “For purposes of this subsection, the credit allowable under subsection (a) with respect to any building shall be determined—
Subsec. (h)(6)(E). Pub. L. 100–647, § 1002(l)(18), added subpar. (E).
Subsec. (i)(2)(A). Pub. L. 100–647, § 1002(l)(19)(A), inserted “or any prior taxable year” after “such taxable year” and substituted “is or was outstanding” for “is outstanding” and “are or were used” for “are used”.
Subsec. (i)(2)(B). Pub. L. 100–647, § 1002(l)(19)(B), substituted “balance of loan or proceeds of obligations” for “outstanding balance of loan” in heading and amended text generally. Prior to amendment, text read as follows: “A loan shall not be taken into account under subparagraph (A) if the taxpayer elects to exclude an amount equal to the outstanding balance of such loan from the eligible basis of the building for purposes of subsection (d).”
Subsec. (i)(2)(C). Pub. L. 100–647, § 1002(l)(19)(C), added subpar. (C). Former subpar. (C) redesignated (D).
Subsec. (i)(2)(D). Pub. L. 100–647, § 1002(l)(19)(C), (D), redesignated former subpar. (C) as (D) and substituted “this paragraph” for “subparagraph (A)”.
Subsec. (j)(4)(D). Pub. L. 100–647, § 1007(g)(3)(B), substituted “D, or G” for “or D”.
Subsec. (j)(4)(F). Pub. L. 100–647, § 1002(l)(20), added subpar. (F).
Subsec. (j)(5)(B). Pub. L. 100–647, § 4004(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “This paragraph shall apply to any partnership—
“(i) more than 1/2 the capital interests, and more than 1/2 the profit interests, in which are owned by a group of 35 or more partners each of whom is a natural person or an estate, and
Subsec. (j)(5)(B)(i). Pub. L. 100–647, § 1002(l)(21), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “which has 35 or more partners each of whom is a natural person or an estate, and”.
Subsec. (j)(6). Pub. L. 100–647, § 1002(l)(22), inserted “(or interest therein)” after “disposition of building” in heading, and in text inserted “or an interest therein” after “of a building”.
Subsec. (k)(2)(B). Pub. L. 100–647, § 1002(l)(23), inserted before period at end “, except that this subparagraph shall not apply in the case of a federally assisted building described in subsection (d)(6)(B) if—” and cls. (i) and (ii).
Subsec. (l). Pub. L. 100–647, § 1002(l)(24)(B), substituted “Certifications and other reports to Secretary” for “Certifications to Secretary” in heading.
Subsec. (l)(2), (3). Pub. L. 100–647, § 1002(l)(24)(A), added par. (2) and redesignated former par. (2) as (3).
Subsec. (n). Pub. L. 100–647, § 4003(b)(3), amended subsec. (n) generally, substituting a single par. for former pars. (1) and (2).
Subsec. (n)(1). Pub. L. 100–647, § 1002(l)(25), inserted “, and, except for any building described in paragraph (2)(B), subsection (h)(4) shall not apply to any building placed in service after 1989” after “year after 1989”.
1986—Subsec. (k)(1). Pub. L. 99–509substituted “subparagraphs (D)(ii)(II) and (D)(iv)(I)” for “subparagraph (D)(iv)(I)”.
Pub. L. 112–240, title III, § 302(b),Jan. 2, 2013, 126 Stat. 2329, provided that: “The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [Jan. 2, 2013].”
Pub. L. 110–289, div. C, title I, § 3002(c),July 30, 2008, 122 Stat. 2880, provided that: “The amendments made by this subsection [probably means this section, amending this section] shall apply to buildings placed in service after the date of the enactment of this Act [July 30, 2008].”
Pub. L. 110–289, div. C, title I, § 3003(h),July 30, 2008, 122 Stat. 2882, provided that:
Pub. L. 110–289, div. C, title I, § 3004(i),July 30, 2008, 122 Stat. 2884, provided that:
Pub. L. 110–289, div. C, title I, § 3007(c),July 30, 2008, 122 Stat. 2886, provided that: “The amendments made by this section [amending this section and section 146 of this title] shall apply to repayments of loans received after the date of the enactment of this Act [July 30, 2008].”
Pub. L. 110–142, § 6(b),Dec. 20, 2007, 121 Stat. 1806, provided that: “The amendment made by this section [amending this section] shall apply to—
Amendment by section 207(8) ofPub. L. 108–311applicable to taxable years beginning after Dec. 31, 2004, see section 208 ofPub. L. 108–311, set out as a note under section 2 of this title.
Pub. L. 106–554, § 1(a)(7) [title I, subtitle D, § 131(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A–611, provided that: “The amendments made by this section [amending this section] shall apply to calendar years after 2000.”
Pub. L. 106–554, § 1(a)(7) [title I, subtitle D, § 137], Dec. 21, 2000, 114 Stat. 2763, 2763A–613, provided that: “Except as otherwise provided in this subtitle [amending this section and enacting provisions set out above], the amendments made by this subtitle shall apply to—
Pub. L. 103–66, title XIII, § 13142(a)(2),Aug. 10, 1993, 107 Stat. 438, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to periods ending after June 30, 1992.”
Pub. L. 103–66, title XIII, § 13142(b)(6),Aug. 10, 1993, 107 Stat. 439, as amended by Pub. L. 104–188, title I, § 1703(b),Aug. 20, 1996, 110 Stat. 1875, provided that:
Pub. L. 102–227, title I, § 107(b),Dec. 11, 1991, 105 Stat. 1688, provided that: “The amendments made by this section [amending this section] shall apply to calendar years after 1991.”
Pub. L. 101–508, title XI, § 11407(a)(3),Nov. 5, 1990, 104 Stat. 1388–474, provided that: “The amendments made by this subsection [amending this section and repealing provisions set out below] shall apply to calendar years after 1989.”
Pub. L. 101–508, title XI, § 11407(b)(10),Nov. 5, 1990, 104 Stat. 1388–476, provided that:
Pub. L. 101–508, title XI, § 11701(a)(3)(B),Nov. 5, 1990, 104 Stat. 1388–506, provided that: “In the case of a building to which (but for this subparagraph) the amendment made by subparagraph (A) [amending this section] does not apply, such amendment shall apply to—
Pub. L. 101–508, title XI, § 11701(n),Nov. 5, 1990, 104 Stat. 1388–513, provided that: “Except as otherwise provided in this section, any amendment made by this section [amending this section and sections 148, 163, 172, 403, 1031, 1253, 2056, 4682, 4975, 4978B and 6038 of this title, and provisions set out as notes under this section and section 2040 of this title] shall take effect as if included in the provision of the Revenue Reconciliation Act of 1989 [Pub. L. 101–239, title VII] to which such amendment relates.”
Pub. L. 101–508, title XI, § 11812(c),Nov. 5, 1990, 104 Stat. 1388–536, provided that:
“(3) Exception for previously grandfather expenditures.—The amendments made by this section shall not apply to rehabilitation expenditures described in section 252(f)(5) of the Tax Reform Act of 1986 [Pub. L. 99–514] (as added by section 1002(l)(31) of the Technical and Miscellaneous Revenue Act of 1988 [see Transitional Rules note below]).”
Amendment by section 11813(b)(3) ofPub. L. 101–508applicable to property placed in service after Dec. 31, 1990, but not applicable to any transition property (as defined in section 49
Pub. L. 101–239, title VII, § 7108(r),Dec. 19, 1989, 103 Stat. 2321, as amended by Pub. L. 101–508, title XI, § 11701(a)(11), (12),Nov. 5, 1990, 104 Stat. 1388–507; Pub. L. 104–188, title I, § 1702(g)(5)(A),Aug. 20, 1996, 110 Stat. 1873, provided that:
“(7) Clarifications.—The amendments made by the following provisions of this section shall apply as if included in the amendments made by section 252 of the Tax Reform Act of 1986 [Pub. L. 99–514, enacting this section and amending sections 38 and 55 of this title]:
[Pub. L. 104–188, title I, § 1702(g)(5),Aug. 20, 1996, 110 Stat. 1873, provided that:
[“(A) Paragraph (11) of section 11701(a) of the Revenue Reconciliation Act of 1990 (and the amendment made by such paragraph) [Pub. L. 101–508, which amended section 7108(r)(2) ofPub. L. 101–239, set out above, by inserting “but only with respect to bonds issued after such date” before the period at the end of such section 7108(r)(2)] are hereby repealed, and section 7108(r)(2) of the Revenue Reconciliation Act of 1989 [Pub. L. 101–239] shall be applied as if such paragraph (and amendment) had never been enacted.
Amendment by section 7811(a) ofPub. L. 101–239effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 7817 ofPub. L. 101–239, set out as a note under section 1 of this title.
Amendment by section 7831(c) ofPub. L. 101–239effective as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7831(g) ofPub. L. 101–239, set out as a note under section 1 of this title.
(l)(1)–(25), (32) and 1007(g)(3)(B) 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.
Pub. L. 100–647, title IV, § 4003(c),Nov. 10, 1988, 102 Stat. 3644, provided that: “The amendments made by this section [amending this section and provisions set out as a note under section 469 of this title] shall apply to amounts allocated in calendar years after 1987.”
Pub. L. 100–647, title IV, § 4004(b),Nov. 10, 1988, 102 Stat. 3644, provided that:
“(1) In general.—The amendment made by subsection (a) [amending this section] shall take effect as if included in the amendments made by section 252 of the Reform Act [section 252 ofPub. L. 99–514, enacting this section and amending sections 38 and 55 of this title].
Pub. L. 99–509, title VIII, § 8072(b),Oct. 21, 1986, 100 Stat. 1964, provided that: “The amendment made by subsection (a) [amending this section] shall take effect as if included in the amendment made by section 252(a) of the Tax Reform Act of 1986 [enacting this section].”
Pub. L. 99–514, title II, § 252(e),Oct. 22, 1986, 100 Stat. 2205, provided that:
“(2) Special rule for rehabilitation expenditures.—Subsection (e) ofsection 42 of the Internal Revenue Code of 1986 (as added by this section) shall apply for purposes of paragraph (1).”
For provisions that nothing in amendment by sections 11812(b)(3) and 11813(b)(3) ofPub. L. 101–508be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) ofPub. L. 101–508, set out as a note under section 45K of this title.
Pub. L. 111–5, div. B, title I, § 1602,Feb. 17, 2009, 123 Stat. 362, provided that:
“(2) Subawards subject to same requirements as low-income housing credit allocations.—Any such subaward with respect to any qualified low-income building shall be made in the same manner and shall be subject to the same limitations (including rent, income, and use restrictions on such building) as an allocation of housing credit dollar amount allocated by such State housing credit agency under section 42 of the Internal Revenue Code of 1986, except that such subawards shall not be limited by, or otherwise affect (except as provided in subsection (h)(3)(J) of such section [section 42
(h)(3) has no subpar. (J)]), the State housing credit ceiling applicable to such agency.
Pub. L. 103–66, title XIII, § 13142(c),Aug. 10, 1993, 107 Stat. 439, provided that:
“(1) In the case of a building to which the amendments made by subsection (e)(1) or (n)(2) ofsection 7108 of the Revenue Reconciliation Act of 1989 [Pub. L. 101–239, amending this section] did not apply, the taxpayer may elect to have such amendments apply to such building if the taxpayer has met the requirements of the procedures described in section 42(m)(1)(B)(iii) of the Internal Revenue Code of 1986.
Pub. L. 101–508, title XI, § 11407(c),Nov. 5, 1990, 104 Stat. 1388–476, provided that:
Pub. L. 101–508, title XI, § 11701(a)(5)(B),Nov. 5, 1990, 104 Stat. 1388–506, provided that: “In the case of a building to which the amendment made by subparagraph (A) [amending this section] does not apply, the period specified in section 42(g)(3)(A) of the Internal Revenue Code of 1986 (as in effect before the amendment made by subparagraph (A)) shall not expire before the close of the taxable year following the taxable year in which the building is placed in service.”
Pub. L. 101–239, title VII, § 7108(a)(2),Dec. 19, 1989, 103 Stat. 2307, provided that in the case of calendar year 1990, section 42(h)(3)(C)(i) of the Internal Revenue Code of 1986 be applied by substituting “$.9375” for “$1.25”, prior to repeal by Pub. L. 101–508, title XI, § 11407(a)(2), (3),Nov. 5, 1990, 104 Stat. 1388–474, applicable to calendar years after 1989.
Pub. L. 99–514, title II, § 252(f),Oct. 22, 1986, 100 Stat. 2205, as amended by Pub. L. 100–647, title I, § 1002(l)(28)–(31), Nov. 10, 1988, 102 Stat. 3381, provided that:
1987 $3,900,000 1988 $7,600,000 1989 $1,300,000.
(i) 49284553664 $16,000 (ii) 4927742022446 $22,000 (iii) 49270742276087 $64,000 (iv) 490270742387293 $48,000 (v) 4927074218234 $32,000 (vi) 49270742274019 $36,000 (vii) 51460742345074 $53,000.
113 S. 1859 : provisions, expiring, certain, extend, 1986