Source: http://www.law.cornell.edu/uscode/text/26/45D?qt-us_code_tabs=2
Timestamp: 2014-12-19 21:58:43
Document Index: 517462923

Matched Legal Cases: ['§ 1', '§ 121', '§ 221', '§ 102', '§ 302', '§ 1403', '§ 733', '§ 305', '§ 305', '§ 305', '§ 733', '§ 733', '§ 1403', '§ 1403', '§ 102', '§ 102', '§ 221', '§ 221', '§ 223', '§ 305', '§ 733', '§ 102', '§ 221', '§ 223', '§ 1', '§ 121', '§ 1', '§ 121', '§ 1403', '§ 1', '§ 121', '§ 1', '§ 121']

(c)(3) shall apply for purposes of this subsection.
Equity investment The term “equity investment” means—
any stock (other than nonqualified preferred stock as defined in section 351
(g)(2)) in an entity which is a corporation, and
Qualified community development entity For purposes of this section—
In general The term “qualified community development entity” means any domestic corporation or partnership if—
Special rules for certain organizations The requirements of paragraph (1) shall be treated as met by—
any specialized small business investment company (as defined in section 1044
Qualified low-income community investments For purposes of this section—
In general The term “qualified low-income community investment” means—
Qualified active low-income community business (A)
In general For purposes of paragraph (1), the term “qualified active low-income community business” means, with respect to any taxable year, any corporation (including a nonprofit corporation) or partnership if for such year—
less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to nonqualified financial property (as defined in section 1397C
Proprietorship Such term shall include any business carried on by an individual as a proprietor if such business would meet the requirements of subparagraph (A) were it incorporated.
Portions of business may be qualified active low-income community business The term “qualified active low-income community business” includes any trades or businesses which would qualify as a qualified active low-income community business if such trades or businesses were separately incorporated.
Qualified business For purposes of this subsection, the term “qualified business” has the meaning given to such term by section 1397C
(d); except that—
Low-income community For purposes of this section—
In general The term “low-income community” means any population census tract if—
Targeted populations The Secretary shall prescribe regulations under which 1 or more targeted populations (within the meaning of section 103(20) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702
(20))) may be treated as low-income communities. Such regulations shall include procedures for determining which entities are qualified active low-income community businesses with respect to such populations.
Areas not within census tracts In the case of an area which is not tracted for population census tracts, the equivalent county divisions (as defined by the Bureau of the Census for purposes of defining poverty areas) shall be used for purposes of determining poverty rates and median family income.
Tracts with low population A population census tract with a population of less than 2,000 shall be treated as a low-income community for purposes of this section if such tract—
Modification of income requirement for census tracts within high migration rural counties (A)
In general In the case of a population census tract located within a high migration rural county, paragraph (1)(B)(i) shall be applied by substituting “85 percent” for “80 percent”.
High migration rural county For purposes of this paragraph, the term “high migration rural county” means any county which, during the 20-year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period.
National limitation on amount of investments designated (1)
In general There is a new markets tax credit limitation for each calendar year. Such limitation is—
$5,000,000,000 for 2009 [1]
$3,500,000,000 for 2010, 2011, 2012, and 2013.
Allocation of limitation The limitation under paragraph (1) shall be allocated by the Secretary among qualified community development entities selected by the Secretary. In making allocations under the preceding sentence, the Secretary shall give priority to any entity—
which intends to satisfy the requirement under subsection (b)(1)(B) by making qualified low-income community investments in 1 or more businesses in which persons unrelated to such entity (within the meaning of section 267
(b)(1)) hold the majority equity interest.
Carryover of unused limitation If the new markets tax credit limitation for any calendar year exceeds the aggregate amount allocated under paragraph (2) for such year, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2018.
Recapture of credit in certain cases (1)
In general If, at any time during the 7-year period beginning on the date of the original issue of a qualified equity investment in a qualified community development entity, there is a recapture event with respect to such investment, then the tax imposed by this chapter for the taxable year in which such event occurs shall be increased by the credit recapture amount.
Recapture event For purposes of paragraph (1), there is a recapture event with respect to an equity investment in a qualified community development entity if—
Basis reduction The basis of any qualified equity investment shall be reduced by the amount of any credit determined under this section with respect to such investment. This subsection shall not apply for purposes of sections 1202, 1400B, and 1400F.
Regulations The Secretary shall prescribe such regulations as may be appropriate to carry out this section, including regulations—
So in original. Probably should be followed by “, and”.
(Added Pub. L. 106–554, § 1(a)(7) [title I, § 121(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–605; amended Pub. L. 108–357, title II, §§ 221(a), (b), 223
(a),Oct. 22, 2004, 118 Stat. 1431, 1432; Pub. L. 109–432, div. A, title I, § 102(a), (b),Dec. 20, 2006, 120 Stat. 2934; Pub. L. 110–343, div. C, title III, § 302,Oct. 3, 2008, 122 Stat. 3866; Pub. L. 111–5, div. B, title I, § 1403(a),Feb. 17, 2009, 123 Stat. 352; Pub. L. 111–312, title VII, § 733(a), (b),Dec. 17, 2010, 124 Stat. 3317, 3318; Pub. L. 112–240, title III, § 305(a), (b),Jan. 2, 2013, 126 Stat. 2329.)
2013—Subsec. (f)(1)(G). Pub. L. 112–240, § 305(a), substituted “2010, 2011, 2012, and 2013” for “2010 and 2011”.
Subsec. (f)(3). Pub. L. 112–240, § 305(b), substituted “2018” for “2016”.
2010—Subsec. (f)(1)(G). Pub. L. 111–312, § 733(a), added subpar. (G).
Subsec. (f)(3). Pub. L. 111–312, § 733(b), substituted “2016” for “2014”.
2009—Subsec. (f)(1)(D). Pub. L. 111–5, § 1403(a)(2), substituted “and 2007,” for “, 2007, 2008, and 2009.”
Subsec. (f)(1)(E), (F). Pub. L. 111–5, § 1403(a)(1), (3), added subpars. (E) and (F).
2008—Subsec. (f)(1)(D). Pub. L. 110–343substituted “2008, and 2009” for “and 2008”.
2006—Subsec. (f)(1)(D). Pub. L. 109–432, § 102(a), substituted “, 2007, and 2008” for “and 2007”.
Subsec. (i)(6). Pub. L. 109–432, § 102(b), added par. (6).
2004—Subsec. (e)(2). Pub. L. 108–357, § 221(a), amended heading and text of par. (2) generally, substituting provisions relating to regulations under which 1 or more targeted populations could be treated as low-income communities for provisions authorizing Secretary to designate any area within any census tract as a low-income community if certain conditions were met.
Subsec. (e)(4). Pub. L. 108–357, § 221(b), added par. (4).
Subsec. (e)(5). Pub. L. 108–357, § 223(a), added par. (5).
Pub. L. 112–240, title III, § 305(c),Jan. 2, 2013, 126 Stat. 2329, provided that: “The amendments made by this section [amending this section] shall apply to calendar years beginning after December 31, 2011.”
Pub. L. 111–312, title VII, § 733(c),Dec. 17, 2010, 124 Stat. 3318, provided that: “The amendments made by this section [amending this section] shall apply to calendar years beginning after 2009.”
Pub. L. 109–432, div. A, title I, § 102(c),Dec. 20, 2006, 120 Stat. 2934, provided that: “The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [Dec. 20, 2006].”
Pub. L. 108–357, title II, § 221(c),Oct. 22, 2004, 118 Stat. 1431, provided that:
Pub. L. 108–357, title II, § 223(b),Oct. 22, 2004, 118 Stat. 1432, provided that: “The amendment made by this section [amending this section] shall take effect as if included in the amendment made by section 121(a) of the Community Renewal Tax Relief Act of 2000 [Pub. L. 106–554, § 1(a)(7) [title I, § 121(a)], enacting this section].”
Section applicable to investments made after Dec. 31, 2000, see § 1(a)(7) [title I, § 121(e)] of Pub. L. 106–554, set out as a Effective Date of 2000 Amendment note under section 38 of this title.
Pub. L. 111–5, div. B, title I, § 1403(b),Feb. 17, 2009, 123 Stat. 352, provided that: “The amount of the increase in the new markets tax credit limitation for calendar year 2008 by reason of the amendments made by subsection (a) [amending this section] shall be allocated in accordance with section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified community development entities (as defined in section 45D(c) of such Code) which—
Pub. L. 106–554, § 1(a)(7) [title I, § 121(f)], Dec. 21, 2000, 114 Stat. 2763, 2763A–610, provided that: “Not later than 120 days after the date of the enactment of this Act [Dec. 21, 2000], the Secretary of the Treasury or the Secretary’s delegate shall issue guidance which specifies—
Pub. L. 106–554, § 1(a)(7) [title I, § 121(g)], Dec. 21, 2000, 114 Stat. 2763, 2763A–610, provided that: “Not later than January 31 of 2004, 2007, and 2010, the Comptroller General of the United States shall, pursuant to an audit of the new markets tax credit program established under section 45D of the Internal Revenue Code of 1986 (as added by subsection (a)), report to Congress on such program, including all qualified community development entities that receive an allocation under the new markets credit under such section.”