Source: http://taxtv.com/code/00176-USCODE-2011-title26-subtitleA-chap1-subchapB-partIV-subpartA-sec143/
Timestamp: 2017-11-18 13:37:55
Document Index: 348883818

Matched Legal Cases: ['§143', '§143', '§143', '§1301', '§1013', '§4005', '§7104', '§11408', '§108', '§13141', '§1702', '§312', '§914', '§203', '§411', '§103', '§3021', '§709', '§21', '§802', '§1901', '§101', '§423', '§103', '§3026', '§103', '§103', '§203', '§411', '§203', '§312', '§312', '§1703', '§1702', '§13141', '§13141', '§11408', '§11408', '§11408', '§11408', '§11408', '§11408', '§11408', '§11408', '§11408', '§11408', '§11408', '§4005', '§4005', '§1013', '§4005', '§1013', '§4005', '§4005', '§709', '§3021', '§3026', '§103', '§411', '§416', '§203', '§203', '§103']

IRC §143. Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond - TaxTV.com
IRC §143. Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond
View related content: IRC §143
For purposes of this title, the term “qualified mortgage bond” means a bond which is issued as part of a qualified mortgage issue.
For purposes of this title, the term “qualified mortgage issue” means an issue by a State or political subdivision thereof of 1 or more bonds, but only if—
(b) Qualified veterans’ mortgage bond defined
For purposes of this part, the term “qualified veterans’ mortgage bond” means any bond—
(3) Mortgagor’s interest in residence being financed
For purposes of paragraph (1), a mortgagor’s interest in the residence with respect to which the financing is being provided shall not be taken into account.
For purposes of paragraph (1), the term “average area purchase price” means, with respect to any residence, the average purchase price of single family residences (in the statistical area in which the residence is located) which were purchased during the most recent 12-month period for which sufficient statistical information is available. The determination under the preceding sentence shall be made as of the date on which the commitment to provide the financing is made (or, if earlier, the date of the purchase of the residence).
In the case of a targeted area residence, paragraph (1) shall be applied by substituting “110 percent” for “90 percent”.
For purposes of this subsection, the term “applicable median family income” means, with respect to a residence, whichever of the following is the greater:
For purposes of this paragraph, the term “high housing cost area” means any statistical area for which the housing cost/income ratio is greater than 1.2.
(A) “100 percent” for “115 percent” each place it appears, and
(B) “120 percent” for “140 percent” each place it appears.
(II) the excess of the amounts received from any person other than the mortgagor by any person in connection with the acquisition of the mortgagor’s interest in the property over the usual and reasonable acquisition costs of a person acquiring like property where owner-financing is not provided through the use of qualified mortgage bonds or qualified veterans’ mortgage bonds.
(II) any application fee, survey fee, credit report fee, insurance charge, or similar amount to the extent such amount does not exceed amounts charged in such area in cases where owner-financing is not provided through the use of qualified mortgage bonds or qualified veterans’ mortgage bonds.
For purposes of this paragraph, the term “nonpurpose investment” has the meaning given such term by section 148(f)(6)(A).
(II) the seller’s remedy for nonpayment is forfeiture rather than judicial or nonjudicial foreclosure.
For purposes of this section, the term “targeted area residence” means a residence in an area which is either—
For purposes of paragraph (1), the term “qualified census tract” means a census tract in which 70 percent or more of the families have income which is 80 percent or less of the statewide median family income.
For purposes of paragraph (1), the term “area of chronic economic distress” means an area of chronic economic distress—
The term “mortgage” means any owner-financing.
The term “metropolitan statistical area” includes the area defined as such by the Secretary of Commerce.
In the case of any portion of a State which is not within a county, subparagraphs (A)(ii) and (C) shall be applied by substituting for “county” an area designated by the Secretary which is the equivalent of a county.
The term “acquisition cost” means the cost of acquiring the residence as a completed residential unit.
The term “acquisition cost” does not include—
In the case of a qualified rehabilitation loan, for purposes of subsection (e), the term “acquisition cost” includes the cost of the rehabilitation.
The term “qualified home improvement loan” means the financing (in an amount which does not exceed $15,000)—
The term “qualified rehabilitation loan” means any owner-financing provided in connection with—
For purposes of subparagraph (A), the term “qualified rehabilitation” means any rehabilitation of a building if—
(iii) the expenditures for such rehabilitation are 25 percent or more of the mortgagor’s adjusted basis in the residence.
Except for purposes of subsection (h)(2), the terms “single-family” and “owner-occupied”, when used with respect to residences, include 2, 3, or 4 family residences—
The term “cooperative housing corporation” has the meaning given to such term by section 216(b)(1).
For purposes of this paragraph, the term “limited equity cooperative housing” means any dwelling unit which a person is entitled to occupy by reason of his ownership of stock in a qualified cooperative housing corporation.
For purposes of this paragraph, the term “qualified cooperative housing corporation” means any cooperative housing corporation (as defined in section 216(b)(1)) if—
(III) payments (other than amounts taken into account under subclause (I) or (II)) attributable to any stockholder to amortize the principal of the corporation’s indebtedness arising from the acquisition or development of real property, including improvements thereof,
(ii) the value of the corporation’s assets (reduced by any corporate liabilities), to the extent such value exceeds the combined transfer values of the outstanding corporate stock, shall be used only for public benefit or charitable purposes, or directly to benefit the corporation itself, and shall not be used directly to benefit any stockholder, and
For purposes of subparagraph (A), the term “qualified program” means any governmental program providing mortgage loans (other than 1st mortgage loans) or grants—
(i) which restricts (throughout the 9-year period beginning on the date the financing is provided) the resale of the residence to a purchaser qualifying under this section and to a price determined by an index that reflects less than the full amount of any appreciation in the residence’s value, or
(12) 1 Special rules for subprime refinancings
(i) subsection (a)(2)(D)(i) shall be applied by substituting “12-month period” for “42-month period” each place it appears,
The term “qualified subprime loan” means an adjustable rate single-family residential mortgage loan made after December 31, 2001, and before January 1, 2008, that the bond issuer determines would be reasonably likely to cause financial hardship to the borrower if not refinanced.
(12) 1 Special rules for residences destroyed in federally declared disasters
For purposes of this paragraph, the term “federally declared disaster” has the meaning given such term by section 165(h)(3)(C)(i).
(l) Additional requirements for qualified veterans’ mortgage bonds
An issue meets the requirements of this paragraph only if it is a general obligation of a State which issued qualified veterans’ mortgage bonds before June 22, 1984.
An issue meets the requirements of this paragraph only if the aggregate amount of bonds issued pursuant thereto (when added to the aggregate amount of qualified veterans’ mortgage bonds previously issued by the State during the calendar year) does not exceed the State veterans limit for such calendar year.
For purposes of this subsection, the term “qualified veteran” means any veteran who—
If, during the taxable year, any taxpayer disposes of an interest in a residence with respect to which there is or was any federally-subsidized indebtedness for the payment of which the taxpayer was liable in whole or part, then the taxpayer’s tax imposed by this chapter for such taxable year shall be increased by the lesser of—
The term “federally-subsidized indebtedness” means any indebtedness if—
The 2d such year
The 3d such year
The 4th such year
The 5th such year
The 6th such year
The 7th such year
The 8th such year
The 9th such year
The term “testing date” means the earliest date on which all of the following requirements are met:
The term “income percentage” means the percentage (but not greater than 100 percent) which—
For purposes of paragraph (4), the term “adjusted qualifying income” means the product of—
(ii) 1.05 to the nth power where “n” equals the number of full years during the period beginning on the date the financing was provided and ending on the date of the disposition.
For purposes of paragraph (4), the term “modified adjusted gross income” means adjusted gross income—
For purposes of paragraph (1), gain shall be taken into account whether or not recognized, and the adjusted basis of the taxpayer’s interest in the residence shall be determined without regard to sections 1033(b) and 1034(e) (as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997) for purposes of determining gain.
(Added Pub. L. 99– 4, title XIII, §1301(b), Oct. 22, 1986, 100 Stat. 2610; amended Pub. L. 100–647, title I, §1013(a)(2), (3), title IV, §4005(a)(1), (b)–(d)(1), (e)–(g)(2), (6), Nov. 10, 1988, 102 Stat. 3537, 3645–36 ; Pub. L. 101–239, title VII, §7104(a), Dec. 19, 1989, 103 Stat. 2305; Pub. L. 101–508, title XI, §11408(a), (c), Nov. 5, 1990, 104 Stat. 1388–477; Pub. L. 102–227, title I, §108(a), Dec. 11, 1991, 105 Stat. 1688; Pub. L. 103–66, title XIII, §13141(a), (c)–(e), Aug. 10, 1993, 107 Stat. 436, 437; Pub. L. 104–188, title I, §§1702(d)(2), 1703(n)(3), Aug. 20, 1996, 110 Stat. 1870, 1877; Pub. L. 105–34, title III, §312(d)(1), (3), title IX, §914, Aug. 5, 1997, 111 Stat. 839, 840, 878; Pub. L. 109–222, title II, §203(a)(1), (b)(1), May 17, 2006, 120 Stat. 348, 349; Pub. L. 109–432, div. A, title IV, §§411(a), 416(a), Dec. 20, 2006, 120 Stat. 2963, 2965; Pub. L. 110–245, title I, §103(a)–(c), June 17, 2008, 122 Stat. 1625; Pub. L. 110–289, div. C, title I, §§3021(b)(1), 3026(a), July 30, 2008, 122 Stat. 2893, 2897; Pub. L. 110–343, div. C, title VII, §709(a), Oct. 3, 2008, 122 Stat. 3925.)
The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (k)(11), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, as in effect on the date of enactment of Pub. L. 105–34, which was approved Aug. 5, 1997. The Act is classified principally to chapter 68 (§21 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 21 of Title 42 and Tables.
The date of the enactment of this subsection, referred to in subsec. (l)(5)(B), is the date of enactment of Pub. L. 99– 4, which was approved Oct. 22, 1986.
A prior section 143, acts Aug. 16, 1954, ch. 736, 68A Stat. 41; Dec. 30, 1969, Pub. L. 91–172, title VIII, §802(b), 83 Stat. 677; Oct. 4, 1976, Pub. L. 94–455, title XIX, §1901(a)(22), 90 Stat. 1767; May 23, 1977, Pub. L. 95–30, title I, §101(d)(4), 91 Stat. 133; July 18, 1984, Pub. L. 98–369, div. A, title IV, §423(c)(1), 98 Stat. 800, related to determination of marital status, prior to the general revision of this part by Pub. L. 99– 4. See section 7703 of this title.
Provisions similar to this section were contained in section 103A of this title prior to repeal by Pub. L. 99– 4.
2008—Subsec. (d)(2)(D). Pub. L. 110–245, §103(a), struck out “and before January 1, 2008” after “enactment of this subparagraph”.
Subsec. (k)(11). Pub. L. 110–289, §3026(a), substituted “May 1, 2008” for “December 31, 1996” and “January 1, 2010” for “January 1, 1999” in concluding provisions.
Subsec. (l)(3)(B)(ii). Pub. L. 110–245, §103(b), substituted “$100,000,000” for “$25,000,000” wherever appearing.
Subsec. (l)(4). Pub. L. 110–245, §103(c), reenacted heading without change and amended text generally. Prior to amendment, par. (4) defined “qualified veteran” differently with respect to different States.
Subsec. (l)(3)(B). Pub. L. 109–222, §203(b)(1), reenacted heading without change, substituted introductory provisions of cl. (i) for “A State veterans limit for any calendar year is the amount equal to—” and inserted heading, redesignated former cls. (i) and (ii) as subcls. (I) and (II), respectively, of cl. (i) and adjusted margins, and added cls. (ii) to (iv).
Subsec. (l)(3)(B)(iv). Pub. L. 109–432, §411(a), struck out heading and text of cl. (iv). Text read as follows: “The State veterans limit for the States specified in clause (ii) for any calendar year after 2010 is zero.”
Subsec. (l)(4). Pub. L. 109–222, §203(a)(1), amended par. (4) generally. Prior to amendment, par. (4) defined the term “qualified veteran”.
1997—Subsec. (i)(1)(C)(i)(I). Pub. L. 105–34, §312(d)(1), substituted “section 121” for “section 1034”.
Subsec. (m)(6)(A). Pub. L. 105–34, §312(d)(3), inserted “(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)” after “1034(e)”.
1996—Subsec. (d)(2)(C). Pub. L. 104–188, §1703(n)(3), substituted “thereon,” for “thereon.”.
Subsec. (m)(4)(C)(ii). Pub. L. 104–188, §1702(d)(2), substituted “any year of the 4-year period” for “any month of the 10-year period”, “succeeding years” for “succeeding months”, and “to zero over the succeeding 5 years” for “over the remainder of such period (or, if lesser, over 5 years)”.
Subsec. (k)(3)(B)(iii). Pub. L. 103–66, §13141(d)(3), inserted “(other than land described in subsection (i)(1)(C)(i))” after “cost of land”.
Subsec. (k)(7). Pub. L. 103–66, §13141(e), inserted at end “Subparagraph (B) shall not apply to any 2-family residence if the residence is a targeted area residence and the family income of the mortgagor meets the requirement of subsection (f)(3)(B).”
1991—Subsec. (a)(1)(B). Pub. L. 102–227 substituted “June 30, 1992” for “December 31, 1991” in heading and text.
1990—Subsec. (a)(1)(B). Pub. L. 101–508, §11408(a), substituted “December 31, 1991” for “September 30, 1990” in heading and text.
Subsec. (m)(1). Pub. L. 101–508, §11408(c)(3)(A), substituted “increased by the lesser of—” and subpars. (A) and (B) for “increased by the recapture amount with respect to such indebtedness.”
Subsec. (m)(2)(B). Pub. L. 101–508, §11408(c)(1)(C), substituted “9 years” for “10 years”.
Subsec. (m)(4)(C)(i). Pub. L. 101–508, §11408(c)(1)(A), substituted heading for one which read: “Dispositions during 1st 5 years” and amended text generally. Prior to amendment, text read as follows: “If the disposition of the taxpayer’s interest in the residence occurs during the 5-year period beginning on the testing date, the holding period percentage is the percentage determined by dividing the number of full months during which the requirements of subparagraph (D) were met by 60.”
Subsec. (m)(4)(C)(ii), (iii). Pub. L. 101–508, §11408(c)(1)(B), redesignated cl. (iii) as (ii) and struck out former cl. (ii) “Dispositions during 2d 5 years” which read as follows: “If the disposition of the taxpayer’s interest in the residence occurs during the 5-year period following the 5-year period described in clause (i), the holding period percentage is the percentage determined by dividing—
Subsec. (m)(5). Pub. L. 101–508, §11408(c)(2)(C)(i), added heading and struck out former heading which read: “Reduction of recapture amount if taxpayer meets certain income limitations”.
Subsec. (m)(5)(A). Pub. L. 101–508, §11408(c)(2)(C)(i), added subpar. (A) and struck out former subpar. (A) “In general” which read as follows: “The recapture amount which would (but for this paragraph) apply with respect to any disposition during a taxable year shall be reduced (but not below zero) by 2 percent of such amount for each $100 by which adjusted qualifying income exceeds the modified adjusted gross income of the taxpayer for such year.”
Subsec. (m)(5)(B), (C). Pub. L. 101–508, §11408(c)(2)(C), redesignated subpar. (C) as (B), substituted “paragraph (4)” for “this paragraph” in introductory provisions, and struck out former subpar. (B) “Adjusted qualifying income” which read as follows: “For purposes of this paragraph, the term ‘adjusted qualifying income’ means the amount equal to the sum of—
Subsec. (m)(6). Pub. L. 101–508, §11408(c)(3)(B)(i), substituted “Special rules relating to limitation” for “Limitation” in heading.
Subsec. (m)(6)(A). Pub. L. 101–508, §11408(c)(3)(B)(ii), (iii), struck out at beginning “In no event shall the recapture amount of the taxpayer with respect to any indebtedness exceed 50 percent of the gain (if any) on the disposition of the taxpayer’s interest in the residence.” and substituted “paragraph (1)” for “the preceding sentence”.
Subsec. (m)(7)(B)(ii). Pub. L. 101–508, §11408(c)(3)(C), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the amounts described in paragraph (5)(B)(ii) for each category of family size for each year of the 10-year period beginning on the date the financing was provided.”
1989—Subsec. (a)(1)(B). Pub. L. 101–239 substituted “September 30, 1990” for “December 31, 1989” in heading and in text.
1988—Subsec. (a)(1)(B). Pub. L. 100–647, §4005(a)(1), substituted “1989” for “1988” in heading and in text.
Subsec. (a)(2)(A)(ii). Pub. L. 100–647, §4005(g)(1), substituted “(i), and (m)(7)” for “and (i)”.
Subsec. (a)(2)(A)(iii). Pub. L. 100–647, §1013(a)(2), substituted “such issue does not meet” for “no bond which is part of such issue meets”.
Subsec. (a)(2)(C). Pub. L. 100–647, §4005(g)(2)(B), substituted “, (h), and (m)(7)” for “and (h)” in introductory text.
Subsec. (b)(4). Pub. L. 100–647, §1013(a)(3), inserted “is part of an issue which” after “which”.
Subsec. (g)(1). Pub. L. 100–647, §4005(d)(1), substituted “paragraph (2) of this subsection and, in the case of an issue described in subsection (b)(1), such issue also meets the requirements of paragraph (3) of this subsection” for “paragraphs (2) and (3) of this subsection” and struck out “(other than subsection (f) thereof)” before period at end.
Subsec. (g)(2)(B)(iv). Pub. L. 100–647, §4005(g)(6), inserted at end “The Secretary may by regulation adjust the mortgage prepayment rate otherwise used in determining the effective rate of interest to the extent the Secretary determines that such an adjustment is appropriate by reason of the impact of subsection (m).”
Pub. L. 110–343, div. C, title VII, §709(b), Oct. 3, 2008, 122 Stat. 3926, provided that: “The amendment made by subsection (a) [amending this section] shall apply to disasters occurring after December 31, 2007.”
Pub. L. 110–289, div. C, title I, §3021(c), July 30, 2008, 122 Stat. 2893, provided that: “The amendments made by this section [amending this section and section 146 of this title] shall apply to bonds issued after the date of the enactment of this Act [July 30, 2008].”
Pub. L. 110–289, div. C, title I, §3026(b), July 30, 2008, 122 Stat. 2897, provided that: “The amendments made by this section [amending this section] shall apply to bonds issued after May 1, 2008.”
Pub. L. 110–245, title I, §103(d), June 17, 2008, 122 Stat. 1626, provided that: “The amendments made by this section [amending this section] shall apply to bonds issued after December 31, 2007.”
Pub. L. 109–432, div. A, title IV, §411(b), Dec. 20, 2006, 120 Stat. 2963, provided that: “The amendment made by this section [amending this section] shall take effect as if included in section 203 [probably means 203(b)] of the Tax Increase Prevention and Reconciliation Act of 2005 [Pub. L. 109–222].”
Pub. L. 109–432, div. A, title IV, §416(b), Dec. 20, 2006, 120 Stat. 2965, provided that: “The amendments made by this section [amending this section] shall apply to bonds issued after the date of the enactment of this Act [Dec. 20, 2006].”
Pub. L. 109–222, title II, §203(a)(2), May 17, 2006, 120 Stat. 349, provided that: “The amendments made by this subsection [amending this section] shall apply to bonds issued on or after the date of the enactment of this Act [May 17, 2006].”
Pub. L. 109–222, title II, §203(b)(2), May 17, 2006, 120 Stat. 350, provided that: “The amendments made by this subsection [amending this section] shall apply to allocations of State volume limit after April 5, 2006.”
Section 13141(f)(1) of Pub. L. 103–66 provided that: “The amendment made by subsection (a) [amending this section] shall apply to bonds issued after June 30, 1992.”
Section 13141(f)(3) of Pub. L. 103–66 provided that: “The amendments made by subsections (c) and (e) [amending this section] shall apply to qualified mortgage bonds issued and mortgage credit certificates provided on or after the date of enactment of this Act [Aug. 10, 1993].”
Section 13141(f)(4) of Pub. L. 103–66 provided that: “The amendments made by subsection (d) [amending this section] shall apply to loans originated and credit certificates provided after the date of the enactment of this Act [Aug. 10, 1993].”
Section 108(c)(1) of Pub. L. 102–227 provided that: “The amendment made by subsection (a) [amending this section] shall apply to bonds issued after December 31, 1991.”
Section 11408(d) of Pub. L. 101–508 provided that:
Amendment by section 1013(a)(2), (3) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99– 4, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Section 4005(h) of Pub. L. 100–647 provided that:
Pub. L. 110–245, title I, §103(e), June 17, 2008, 122 Stat. 1626, provided that: “In the case of any bond issued after December 31, 2007, and before the date of the enactment of this Act [June 17, 2008], subparagraph (B) of section 143(l)(4) of the Internal Revenue Code of 1986, as amended by this section, shall be applied by substituting ‘30 years’ for ‘25 years’.”
Section 1013(a)(27) of Pub. L. 100–647 provided that: “The date contained in [former] section 143(a)(1)(B) of the 1986 Code shall be treated as contained in section 103A(c)(1)(B) of the Internal Revenue Code of 1954, as in effect on the day before the date of the enactment of the Reform Act [Oct. 22, 1986], for purposes of any bond issued to refund a bond to which such [section] 103A(c)(1) applies.”
Section 4005(i) of Pub. L. 100–647 provided that: “The Comptroller General of the United States shall conduct a study of section 143(m) of the 1986 Code (as added by this section) and of alternatives to accomplish the purposes of such section. A report of such study shall be submitted not later than July 1, 1990, to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.”
1 So in original. Two pars. (12) have been enacted.