Source: https://law.justia.com/codes/us/2015/title-26/subtitle-a/chapter-1/subchapter-b/part-iv/subpart-a/sec.-143/
Timestamp: 2020-05-24 22:43:38
Document Index: 455206789

Matched Legal Cases: ['§ 143', '§1301', '§1013', '§4005', '§7104', '§11408', '§108', '§13141', '§1702', '§312', '§914', '§203', '§411', '§103', '§3021', '§709', '§211', '§ 143', '§143', '§1301', '§1013', '§4005', '§7104', '§11408', '§108', '§13141', '§1702', '§312', '§914', '§203', '§411', '§103', '§3021', '§709', '§211', '§5121', '§221', '§312', '§802', '§1901', '§101', '§423', '§103', '§416', '§203', '§312', '§1703', '§13141', '§11408', '§11408', '§11408', '§11408', '§4005', '§211', '§709', '§3021', '§3026', '§103', '§411', '§416', '§203', '§203', '§13141', '§13141', '§13141', '§108', '§11408', '§4005', '§103', '§1013', '§4005']

26 U.S.C. § 143 (2015) - Mortgage revenue bonds: qualified mortgage bond and qualified veterans' mortgage bond :: Title 26 - Internal Revenue Code (Sections 1 - 9834) - US Code :: Justia
Justia US Law US Codes and Statutes US Code 2015 US Code Title 26 - Internal Revenue Code (Sections 1 - 9834) Subtitle A - Income Taxes (Sections 1 - 1564) Chapter 1 - Normal Taxes and Surtaxes (Sections 1 - 1400U-3) Subchapter B - Computation of Taxable Income (Sections 61 - 291) Part IV - Tax Exemption Requirements for State and Local Bonds (Sections 141 - 150) Subpart A - Private Activity Bonds (Sections 141 - 147) Sec. 143 - Mortgage revenue bonds: qualified mortgage bond and qualified veterans' mortgage bond
Sec. 143 - Mortgage revenue bonds: qualified mortgage bond and qualified veterans' mortgage bond
Source Credit Added Pub. L. 99-514, 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, 3645-3651; 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; Pub. L. 113-295, div. A, title II, §211(c)(2), Dec. 19, 2014, 128 Stat. 4033.
Statutes at Large References 83 Stat. 677
98 Stat. 800
100 Stat. 2610
102 Stat. 3537, 3543, 3651
103 Stat. 2305
104 Stat. 1388-477, 1388-478
107 Stat. 436, 437
110 Stat. 1870
111 Stat. 839
120 Stat. 348, 2963, 349, 350, 2965
122 Stat. 1625, 2893, 3925, 1626, 2897, 3926
128 Stat. 4033, 4040
Public and Private Laws Public Law 91-172, Public Law 93-288, Public Law 94-455, Public Law 95-30, Public Law 98-369, Public Law 99-514, Public Law 100-647, Public Law 101-239, Public Law 101-508, Public Law 102-227, Public Law 103-66, Public Law 104-188, Public Law 105-34, Public Law 109-222, Public Law 109-432, Public Law 110-245, Public Law 110-289, Public Law 110-343, Public Law 113-295
26 U.S.C. § 143 (2015)
§143. Mortgage revenue bonds: qualified mortgage bond and qualified veterans' mortgage bond(a) Qualified mortgage bond(1) Qualified mortgage bond defined
(2) Qualified mortgage issue defined(A) Definition
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—
An issue which fails to meet 1 or more of the requirements of subsections (c), (d), (e), (f), and (i) shall be treated as meeting such requirements if—
An issue which fails to meet 1 or more of the requirements of subsections (g), (h), and (m)(7) shall be treated as meeting such requirements if—
(D) Proceeds must be used within 42 months of date of issuance(i) In general
For purposes of this part, the term "qualified veterans' mortgage bond" means any bond—
(c) Residence requirements(1) For a residence
A residence meets the requirements of this subsection only if—
(d) 3-year requirement(1) In general
For purposes of paragraph (1), the proceeds of an issue which are used to provide—
(e) Purchase price requirement(1) In general
For purposes of this subsection, the determination of average area purchase price shall be made separately with respect to—
(f) Income requirements(1) In general
In the case of any financing provided under any issue for targeted area residences—
(5) Adjustment of income requirement based on relation of high housing costs to income(A) In general
The percentage determined under this subparagraph for a residence located in a high housing cost area is the percentage (not greater than 140 percent) equal to the product of—
The term "housing cost/income ratio" means, with respect to any statistical area, the number determined by dividing—
In the case of a mortgagor having a family of fewer than 3 individuals, the preceding provisions of this subsection shall be applied by substituting—
(g) Requirements related to arbitrage(1) In general
(2) Effective rate of mortgage interest cannot exceed bond yield by more than 1.125 percentage points(A) In general
An issue shall be treated as meeting the requirements of this paragraph only if the excess of—
(B) Effective rate of mortgage interest(i) In general
For purposes of this subsection, the yield on an issue shall be determined on the basis of—
(3) Arbitrage and investment gains to be used to reduce costs of owner-financing(A) In general
(C) Reduction where issuer does not use full 1.125 percentage points under paragraph (2)(i) In general
Subparagraph (A) shall be satisfied with respect to any issue if the issuer elects before issuing the bonds to pay over to the United States—
(h) Portion of loans required to be placed in targeted areas(1) In general
(i) Other requirements(1) Mortgages must be new mortgages(A) In general
Under regulations prescribed by the Secretary, the replacement of—
(C) Exception for certain contract for deed agreements(i) In general
For purposes of this subparagraph, the term "contract for deed" means a seller-financed contract for the conveyance of land under which—
(j) Targeted area residences(1) In general
For purposes of this section, the term "targeted area residence" means a residence in an area which is either—
(2) Qualified census tract(A) In general
(3) Area of chronic economic distress(A) In general
For purposes of paragraph (1), the term "area of chronic economic distress" means an area of chronic economic distress—
The criteria used by the Secretary and the Secretary of Housing and Urban Development in evaluating any proposed designation of an area for purposes of this subsection shall be—
(2) Statistical area(A) In general
The term "statistical area" means—
(3) Acquisition cost(A) In general
The term "acquisition cost" does not include—
The term "qualified home improvement loan" means the financing (in an amount which does not exceed $15,000)—
(5) Qualified rehabilitation loan(A) In general
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—
(ii) in the rehabilitation process—
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—
(8) Cooperative housing corporations(A) In general
In the case of any cooperative housing corporation—
(9) Treatment of limited equity cooperative housing(A) Treatment as residential rental property
Except as provided in subparagraph (B), for purposes of this part—
For purposes of this paragraph, the term "qualified cooperative housing corporation" means any cooperative housing corporation (as defined in section 216(b)(1)) if—
(i) the consideration paid for stock held by any stockholder entitled to occupy any house or apartment in a building owned or leased by the corporation may not exceed the sum of—
(10) Treatment of resale price control and subsidy lien programs(A) In general
For purposes of subparagraph (A), the term "qualified program" means any governmental program providing mortgage loans (other than 1st mortgage loans) or grants—
(12) Special rules for subprime refinancings(A) In general
In applying subparagraph (A) to any refinancing—
(13) Special rules for residences destroyed in federally declared disasters(A) Principal residence destroyed
At the election of the taxpayer, if the principal residence (within the meaning of section 121) of such taxpayer is—
(B) Principal residence damaged(i) In general
(D) Election; denial of double benefit(i) Election
(3) Volume limitation(A) In general
(B) State veterans limit(i) In general
(C) Treatment of refunding issues(i) In general
For purposes of subparagraph (A), the term "qualified veterans' mortgage bond" shall not include any bond issued to refund another bond but only if the maturity date of the refunding bond is not later than the later of—
For purposes of this subsection, the term "qualified veteran" means any veteran who—
In the case of any bond—
(m) Recapture of portion of Federal subsidy from use of qualified mortgage bonds and mortgage credit certificates(1) In general
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 recapture amount with respect to any indebtedness is the amount equal to the product of—
(C) Holding period percentage(i) In general
The term "income percentage" means the percentage (but not greater than 100 percent) which—
(5) Adjusted qualifying income; modified adjusted gross income(A) Adjusted qualifying income
For purposes of paragraph (4), the term "adjusted qualifying income" means the product of—
For purposes of paragraph (4), the term "modified adjusted gross income" means adjusted gross income—
(6) Special rules relating to limitation on recapture amount based on gain realized(A) In general
The issuer of the issue which provided the federally-subsidized indebtedness to the mortgagor shall—
(B) not later than 90 days after the date such indebtedness is provided, provide a written statement to the mortgagor specifying—
(8) Special rules(A) No basis adjustment
(Added Pub. L. 99–514, 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, 3645-3651; 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; Pub. L. 113–295, div. A, title II, §211(c)(2), Dec. 19, 2014, 128 Stat. 4033.)
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 (§5121 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 5121 of Title 42 and Tables.
Par. (3) of section 165(h), referred to in subsec. (k)(13)(C), was repealed by Pub. L. 113–295, div. A, title II, §221(a)(27)(A), Dec. 19, 2014, 128 Stat. 4040. However, the term "federally declared disaster" is defined elsewhere in that section.
Section 1034(e) (as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997), referred to in subsec. (m)(6)(A), means section 1034(e) of this title as in effect on the day before the date of enactment of Pub. L. 105–34, which was approved Aug. 5, 1997. Section 1034 was repealed by Pub. L. 105–34, title III, §312(b), Aug. 5, 1997, 111 Stat. 839.
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. 99–514. See section 7703 of this title.
2014—Subsec. (k)(12), (13). Pub. L. 113–295 redesignated par. (12), relating to special rules for residences destroyed in federally declared disasters, as (13).
2008—Subsec. (d)(2)(D). Pub. L. 110–245, §103(a), struck out "and before January 1, 2008" after "enactment of this subparagraph".
2006—Subsec. (d)(2)(D). Pub. L. 109–432, §416(a), added subpar. (D).
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).
1997—Subsec. (i)(1)(C)(i)(I). Pub. L. 105–34, §312(d)(1), substituted "section 121" for "section 1034".
1996—Subsec. (d)(2)(C). Pub. L. 104–188, §1703(n)(3), substituted "thereon," for "thereon.".
1993—Subsec. (a)(1). Pub. L. 103–66, §13141(a), amended heading and text of par. (1) generally. Prior to amendment, text read as follows:
"(A) In general.—For purposes of this title, the term 'qualified mortgage bond' means a bond which is issued as part of a qualified mortgage issue.
"(B) Termination on June 30, 1992.—No bond issued after June 30, 1992, may be treated as a qualified mortgage bond."
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)(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)(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—
"(ii) the product of—
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.
Pub. L. 113–295, div. A, title II, §211(d), Dec. 19, 2014, 128 Stat. 4033, provided that: "The amendments made by this section [amending this section and sections 165, 168, 172, and 1033 of this title and provisions set out as notes under sections 56 and 897 of this title] shall take effect as if included in the provisions of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 [Pub. L. 110–343, div. C] to which they relate."
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."
Pub. L. 103–66, title XIII, §13141(f)(1), Aug. 10, 1993, 107 Stat. 437, provided that: "The amendment made by subsection (a) [amending this section] shall apply to bonds issued after June 30, 1992."
Pub. L. 103–66, title XIII, §13141(f)(3), Aug. 10, 1993, 107 Stat. 437, 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]."
Pub. L. 103–66, title XIII, §13141(f)(4), Aug. 10, 1993, 107 Stat. 437, 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]."
Pub. L. 102–227, title I, §108(c)(1), Dec. 11, 1991, 105 Stat. 1688, provided that: "The amendment made by subsection (a) [amending this section] shall apply to bonds issued after December 31, 1991."
Pub. L. 101–508, title XI, §11408(d), Nov. 5, 1990, 104 Stat. 1388–478, provided that:
"(1) Bonds.—The amendment made by subsection (a) [amending this section] shall apply to bonds issued after September 30, 1990.
"(2) Certificates.—The amendment made by subsection (b) [amending section 25 of this title] shall apply to elections for periods after September 30, 1990.
"(3) Simplification.—The amendment made by subsection (c) [amending this section] shall take effect as if included in the amendments made by section 4005 of the Technical and Miscellaneous Revenue Act of 1988 [Pub. L. 100–647]."
Pub. L. 100–647, title IV, §4005(h), Nov. 10, 1988, 102 Stat. 3651, provided that:
"(1) In general.—Except as otherwise provided in this subsection, the amendments made by this section [amending this section and sections 25, 26, 148, 6045, and 6654 of this title] shall apply to bonds issued, and nonissued bond amounts elected, after December 31, 1988.
"(2) Special rules relating to certain requirements and refunding bonds.—In the case of a bond issued to refund (or which is part of a series of bonds issued to refund) a bond issued before January 1, 1989—
"(3) Subsection (g).—
"(A) In general.—Except as provided in subparagraph (B), the amendments made by subsection (g) [amending this section and sections 25, 26, 6045, and 6654 of this title] shall apply to financing provided, and mortgage credit certificates issued, after December 31, 1990.
"(B) Exception.—The amendments made by subsection (g) shall not apply to financing provided pursuant to a binding contract (entered into before June 23, 1988) with a homebuilder, lender, or mortgagor if the bonds (the proceeds of which are used to provide such financing) are issued—
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'."
Pub. L. 100–647, title I, §1013(a)(27), Nov. 10, 1988, 102 Stat. 3543, 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."
Pub. L. 100–647, title IV, §4005(i), Nov. 10, 1988, 102 Stat. 3651, 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."