Source: http://taxtv.com/code/00087-USCODE-2011-title26-subtitleA-chap1-subchapA-partIV-subpartI-sec54A/
Timestamp: 2017-11-18 13:52:32
Document Index: 199702986

Matched Legal Cases: ['§54', '§54', '§15316', '§4', '§15316', '§107', '§301', '§313', '§1521', '§1531', '§1521', '§1521', '§1541', '§301', '§107', '§313', '§301', '§107', '§313', '§1521', '§301', '§313']

IRC §54A. Credit to holders of qualified tax credit bonds - TaxTV.com
IRC §54A. Credit to holders of qualified tax credit bonds
(2) Annual credit
(A) the applicable credit rate, multiplied by
(B) the outstanding face amount of the bond.
(3) Applicable credit rate
(4) Special rule for issuance and redemption
(B) the sum of the credits allowable under this part (other than subparts C and J and this subpart).
(2) Carryover of unused credit
(d) Qualified tax credit bond
(1) Qualified tax credit bond
The term “qualified tax credit bond” means—
(A) a qualified forestry conservation bond,
(B) a new clean renewable energy bond,
(C) a qualified energy conservation bond,
(D) a qualified zone academy bond, or
(E) a qualified school construction bond,
(2) Special rules relating to expenditures
(i) 100 percent or more of the available project proceeds to be spent for 1 or more qualified purposes within the 3-year period beginning on such date of issuance, and
(ii) a binding commitment with a third party to spend at least 10 percent of such available project proceeds will be incurred within the 6-month period beginning on such date of issuance.
(B) Failure to spend required amount of bond proceeds within 3 years
(ii) Expenditure period
(iii) Extension of period
(C) Qualified purpose
For purposes of this paragraph, the term “qualified purpose” means—
(i) in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e),
(ii) in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1),
(iii) in the case of a qualified energy conservation bond, a purpose specified in section 54D(a)(1),
(iv) in the case of a qualified zone academy bond, a purpose specified in section 54E(a)(1), and
(v) in the case of a qualified school construction bond, a purpose specified in section 54F(a)(1).
(i) prior to the payment of the original expenditure, the issuer declared its intent to reimburse such expenditure with the proceeds of a qualified tax credit bond,
(ii) not later than 60 days after payment of the original expenditure, the issuer adopts an official intent to reimburse the original expenditure with such proceeds, and
(iii) the reimbursement is made not later than 18 months after the date the original expenditure is paid.
(4) Special rules relating to arbitrage
(B) Special rule for investments during expenditure period
(C) Special rule for reserve funds
(i) such fund is funded at a rate not more rapid than equal annual installments,
(ii) such fund is funded in a manner reasonably expected to result in an amount not greater than an amount necessary to repay the issue, and
(iii) the yield on such fund is not greater than the discount rate determined under paragraph (5)(B) with respect to the issue.
(5) Maturity limitation
(B) Maximum term
(6) Prohibition on financial conflicts of interest
(A) applicable State and local law requirements governing conflicts of interest are satisfied with respect to such issue, and
(B) if the Secretary prescribes additional conflicts of interest rules governing the appropriate Members of Congress, Federal, State, and local officials, and their spouses, such additional rules are satisfied with respect to such issue.
The term “credit allowance date” means—
(A) March 15,
(B) June 15,
(C) September 15, and
(D) December 15.
(4) Available project proceeds
The term “available project proceeds” means—
(i) the proceeds from the sale of an issue, over
(ii) the issuance costs financed by the issue (to the extent that such costs do not exceed 2 percent of such proceeds), and
(B) the proceeds from any investment of the excess described in subparagraph (A).
(f) Credit treated as interest
(g) S Corporations and partnerships
(h) Bonds held by real estate investment trusts
If any qualified tax credit bond is held by a real estate investment trust, the credit determined under subsection (a) shall be allowed to beneficiaries of such trust (and any gross income included under subsection (f) with respect to such credit shall be distributed to such beneficiaries) under procedures prescribed by the Secretary.
(i) Credits may be stripped
(2) Certain rules to apply
(Added Pub. L. 110–234, title XV, §15316(a), May 22, 2008, 122 Stat. 1505, and Pub. L. 110–246, §4(a), title XV, §15316(a), June 18, 2008, 122 Stat. 1664, 2267; amended Pub. L. 110–343, div. B, title I, §107(b)(1), (2), title III, §301(b)(1), (2), div. C, title III, §313(b)(1), (2), Oct. 3, 2008, 122 Stat. 3818, 3819, 3843, 3844, 3872; Pub. L. 111–5, div. B, title I, §§1521(b)(1), (2), 1531(c)(2), 1541(b)(2), Feb. 17, 2009, 123 Stat. 357, 360, 362.)
2009—Subsec. (c)(1)(B). Pub. L. 111–5, §1531(c)(2), substituted “subparts C and J” for “subpart C”.
Subsec. (d)(1)(E). Pub. L. 111–5, §1521(b)(1), added subpar. (E).
Subsec. (d)(2)(C)(v). Pub. L. 111–5, §1521(b)(2), added cl. (v).
Subsec. (h). Pub. L. 111–5, §1541(b)(2), amended subsec. (h) generally. Prior to amendment, text read as follows: “If any qualified tax credit bond is held by a regulated investment company or a real estate investment trust, the credit determined under subsection (a) shall be allowed to shareholders of such company or beneficiaries of such trust (and any gross income included under subsection (f) with respect to such credit shall be treated as distributed to such shareholders or beneficiaries) under procedures prescribed by the Secretary.”
2008—Subsec. (d)(1). Pub. L. 110–343, §301(b)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The term ‘qualified tax credit bond’ means—
Pub. L. 110–343, §107(b)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The term ‘qualified tax credit bond’ means a qualified forestry conservation bond which is part of an issue that meets the requirements of paragraphs (2), (3), (4), (5), and (6).”
Subsec. (d)(1)(D). Pub. L. 110–343, §313(b)(1), added subpar. (D).
Subsec. (d)(2)(C). Pub. L. 110–343, §301(b)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this paragraph, the term ‘qualified purpose’ means—
“(i) in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e), and
“(ii) in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1).”
Pub. L. 110–343, §107(b)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this paragraph, the term ‘qualified purpose’ means a purpose specified in section 54B(e).”
Subsec. (d)(2)(C)(iv). Pub. L. 110–343, §313(b)(2), added cl. (iv).
Pub. L. 111–5, div. B, title I, §1521(c), Feb. 17, 2009, 123 Stat. 357, provided that: “The amendments made by this section [enacting section 54F of this title and amending this section] shall apply to obligations issued after the date of the enactment of this Act [Feb. 17, 2009].”
Amendment by section 1531(c)(2) of Pub. L. 111–5 applicable to obligations issued after Feb. 17, 2009, see section 1531(e) of Pub. L. 111–5, set out as a note under section 54 of this title.
Amendment by section 1541(b)(2) of Pub. L. 111–5 applicable to taxable years ending after Feb. 17, 2009, see section 1541(c) of Pub. L. 111–5, set out as a note under section 54 of this title.
Amendment by section 107(b)(1), (2) of Pub. L. 110–343 applicable to obligations issued after Oct. 3, 2008, see section 107(d) of title I of div. B of Pub. L. 110–343, set out as a note under section 54 of this title.
Pub. L. 110–343, div. B, title III, §301(c), Oct. 3, 2008, 122 Stat. 3844, provided that: “The amendments made by this section [enacting section 54D of this title and amending this section] shall apply to obligations issued after the date of the enactment of this Act [Oct. 3, 2008].”
Pub. L. 110–343, div. C, title III, §313(c), Oct. 3, 2008, 122 Stat. 3872, provided that: “The amendments made by this section [enacting section 54E of this title and amending this section and section 1397E of this title] shall apply to obligations issued after the date of the enactment of this Act [Oct. 3, 2008].”
Section applicable to obligations issued after June 18, 2008, see section 15316(d) of Pub. L. 110–246, set out as an Effective Date of 2008 Amendment note under section 54 of this title.