Page:United States Statutes at Large Volume 100 Part 3.djvu/387

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2195

Nothing in subsection (d)(2) shall prevent a credit from being allowed by reason of this subsection. "(5) 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)(II) but not under both such subsections. "(6)

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. "(f) 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 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. "(2) SPECIAL RULE FOR IST 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— "(i) 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 "(ii) the denominator of which is 12. "(B)

DISALLOWED IST YEAR CREDIT ALLOWED IN

IITH

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. "(3) SPECIAL RULE WHERE INCREASE IN QUALIFIED BASIS AFTER 1ST YEAR OF CREDIT PERIOD.— "(A) CREDIT INCREASED.—If—

"(i) as of the close of any taxable year in the compliance period (after the 1st year of the credit period) the qualified basis of any building exceeds "(ii) the qualified basis of such building as of the close of the 1st year of the credit period, the credit allowable under subsection (a) for the taxable year (determined without regard to this paragraph) shall be incrcased by an amount equal to the product of such excess and the percentage equal to % of the applicable percentage for such building. "(B) 1ST YEAR COMPUTATION APPLIES.—A rule similar to the rule of paragraph (2)(A) shall apply to the additional credit allowable by reason of this paragraph for the 1st year in which such additional credit is allowable. "(g) QUALIFIED LOW-INCOME HOUSING PROJECT.—For purposes Oi

this section— "(1) 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:

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