Page:United States Statutes at Large Volume 100 Part 3.djvu/391

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2199

"(A) BUILDING MUST BE LOCATED WITHIN JURISDICTION OF

CREDIT AGENCY.—A housing Credit agency may allocate its aggregate housing credit dollar amount only to buildings located in the jurisdiction of the governmental unit of which such agency is a part. "(B) HOUSING CREDIT DOLLAR AMOUNT MAY NOT BE CARRIED OVER, ETC.—

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"(i) No CARRYOVER.—The portion of the aggregate housing credit dollar amount of any housing credit agency which is not allocated for any calendar year may not be carried over to any other calendar year.

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"(ii) ALLOCATION MAY NOT BE EARUER THAN YEAR IN WHICH BUILDING PLACED IN SERVICE.—A housing Credit

agency may allocate its housing credit dollar amount for any calendar year only to buildings placed in service before the close of such calendar year. "(C) AGENCY ALLOCATIONS IN EXCESS OF LIMIT.—If

the

aggregate housing credit dollar amounts allocated by a housing credit agency for any calendar year exceed the portion of the State housing credit ceiling allocated to such agency for such calendar year, the housing credit dollar amounts so allocated shall be reduced (to the extent of such excess) for buildings in the reverse of the order in which the allocations of such amounts were made.

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"(D) CREDIT ALLOWABLE DETERMINED WITHOUT REGARD TO

a...

AVERAGING CONVENTION, ETC.—For purposes of this subsection, the credit allowable under subsection (a) with respect .»'.'. to any building shall be determined— "(i) without regard to paragraphs (2)(A) and (3)(B) of ! subsection (f), and "(ii) by applying subsection (fK3XA) without regard to '.^ 'the percentage equal to % of. "(7) OTHER DEFINITIONS.—For purposes of this subsection— "(A) HOUSING CREDIT AGENCY.—The term 'housing credit agency' means any agency authorized to carry out this subsection. "(B) POSSESSIONS TREATED AS STATES.—The term 'State' includes a possession of the United States, "(i) DEFINITIONS AND SPECIAL RULES.—For purposes of this section— "(1) COMPUANCE PERIOD.—The term 'compliance period' means, with respect to any building, the period of 15 taxable years beginning with the 1st taxable year of the credit period with respect thereto. "(2) DETERMINATION OF WHETHER BUILDING IS FEDERALLY SUBSIDIZED.—

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"(A) IN GENERAL.—Except as otherwise provided in this paragraph, for purposes of subsection (b)(D, a new building shall be treated as federally subsidized for any taxable year if, at any time during such taxable year, there is outstanding any obligation the interest on which is exempt from tax under section 103, or any below market Federal loan, the proceeds of which are used (directly or indirectly) with respect to such building or the operation thereof. "(B) ELECTION TO REDUCE ELIGIBLE BASIS BY OUTSTANDING BALANCE OF LOAN.—A loan shall not be taken into account

under subparagraph (A) if the taxpayer elects to exclude an

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