Page:United States Statutes at Large Volume 100 Part 3.djvu/395

 PUBLIC LAW 99-514—OCT. 22, 1986 "(D)

REPAYMENT

OF

PRINCIPAL

AND

100 STAT. 2203

INTEREST.—The

requirements of this subparagraph are met with respect to any financing if such financing is fully repaid on or before the earliest of— -: "(i) the date on which such financing matures, "(ii) the 90th day after the close of the compliance period with respect to the qualified low-income building, or "(iii) the date of its refinancing or the sale of the building to which such financing relates. "(3) PRESENT VALUE OF FINANCING.—If the rate of interest on any financing described in paragraph (2KA) is less than the rate which is 1 percentage point below the applicable Federal rate as of the time such financing is incurred, then the qualified basis (to which such financing relates) of the qualified low-income building shall be the present value of the amount of such ' financing, using as the discount rate such applicable Federal rate. For purposes of the preceding sentence, the rate of interest on any financing shall be determined by treating interest to the extent of government subsidies as not payable. " "(4) FAILURE TO FULLY REPAY.— "(A) IN GENERAL.—To the extent that the requirements of paragraph (2)(D) are not met, then the taxpayer's tax under this chapter for the taxable year in which such failure occurs shall be increased by an amount equal to the applicable portion of the credit under this section with respect ^ • .^ to such building, increased by an amount of interest for the period— "(i) beginning with the due date for the filing of the •ifi) * s return of tax imposed by chapter 1 for the 1st taxable year for which such credit was allowable, and ^,. "(ii) ending with the due date for the taxable year in \Z''-. which such failure occurs, determined by using the underpayment rate and method .,,;.. under section 6621. "(B) APPLICABLE PORTION.—For purposes of subparagraph (A), the term 'applicable portion' means the aggregate decrease in the credits allowed to a taxpayer under section 38 for all prior taxable years which would have resulted if the . >. eligible basis of the building were reduced by the amount of financing which does not meet requirements of paragraph (2)(D). "(C) CERTAIN RULES TO APPLY.—Rules similar to the rules of subparagraphs (A) and (D) of subsection (jK4) shall apply for purposes of this subsection. "(1) CERTIFICATIONS TO SECRETARY.— "(1) CERTIFICATION WITH RESPECT TO IST YEAR OF CREDIT

1!

PERIOD.—Not later than the 90th day following the close of the 1st taxable year in the credit period with respect to any qualified low-income building, the taxpayer shall certify to the Secretary (in such form and in such manner as the Secretary prescribes)— "(A) the taxable year, and calendar year, in which such building was placed in service, "(B) the adjusted basis and eligible basis of such building as of the close of the 1st year of the credit period.

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