Page:United States Statutes at Large Volume 100 Part 3.djvu/397

 PUBLIC LAW 99-514—OCT. 22, 1986 "'

100 STAT. 2205

"(C) CERTAIN RULE NOT TO APPLY.—Subsection (h)(6)(B)(i) shall not apply for purposes of this paragraph."

(b) LOW-INCOME HOUSING CREDIT TREATED A S OTHER BUSINESS CREDITS.—

(1) Subsection (b) of section 38 (relating to current year business credits), as amended by this Act, is amended by striking out "plus" at the end of paragraph (3), but striking out the period at the end of paragraph (4) and inserting in lieu thereof ", plus", and by adding at the end thereof the following new paragraph: "(5) the low-income housing credit determined under section 42(a)." (2) Subsection (d) of section 38 is amended by inserting "42(a)," before "46(a)". (c) RECAPTURE TAX NOT TO REDUCE MINIMUM TAX.—Paragraph (1)

of section 55(c), as amended by section 701 of this Act, is amended by inserting "or section 42(j)" after "section 47". (d) CLERICAL AMENDMENT.—The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 42. Low-income housing credit." (e) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendments made by this section shall apply to buildings placed in service after December 31, 1986, in taxable years ending after such date. (2) SPECIAL RULE FOR REHABILITATION EXPENDITURES.—Subsec-

tion (e) of section 42 of the Internal Revenue Code of 1986 (as added by this section) shall apply for purposes of paragraph (1). if) TRANSITIONAL RULES.— (1) LIMITATION TO NON-ACRS BUILDINGS NOT TO APPLY TO CERTAIN BUILDINGS, ETC.—

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(A) IN GENERAL.—In the case of a building which is part of a project described in subparagraph (B)— (i) section 42(c)(2)(B) of the Internal Revenue Code of 1986 (as added by this section) shall not apply, and (ii) such building shall be treated as not federally subsidized for purposes of section 42(b)(l)(A) of such Code. (B) PROJECT DESCRIBED.—A project is described in this subparagraph if— (i) an urban development action grant application with respect to such project was submitted on September 13, 1984, (ii) a zoning commission map amendment related to such project was granted on July 17, 1985, and (iii) the number assigned to such project by the Federal Housing Administration is 023-36602. (C) ADDITIONAL UNITS ELIGIBLE FOR CREDIT.—In the case of a building to which subparagraph (A) applies and which is part of a project which meets the requirements of subparagraph (D), for each low-income unit in such building which is occupied by individuals whose income is 30 percent or less of area median gross income, one additional unit (not otherwise a low-income unit) in such building shall be treated as a low-income unit for purposes of such section 42.

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