Page:United States Statutes at Large Volume 100 Part 3.djvu/574

 100 STAT. 2382

PUBLIC LAW 99-514—OCT. 22, 1986

before the date of the e n a c t m e n t of this Act) is amended by striking out the second sentence. (c) TERMINATION O F REDUCTION I N DEDUCTION FOR INTEREST ALLOCABLE TO T A X - E X E M P T OBLIGATIONS U N D E R SECTION 291.—

(1) IN GENERAL.—Clause (i) of section 291(e)(1)(B) (relating to interest on debt to c a r r y tax-exempt obligations acquired after December 31, 1982) is amended by striking o u t "after December 31, 1982" and inserting in lieu thereof "after December 31, 1982, and before August 8, 1986". (2) TECHNICAL

AMENDMENTS.—Subparagraph

(B) of section

291(e)(1) is amended— (A) by striking out "(but for this paragraph) " in clause and inserting in lieu thereof "(but for this paragraph section 265(b))", (B) by striking out " w i t h o u t regard to this section" clause (ii) and inserting in lieu thereof "without regard this section and section 265(b)", (C) by striking out "AFTER DECEMBER 3 1,

(i) or in to

1982" in the

subparagraph heading and inserting in lieu thereof "AFTER DECEMBER 31, 1982, AND BEFORE AUGUST 8, 1986", and

(D) by adding a t the end thereof the following new clause: "(iv) APPLICATION O F SUBPARAGRAPH TO CERTAIN OBLIGATIONS ISSUED AFTER AUGUST 7, 1986.— "For application of this subparagraph to certain obligations issued after August 7, 1986, see section 265(b)(3)." (d) CLERICAL AMENDMENT. — S e c t i o n 265 is amended by striking

out " N o deduction shall be allowed for—" and inserting in lieu thereof the following: "(a) GENERAL RULE. — N o deduction shall be allowed for—". (e) CONFORMING AMENDMENTS. —

(1) Section 163(h)(12) is amended by striking out "section 265(2)" and inserting in lieu thereof "section 265(a)(2)". (2) Section 1277(c) is amended by striking out "section 265(5)" and inserting in lieu thereof "section 265(a)(5)". (1) EFFECTIVE D A T E. —

(1) IN GENERAL.—Except as provided in this subsection, the amendments m a d e by this section shall apply to taxable years ending after December 31, 1986. (2) OBLIGATIONS

ACQUIRED

PURSUANT

TO CERTAIN

COMMIT-

MENTS.—For purposes of sections 265(b) and 291(e)(1)(B) of the I n t e r n a l Revenue Code of 1986, any tax-exempt obligation which is acquired after August 7, 1986, pursuant to a direct or indirect w r i t t e n commitment— (A) to purchase or r e purchase such obligation, and (B) entered into on or before September 25, 1985, shall be treated as a n obligation acquired before August 8, 1986. (3) TRANSITIONAL RULES.—For purposes of sections 265(b) and

291(e)(1)(B) of the I n t e r n a l Revenue Code of 1986, obligations with respect to any of the following projects shall be treated as obligations acquired before August 8, 1986, in the h and s of the first and any subsequent financial institution acquiring such obligations: (A) P a r k Forest, Illinois, redevelopment project. (B) Clinton, Tennessee, Carriage Trace project. (C) S a v a n n a h, Georgia, Mall Terrace Warehouse project. (D) Chattanooga, Tennessee, Warehouse Row project.

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