Page:United States Statutes at Large Volume 102 Part 4.djvu/410

 102 STAT. 3380

PUBLIC LAW 100-647—NOV. 10, 1988 obligation or below market Federal loan used to provide construction financing for any building if— "(i) such obligation or loan (when issued or made) identified the building for which the proceeds of such obligation or loan would be used, and "(ii) such obligation is redeemed, and such loan is repaid, before such building is placed in service." (D) Subparagraph (D) of section 42(i)(2) of the 1986 Code is amended by striking out "subparagraph (A)" and inserting in lieu thereof "this paragraph". (20) Paragraph (4) of section 42(j) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: "(F) N o RECAPTURE WHERE DE MINIMIS CHANGES IN FLOOR

SPACE.—The Secretary may provide that the increase in tax under this subsection shall not apply with respect to any building if— '^i) such increase results from a de minimis change in the floor space fraction under subsection (c)(D, and "(ii) the building is a qualified low-income building (21) Clause (i) of section 42(j)(5)(B) of the 1986 Code is amended to read as follows: "(i) more than Va the capital interests, and more than Vi the profit interests, in which are owned by a group of 35 or more partners each of whom is a natural person or an estate, and". (22) Paragraph (6) of section 420') of the 1986 Code is amended— (A) by inserting " ( O R INTEREST THEREIN)" after "BUILDING" in the heading, and (B) by inserting or an interest therein" after "disposition of a building" in the text. (23) Subparagraph (B) of section 42(k)(2) of the 1986 Code is amended by inserting before the period at the end thereof the following:, except that this subparagraph shall not apply in the case of a federally assisted building described in subsection (d)(6)(B)if"(i) a security interest in such building is not permitted by a Federal agency holding or insuring the mortgage secured by such building, and "(ii) the proceeds from the financing (if any) are applied to acquire or improve such building." (24XA) Subsection (1) of section 42 of the 1986 Code is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: '(2) ANNUAL REPORTS TO THE SECRETARY.—The Secretary may

require tax p ^ e r s to submit an information return (at such time and in such form and manner as the Secretary prescribes) for each taxable year setting forth— "(A) the qualified basis for the taxable year of each qualified low-income building of the taxpayer, "(B) the information described in paragraph (I)(C) for the taxable year, and "(C) such other information as the Secretary may require. The penalty under section 6652(j) shall apply to any failure to submit the return required by the Secretary under the preceding sentence on the date prescribed therefor."

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