Page:United States Statutes at Large Volume 102 Part 4.djvu/681

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3651

(5) RECAPTURE TAX NOT INCLUDED IN ESTIMATED TAXES.—Para-

graph (1) of section 6654(f) of the 1986 Code (relating to failure by individual to pay estimated income tax) is amended by inserting "(other than any increase in such tax by reason of section 143(m))" after "chapter 1". (6) AUTHORITY TO CHANGE PREPAYMENT ASSUMPTIONS FOR ARBITRAGE RESTRICTIONS.—Clause (iv) of section 143(g)(2)(B) of the

1986 Code is amended by adding at the end thereof the following new sentence: "The Secretary may by regulation adjust the mortgage prepayment rate otherwise used in determining the effective rate of interest to the extent the Secretary determines that such an adjustment is appropriate by reason of the impact of subsection (m)." (7) CROSS REFERENCE.—Section 25 of the 1986 Code is amended by adding at the end thereof the following new subsection: "(j) RECAPTURE OF PORTION OF FEDERAL SUBSIDY FROM USE OF MORTGAGE CREDIT CERTIFICATES.— "For provisions increasing the tax imposed by this chapter to recapture a portion of the Federal subsidy from the use of mortgage credit certiHcates, see section 143(m)." (h) EFFECTIVE DATES.—

26 USC 143 note.

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to bonds issued, and nonissued bond amounts elected, after December 31, 1988. (2) SPECIAL RULES RELATING TO CERTAIN REQUIREMENTS AND REFUNDING BONDS.—In the case of a bond issued to refund (or

which is part of a series of bonds issued to refund) a bond issued before January 1, 1989— (A) the amendments made by subsections (b) and (c) shall apply to financing provided after the date of issuance of the refunding issue, and (B) the amendment made by subsection (f) shall apply to payments (including on loans made before such date of issuance) received on or after such date of issuance. (3) SUBSECTION (g).—

(A) IN GENERAL.—Except as provided in subparagraph (B), the amendments made by subsection (g) shall apply to financing provided, and mortgage credit certificates issued, after December 31, 1990. (B) EXCEPTION.—The amendments made by subsection (g) shall not apply to financing provided pursuant to a binding contract (entered into before June 23, 1988) with a homebuilder, lender, or mortgagor if the bonds (the proceeds of which are used to provide such financing) are issued— (i) before June 23, 1988, or (ii) before August 1, 1988, pursuant to a written application (made before July 1, 1988) for State bond volume authority, (i) STUDY OF RECAPTURE PROVISIONS.—The Comptroller General of 26 USC 143 note. the United States shall conduct a study of section 143(m) of the 1986 Code (as added by this section) and of alternatives to accomplish the purposes of such section. A report of such study shall be submitted Reports. not later than July 1, 1990, to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.

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