Page:United States Statutes at Large Volume 102 Part 4.djvu/756

 102 STAT. 3726

PUBLIC LAW 100-647—NOV. 10, 1988 (2) NOT TO APPLY TO EXTENT INCONSISTENT WITH PRIOR

RETURN.—In the case of any estate or gift tax return filed before the date of the enactment of this Act, the amendments made by this section shall not apply to the extent such amendments would be inconsistent with the treatment of the annuity on such return unless the executor or donor (as the case may be) otherwise elects under this paragraph before the day 2 years after the date of the enactment of this Act. (3) EXTENSION OF TIME FOR ELECTION OUT.—The time for making an election under section 2056(b)(7)(C)(ii) or 2523(fK6XB) of the 1986 Code (as added by this subsection) shall not expire before the day 2 years after the date of the enactment of this Act (and, if such election is made within the time permitted under this paragraph, the requirement of such section 2056(b)(7)(C)(ii) that it be made on the return shall not apply).

Subtitle H—Tax-Exempt Bond Provisions SEC. 6176. CLARIFICATION OF SMALL ISSUE BOND DEFINITION OF MANUFACTURING FACILITY.

(a) IN GENERAL.—Subparagraph (C) of section 144(a)(12) of the 1986 Oxie (defining manufacturing facility) is amended by adding at the end thereof the following new sentence: "For purposes of the 1st sentence of this subparagraph, the term 'manufacturing facility* includes facilities which are directly related and ancillary to a manufacturing facility (determined without regard to this sentence) if— "(i) such facilities are located on the same site as the manufacturing facility, and "(ii) not more than 25 percent of the net proceeds of the issue are used to provide such facilities." 26 USC 144 note.

(b) EFFECTIVE D A T E. —

(1) IN GENERAL.—The amendment made by subsection (a) shall apply to bonds issued after the date of the enactment of this Act. (2) REFUNDINGS.—The amendment made by subsection (a) shall not apply to any bond issued to refund (or which is part of a series of bonds issued to refund) a bond issued on or before the date of the enactment of this Act if— (A) the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue, and (B) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond. For purposes of subparagraph (A), average maturity shall be determined in accordance with section 147(b) of the 1986 (Dode. SEC. 6177. RULES APPLICABLE TO TAX AND REVENUE ANTICIPATION BONDS. (a) CHANGE IN PERIOD USED TO DETERMINE CUMULATIVE CASH FLOW

DEFICIT.—Subclause (III) of section 148(f)(4)(B)(iii) of the 1986 Code (relating to safe harbor for determining when proceeds of tax and revenue anticipation bonds are expended) is amended by striking

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