Page:United States Statutes at Large Volume 103 Part 3.djvu/243

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2311 such building equal to the applicable fraction specified in the extended low-income housing commitment for the building. "(I) IJiiOD FOR FINDING BUYER. — The period referred to in this subparagraph is the 1-year period beginning on the date (after the 14th year of the compliance period) the taxpayer submits a written request to the housing credit agency to find a person to acquire the taxpayer's interest in the low-income portion of the building. " (J) SALES OF LESS THAN LOW-INCOME PORTION OF BUILD- ING.—In the case of a sale or exchange of only a portion of the low-income portion of the building, only the same por- tion (as the portion sold or exchanged) of the amount determined under subparagraph (F) shall be taken into account thereunder. "(K) EFFECT OF NONCOMPLIANCE.— If, during a taxable year, there is a determination that an extended low-income housing agreement was not in effect as of the beginning of such year, such determination shall not apply to any period before such year and subparagraph (A) shall be applied without regard to such determination if the failure is cor- rected within 1 year from the date of the determination. "(L) PROJECTS WHICH CONSIST OF MORE THAN i BUILDING, — The application of this paragraph to projects which consist of more than 1 building shall be made under regulations prescribed by the Secretary." (2) (CONFORMING AMENDMENT. —Subparagraph (C) of section 42(b)(3) is amended by striking "subsection (h)(6))" and inserting "subsection (h)(7)". (d) CREDIT FOR ACQUISITION OF EXISTING BUILDING TO APPLY ONLY IF BUILDING TO BE REHABILITATED; INCREASE IN REQUIRED RE- HABILITATION EXPENDITURES. — (1) IN GENERAL.— Subparagraph (B) of section 42(d)(2) is amended by striking "and" at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ", and", and by adding at the end thereof the following new clause: "(iv) except as provided in subsection (f)(5), a credit is allowable under subsection (a) by reason of subsection (e) with respect to the building." (2) CJREDIT PERIOD FOR EXISTING BUILDINGS NOT TO BEGIN BEFORE REHABILITATION CREDIT ALLOWED.— Subsection (f) of sec- tion 42 (relating to definition and special rules relating to credit period), as amended b^ subtitle H, is amended by adding at the end thereof the following new paragraph: "(5) CREDIT PERIOD FOR EXISTING BUILDINGS NOT TO BEGIN BEFORE REHABILITATION CREDIT ALLOWED.— "(A) IN GENERAL.—The credit period for an existing build- ing shall not begin before the 1st taxable year of the credit period for rehabilitation expenditures with respect to the building. "(B) ACQUISITION CREDIT ALLOWED FOR CERTAIN BUILDINGS NOT ALLOWED A REHABILITATION CREDIT.— "(i) IN GENERAL.— In the case of a building described in clause (ii)— "(I) subsection (d)(2)(B)(iv) shall not apply, and "(II) the credit period for such building shall not ^ begin before the taxable year which would be the ""

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