Page:United States Statutes at Large Volume 103 Part 3.djvu/244

 103 STAT. 2312 PUBLIC LAW 101-239—DEC. 19, 1989 1st taxable year of the credit period for rehabilita- tion expenditures with respect to the building under the modifications described in clause (iiXH). "(ii) BUILDING DESCRIBED. —A building is described in this clause if— "(I) a waiver is granted under subsection (d)(6)(C) '' with respect to the acquisition of the building, and "(II) a credit would be allowed for rehabilitation expenditures with respect to such building if -*'- subsection (e)(3)(A)(iiXI) did not apply and if subsec- tion (e)(3)(A)(iiXII) were applied by substituting '$2,000'for'$3,000'." ^ (3) INCREASE IN REQUIRED REHABIUTATION EXPENDITURES.— Paragraph (3) of section 42(e) is amended by redesignating subparagraph (B) as subparagraph (C) and by striking so much of such paragraph as precedes such subparagraph and inserting the following: "(3) MINIMUM EXPENDITURES TO QUALIFY. — "(A) IN GENERAL.— Paragraph (1) shall apply to re- habilitation expenditures with respect to any building only if— "(i) the expenditures are allocable to 1 or more low- income units or substantially benefit such units, and "(ii) the amount of such expenditures during any 24- month period meets the requirements of whichever of the following subclauses requires the greater amount of such expenditures: "(I) The requirement of this subclause is met if . such amount is not less than 10 percent of the adjusted basis of the building (determined as of the ' 1st day of such period and without regard to para- ,, .. N,, graphs (2) and (3) of section 1016(a)). ,^,, •.,j^ -^V "(II) The requirement of this subclause is met if. the qualified basis attributable to such amount, when divided by the number of low-income units in ^ _»; the building, is $3,000 or more. v;., "(B) EXCEPTION FROM lO PERCENT REHABILITATION. — In the case of a building acquired by the taxpayer from a govern- mental unit, at the election of the taxpayer, subparagraph (A)(iiXD shall not apply and the credit under this section for such rehabilitation expenditures shall be determined using the percentage applicable under subsection (b)(2)(B)(ii)-" (e) CHANGES IN RULES RELATING TO RENT RESTRICTIONS. — (1) RENT RESTRICTION DETERMINED ON BASIS OF NUMBER OF BEDROOMS. — (A) Section 42(g)(2) is amended by redesignating subpara- graph (C) as subparagraph (E) and by inserting after -,.: subparagraph (B) the following new subparagraphs: "(C) IMPUTED INCOME LIMITATION APPLICABLE TO UNIT.— For purposes of this paragraph, the imputed income limita- tion applicable to a unit is the income limitation which would apply under paragraph (1) to individuals occupying the unit if the number of individuals occup3ring the unit were as follows: "(i) In the case of a unit which does not have a separate bedroom, 1 individual.,
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