Page:United States Statutes at Large Volume 103 Part 3.djvu/253

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2321 (q) IBIPACT OF TENANT'S RIGHT OF 1ST REFUSAL TO ACQUIRE PROP- EBTY.—Subsection (i) of section 42 is amended by adding at the end thereof the following new paragraph: "(8) IMPACT OF TENANT'S RIGHT OF 1ST REFUSAL TO ACQUIRE PROPERTY. — "(A) IN GENERAL.—No Federal income tax benefit shall i fail to be allowable to the taxpayer with respect to any qualified low-income building merely by reason of a right of 1st refusal held by the tenants of such building to purchase the property after the close of the compliance period for a price which is not less than the minimum purchase price determined under subparagraph (B). "(B) MINIMUM PURCHASE PRICE.— For purposes of subpara- graph (A), the minimum purchase price under this subpara- graph is an amount equal to the sum of— "(i) the principal amount of outstanding indebtedness secured by the building (other than indebtedness in- curred within the 5-year period ending on the date of - / the sale to the tenants), and "(ii) all Federal, State, and local taxes attributable to such sale. Except in the case of Federal income taxes, there shall not be taken into account under clause (ii) any additional tax attributable to the application of clause (ii). (r) EFFECTIVE DATES. — 26 USC 42 note. (1) IN GENERAL. — Except as otherwise provided in this subsec- tion, the amendments made by this section shall apply to determinations under section 42 of the Internal Revenue (I!ode of 1986 with respect to housing credit dollar amounts allocated from State housing credit ceilings for calendar years after 1989. (2) BUILDINGS NOT SUBJECT TO ALLOCATION LIMITS.—Except as otherwise provided in this subsection, to the extent paragraph (1) of section 42(h) of such Code does not apply to any buBding by reason of paragraph (4) thereof, the amendments made by this section shall apply to buildings placed in service after December 31, 1989. (3) ONE-YEAR CARRYOVER OF UNUSED CREDIT AUTHORITY, ETC.— The amendments made by subsection (b) shall apply to calendar years after 1989, but clauses (ii), (iii), and (iv) of section 42(h)(3)(C) of such Code (as added by this section) shall be applied without r^ard to allocations for 1989 or any preceding year. (4) ADDITIONAL BUILDINGS ELIGIBLE FOR WAIVER OF IO-YEAR RULE.—The amendments made by subsection (f) shall take effect on the date of the enactment of this Act. (5) CERTIFICATIONS WITH RESPECT TO IST YEAR OF CREDIT PERIOD.—The amendment made by sul^ection (p) shall apply to taxable years ending on or after December 31, 1989. (6) CERTAIN RULES WHICH APPLY TO BONDS. —Paragraphs (1)(D) and (2)(D) of section 42(m) of such Code, as added by this section, shall apply to obligations issued December 31, 1989. (7) CLARIFICATIONS.—The amendments made by the following provisions of this section shall apply as if included in the amendments made by section 252 of the Tax Reform Act of 1986: (A) Paragraph (1) of subsection (h) (relating to units rented on a monthly basis).

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