Page:United States Statutes at Large Volume 103 Part 3.djvu/351

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2419 not later than the date on which the estate tax imposed by paragraph (I)(B) is due and payable. "(B) TAX AT DEATH OP SPOUSE. — The estate tax imposed by paragraph (I)(B) shall be due and payable on the date 9 months after the date of such death. (16) For purposes of applying section 2040(a) of the Internal Gifts and Revenue Code of 1986 with respect to any joint interest to which g^T^^on^n section 2040(b) of such Code does not apply solely by reason of note section 2056(d)(l)(B) of such Code, any consideration furnished before July 14, 1988, by the decedent for such interest to the extent treated as a gift to the spouse of the decedent for purposes of chapter 12 of such Ckxie shall be treated as consider- ' ation originally belonging to such spouse and never acquired by such spouse from the decedent. (e) AMENDMENTS RELATED TO SECTION 5041 OF THE 1988 ACT.— (1) Subparagraph (A) of section 460<eX6) is amended— (A) by striking "the building, construction, reconstruc- tion, or rehabilitation of and inserting "activities referred to in paragraph (4) with respect to", and (B) by striking clause (i) and inserting the following: (i) dwelling units (as defined in section 167(k)) con- tained in buildings containing 4 or fewer dwelling units (as so defined), and". (2)(A) Paragraph (4) of section 5041(b) of the 1988 Act is 26 USC 56. amended by inserting ", as amended by title I of this Act," after "1986 Code^'. (B) Paragraph (3) of section 56(a) is amended by striking "The preceding sentence shall not" and inserting "The first sentence of this paragraph shall not". (3) Subparagraph (C) of section 5041(e)(l) of the 1988 Act is 26 USC 460 note. amended by striking "subsections (a), (b), and (c)" and inserting "subsections (a) and (b)". (4) Clause (i) of section 56(g)(4)(D) is amended by adding "and" at the end of subclause (in) and by striking subclauses (IV) and (V) and inserting the following new subclause: 'XIV) paragraphs (6), (7), and (8) shall not apply." (f) AMENDMENT RELATED TO SECTION 5053 OP THE 1988 ACT.— Subsection (d) of section 145 is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the follow- ing new paragraph: "(3) CERTAIN PROPERTY TREATED AS NEW PROPERTY.— Solely for purposes of determining under paragraph (2)(A) whether the Ist ' '' use of property is pursuant to tax-exempt financing— (A) IN GENERAL.— If — "(i) the 1st use of property is pursuant to taxable financing, "(ii) there was a reasonable expectation (at the time such taxable fuiancing was provided) that such financ- ing would be replaced by tax-exempt financing, and (iii) the taxable financing is in fact so replaced within a reasonable period after the taxable financing was provided, then the 1st use of such property shall be treated as being pursuant to the tax-exempt flnemcing., "(B) SPECIAL RULE WHERE NO OPERATING STATE OR LOCAL ,'. PROGRAM FOR TAX-EXEMPT FINANCING. —I f, at the time of the 1st use of property, there was no operating State or local

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