Page:United States Statutes at Large Volume 122.djvu/2290

 12 2 STA T . 22 67PUBLIC LA W 11 0– 2 4 6 —J U NE 1 8, 2008 ‘ ‘ (I I )bysu bs ti tuti ng ‘ 2- y earp eri od’f or‘ 4 -year period’ in cl auses (ii) and (iii) . ‘‘(ii) TERMINAT I O N. — T h is subparagraph shall not apply to sales after the ter m ination date.’’. (b) P RO H I B ITE D TRAN S A C TIONS.— S ection 857 (b)( 6 )( D )( v )is amended by inserting ‘‘ , or, in the case of a sale on or before the termination date, a ta x able RE IT subsidiary’’ after ‘‘any income’’. (c) SA L ES THAT A RE N OT PROHIBITED TRANSACTIONS.—Section 857(b)(6), as amended by subsection (a), is amended by adding at the end the follo w ing new subparagraph

‘‘( H ) SALES O FP ROPERT Y THAT ARE NOT A PROHIBITED TRANSACTION.—In the case of a sale on or before the termi- nation date, the sale of property which is not a prohibited transaction through the application of subparagraph (D) shall be considered property held for investment or for use in a trade or business and not property described in section 1 221(a)(1) for all purposes of this subtitle.’’. (d) TERMINATION DATE.—Section 857(b)(6), as amended by sub- sections (a) and (c), is amended by adding at the end the following new subparagraph: ‘‘(I) TERMINATION DATE.— F or purposes of this para- graph, the term ‘termination date’ has the meaning given such term by section 856(c)(8).’’. (e) EFFECTI V E DATE.—The amendments made by this section shall apply to dispositions in taxable years beginning after the date of the enactment of this Act. SEC.153 1 6 . QUALIF IE D F OR ES T R Y CO N SER V ATION B ONDS. (a) IN G ENERAL.—Part I V of subchapter A of chapter 1 (relating to credits against tax) is amended by adding at the end the following new subpart: ‘ ‘ SubpartI—Q ua lif i edT a xC redit Bon d s‘ ‘ Sec.54A . Cr e dit t oh o l der s o fqua lified ta x credit b o n ds. ‘‘Sec. 54 B. Q ualified forestr y conser v ation bonds. ‘ ‘SEC. 5 4 A. CREDIT TO H OLDERS OF QUALIFIED TA X CREDIT BONDS. ‘‘(a) ALLO W ANCE OF C REDIT.—If a taxpayer holds a q ualified tax credit bond on one or more credit allowance dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates. ‘‘(b) AMO U NT OF CREDIT.— ‘‘(1) IN G ENERAL.—The amount of the credit determined under this subsection with respect to any credit allowance date for a qualified tax credit bond is 25 percent of the annual credit determined with respect to such bond. ‘‘(2) ANNUAL CREDIT.—The annual credit determined with respect to any qualified tax credit bond is the product of— ‘‘(A) the applicable credit rate, multiplied by ‘‘( B ) the outstanding face amount of the bond. ‘‘( 3 ) APPLICABLE CREDIT RATE.—For purposes of paragraph (2), the applicable credit rate is the rate which the Secretary estimates will permit the issuance of qualified tax credit bonds with a specified maturity or redemption date without discount and without interest cost to the qualified issuer. The applicable 26USC857note. 26 USC 857.

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