Page:United States Statutes at Large Volume 83.djvu/573

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

545

purposes of this subparagraph, land shall not be treated as used in the manner described in paragraph (1)(A) by reason of the use made of any structure which was on the land when acquired by the organization. " (C) LIMITATIONS.—Subparagraphs (A) and (B) —

" (i) shall apply with respect to any structure on the land when acquired by the organization, or to the land occupied by the structure, only if (and so long as) the intended future use of the land in the manner described in paragraph (1)(A) requires that the structure be demolished or removed in order to use the land in such manner; "(ii) shall not apply to structures erected on the land after the acquisition of the land; and "(iii) shall not apply to property subject to a lease which is a business lease as (defined in subsection (f)). "(D)

REFUND OF TAXES WHEN SUBPARAGRAPH (B) APPLIES.—

If an organization for any taxable year has not used land in the manner to satisfy the actual use condition of subparagraph (B) before the time prescribed by law (including extensions thereof) for filing the return for such taxable year, the tax for such year shall be computed without regard to the application of subparagraph (B), but if and when such use condition is satisfied, the provisions of subparagraph (B) shall then be applied to such taxable year. If the actual use condition of subparagraph (B) is satisfied for any taxable year after such time for filing the return, and if credit or refund of any overpayment for the taxable year resulting from the satisfaction of such use condition is prevented at the close of the taxable year in which the use condition is satisfied, by the operation of any law or rule of law (other than chapter 74, relating 26 USC^*? m-* to closing agreements and compromises), credit or refund of 7123. such overpayment may nevertheless be allowed or made if claim therefor is filed before the expiration of 1 year after the close of the taxable year in which the use condition is satisfied. Interest on any overpayment for a taxable year resulting from the application of subparagraph (B) after the actual use condition is satisfied shall be allowed and paid at the rate of 4 percent per annum in lieu of 6 percent per annum. " (E) SPECIAL RULE FOR CHURCHES.—In applying this paragraph to a church or convention or association of churches, in lieu of the 10-year period referred to in subparagraphs (A) and (B) a 15-year period shall be applied, and subparagraphs (A) and (B) (ii) shall apply whether or not the acquired land meets the neighborhood test. ((•)

ACQUISITION INDEBTEDNESS.— "(1) GENERAL RULE.—For purposes

of this section, the term 'acquisition indebtedness' means, with respect to any debt-financed property, the unpaid amount of— " (A) the indebtedness incurred by the organization in acquiring or improving such property; " (B) the indebtedness incurred before the acquisition or improvement of such property if such indebtedness would not have been incurred but for such acquisition or improvement; and " (C) the indebtedness incurred after the acquisition or improvement of such property if such indebtedness would not have been incurred but for such acquisition or improvement

�