Page:United States Statutes at Large Volume 94 Part 1.djvu/334

 94 STAT. 284

Ante, p. 262.

PUBLIC LAW 96-223—APR. 2, 1980 "(i) the eligible cost of the facilities being provided in whole or in part from the proceeds of the issue, and "(ii) the installed capacity fraction. "(D) INSTALLED CAPACITY FRACTION.—The term 'installed capacity fraction' means the fraction— "(i) the numerator of which is 25, reduced by 1 for each megawatt by which the installed capacity exceeds 100 megawatts, and "(ii) the denominator of which is the number of megawatts of the installed capacity (but not in excess of 100). For purposes of the preceding sentence, the term 'installed capacity' has the meaning given to such term by section 48(1)(13)(E). "(E) ELIGIBLE COST.—

"(i) IN GENERAL.—The eligible cost of any facilities is that portion of the total cost of such facilities which is reasonably expected— "(I) to be the cost to the governmental body described in subparagraph (A), and "(II) to be attributable to periods after October 18, 1979, and before 1986 (determined under rules similar to the rules of section 48(m)). "(ii) LONGER PERIOD FOR CERTAIN HYDROELECTRIC GENERATING PROPERTY.—If an application has been docketed

by the Federal Energy Regulatory Commission before January 1, 1986, with respect to the installation of any qualified hydroelectric generating property, clause (i)(II) shall be applied with respect to such property by substituting '1989' for '1986'. "(F) CERTAIN PRIOR ISSUES TAKEN INTO ACCOUNT.—If the

proceeds of 2 or more issues (whether or not the issuer of each issue is the same) are or will be used to finance the same facilities, then, for purposes of subparagraph (C), in determining the amount of the proceeds of any later issue used to finance such facilities, there shall be taken into account the proceeds used to finance such facilities of all prior such issues which are outstanding at the time of such later issue (not including as outstanding any obligation which is to be redeemed from the proceeds of the later issue)." 26 USC 103 note.

Ante, p. 283.

(b) APPLICATION OF SECTION 1030t)X4)(H) TO CERTAIN F A C I U T I E S. —

(1) IN GENERAL.—For purposes of section 103(b)(4)(H) of the Internal Revenue Code of 1954 (relating to qualified hydroelectric generating facilities), in the case of a hydroelectric generating facility described in paragraph (2)— (A) the facility shall be treated as a qualified hydroelectric generating facility (as defined in section 1030o)(8)(A) of such Code) without regard to clause (ii) of section 48(1)(13XB) of such Code (relating to maximum generating capacity), and (B) the fraction referred to in subparagraph (C) of section 103(b)(8) of such Code shall be deemed to be 1. (2) FACILITIES TO WHICH PARAGRAPH (1) APPLIES.—A facility is described in this paragraph i— f • (A) it would be a qualified hydroelectric generating facility (as defined in section 103(b)(8)(A) of such Code) if clause (ii) of section 48(1)(13XB) did not apply, (B) it constitutes an expansion of generating capacity at an existing hydroelectric generating facility.

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