Page:United States Statutes at Large Volume 95.djvu/1221

 PUBLIC LAW 97-92—DEC. 15, 1981

95 STAT. 1195

(2) propose, promulgate, or enforce any ruling or regulation reaching the same result as, or a result similar to, such Revenue Ruling or Regulations, in connection with a qualified issue, or (3) issue rulings or regulations which treat as exempt from taxation under section 103(b)(6) of the Internal Revenue Code of 1954 any interest earned on an obligation the proceeds of which are used for a disqualified facility. (b)(1) For purposes of subsection (a), the term "qualified issue" means a single issue (whether or not part of a composite or multiple series of issues)— (A) all of the obligations of which are directly or indirectly guaranteed or secured in whole or in part by— (i) a State or political subdivision thereof or an instrumentality of either, or (ii) in the case of an issue all of the proceeds of which are used for agricultural purposes, a qualified person (within the meaning of section 46(c)(8)(D) of the Internal Revenue Code of 1954 determined without regard to clauses (iii) and (iv) thereof), and (B) none of the proceeds of which are used in connection with a disqualified facility or a facility with respect to which, at any time before January 1, 1987— (i) any disqualified person used more than 5 percent of the facility, or (ii) more than 25 percent of the facility is (in the aggregate) used by disqualified persons. For purposes of subparagraph (B), use by a related person (within the meaning of section 103(b)(6)(C) of such Code) shall be treated as use by the disqualified person. (2)(A) For purposes of paragraph (1), the term "disqualified person" means a person (other than an exempt person within the meaning of section 103(b)(3) of such Code) which has aggregate capital expenditures for any purpose which, for the period beginning October 1, 1979, and ending September 30, 1982, exceed $25,000,000. (B) For purposes of determining the aggregate capital expenditures of any person under subparagraph (A), there shall be taken into account the capital expenditures of all persons which are— (i) related persons (within the meaning of section 103(b)(6)(C) of such Code) with respect to such person; or (ii) guarantors of any portion of the issue with respect to which a determination is being made under this subsection other than a guarantor which— (I) is a State or a political subdivision thereof or an instrumentality of either, (II) in the case of an issue all of the proceeds of which are used for agricultural purposes, a person described in paragraph (l)(A)(ii), or (III) one or more financial institutions which are not related persons (within the meaning of section 103(b)(6)(C) of such Code to the user of the proceeds of the isssue. (C) For purposes of this paragraph, the term "capital expenditures" has the meaning given such term by section 103(b)(6)(D) of such Code, except that such term shall not include any amount paid or incurred by the taxpayer which constitutes a qualified research expense (within the meaning of section 44F(b) of such Code). (c) For purposes of subsection (a) and subparagraph (b)(1)(B), a "disqualified facility" is any private or commercial—

26 USC 103. "Qualified issue."

26 USC 46.

"Disqualified person."

26 USC 44F. "Disqualified facility."

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