Page:United States Statutes at Large Volume 98 Part 1.djvu/959

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 911

city, or to the portion of the State not within such city, whichever caused the reduction. "(4) EXCEPTION WHERE CERTIFICATION PROGRAM.—The provisions of this subsection shall not apply in any case in which there is a certification program which is designed to insure that the requirements of this section are met and which meets such requirements as the Secretary may by regulations prescribe. "(5) WAIVER.—The Secretary may waive the application of paragraph (1) in any case in which he determines that the failure is due to reasonable cause. "(g) REPORTING REQUIREMENTS.—Each person who makes a loan which is a certified indebtedness amount under any mortgage credit certificate shall file a report with the Secretary containing— "(1) the name, address, and social security account number of the individual to which the certificate was issued, "(2) the certificate's issuer, date of issue, certified indebtedness amount, and certificate credit rate, and "(3) such other information as the Secretary may require by regulations. Each person who issues a mortgage credit certificate shall file a report showing such information as the Secretary shall by regulations prescribe. Any such report shall be filed at such time and in such manner as the Secretary may require by regulations. "(h) TERMINATION.—No election may be made under subsection (c)(2)(A)(ii) for any calendar year after 1987. "(i) REGULATIONS; CONTRACTS.—

"(1) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section, including regulations which may require recipients of mortgage credit certificates to pay a reasonable processing fee to defray the expenses incurred in administering the program. "(2) CONTRACTS.—The Secretary is authorized to enter into contracts with any person to provide services in connection with the administration of this section." (b) APPLICATION WITH SECTION 103A.—Subsection (g) of section 103A (relating to limitation on aggregate amount of qualified mortgage bonds issued during any calendar year) is amended by adding at the end thereof the following new paragraph: "(8)

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REDUCTION FOR MORTGAGE CREDIT CERTIFICATES.—The

26 USC 103A. ^ ^.^ ^

applicable limit of any issuing authority for any calendar year ' ''' shall be reduced by the sum of— "(A) the amount of qualified mortgage bonds which such authority elects not to issue under section 25(c)(2)(A)(ii) Ante, p. 905. during such year, plus "(B) the amount of any reduction in such ceiling under ' section 25(f) applicable to such authority for such year." (c) DISALLOWANCE OF PORTION OF DEDUCTION FOR INTEREST WHERE

CREDIT TAKEN.—Section 163 (relating to deduction for interest) is 26 USC 163. amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: "(g) REDUCTION OF DEDUCTION WHERE SECTION 25 CREDIT TAKEN.—

The amount of the deduction under this section for interest paid or accrued during any taxable year on indebtedness with respect to which a mortgage credit certificate has been issued under section 25 shall be reduced by the amount of the credit allowable with respect to such interest under section 25 (determined without regard to section 26)." Ante, p. 905.

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