Page:United States Statutes at Large Volume 98 Part 1.djvu/978

 98 STAT. 930

PUBLIC LAW 98-369—JULY 18, 1984 ( V

"(A) IN GENERAL.—Paragraphs (4), (5), (6), and (7) shall not apply to any obligation issued as part of an issue if any portion of the proceeds of such issue is to be used for the acquisition of any property (or an interest therein) unless the first use of such property is pursuant to such acquisition. "(B) EXCEPTION FOR CERTAIN REHABILITATIONS.—Subpara-

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graph (A) shall not apply with respect to any building (and the equipment therefor) if^ "(i) the rehabilitation expenditures with respect to such building equals or exceeds "(ii) 15 percent of the portion of the cost of acquiring such building (and equipment) financed with the proceeds of the issue. A rule similar to the rule of the preceding sentence shall apply in the case of facilities other than a building except that clause (ii) shall be applied by substituting '100 percent' for '15 percent'. "(C) REHABIUTATION EXPENDITURES.—For purposes of this paragraph— "(i) IN GENERAL.—Except as provided in this subparagraph, the term 'rehabilitation expenditures' means any amount properly chargeable to capital account which is incurred by the person acquiring the building for property (or additions or improvements to property) in connection with the rehabilitation of a building. In the case of an integrated operation contained in a building before its acquisition, such term includes rehabilitating existing equipment in such building or replacing it with equipment having substantially the same function. For purposes of this clause, any amount incurred by a successor to the person acquiring the building or by the seller under a sales contract with such person shall be treated as incurred by such person. "(ii)

CERTAIN

EXPENDITURES

NOT INCLUDED.—The

term 'rehabilitation expenditures' does not include any expenditure described in section 48(g)(2)(B) (other than clause (i) thereof). "(iii) PERIOD DURING WHICH EXPENDITURES MUST BE

INCURRED.—The term 'rehabilitation expenditures' shall not include any amount which is incurred after the date 2 years after the later of^ "(I) the date on which the building was acquired, or "(II) the date on which the obligation was issued. "(D) SPECIAL RULE FOR CERTAIN PROJECTS.—In the case of a project involving 2 or more buildings, this paragraph shall be applied on a project basis." (c) U S E OF TAX-EXEMPT BONDS PROHIBITED FOR SKYBOXES, AIRPLANES, GAMBLING ESTABLISHMENTS, ETC.—Subsection (b) of section

Ante, p. 929. , J

103 (relating to industrial development bonds) is amended by adding at the end thereof the following new paragraph: "(18) No PORTION OF BONDS MAY BE ISSUED FOR SKYBOXES, AIRPLANES, GAMBLING ESTABLISHMENTS, ETC.—Paragraphs (4), (5),

and (6) shall not apply to any obligation issued as part of an issue if any portion of the proceeds of such issue is to be used to

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