Page:United States Statutes at Large Volume 98 Part 1.djvu/980

 98 STAT. 932

PUBLIC LAW 98-369—JULY 18, 1984 shall be treated as 1 issue (and any person who is a principal user with respect to any of such issues shall be treated as a principal user with respect to the aggregated issue)." (d) DEFINITION OF RELATED PERSONS IN THE CASE OF PARTNER-

26 USC 103.

SHIPS.—Paragraph (13) of section 103(b) (relating to exception where bond held by substantial user) is amended by adding at the end thereof the following new sentence: "For purposes of this paragraph— "(A) a partnership and each of its partners (and their spouses and minor children) shall be treated as related persons, and "(B) an S corporation and each of its shareholders (and their spouses and minor children) shall be treated as related persons.". (e) RESIDENTIAL RENTAL PROPERTY MAY BE IN MIXED USE STRUC-

TURE.—Paragraph (4) of section 103(b) (relating to certain exempt activities) is amended by adding at the end thereof the following new sentence: "For purposes of subparagraph (A), any property shall not be treated as failing to be residential rental property merely because part of the building in which such property is located is used for purposes other than residential rental purposes." 26 USC 103 note.

(f) PUBLIC APPROVAL REQUIREMENT IN THE CASE OF PUBLIC AlRPORT.—If—

(1) the proceeds of any issue are to be used to finance a facility or facilities located on a public airport, and (2) the governmental unit issuing such obligations is the owner or operator of such airport, such governmental unit shall be deemed to be the only governmental unit having jurisdiction over such airport for purposes of subsection (k) of section 103 of the Internal Revenue Code of 1954 (relating to public approval for industrial development bonds). ^) REPEAL OF ADVANCE REFUNDING OF QUALIFIED PUBLIC FACILI-

TIES.—Paragraph (7) of section 103(b) (relating to advance refunding of qualified public facilities) is hereby repealed. 26 USC 103 note.

42 USC 5318.

^r

(h) SMALL ISSUE LIMIT IN CASE OF CERTAIN U R B A N DEVELOPMENT ACTION GRANTS.—In the case of any obligation issued on December

11, 1981, section 103(b)(6)(I) of the Internal Revenue Code of 1954 shall be applied by substituting "$15,000,000" for "$10,000,000" if— (1) such obligation is part of an issue, (2) substantially all of the proceeds of such issue are used to provide facilities with respect to which an urban development action grant under section 119 of the Housing and Community Development Act of 1974 was preliminarily approved by the Secretary of Housing and Urban Development on January 10, 1980, and (3) the Secretary of Housing and Urban Development determines, at the time such grant is approved, that the amount of such grant will equal or exceed 5 percent of the total capital expenditures incurred with respect to such facilities. SEC. 629. CERTAIN PUBLIC UTILITIES TREATED AS EXEMPTED PERSONS UNDER SECTION 103(b); SPECIAL RULES FOR CERTAIN RAILROADS. (a) CERTAIN PUBLIC UTILITIES.—For purposes of applying section

103(b)(3) of the Internal Revenue Code with respect to— (1) any obligations issued after the date of enactment of this Act, and

�