Page:United States Statutes at Large Volume 98 Part 1.djvu/981

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 933

(2) any obligations issued after December 31, 1969, which were treated as obligations described in section 103(a) of such Code on the day on which such obligations were issued, the term "exempt person" shall include a regulated public utility having any customer service area within a State served by a public power authority which was required as a condition of a Federal Power Commission license specified by an Act of Congress enacted prior to the enactment of section 107 of the Revenue and Expenditure Control Act of 1968 (Public Law 90-364) to contract to sell 26 USC 103and power to one such utility and which is authorized by State law to notes. sell power to other such utilities, but only with respect to the purchase by any such utility and resale to its customers of any output of any electrical generation facility or any portion thereof or i, > • any use of any electrical transmission facility or any portion thereof financed by such power authority and owned by it or by such State, and provided that by agreement between such power authority and any such utility there shall be no markup in the resale price charged by such utility of that component of the resale price which represents the price paid by such utility for such output or use. (b) CERTAIN RAILROADS.—Section 103(b)(1) of the Internal Revenue Code of 1954 shall not apply to any obligation which is described in section 103(b)(6)(A) of such Code if— (1) substantially all of the proceeds of such obligation are used to acquire railroad track and right-of-way from a railroad involved in a title 11 or similar proceeding (within the meaning of section 368(a)(3)(A) of such Code), and (2) the Federal Railroad Administration provides joint financing for such acquisitions. (c) SPECIAL RULES FOR SUBSECTION (a).— Q) OBLIGATIONS SUBJECT TO CAP.—Any

obligation described in subsection (a) shall be treated as a private activity bond for purposes of section 103(n) of the Internal Revenue Code of 1954. Ante, p. 915. (2) LIMITATION ON AMOUNT OF OBLIGATIONS TO WHICH SUBSEC-

TION (a)(1) APPLIES—The aggregate amount of obligations to which subsection (a)(1) applies shall not exceed $625,000,000 (3) LIMITATION ON PURPOSES.—Subsection (a)(1) shall only apply to obligations issued as part of an issue substantially all the proceeds of which are used to provide 1 or more of the following: (A) Cable facilities. (B) Small hydroelectric facilities. (C) The acquisition of an interest in an electrical generating facility. SEC. 630. EXTENSION OF SMALL ISSUE INDUSTRIAL DEVELOPMENT BOND EXCEPTION. Subparagraph (N) of section 103(b)(6) (relating to termination date) is amended to read as follows: "(N) TERMINATION DATES.—

"(i) IN GENERAL.—This paragraph shall not apply to any obligation issued after December 31, 1986 (including any obligations issued to refund an obligation issued on or before such date). "(ii) OBLIGATIONS USED TO FINANCE MANUFACTURING

FACILITIES.—In the case of any obligation which is part of an issue substantially all of the proceeds of which are to be used to provide a manufacturing facility

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26 USC 103.

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