(k) Other definitions and special rules
For purposes of this section—
(1) Mortgage
The term “mortgage” means any owner-financing.
(2) Statistical area
(A) In general
The term “statistical area” means—
(i) a metropolitan statistical area, and
(ii) any county (or the portion thereof) which is not within a metropolitan statistical area.
(B) Metropolitan statistical area
The term “metropolitan statistical area” includes the area defined as such by the Secretary of Commerce.
(C) Designation where adequate statistical information not available
For purposes of this paragraph, if there is insufficient recent statistical information with respect to a county (or portion thereof) described in subparagraph (A)(ii), the Secretary may substitute for such county (or portion thereof) another area for which there is sufficient recent statistical information.
(D) Designation where no county
In the case of any portion of a State which is not within a county, subparagraphs (A)(ii) and (C) shall be applied by substituting for “county” an area designated by the Secretary which is the equivalent of a county.
(3) Acquisition cost
(A) In general
The term “acquisition cost” means the cost of acquiring the residence as a completed residential unit.
(B) Exceptions
The term “acquisition cost” does not include—
(i) usual and reasonable settlement or financing costs,
(ii) the value of services performed by the mortgagor or members of his family in completing the residence, and
(iii) the cost of land (other than land described in subsection (i)(1)(C)(i)) which has been owned by the mortgagor for at least 2 years before the date on which construction of the residence begins.
(C) Special rule for qualified rehabilitation loans
In the case of a qualified rehabilitation loan, for purposes of subsection (e), the term “acquisition cost” includes the cost of the rehabilitation.
(4) Qualified home improvement loan
The term “qualified home improvement loan” means the financing (in an amount which does not exceed $15,000)—
(A) of alterations, repairs, and improvements on or in connection with an existing residence by the owner thereof, but
(B) only of such items as substantially protect or improve the basic livability or energy efficiency of the property.
(5) Qualified rehabilitation loan
(A) In general
The term “qualified rehabilitation loan” means any owner-financing provided in connection with—
(i) a qualified rehabilitation, or
(ii) the acquisition of a residence with respect to which there has been a qualified rehabilitation,
but only if the mortgagor to whom such financing is provided is the first resident of the residence after the completion of the rehabilitation.
(B) Qualified rehabilitation
For purposes of subparagraph (A), the term “qualified rehabilitation” means any rehabilitation of a building if—
(i) there is a period of at least 20 years between the date on which the building was first used and the date on which the physical work on such rehabilitation begins,
(ii)
in the rehabilitation process—
(I) 50 percent or more of the existing external walls of such building are retained in place as external walls,
(II) 75 percent or more of the existing external walls of such building are retained in place as internal or external walls, and
(III) 75 percent or more of the existing internal structural framework of such building is retained in place, and
(iii) the expenditures for such rehabilitation are 25 percent or more of the mortgagor’s adjusted basis in the residence.
For purposes of clause (iii), the mortgagor’s adjusted basis shall be determined as of the completion of the rehabilitation or, if later, the date on which the mortgagor acquires the residence.
(6) Determinations on actuarial basis
All determinations of yield, effective interest rates, and amounts required to be paid or credited to mortgagors or paid to the United States under subsection (g) shall be made on an actuarial basis taking into account the present value of money.
(7) Single-family and owner-occupied residences include certain residences with 2 to 4 units
Except for purposes of subsection (h)(2), the terms “single-family” and “owner-occupied”, when used with respect to residences, include 2, 3, or 4 family residences—
(A) one unit of which is occupied by the owner of the units, and
(B) which were first occupied at least 5 years before the mortgage is executed.
Subparagraph (B) shall not apply to any 2-family residence if the residence is a targeted area residence and the family income of the mortgagor meets the requirement of subsection (f)(3)(B).
(8) Cooperative housing corporations
(A) In general
In the case of any cooperative housing corporation—
(i) each dwelling unit shall be treated as if it were actually owned by the person entitled to occupy such dwelling unit by reason of his ownership of stock in the corporation, and
(ii) any indebtedness of the corporation allocable to the dwelling unit shall be treated as if it were indebtedness of the shareholder entitled to occupy the dwelling unit.
(B) Adjustment to targeted area requirement
In the case of any issue to provide financing to a cooperative housing corporation with respect to cooperative housing not located in a targeted area, to the extent provided in regulations, such issue may be combined with 1 or more other issues for purposes of determining whether the requirements of subsection (h) are met.
(C) Cooperative housing corporation
The term “cooperative housing corporation” has the meaning given to such term by section 216(b)(1).
(9) Treatment of limited equity cooperative housing
(A) Treatment as residential rental property
Except as provided in subparagraph (B), for purposes of this part—
(i) any limited equity cooperative housing shall be treated as residential rental property and not as owner-occupied housing, and
(ii) bonds issued to provide such housing shall be subject to the same requirements and limitations as bonds the proceeds of which are to be used to provide qualified residential rental projects (as defined in section 142(d)).
(B) Bonds subject to qualified mortgage bond termination date
Subparagraph (A) shall not apply to any bond issued after the date specified in subsection (a)(1)(B).
(C) Limited equity cooperative housing
For purposes of this paragraph, the term “limited equity cooperative housing” means any dwelling unit which a person is entitled to occupy by reason of his ownership of stock in a qualified cooperative housing corporation.
(D) Qualified cooperative housing corporation
For purposes of this paragraph, the term “qualified cooperative housing corporation” means any cooperative housing corporation (as defined in section 216(b)(1)) if—
(i)
the consideration paid for stock held by any stockholder entitled to occupy any house or apartment in a building owned or leased by the corporation may not exceed the sum of—
(I) the consideration paid for such stock by the first such stockholder, as adjusted by a cost-of-living adjustment determined by the Secretary,
(II) payments made by any stockholder for improvements to such house or apartment, and
(III) payments (other than amounts taken into account under subclause (I) or (II)) attributable to any stockholder to amortize the principal of the corporation’s indebtedness arising from the acquisition or development of real property, including improvements thereof,
(ii) the value of the corporation’s assets (reduced by any corporate liabilities), to the extent such value exceeds the combined transfer values of the outstanding corporate stock, shall be used only for public benefit or charitable purposes, or directly to benefit the corporation itself, and shall not be used directly to benefit any stockholder, and
(iii) at the time of issuance of the issue, such corporation makes an election under this paragraph.
(E) Effect of election
If a cooperative housing corporation makes an election under this paragraph, section 216 shall not apply with respect to such corporation (or any successor thereof) during the qualified project period (as defined in section 142(d)(2)).
(F) Corporation must continue to be qualified cooperative
Subparagraph (A)(i) shall not apply to limited equity cooperative housing unless the cooperative housing corporation continues to be a qualified cooperative housing corporation at all times during the qualified project period (as defined in section 142(d)(2)).
(G) Election irrevocable
Any election under this paragraph, once made, shall be irrevocable.
(10) Treatment of resale price control and subsidy lien programs
(A) In general
In the case of a residence which is located in a high housing cost area (as defined in section 143(f)(5)), the interest of a governmental unit in such residence by reason of financing provided under any qualified program shall not be taken into account under this section (other than subsection (m)), and the acquisition cost of the residence which is taken into account under subsection (e) shall be such cost reduced by the amount of such financing.
(B) Qualified program
For purposes of subparagraph (A), the term “qualified program” means any governmental program providing mortgage loans (other than 1st mortgage loans) or grants—
(i) which restricts (throughout the 9-year period beginning on the date the financing is provided) the resale of the residence to a purchaser qualifying under this section and to a price determined by an index that reflects less than the full amount of any appreciation in the residence’s value, or
(ii) which provides for deferred or reduced interest payments on such financing and grants the governmental unit a share in the appreciation of the residence,
but only if such financing is not provided directly or indirectly through the use of any tax-exempt private activity bond.
(11) Special rules for residences located in disaster areas
In the case of a residence located in an area determined by the President to warrant assistance from the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (as in effect on the date of the enactment of the Taxpayer Relief Act of 1997), this section shall be applied with the following modifications to financing provided with respect to such residence within 2 years after the date of the disaster declaration:
(A) Subsection (d) (relating to 3-year requirement) shall not apply.
(B) Subsections (e) and (f) (relating to purchase price requirement and income requirement) shall be applied as if such residence were a targeted area residence.
The preceding sentence shall apply only with respect to bonds issued after May 1, 2008, and before January 1, 2010.
(12) Special rules for subprime refinancings
(A) In general
Notwithstanding the requirements of subsection (i)(1), the proceeds of a qualified mortgage issue may be used to refinance a mortgage on a residence which was originally financed by the mortgagor through a qualified subprime loan.
(B) Special rules
In applying subparagraph (A) to any refinancing—
(i) subsection (a)(2)(D)(i) shall be applied by substituting “12-month period” for “42-month period” each place it appears,
(ii) subsection (d) (relating to 3-year requirement) shall not apply, and
(iii) subsection (e) (relating to purchase price requirement) shall be applied by using the market value of the residence at the time of refinancing in lieu of the acquisition cost.
(C) Qualified subprime loan
The term “qualified subprime loan” means an adjustable rate single-family residential mortgage loan made after December 31, 2001, and before January 1, 2008, that the bond issuer determines would be reasonably likely to cause financial hardship to the borrower if not refinanced.
(D) Termination
This paragraph shall not apply to any bonds issued after December 31, 2010.
(13) Special rules for residences destroyed in federally declared disasters
(A) Principal residence destroyed
At the election of the taxpayer, if the principal residence (within the meaning of section 121) of such taxpayer is—
(i) rendered unsafe for use as a residence by reason of a federally declared disaster occurring before January 1, 2010, or
(ii) demolished or relocated by reason of an order of the government of a State or political subdivision thereof on account of a federally declared disaster occurring before such date,
then, for the 2-year period beginning on the date of the disaster declaration, subsection (d)(1) shall not apply with respect to such taxpayer and subsection (e) shall be applied by substituting “110” for “90” in paragraph (1) thereof.
(B) Principal residence damaged
(i) In general
At the election of the taxpayer, if the principal residence (within the meaning of section 121) of such taxpayer was damaged as the result of a federally declared disaster occurring before January 1, 2010, any owner-financing provided in connection with the repair or reconstruction of such residence shall be treated as a qualified rehabilitation loan.
(ii) Limitation
The aggregate owner-financing to which clause (i) applies shall not exceed the lesser of—
(I) the cost of such repair or reconstruction, or
(C) Federally declared disaster
For purposes of this paragraph, the term “federally declared disaster” has the meaning given such term by section 165(h)(3)(C)(i).
See References in Text note below.
(D) Election; denial of double benefit
(i) Election
An election under this paragraph may not be revoked except with the consent of the Secretary.
(ii) Denial of double benefit
If a taxpayer elects the application of this paragraph, paragraph (11) shall not apply with respect to the purchase or financing of any residence by such taxpayer.
References in Text
The date of the enactment of this subparagraph, referred to in subsec. (d)(2)(D), is the date of enactment of Pub. L. 109–432, which was approved Dec. 20, 2006.
Section 8 of the United States Housing Act of 1937, referred to in subsec. (f)(2), is classified to section 1437f of Title 42, The Public Health and Welfare.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (k)(11), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, as in effect on the date of enactment of Pub. L. 105–34, which was approved Aug. 5, 1997. The Act is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables.
Par. (3) of section 165(h), referred to in subsec. (k)(13)(C), was repealed by Pub. L. 113–295, div. A, title II, § 221(a)(27)(A), Dec. 19, 2014, 128 Stat. 4040. However, the term “federally declared disaster” is defined elsewhere in that section.
The date of the enactment of this subsection, referred to in subsec. (l)(5)(B), is the date of enactment of Pub. L. 99–514, which was approved Oct. 22, 1986.
Section 1034(e) (as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997), referred to in subsec. (m)(6)(A), means section 1034(e) of this title as in effect on the day before the date of enactment of Pub. L. 105–34, which was approved Aug. 5, 1997. Section 1034 was repealed by Pub. L. 105–34, title III, § 312(b), Aug. 5, 1997, 111 Stat. 839.
Prior Provisions
A prior section 143, acts Aug. 16, 1954, ch. 736, 68A Stat. 41; Dec. 30, 1969, Pub. L. 91–172, title VIII, § 802(b), 83 Stat. 677; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1901(a)(22), 90 Stat. 1767; May 23, 1977, Pub. L. 95–30, title I, § 101(d)(4), 91 Stat. 133; July 18, 1984, Pub. L. 98–369, div. A, title IV, § 423(c)(1), 98 Stat. 800, related to determination of marital status, prior to the general revision of this part by Pub. L. 99–514. See section 7703 of this title.
Provisions similar to this section were contained in section 103A of this title prior to repeal by Pub. L. 99–514.
Amendments
2014—Subsec. (k)(12), (13). Pub. L. 113–295 redesignated par. (12), relating to special rules for residences destroyed in federally declared disasters, as (13).
2008—Subsec. (d)(2)(D). Pub. L. 110–245, § 103(a), struck out “and before January 1, 2008” after “enactment of this subparagraph”.
Subsec. (k)(11). Pub. L. 110–289, § 3026(a), substituted “May 1, 2008” for “December 31, 1996” and “January 1, 2010” for “January 1, 1999” in concluding provisions.
Subsec. (k)(12). Pub. L. 110–343 added par. (12) relating to special rules for residences destroyed in federally declared disasters.
Pub. L. 110–289, § 3021(b)(1), added par. (12) relating to special rules for subprime refinancings.
Subsec. (l)(3)(B)(ii). Pub. L. 110–245, § 103(b), substituted “$100,000,000” for “$25,000,000” wherever appearing.
Subsec. (l)(4). Pub. L. 110–245, § 103(c), reenacted heading without change and amended text generally. Prior to amendment, par. (4) defined “qualified veteran” differently with respect to different States.
2006—Subsec. (d)(2)(D). Pub. L. 109–432, § 416(a), added subpar. (D).
Subsec. (l)(3)(B). Pub. L. 109–222, § 203(b)(1), reenacted heading without change, substituted introductory provisions of cl. (i) for “A State veterans limit for any calendar year is the amount equal to—” and inserted heading, redesignated former cls. (i) and (ii) as subcls. (I) and (II), respectively, of cl. (i) and adjusted margins, and added cls. (ii) to (iv).
Subsec. (l)(3)(B)(iv). Pub. L. 109–432, § 411(a), struck out heading and text of cl. (iv). Text read as follows: “The State veterans limit for the States specified in clause (ii) for any calendar year after 2010 is zero.”
Subsec. (l)(4). Pub. L. 109–222, § 203(a)(1), amended par. (4) generally. Prior to amendment, par. (4) defined the term “qualified veteran”.
1997—Subsec. (i)(1)(C)(i)(I). Pub. L. 105–34, § 312(d)(1), substituted “section 121” for “section 1034”.
Subsec. (k)(11). Pub. L. 105–34, § 914, added par. (11).
Subsec. (m)(6)(A). Pub. L. 105–34, § 312(d)(3), inserted “(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)” after “1034(e)”.
1996—Subsec. (d)(2)(C). Pub. L. 104–188, § 1703(n)(3), substituted “thereon,” for “thereon.”.
Subsec. (m)(4)(C)(ii). Pub. L. 104–188, § 1702(d)(2), substituted “any year of the 4-year period” for “any month of the 10-year period”, “succeeding years” for “succeeding months”, and “to zero over the succeeding 5 years” for “over the remainder of such period (or, if lesser, over 5 years)”.
1993—Subsec. (a)(1). Pub. L. 103–66, § 13141(a), amended heading and text of par. (1) generally. Prior to amendment, text read as follows:
“(A) In general.—For purposes of this title, the term ‘qualified mortgage bond’ means a bond which is issued as part of a qualified mortgage issue.
“(B) Termination on June 30, 1992.—No bond issued after June 30, 1992, may be treated as a qualified mortgage bond.”
Subsec. (d)(2)(C). Pub. L. 103–66, § 13141(d)(1), added subpar. (C).
Subsec. (i)(1)(C). Pub. L. 103–66, § 13141(d)(2), added subpar. (C).
Subsec. (k)(3)(B)(iii). Pub. L. 103–66, § 13141(d)(3), inserted “(other than land described in subsection (i)(1)(C)(i))” after “cost of land”.
Subsec. (k)(7). Pub. L. 103–66, § 13141(e), inserted at end “Subparagraph (B) shall not apply to any 2-family residence if the residence is a targeted area residence and the family income of the mortgagor meets the requirement of subsection (f)(3)(B).”
Subsec. (k)(10). Pub. L. 103–66, § 13141(c), added par. (10).
1991—Subsec. (a)(1)(B). Pub. L. 102–227 substituted “June 30, 1992” for “December 31, 1991” in heading and text.
1990—Subsec. (a)(1)(B). Pub. L. 101–508, § 11408(a), substituted “December 31, 1991” for “September 30, 1990” in heading and text.
Subsec. (m)(1). Pub. L. 101–508, § 11408(c)(3)(A), substituted “increased by the lesser of—” and subpars. (A) and (B) for “increased by the recapture amount with respect to such indebtedness.”
Subsec. (m)(2)(B). Pub. L. 101–508, § 11408(c)(1)(C), substituted “9 years” for “10 years”.
Subsec. (m)(4)(A)(iii). Pub. L. 101–508, § 11408(c)(2)(A), added cl. (iii).
Subsec. (m)(4)(C)(i). Pub. L. 101–508, § 11408(c)(1)(A), substituted heading for one which read: “Dispositions during 1st 5 years” and amended text generally. Prior to amendment, text read as follows: “If the disposition of the taxpayer’s interest in the residence occurs during the 5-year period beginning on the testing date, the holding period percentage is the percentage determined by dividing the number of full months during which the requirements of subparagraph (D) were met by 60.”
Subsec. (m)(4)(C)(ii), (iii). Pub. L. 101–508, § 11408(c)(1)(B), redesignated cl. (iii) as (ii) and struck out former cl. (ii) “Dispositions during 2d 5 years” which read as follows: “If the disposition of the taxpayer’s interest in the residence occurs during the 5-year period following the 5-year period described in clause (i), the holding period percentage is the percentage determined by dividing—
“(I) the excess of 120 over the number of full months during which such requirements were met by
“(II) 60.”
Subsec. (m)(4)(E). Pub. L. 101–508, § 11408(c)(2)(B), added subpar. (E).
Subsec. (m)(5). Pub. L. 101–508, § 11408(c)(2)(C)(i), added heading and struck out former heading which read: “Reduction of recapture amount if taxpayer meets certain income limitations”.
Subsec. (m)(5)(A). Pub. L. 101–508, § 11408(c)(2)(C)(i), added subpar. (A) and struck out former subpar. (A) “In general” which read as follows: “The recapture amount which would (but for this paragraph) apply with respect to any disposition during a taxable year shall be reduced (but not below zero) by 2 percent of such amount for each $100 by which adjusted qualifying income exceeds the modified adjusted gross income of the taxpayer for such year.”
Subsec. (m)(5)(B), (C). Pub. L. 101–508, § 11408(c)(2)(C), redesignated subpar. (C) as (B), substituted “paragraph (4)” for “this paragraph” in introductory provisions, and struck out former subpar. (B) “Adjusted qualifying income” which read as follows: “For purposes of this paragraph, the term ‘adjusted qualifying income’ means the amount equal to the sum of—
“(i) $5,000, plus
“(ii) the product of—
“(I) the highest family income which (as of the date the financing was provided) would have met the requirement of subsection (f) with respect to the residence, and
“(II) the percentage equal to the sum of 100 percent plus 5 percent for each full year during the period beginning on such date and ending on the date of the disposition.
For purposes of clause (ii)(I), highest family income shall be determined without regard to subsection (f)(3)(A) and on the basis of the number of members of the taxpayer’s family as of the date of the disposition.”
Subsec. (m)(6). Pub. L. 101–508, § 11408(c)(3)(B)(i), substituted “Special rules relating to limitation” for “Limitation” in heading.
Subsec. (m)(6)(A). Pub. L. 101–508, § 11408(c)(3)(B)(ii), (iii), struck out at beginning “In no event shall the recapture amount of the taxpayer with respect to any indebtedness exceed 50 percent of the gain (if any) on the disposition of the taxpayer’s interest in the residence.” and substituted “paragraph (1)” for “the preceding sentence”.
Subsec. (m)(7)(B)(ii). Pub. L. 101–508, § 11408(c)(3)(C), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the amounts described in paragraph (5)(B)(ii) for each category of family size for each year of the 10-year period beginning on the date the financing was provided.”
1989—Subsec. (a)(1)(B). Pub. L. 101–239 substituted “September 30, 1990” for “December 31, 1989” in heading and in text.
1988—Subsec. (a)(1)(B). Pub. L. 100–647, § 4005(a)(1), substituted “1989” for “1988” in heading and in text.
Subsec. (a)(2)(A). Pub. L. 100–647, § 4005(f), inserted sentence at end relating to application of cl. (iv).
Subsec. (a)(2)(A)(ii). Pub. L. 100–647, § 4005(g)(1), substituted “(i), and (m)(7)” for “and (i)”.
Subsec. (a)(2)(A)(iii). Pub. L. 100–647, § 1013(a)(2), substituted “such issue does not meet” for “no bond which is part of such issue meets”.
Subsec. (a)(2)(A)(iv). Pub. L. 100–647, § 4005(f), added cl. (iv).
Subsec. (a)(2)(C). Pub. L. 100–647, § 4005(g)(2)(B), substituted “, (h), and (m)(7)” for “and (h)” in introductory text.
Subsec. (a)(2)(D). Pub. L. 100–647, § 4005(e), added subpar. (D).
Subsec. (b)(4). Pub. L. 100–647, § 1013(a)(3), inserted “is part of an issue which” after “which”.
Subsec. (f)(5). Pub. L. 100–647, § 4005(b), added par. (5).
Subsec. (f)(6). Pub. L. 100–647, § 4005(c), added par. (6).
Subsec. (g)(1). Pub. L. 100–647, § 4005(d)(1), substituted “paragraph (2) of this subsection and, in the case of an issue described in subsection (b)(1), such issue also meets the requirements of paragraph (3) of this subsection” for “paragraphs (2) and (3) of this subsection” and struck out “(other than subsection (f) thereof)” before period at end.
Subsec. (g)(2)(B)(iv). Pub. L. 100–647, § 4005(g)(6), inserted at end “The Secretary may by regulation adjust the mortgage prepayment rate otherwise used in determining the effective rate of interest to the extent the Secretary determines that such an adjustment is appropriate by reason of the impact of subsection (m).”
Subsec. (m). Pub. L. 100–647, § 4005(g)(1), added subsec. (m).
Effective Date of 2014 Amendment
Pub. L. 113–295, div. A, title II, § 211(d), Dec. 19, 2014, 128 Stat. 4033, provided that:
“The amendments made by this section [amending this section and sections 165, 168, 172, and 1033 of this title and provisions set out as notes under sections 56 and 897 of this title] shall take effect as if included in the provisions of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 [
Pub. L. 110–343, div. C] to which they relate.”
Effective Date of 2008 Amendment
Pub. L. 110–343, div. C, title VII, § 709(b), Oct. 3, 2008, 122 Stat. 3926, provided that:
“The amendment made by subsection (a) [amending this section] shall apply to disasters occurring after December 31, 2007.”
Pub. L. 110–289, div. C, title I, § 3021(c), July 30, 2008, 122 Stat. 2893, provided that:
“The amendments made by this section [amending this section and
section 146 of this title] shall apply to bonds issued after the date of the enactment of this Act [July 30, 2008].”
Pub. L. 110–289, div. C, title I, § 3026(b), July 30, 2008, 122 Stat. 2897, provided that:
“The amendments made by this section [amending this section] shall apply to bonds issued after May 1, 2008.”
Pub. L. 110–245, title I, § 103(d), June 17, 2008, 122 Stat. 1626, provided that:
“The amendments made by this section [amending this section] shall apply to bonds issued after December 31, 2007.”
Effective Date of 2006 Amendment
Pub. L. 109–432, div. A, title IV, § 411(b), Dec. 20, 2006, 120 Stat. 2963, provided that:
“The amendment made by this section [amending this section] shall take effect as if included in section 203 [probably means 203(b)] of the Tax Increase Prevention and Reconciliation Act of 2005 [
Pub. L. 109–222].”
Pub. L. 109–432, div. A, title IV, § 416(b), Dec. 20, 2006, 120 Stat. 2965, provided that:
“The amendments made by this section [amending this section] shall apply to bonds issued after the date of the enactment of this Act [Dec. 20, 2006].”
Pub. L. 109–222, title II, § 203(a)(2), May 17, 2006, 120 Stat. 349, provided that:
“The amendments made by this subsection [amending this section] shall apply to bonds issued on or after the date of the enactment of this Act [May 17, 2006].”
Pub. L. 109–222, title II, § 203(b)(2), May 17, 2006, 120 Stat. 350, provided that:
“The amendments made by this subsection [amending this section] shall apply to allocations of State volume limit after April 5, 2006.”
Effective Date of 1997 Amendment
Amendment by section 312(d)(1), (3) of Pub. L. 105–34 applicable to sales and exchanges after May 6, 1997, with certain exceptions, see section 312(d) of Pub. L. 105–34, set out as a note under section 121 of this title.
Effective Date of 1996 Amendment
Amendment by section 1702(d)(2) of Pub. L. 104–188 effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, Pub. L. 101–508, title XI, to which such amendment relates, see section 1702(i) of Pub. L. 104–188, set out as a note under section 38 of this title.
Amendment by section 1703(n)(3) of Pub. L. 104–188 effective as if included in the provision of the Revenue Reconciliation Act of 1993, Pub. L. 103–66, §§ 13001–13444, to which such amendment relates, see section 1703(o) of Pub. L. 104–188, set out as a note under section 39 of this title.
Effective Date of 1993 Amendment
Pub. L. 103–66, title XIII, § 13141(f)(1), Aug. 10, 1993, 107 Stat. 437, provided that:
“The amendment made by subsection (a) [amending this section] shall apply to bonds issued after June 30, 1992.”
Pub. L. 103–66, title XIII, § 13141(f)(3), Aug. 10, 1993, 107 Stat. 437, provided that:
“The amendments made by subsections (c) and (e) [amending this section] shall apply to qualified mortgage bonds issued and mortgage credit certificates provided on or after the date of enactment of this Act [Aug. 10, 1993].”
Pub. L. 103–66, title XIII, § 13141(f)(4), Aug. 10, 1993, 107 Stat. 437, provided that:
“The amendments made by subsection (d) [amending this section] shall apply to loans originated and credit certificates provided after the date of the enactment of this Act [Aug. 10, 1993].”
Effective Date of 1991 Amendment
Pub. L. 102–227, title I, § 108(c)(1), Dec. 11, 1991, 105 Stat. 1688, provided that:
“The amendment made by subsection (a) [amending this section] shall apply to bonds issued after December 31, 1991.”
Effective Date of 1990 Amendment
Pub. L. 101–508, title XI, § 11408(d), Nov. 5, 1990, 104 Stat. 1388–478, provided that:
“(1) Bonds.— The amendment made by subsection (a) [amending this section] shall apply to bonds issued after September 30, 1990.
“(2) Certificates.— The amendment made by subsection (b) [amending section 25 of this title] shall apply to elections for periods after September 30, 1990.
“(3) Simplification.— The amendment made by subsection (c) [amending this section] shall take effect as if included in the amendments made by section 4005 of the Technical and Miscellaneous Revenue Act of 1988 [Pub. L. 100–647].”
Effective Date of 1988 Amendment
Amendment by section 1013(a)(2), (3) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Pub. L. 100–647, title IV, § 4005(h), Nov. 10, 1988, 102 Stat. 3651, provided that:
“(1) In general.— Except as otherwise provided in this subsection, the amendments made by this section [amending this section and sections 25, 26, 148, 6045, and 6654 of this title] shall apply to bonds issued, and nonissued bond amounts elected, after December 31, 1988.
“(2) Special rules relating to certain requirements and refunding bonds.—
In the case of a bond issued to refund (or which is part of a series of bonds issued to refund) a bond issued before January 1, 1989—
“(A) the amendments made by subsections (b) and (c) [amending this section] shall apply to financing provided after the date of issuance of the refunding issue, and
“(B) the amendment made by subsection (f) [amending this section] shall apply to payments (including on loans made before such date of issuance) received on or after such date of issuance.
“(3) Subsection (g).—
“(A) In general.— Except as provided in subparagraph (B), the amendments made by subsection (g) [amending this section and sections 25, 26, 6045, and 6654 of this title] shall apply to financing provided, and mortgage credit certificates issued, after December 31, 1990.
“(B) Exception.—
The amendments made by subsection (g) shall not apply to financing provided pursuant to a binding contract (entered into before June 23, 1988) with a homebuilder, lender, or mortgagor if the bonds (the proceeds of which are used to provide such financing) are issued—
“(i) before June 23, 1988, or
“(ii) before August 1, 1988, pursuant to a written application (made before July 1, 1988) for State bond volume authority.”
Transition Rule
Pub. L. 110–245, title I, § 103(e), June 17, 2008, 122 Stat. 1626, provided that:
“In the case of any bond issued after December 31, 2007, and before the date of the enactment of this Act [June 17, 2008], subparagraph (B) of section 143(
l)(4) of the Internal Revenue Code of 1986, as amended by this section, shall be applied by substituting ‘30 years’ for ‘25 years’.”
Termination Date for Obligations Treated as Qualified Mortgage Bonds Under Former Section 103A
Pub. L. 100–647, title I, § 1013(a)(27), Nov. 10, 1988, 102 Stat. 3543, provided that:
“The date contained in [former] section 143(a)(1)(B) of the 1986 Code shall be treated as contained in section 103A(c)(1)(B) of the Internal Revenue Code of 1954, as in effect on the day before the date of the enactment of the Reform Act [Oct. 22, 1986], for purposes of any bond issued to refund a bond to which such [section] 103A(c)(1) applies.”
Study of Recapture Provisions
Pub. L. 100–647, title IV, § 4005(i), Nov. 10, 1988, 102 Stat. 3651, provided that:
“The Comptroller General of the United States shall conduct a study of section 143(m) of the 1986 Code (as added by this section) and of alternatives to accomplish the purposes of such section. A report of such study shall be submitted not later than July 1, 1990, to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.”