Sec. 90103. Permanent modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions
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/bill/116/hr/2/eh/section-90103·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subparagraphs (C)(i), (D)(i), and (D)(iii)(II) of section 265(b)(3) are each amended by striking $10,000,000 and inserting $30,000,000 . Section 265(b)(3) is amended— by redesignating clauses (iv), (v), and
(vi)of subparagraph
(G)as clauses (ii), (iii), and (iv), respectively, and moving such clauses to the end of subparagraph
(H)(as added by paragraph (2)), and by striking so much of subparagraph
(G)as precedes such clauses and inserting the following: c )(3) bonds treated as issued by exempt organization In the case of a qualified 501(c)(3) bond (as defined in section 145), this paragraph shall be applied by treating the 501(c)(3) organization for whose benefit such bond was issued as the issuer. In the case of a qualified financing issue— subparagraph
(F)shall not apply, and any obligation issued as a part of such issue shall be treated as a qualified tax-exempt obligation if the requirements of this paragraph are met with respect to each qualified portion of the issue (determined by treating each qualified portion as a separate issue which is issued by the qualified borrower with respect to which such portion relates). . Section 265(b)(3), as amended by subsection (b), is amended by adding at the end the following new subparagraph: In the case of any calendar year after 2020, the $30,000,000 amounts contained in subparagraphs (C)(i), (D)(i), and (D)(iii)(II) shall each be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting calendar year 2019 for calendar year 2016 in subparagraph (A)(ii) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100,000. . The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.