Sec. 102. Tax-exempt bond financing requirement
280 words·~1 min read·
/bill/118/s/4915/is/section-102A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 42(h)(4) of the Internal Revenue Code of 1986 is amended by striking subparagraph
(B)and inserting the following: For purposes of subparagraph (A), paragraph
(1)shall not apply to any portion of the credit allowable under subsection
(a)with respect to a building if— 50 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), or 30 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more qualified obligations, and 1 or more of such qualified obligations— are part of an issue the issue date of which is after December 31, 2023, and provide the financing for not less than 5 percent of the aggregate basis of such building and the land on which the building is located. For purposes of subparagraph (B)(ii), the term qualified obligation means an obligation which is described in subparagraph
(A)and which is part of an issue the issue date of which is before January 1, 2026. . The amendment made by this section shall apply to buildings placed in service in taxable years beginning after December 31, 2023. In the case of any building with respect to which any expenditures are treated as a separate new building under section 42(e) of the Internal Revenue Code of 1986, for purposes of paragraph (1), both the existing building and the separate new building shall be treated as having been placed in service on the date such expenditures are treated as placed in service under section 42(e)(4) of such Code.