§ 1316. PROVISIONS RELATING TO CERTAIN ESTABLISHED STATE PROGRAMS.

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Certain Loans to Veterans for the Purchase of Land.— In general .— A bond described in paragraph

(2)shall be treated as described in section 141(d)(1) of the 1986 Code and as having a carryforward purpose described in section 146(f)(5) of such Code, but subsections (a), (b), (c), and

(d)of section 147 of such Code shall not apply to such bond. Bond described .— A bond is described in this paragraph if— such bond is a private activity bond solely by reason of section 141(c) of such Code, and such bond is issued as part of an issue 95 percent or more of the net proceeds of which are to be used to carry out a program established under State law to provide loans to veterans for the purchase of land and which has been in effect in substantially the same form during the 30-year period ending on July 18, 1984 , but only if such proceeds are used to make loans or to fund similar obligations— in the same manner in which, in the same (or lesser) amount or multiple of acres per participant, and for the same purposes for which, such program was operated on March 15, 1984 . Renewable Energy Property.— In general .— A bond described in paragraph

(1)of section 103(b) of the 1954 Code would not (without regard to the amendments made by this title) have applied to such bond by reason of section 243 of the Crude Oil Windfall Profit Tax Act of 1980 [ section 243 of Pub. L. 96–223 , set out as a note under section 103 of this title ] if— such section 243 were applied by substituting ‘95 percent or more of the net proceeds’ for ‘substantially all of the proceeds’ in subsection (a)(1) thereof, and subparagraph

(E)of subsection (a)(1) thereof referred to section 149(b) of the 1986 Code. Certain State Programs.— In general .— A bond described in paragraph

(2)shall be treated as described in section 141(d)(1) of the 1986 Code and as having a carryforward purpose described in section 146(f)(5) of such Code. Bond described .— A bond is described in this paragraph if such bond is issued as part of an issue 95 percent or more of the net proceeds of which are to be used to carry out a program established under sections 280A, 280B, and 280C of the Iowa Code, but only if— such program has been in effect in substantially the same form since July 1, 1983 , and such proceeds are to be used to make loans or fund similar obligations for the same purposes as permitted under such program on July 1, 1986 . limitation .— The aggregate face amount of outstanding bonds to which this subsection applies shall not exceed $100,000,000. Application of section 147 (b).— A bond to which this subsection applies (other than a refunding bond) shall be treated as meeting the requirements of section 147(b) of the 1986 Code if the average maturity (determined in accordance with section 147(b)(2)(A) of such Code) of the issue of which such bond is a part does not exceed 20 years. A bond issued to refund (or which is part of a series of bonds issued to refund) a bond described in the preceding sentence shall be treated as meeting the requirements of such section if the refunding bond has a maturity date not later than the date which is 20 years after the date on which the original bond was issued. Use by Certain Federal Instrumentalities Treated as Use by Governmental Units .— Use by an instrumentality of the United States shall be treated as use by a State or local governmental unit for purposes of section 103, and part IV of subchapter B of chapter 1, of the 1986 Code with respect to a program approved by Congress before August 3, 1972 , but only if— a portion of such program has been financed by bonds issued before such date, to which section 103(a) of the 1954 Code applied pursuant to a ruling issued by the Commissioner of the Internal Revenue Service, and construction of 1 or more facilities comprising a part of such program commenced before such date. Refunding Permitted of Certain Bonds Invested in Federally Insured Deposits.— In general .— Section 149(b)(2)(B)(ii) of the 1986 Code (and section 103(h)(2)(B)(ii) of the 1954 Code) shall not apply to any bond issued to refund a bond— which, when issued, would have been treated as federally guaranteed by reason of being described in clause

(ii)of section 103(h)(2)(B) of the 1954 Code if such section had applied to such bond, and which was issued before April 15, 1983 , or to which such clause did not apply by reason of the except clause in section 631(c)(2) of the Tax Reform Act of 1984 [ section 631(c)(2) of Pub. L. 98–369 , set out as a note under section 103 of this title ]. Section 147(c) of the 1986 Code (and section 103(b)(16) of the 1954 Code) shall not apply to any refunding bond permitted under the preceding sentence if section 103(b)(16) of the 1954 Code did not apply to the refunded bond when issued. Requirements .— A refunding bond meets the requirements of this paragraph if— the refunding bond has a maturity date not later than the maturity date of the refunded bond, the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, the weighted average interest rate on the refunding bond is lower than the weighted average interest rate on the refunded bond, and the net proceeds of the refunding bond are used to redeem the refunded bond not later than 90 days after the date of the issuance of the refunding bond. Certain Hydroelectric Generating Property.— In general .— A bond described in paragraph

(2)shall be treated as described in section 141(d)(1) of the 1986 Code and as having a carryforward purpose described in section 146(f)(5) of such Code. Description .— A bond is described in this paragraph if such bond is issued as part of an issue 95 percent or more of the net proceeds of which are to be used to provide a facility described in section 103(b)(4)(H) of the 1954 Code determined— by substituting ‘an application for a license’ for ‘an application’ in section 103(b)(8)(E)(ii) of the 1954 Code, and by applying the requirements of section 142(b)(2) of the 1986 Code. Treatment of Bonds Subject to Transitional Rules Under Tax Reform Act of 1984.— Subsections (d)(3) and

(f)of section 148 of the 1986 Code shall not apply to any bond described in section 624(c)(2) of the Tax Reform Act of 1984 [ section 624(c)(2) of Pub. L. 98–369 , set out as a note under section 103 of this title ]. There shall not be taken into account under section 146 of the 1986 Code any bond issued to provide a facility described in paragraph

(3)of section 631(a) of the Tax Reform Act of 1984 [ section 631(a)(3) of Pub. L. 98–369 , set out as a note under section 103 of this title ] relating to exception for certain bonds for a convention center and resource recovery project. If a bond issued as part of an issue substantially all of the proceeds of which are used to provide the convention center to which such paragraph

(3)applies, such bond shall be treated as an exempt facility bond as defined in section 142(a) of the 1986 Code. If a bond which is issued as part of an issue substantially all of the proceeds of which are used to provide the resource recovery project to which such paragraph

(3)applies, such bond shall be treated as an exempt facility bond as defined in section 142(a) of the 1986 Code and section 149(b) of such Code shall not apply. The amendments made by section 1301 [for classification see section 1311(a) of this note] shall not apply to bonds issued to finance any property described in section 631(d)(4) of the Tax Reform Act of 1984 [ section 631(d)(4) of Pub. L. 98–369 , set out as a note under section 103 of this title ]. The amendments made by section 1301 [for classification see section 1311(a) of this note] shall not apply to— any bond issued to finance property described in section 631(d)(5) of the Tax Reform Act of 1984 [ section 631(d)(5) of Pub. L. 98–369 , set out as a note under section 103 of this title ], any bond described in paragraph (2), (3), (4), (5), (6), or

(7)of section 632(a), or section 632(b), of such Act [ Pub. L. 98–369, div. A, title VI, § 632 , July 18, 1984 , 98 Stat. 937 ], and any bond to which section 632(g)(2) of such Act applies. In the case of bonds to which this paragraph applies, the requirements of sections 148 and 149(d) shall be treated as included in section 103 of the 1954 Code and shall apply to such bonds. The preceding provisions of this subsection shall not apply to any bond issued after December 31, 1988 . The amendments made by section 1301 [for classification see section 1311(a) of this note] (and the provisions of section 1314) shall not apply to any bond issued to finance property described in section 216(b)(3) of the Tax Equity and Fiscal Responsibility Act of 1982 [ section 216(b)(3) of Pub. L. 97–248 , set out as a note under section 168 of this title ]. In the case of a bond described in section 632(d) of the Tax Reform Act of 1984 [ Pub. L. 98–369, div. A, title VI, § 632(d) , July 18, 1984 , 98 Stat. 938 ]— section 141 of the 1986 Code shall be applied without regard to subsection (a)(2) and paragraphs

(4)and

(5)of subsection (b), paragraphs

(1)and

(2)of section 141(b) of the 1986 Code shall be applied by substituting ‘25 percent’ for ‘10 percent’ each place it appears, and section 149(b) of the 1986 Code shall not apply. This paragraph shall not apply to any bond issued after December 31, 1990 . The amendments made by section 1301 [for classification see section 1311(a) of this note] shall not apply to any bond to which section 629(a)(1) of the Tax Reform Act of 1984 [ section 629(a)(1) of Pub. L. 98–369 , set out as a note under section 103 of this title ] applies, but such bond shall be treated as a private activity bond for purposes of section 146 of the 1986 Code and as having a carryforward purpose described in section 146(f)(5) of such Code. Section 629 of the Tax Reform Act of 1984 [ section 629 of Pub. L. 98–369 , set out as a note under section 103 of this title ] is amended— in subsection (c)(2), by striking out ‘$625,000,000’ and inserting in lieu thereof ‘$911,000,000’, in subsection (c)(3), by adding at the end thereof the following new subparagraphs: “ ‘(D) Improvements to existing generating facilities. “ ‘(E) Transmission lines. “ ‘(F) Electric generating facilities.’, and in subsection (a), by adding at the end thereof the following new sentence: ‘The preceding sentence shall be applied by inserting “and a rural electric cooperative utility” after “regulated public utility” but only if not more than 1 percent of the load of the public power authority is sold to such rural electric cooperative utility.’ Certain Pollution Bonds .— Any bond which is treated as described in section 103(b)(4)(F) of the 1954 Code by reason of section 13209 of the Consolidated Omnibus Budget Reconciliation Act of 1985 [ Pub. L. 99–272, title XIII, § 13209 , Apr. 7, 1986 , 100 Stat. 322 ] shall be treated as an exempt facility bond for purposes of part IV of subchapter B of chapter 1 of the 1986 Code, and section 147(d) of the 1986 Code shall not apply to such bond. Transition Rule for Aggregate Limit per Taxpayer .— For purposes of section 144(a)(10) of the 1986 Code, tax increment bonds described in section 1869(c)(3) of this Act [set out as a note under section 103 of this title ] which are issued before August 16, 1986 , shall not be taken into account under subparagraph (B)(ii) thereof. Extension of Advance Refunding Exception for Qualified Public Facility .— Paragraph

(4)of section 631(c) of the Tax Reform Act of 1984 [ section 631(c)(4) of Pub. L. 98–369 , set out as a note under section 103 of this title ] is amended— by striking out ‘or the Dade County, Florida, airport’ in the last sentence, and by adding at the end thereof the following new sentence: ‘In the case of refunding obligations not to exceed $100,000,000 issued after October 21, 1986 , by Dade County, Florida, for the purpose of advance refunding its Aviation Revenue Bonds (Series J), the first sentence of this paragraph shall be applied by substituting “the date which is 1 year after the date of the enactment of the Technical and Miscellaneous Revenue Act of 1988” [ Nov. 10, 1988 ] for “ December 31, 1984 ” and the amendments made by section 1301 of the Tax Reform Act of 1986 shall not apply.’ Expansion of Exception for River Place Project .— Section 1104 of the Mortgage Subsidy Bond Tax Act of 1980 [ section 1104 of Pub. L. 96–499 , formerly set out as a note under section 103A of this title ], as added by the Tax Reform Act of 1984, is amended— by striking out ‘ December 31, 1984 ,’ in subsection

(p)and inserting in lieu thereof ‘ December 31, 1984 (other than obligations described in subsection (r)(1)),’, and by striking out ‘$55,000,000,’ in subsection (r)(1)(B) and inserting in lieu thereof ‘$110,000,000 of which no more than $55,000,000 shall be outstanding later than November 1, 1987 ’.

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8 references not yet in our index

Pub. L. 96-223
Pub. L. 98-369
98 Stat. 937
Pub. L. 97-248
98 Stat. 938
Pub. L. 99-272
100 Stat. 322
Pub. L. 96-499

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cites case law

§ 1316

PROVISIONS RELATING TO CERTAIN ESTABLISHED STATE PROGRAMS.

Pub. L.Pub. L. 96-223

Pub. L.Pub. L. 98-369

Stat.98 Stat. 937

Pub. L.Pub. L. 97-248

Stat.98 Stat. 938

Cites 8 · showing 5Cited by 0 across 0 sources