US Codex
U.S.C.
Notes

§142. Exempt facility bond — Inbound Citations

26 U.S.C. § 142

Cited by 49 provisions in release 119-102.

Citations to §142(a)

Citations to §142(a)(1)

Citations to §142(a)(2)

Citations to §142(a)(4)

Citations to §142(a)(5)

Citations to §142(a)(6)

Citations to §142(a)(7)

Citations to §142(a)(8)

Citations to §142(a)(10)

Citations to §142(a)(11)

Citations to §142(a)(12)

Citations to §142(a)(13)

Citations to §142(a)(14)

Citations to §142(a)(15)

Citations to §142(a)(16)

Citations to §142(a)(17)

Citations to §142(b)(1)

  • 12 U.S.C. § 24
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    Upon duly making and filing articles of association and an organization certificate a national banking association shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power—
  • 26 U.S.C. § 146(g)
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    (g) Only for purposes of this section, the term “private activity bond” shall not include—
    (1) any qualified veterans’ mortgage bond,
    (2) any qualified 501(c)(3) bond,
    (3) any exempt facility bond issued as part of an issue described in paragraph (1), (2), (12), (13), (14), or (15) of section 142(a),
    (4) 75 percent of any exempt facility bond issued as part of an issue described in paragraph (11) of section 142(a) (relating to high-speed intercity rail facilities),
    (5) 75 percent of any exempt facility bond issued as part of an issue described in paragraph (16) of section 142(a) (relating to qualified broadband projects), and
    (6) 75 percent of any exempt facility bond issued as part of an issue described in paragraph (17) of section 142(a) (relating to qualified carbon dioxide capture facilities).
    Paragraphs (4) and (5) shall be applied without regard to “75 percent of” if all of the property to be financed by the net proceeds of the issue is to be owned by a governmental unit (within the meaning of section 142(b)(1)).

Citations to §142(b)(1)(B)

  • 26 U.S.C. § 146(h)(2)
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    (2) In determining ownership for purposes of paragraph (1), section 142(b)(1)(B) shall apply, except that a lease term shall be treated as satisfying clause (ii) thereof if it is not more than 20 years.
  • 26 U.S.C. § 148(f)(4)(C)
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    (i) In the case of a construction issue, paragraph (2) shall not apply to the available construction proceeds of such issue if the spending requirements of clause (ii) are met.
    (ii) The spending requirements of this clause are met if at least—
    (I) 10 percent of the available construction proceeds of the construction issue are spent for the governmental purposes of the issue within the 6-month period beginning on the date the bonds are issued,
    (II) 45 percent of such proceeds are spent for such purposes within the 1-year period beginning on such date,
    (III) 75 percent of such proceeds are spent for such purposes within the 18-month period beginning on such date, and
    (IV) 100 percent of such proceeds are spent for such purposes within the 2-year period beginning on such date.
    (iii) The spending requirement of clause (ii)(IV) shall be treated as met if—
    (I) such requirement would be met at the close of such 2-year period but for a reasonable retainage (not exceeding 5 percent of the available construction proceeds of the construction issue), and
    (II) 100 percent of the available construction proceeds of the construction issue are spent for the governmental purposes of the issue within the 3-year period beginning on the date the bonds are issued.
    (iv) For purposes of this subparagraph, the term “construction issue” means any issue if—
    (I) at least 75 percent of the available construction proceeds of such issue are to be used for construction expenditures with respect to property which is to be owned by a governmental unit or a 501(c)(3) organization, and
    (II) all of the bonds which are part of such issue are qualified 501(c)(3) bonds, bonds which are not private activity bonds, or private activity bonds issued to finance property to be owned by a governmental unit or a 501(c)(3) organization.
    For purposes of this subparagraph, the term “construction” includes reconstruction and rehabilitation, and rules similar to the rules of section 142(b)(1)(B) shall apply.
    (v) If—
    (I) all of the construction expenditures to be financed by an issue are to be financed from a portion thereof, and
    (II) the issuer elects to treat such portion as a construction issue for purposes of this subparagraph,
    then, for purposes of this subparagraph and subparagraph (B), such portion shall be treated as a separate issue.
    (vi) For purposes of this subparagraph—
    (I) The term “available construction proceeds” means the amount equal to the issue price (within the meaning of sections 1273 and 1274) of the construction issue, increased by earnings on the issue price, earnings on amounts in any reasonably required reserve or replacement fund not funded from the issue, and earnings on all of the foregoing earnings, and reduced by the amount of the issue price in any reasonably required reserve or replacement fund and the issuance costs financed by the issue.
    (II) The term “available construction proceeds” shall not include amounts earned on any reasonably required reserve or replacement fund after the earlier of the close of the 2-year period described in clause (ii) or the date the construction is substantially completed.
    (III) The term “available construction proceeds” shall not include payments on any obligation acquired to carry out the governmental purposes of the issue and shall not include earnings on such payments.
    (IV) At the election of the issuer, the term “available construction proceeds” shall not include earnings on any reasonably required reserve or replacement fund.
    (I) At the election of the issuer, paragraph (2) shall not apply to available construction proceeds which do not meet the spending requirements of clause (ii) if the issuer pays a penalty, with respect to each 6-month period after the date the bonds were issued, equal to 1½ percent of the amount of the available construction proceeds of the issue which, as of the close of such 6-month period, is not spent as required by clause (ii).
    (II) The penalty imposed by this clause shall cease to apply only as provided in clause (viii) or after the latest maturity date of any bond in the issue (including any refunding bond with respect thereto).
    (viii) At the election of the issuer (made not later than 90 days after the earlier of the end of the initial temporary period or the date the construction is substantially completed), the penalty under clause (vii) shall not apply to any 6-month period after the initial temporary period under subsection (c) if the requirements of subclauses (I), (II), and (III) are met.
    (I) The requirement of this subclause is met if the issuer pays a penalty equal to 3 percent of the amount of available construction proceeds of the issue which is not spent for the governmental purposes of the issue as of the close of such initial temporary period multiplied by the number of years (including fractions thereof) in the initial temporary period.
    (II) The requirement of this subclause is met if the amount of the available construction proceeds of the issue which is not spent for the governmental purposes of the issue as of the close of such initial temporary period is invested at a yield not exceeding the yield on the issue or which is invested in any tax-exempt bond which is not investment property.
    (III) The requirement of this subclause is met if the amount of the available construction proceeds of the issue which is not spent for the governmental purposes of the issue as of the earliest date on which bonds may be redeemed is used to redeem bonds on such date.
    (ix) If—
    (I) the construction to be financed by a construction issue is substantially completed before the end of the initial temporary period,
    (II) the issuer identifies an amount of available construction proceeds which will not be spent for the governmental purposes of the issue,
    (III) the issuer has made the election under clause (viii), and
    (IV) the issuer makes an election under this clause before the close of the initial temporary period and not later than 90 days after the date the construction is substantially completed,
    then clauses (vii) and (viii) shall be applied to the available construction proceeds so identified as if the initial temporary period ended as of the date the election is made.
    (x) In the case of a failure (which is not due to willful neglect) to pay any penalty required to be paid under clause (vii) or (viii) in the amount or at the time prescribed therefor, the Secretary may treat such failure as not occurring if, in addition to paying such penalty, the issuer pays a penalty equal to the sum of—
    (I) 50 percent of the amount which was not paid in accordance with clauses (vii) and (viii), plus
    (II) interest (at the underpayment rate established under section 6621) on the portion of the amount which was not paid on the date required for the period beginning on such date.
    The Secretary may waive all or any portion of the penalty under this clause. Bonds which are part of an issue with respect to which there is a failure to pay the amount required under this clause (and any refunding bond with respect thereto) shall be treated as not being, and as never having been, tax-exempt bonds.
    (xi) At the election of the issuer of an issue the proceeds of which are to be used to make or finance loans (other than nonpurpose investments) to 2 or more persons, the periods described in clauses (ii) and (iii) shall begin on—
    (I) the date the loan is made, in the case of loans made within the 1-year period after the date the bonds are issued, and
    (II) the date following such 1-year period, in the case of loans made after such 1-year period.
    If such an election applies to an issue, the requirements of paragraph (2) shall apply to amounts earned before the beginning of the periods determined under the preceding sentence.
    (xii) For purposes of this subparagraph, payments of principal on the bonds which are part of the construction issue shall not be treated as an expenditure of the available construction proceeds of the issue.
    (I) Except as provided in this clause, clause (vii)(II), and the last sentence of clause (x), this subparagraph shall not apply to any refunding bond and no proceeds of a refunded bond shall be treated for purposes of this subparagraph as proceeds of a refunding bond.
    (II) For purposes of clause (v), any portion of an issue which is used to refund any issue (or portion thereof) shall be treated as a separate issue.
    (III) The requirements of paragraph (2) shall be treated as met with respect to earnings for any period if a penalty is paid under clause (vii) or (viii) with respect to such earnings for such period.
    (xiv) Any election under this subparagraph (other than clauses (viii) and (ix)) shall be made on or before the date the bonds are issued; and, once made, shall be irrevocable.
    (xv) Any penalty under this subparagraph shall be paid to the United States not later than 90 days after the period to which the penalty relates.
    (xvi) If the spending requirements of clause (ii) are met with respect to the available construction proceeds of a construction issue, then paragraph (2) shall not apply to earnings on a bona fide debt service fund for such issue.

Citations to §142(b)(2)

Citations to §142(d)

Citations to §142(d)(2)

Citations to §142(d)(2)(B)

Citations to §142(d)(4)(B)

  • 26 U.S.C. § 42(g)(2)(D)(iv)
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    (iv) In the case of a project described in section 142(d)(4)(B), clause (ii) or (iii), whichever is applicable, shall be applied by substituting “170 percent” for “140 percent”, and—
    (I) in the case of clause (ii), by substituting “any low-income unit in the building is occupied by a new resident whose income exceeds 40 percent of area median gross income” for “any residential rental unit” and all that follows in such clause, and
    (II) in the case of clause (iii), by substituting “any low-income unit in the building is occupied by a new resident whose income exceeds the lesser of 40 percent of area median gross income or the imputed income limitation designated with respect to such unit under paragraph (1)(C)(ii)(I)” for “any residential rental unit” and all that follows in such clause.

Citations to §142(d)(4)(B)(ii)

  • 26 U.S.C. § 42(g)(2)(C)
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    (C) For purposes of this paragraph, the imputed income limitation applicable to a unit is the income limitation which would apply under paragraph (1) to individuals occupying the unit if the number of individuals occupying the unit were as follows:
    (i) In the case of a unit which does not have a separate bedroom, 1 individual.
    (ii) In the case of a unit which has 1 or more separate bedrooms, 1.5 individuals for each separate bedroom.
    In the case of a project with respect to which a credit is allowable by reason of this section and for which financing is provided by a bond described in section 142(a)(7), the imputed income limitation shall apply in lieu of the otherwise applicable income limitation for purposes of applying section 142(d)(4)(B)(ii).

Citations to §142(d)(6)

  • 26 U.S.C. § 42(g)(1)(C)(i)
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    (i) The project meets the minimum requirements of this subparagraph if 40 percent or more (25 percent or more in the case of a project described in section 142(d)(6)) of the residential units in such project are both rent-restricted and occupied by individuals whose income does not exceed the imputed income limitation designated by the taxpayer with respect to the respective unit.

Citations to §142(d)(7)

  • 26 U.S.C. § 6652(j)
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    (j) In the case of each failure to provide a certification as required by section 142(d)(7) at the time prescribed therefor, unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid, on notice and demand of the Secretary and in the same manner as tax, by the person failing to provide such certification, an amount equal to $100 for each such failure.

Citations to §142(o)