(4) Long-term commitment. For the purposes of section 42(h)(6)(B)(i) for the purposes of a taxation year following the credit period, remote units are not considered to be low-income units. Another earlier article of article 42 was renumbered article 37 of this title. Section 3 of the Federal Deposit Insurance Act, referred to in subsection (d)(6)(B), is classified as section 1813 of title 12, banks and banks. (B) As such, the income restrictions satisfy the requirement in paragraph (a)(3) of this section that the average imputed income restrictions reported for the low-income units of the Project not exceed 60% of MIGA. Paragraph C does not apply to the acquisition or renovation of a building in accordance with a development plan sponsored by a state or local government or a qualified non-profit organization (as defined in subsection (h)(5)(C)). The tax year shall be increased in accordance with paragraph 1 only in respect of credits authorised under this Section which have been used to reduce the tax payable. In the case of credits that are not used to reduce the tax payable, the transfers and transfers referred to in § 39 must be adjusted appropriately. [“(A) Section (11) of Section 11701(a) of the Tax Reconciliation Act 1990 (and as amended therein) [Pub. L. 101–508, Section 7108(r)(2) of Pub.
101-239 by inserting “but only in respect of bonds issued after that date” before the period is repealed at the end of this Section 7108(r)(2) and Section 7108(r)(2) of the Revenue Reconciliation Act 1989 [Pub. L. 101-239] apply as if this paragraph (and its amendment) had never been adopted. (i) Date of applicability — (1) In general. Subject to the provisions of paragraph (i)(2) of this Division, this Section applies to leases entered into or renewed on or after September 26, 1997. For the purposes of paragraph (i), “eligible building” means any building that is part of a project if that taxpayer`s base in that project (as of 1 year after the date of allocation) is greater than 10% of the taxpayer`s reasonably anticipated base in that project (at the end of the second calendar year as defined in paragraph (i)). This term does not include existing buildings, unless an entry for the credit is authorized under paragraph (e) for cleaning expenses paid or incurred by the taxpayer in respect of that immovable for a fiscal year ending in the second calendar year referred to in subparagraph (i) or the preceding taxation year. Any increase in tax under this Subdivision shall not be considered to be a tax levied under this Chapter for the purpose of determining the amount of an entry for the credit under this Chapter. Buildings that would be treated as a project within the meaning of this section (without their lack of proximity) are treated if all the housing units in each building are rent-restricted housing units (as defined in subsection (2)).
The secretary may make regulations consistent with the purpose of this subsection and treat a group of dwellings for which redevelopment costs are incurred as a new separate building. The Article 42 housing program refers to the article of the Internal Tax Code that grants tax credits to investors who build affordable housing. Investors benefit from a reduction in their tax liability in exchange for providing affordable housing for people on fixed or low incomes. Section 103(b) of Section T of the 2018 Act added section 42(g)(2)(D)(iii), (iv) and (v) to the Code to provide a new unit rule available for situations where the taxpayer has chosen the average income test. Under this new rule for the next available dwelling, a dwelling is not a low-income dwelling if two conditions are met. The first condition is whether the income of a resident of a low-income unit exceeds 140% of the greater of (i) 60% of MIGA or (ii) the imputed income limit set by the taxpayer in relation to the unit (applicable imputed income limit). The second condition is whether another rented dwelling in the building, which is comparable or smaller in size to that dwelling, is occupied by a new tenant whose income exceeds the applicable imputed income limit. If the new tenant occupies a dwelling that was considered a low-income dwelling before vacancy, the applicable imputed income restriction is the designated limit for the dwelling. If the new tenant occupies a market unit, the applicable imputed revenue restriction is the limit that would have to be established in respect of the unit for the project to maintain an average of designations of 60% MIGA or less.