Editorial Notes
References in Text
The date of the enactment of the Tax Reform Act of 1986, referred to in subsec. (b)(2)(B)(ii)(I), is the date of enactment of Pub. L. 99–514, which was approved Oct. 22, 1986.
The date of the enactment of this paragraph, referred to in subsec. (b)(5), is the date of enactment of Pub. L. 105–34, which was approved Aug. 5, 1997.
Prior Provisions
A prior section 145, act Aug. 16, 1954, ch. 736, 68A Stat. 42, made a cross reference to section 36 of this title, prior to repeal by Pub. L. 95–30, title I, § 101(d)(1), May 23, 1977, 91 Stat. 133, applicable to taxable years beginning after Dec. 31, 1976.
Amendments
2017—Subsec. (d)(4). Pub. L. 115–97 substituted “of section 47(c)(1)(B)” for “of section 47(c)(1)(C)” in subpars. (A) and (B) and “section 47(c)(1)(B)(i)” for “section 47(c)(1)(C)(i)” in subpar. (B).
1997—Subsec. (b)(5). Pub. L. 105–34 added par. (5).
1990—Subsec. (d)(4). Pub. L. 101–508 substituted “section 47(c)(1)(C)” for “section 48(g)(1)(C)” wherever appearing and “section 47(c)(1)(C)(i)” for “section 48(g)(1)(C)(i)”.
1989—Subsec. (d)(3), (4). Pub. L. 101–239 added par. (3) and redesignated former par. (3) as (4).
1988—Subsec. (b)(2)(B)(ii)(I). Pub. L. 100–647, § 1013(a)(6), substituted “section 103(b)(2)” for “section 103(b)”.
Subsec. (b)(2)(C)(i). Pub. L. 100–647, § 1013(a)(7), substituted “subparagraph (B)” for “subparagraph (B)(ii)”.
Subsec. (b)(4). Pub. L. 100–647, § 1013(a)(8), substituted “subparagraphs (C), (D), and (E)” for “subparagraphs (C) and (D)”.
Subsecs. (d), (e). Pub. L. 100–647, § 5053(a), added subsec. (d) and redesignated former subsec. (d) as (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by section 1013(a)(6)–(8) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Pub. L. 100–647, title V, § 5053(c), Nov. 10, 1988, 102 Stat. 3678, provided that:
“(1) In general.—
The amendments made by this section [amending this section and
section 148 of this title] shall apply to obligations issued after
October 21, 1988.
“(2) Exception for construction or binding agreement.—
“(A) The amendments made by this section shall not apply to bonds (other than refunding bonds) with respect to a facility—
“(i)
(I)
the original use of which begins with the taxpayer, and the construction, reconstruction, or rehabilitation of which began before July 14, 1988, and was completed on or after such date, or
“(II)
the original use of which begins with the taxpayer and with respect to which a binding contract to incur significant expenditures for construction, reconstruction, or rehabilitation was entered into before July 14, 1988, and some of such expenditures are incurred on or after such date, and
“(ii)
described in an inducement resolution or other comparable preliminary approval adopted by an issuing authority (or by a voter referendum) before July 14, 1988.
For purposes of the preceding sentence, the term ‘significant expenditures’ means expenditures greater than 10 percent of the reasonably anticipated cost of the construction, reconstruction, or rehabilitation of the facility involved.
“(B)
Subparagraph (A) shall not apply to any
bond issued after
December 31, 1989, and shall not apply unless it is reasonably expected (at the time of issuance of the
bond) that the facility will be placed in service before
January 1, 1990.
“(3) Refundings.—The amendments made by this section shall not apply to any bond issued to refund (or which is part of a series of bonds issued to refund) a bond issued before July 15, 1988, if—
“(A)
the average maturity date of the issue of which the refunding
bond is a part is not later than the average maturity date of the
bonds to be refunded by such issue,
“(B)
the amount of the refunding
bond does not exceed the outstanding amount of the refunded
bond, and
“(C)
the 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.
For purposes of subparagraph (A), average maturity shall be determined in accordance with section 147(b) of the 1986 Code.”
Savings Provision
For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.
