26 U.S.C. § 146
A private activity bond issued as part of an issue meets the requirements of this section if the aggregate face amount of the private activity bonds issued pursuant to such issue, when added to the aggregate face amount of tax-exempt private activity bonds previously issued by the issuing authority during the calendar year, does not exceed such authority's volume cap for such calendar year.
For purposes of this section-
The volume cap for any agency of the State authorized to issue tax-exempt private activity bonds for any calendar year shall be 50 percent of the State ceiling for such calendar year.
If more than 1 agency of the State is authorized to issue tax-exempt private activity bonds, all such agencies shall be treated as a single agency.
For purposes of this section-
The volume cap for any issuing authority (other than a State agency) for any calendar year shall be an amount which bears the same ratio to 50 percent of the State ceiling for such calendar year as-
For purposes of paragraph (1)(A), if an area is within the jurisdiction of 2 or more governmental units, such area shall be treated as only within the jurisdiction of the unit having jurisdiction over the smallest geographical area unless such unit agrees to surrender all or part of such jurisdiction for such calendar year to the unit with overlapping jurisdiction which has the next smallest geographical area.
For purposes of this section-
The State ceiling applicable to any State for any calendar year shall be the greater of-
In the case of a calendar year after 2002, each of the dollar amounts contained in paragraph (1) shall be increased by an amount equal to-
If any increase determined under the preceding sentence is not a multiple of $5 ($5,000 in the case of the dollar amount in paragraph (1)(B)), such increase shall be rounded to the nearest multiple thereof.
For purposes of this section-
The volume cap for any constitutional home rule city for any calendar year shall be determined under paragraph (1) of subsection (c) by substituting "100 percent" for "50 percent".
In the case of any State which contains 1 or more constitutional home rule cities, for purposes of applying subsections (b) and (c) with respect to issuing authorities in such State other than constitutional home rule cities, the State ceiling for any calendar year shall be reduced by the aggregate volume caps determined for such year for all constitutional home rule cities in such State.
For purposes of this section, the term "constitutional home rule city" means, with respect to any calendar year, any political subdivision of a State which, under a State constitution which was adopted in 1970 and effective on July 1, 1971, had home rule powers on the 1st day of the calendar year.
If the population of any possession of the United States for any calendar year is less than the population of the least populous State (other than a possession) for such calendar year, the limitation under paragraph (1)(A) shall not be less than the amount determined under subparagraph (B) for such calendar year.
The limitation determined under this subparagraph, with respect to a possession, for any calendar year is an amount equal to the product of-
In the case of calendar year 2008, the State ceiling for each State shall be increased by an amount equal to $11,000,000,000 multiplied by a fraction-
Any amount of the State ceiling for any State which is attributable to an increase under this paragraph shall be allocated solely for one or more qualified housing issues.
For purposes of this paragraph, the term "qualified housing issue" means-
For purposes of this section-
Except as provided in paragraph (3), a State may, by law provide a different formula for allocating the State ceiling among the governmental units (or other authorities) in such State having authority to issue tax-exempt private activity bonds.
Except as otherwise provided in paragraph (3), the Governor of any State may proclaim a different formula for allocating the State ceiling among the governmental units (or other authorities) in such State having authority to issue private activity bonds.
The authority provided in subparagraph (A) shall not apply to bonds issued after the earlier of-
Except as otherwise provided in a State constitutional amendment (or law changing the home rule provision adopted in the manner provided by the State constitution), the authority provided in this subsection shall not apply to that portion of the State ceiling which is allocated to any constitutional home rule city in the State unless such city agrees to such different allocation.
If-
such authority may elect to treat all (or any portion) of such excess as a carryforward for 1 or more carryforward purposes.
In any election under paragraph (1), the issuing authority shall-
If any issuing authority elects a carryforward under paragraph (1) with respect to any carryforward purpose, any private activity bonds issued by such authority with respect to such purpose during the 3 calendar years following the calendar year in which the carryforward arose shall not be taken into account under subsection (a) to the extent the amount of such bonds does not exceed the amount of the carryforward elected for such purpose.
Carryforwards elected with respect to any purpose shall be used in the order of the calendar years in which they arose.
Any election under this paragraph (and any identification or specification contained therein), once made, shall be irrevocable.
The term "carryforward purpose" means-
No amount which is attributable to the increase under subsection (d)(5) may be used-
Only for purposes of this section, the term "private activity bond" shall not include-
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)).
Only for purposes of this section, the term "private activity bond" shall not include any exempt facility bond described in section 142(a)(6) which is issued as part of an issue if all of the property to be financed by the net proceeds of such issue is to be owned by a governmental unit.
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.
For purposes of the volume cap imposed by this section-
The term "private activity bond" shall not include any bond which is issued to refund another bond to the extent that the amount of such bond does not exceed the outstanding amount of the refunded bond.
In the case of any qualified student loan bond, paragraph (1) shall apply only if the maturity date of the refunding bond is not later than the later of-
In the case of any qualified mortgage bond, paragraph (1) shall apply only if the maturity date of the refunding bond is not later than the later of-
For purposes of paragraphs (2) and (3), average maturity shall be determined in accordance with section 147(b)(2)(A).
This subsection shall not apply to any bond issued to advance refund another bond.
If, during the 6-month period beginning on the date of a repayment of a loan financed by an issue 95 percent or more of the net proceeds of which are used to provide projects described in section 142(d), such repayment is used to provide a new loan for any project so described, any bond which is issued to refinance such issue shall be treated as a refunding issue to the extent the principal amount of such refunding issue does not exceed the principal amount of the bonds refunded.
Subparagraph (A) shall apply to only one refunding of the original issue and only if-
For purposes of this section, determinations of the population of any State (or issuing authority) shall be made with respect to any calendar year on the basis of the most recent census estimate of the resident population of such State (or issuing authority) released by the Bureau of Census before the beginning of such calendar year.
Except as provided in paragraphs (2) and (3), no portion of the State ceiling applicable to any State for any calendar year may be used with respect to financing for a facility located outside such State.
Paragraph (1) shall not apply to any exempt facility bond described in paragraph (4), (5), (6), or (10) of section 142(a) if the issuer establishes that the State's share of the use of the facility (or its output) will equal or exceed the State's share of the private activity bonds issued to finance the facility.
Paragraph (1) shall not apply to any bond to which volume cap is allocated under section 141(b)(5)-
if the issuer establishes that the State's share of the private business use (as defined by section 141(b)(6)) of the facility will equal or exceed the State's share of the volume cap allocated with respect to bonds issued to finance the facility.
In the case of a qualified scholarship funding bond, such bond shall be treated for purposes of this section as issued by a State or local issuing authority (whichever is appropriate).
The volume cap of an issuer shall be reduced by the amount allocated by the issuer to an issue under section 141(b)(5).
Except as otherwise provided by the Secretary, any advance refunding of any part of an issue to which an amount was allocated under section 141(b)(5) (or would have been allocated if such section applied to such issue) shall be taken into account under this section to the extent of the amount of the volume cap which was (or would have been) so allocated.
The volume cap of any issuing authority for any calendar year shall be reduced by the sum of-
26 U.S.C. § 146
Inflation Adjusted Items for Certain YearsFor inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
EDITORIAL NOTES
AMENDMENTS2021-Subsec. (g). Pub. L. 117-58, §80401(c)(2), substituted "Paragraphs (4) and (5)" for "Paragraph (4)" in concluding provisions.Subsec. (g)(5). Pub. L. 117-58, §80401(c)(1), added par. (5).Subsec. (g)(6). Pub. L. 117-58, §80402(c), added par. (6). 2017-Subsec. (d)(2)(B). Pub. L. 115-97 substituted "for 'calendar year 2016' in subparagraph (A)(ii)" for "for 'calendar year 1992' in subparagraph (B)".2008-Subsec. (d)(5). Pub. L. 110-289, §3021(a)(1), added par. (5).Subsec. (f)(6). Pub. L. 110-289, §3021(a)(2), added par. (6).Subsec. (i)(6). Pub. L. 110-289, §3007(a), added par. (6). 2005-Subsec. (g)(3). Pub. L. 109-59 substituted "(14), or (15) of section 142(a), and" for "or (14) of section 142(a) (relating to airports, docks and wharves, environmental enhancements of hydroelectric generating facilities, qualified public educational facilities, and qualified green building and sustainable design projects), and". 2004-Subsec. (g)(3). Pub. L. 108-357 substituted "(13), or (14)" for "or (13)" and "qualified public educational facilities, and qualified green building and sustainable design projects" for "and qualified public educational facilities".2001-Subsec. (g)(3). Pub. L. 107-16 substituted "(12), or (13)" for "or (12)" and "environmental enhancements of hydroelectric generating facilities, and qualified public educational facilities" for "and environmental enhancements of hydroelectric generating facilities". 2000-Subsec. (d)(1), (2). Pub. L. 106-554 amended pars. (1) and (2) generally. Prior to amendment, pars. (1) and (2) provided for State ceilings based on the per capita limits and aggregate limits set out in an included table.1998-Subsec. (d)(1). Pub. L. 105-277 added par. (1) and struck out heading and text of former par. (1). Text read as follows: "The State ceiling applicable to any State for any calendar year shall be the greater of-"(A) an amount equal to $75 multiplied by the State population, or"(B) $250,000,000.Subparagraph (B) shall not apply to any possession of the United States."Subsec. (d)(2). Pub. L. 105-277 added par. (2) and struck out heading and text of former par. (2). Text read as follows: "In the case of calendar years after 1987, paragraph (1) shall be applied by substituting-"(A) '$50' for '$75', and"(B) '$150,000,000' for '$250,000,000'." 1993-Subsec. (g). Pub. L. 103-66, which directed the amendment of par. (4) by adding at the end thereof the following flush sentence: "Paragraph (4) 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)).", was executed by inserting the sentence at the end of subsec. (g), to reflect the probable intent of Congress.1992-Subsec. (g)(3). Pub. L. 102-486 substituted ", (2), or (12)" for "or (2)" and ", docks and wharves, and environmental enhancements of hydroelectric generating facilities" for "and docks and wharves". 1989-Subsec. (g)(3), (4). Pub. L. 101-239 redesignated par. (3), relating to exempt facility bonds issued as part of an issue described in par. (11) of section 142(a), as (4). 1988-Subsec. (d)(4)(B). Pub. L. 100-647, §1013(a)(40), substituted "respect to a" for "respect a". Subsec. (f)(5)(A). Pub. L. 100-647, §1013(a)(9), amended subpar. (A) generally, as in effect before amendment by Pub. L. 100-203. Before amendment by Pub. L. 100-203, subpar. (A) read as follows: "the purpose of issuing bonds referred to in one of the clauses of section 141(d)(1)(A),".Subsec. (g)(3). Pub. L. 100-647, §6180(b)(3), added par. (3) relating to exempt facility bonds issued as part of an issue described in par. (11) of section 142(a). Subsec. (i)(2)(A). Pub. L. 100-647, §1013(a)(28)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "the maturity date of the bond to be refunded, or".Subsec. (i)(3)(A). Pub. L. 100-647, §1013(a)(28)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "the maturity date of the bond to be refunded, or".Subsec. (i)(4), (5). Pub. L. 100-647, §1013(a)(28)(C), added par. (4) and redesignated former par. (4) as (5).Subsec. (k)(1). Pub. L. 100-647, §1013(a)(10)(A), substituted "paragraphs (2) and (3)" for "paragraph (2)".Subsec. (k)(3). Pub. L. 100-647, §1013(a)(10)(B), added par. (3).1987-Subsec. (f)(5)(A). Pub. L. 100-203 amended subpar. (A) generally, as amended by Pub. L. 100-647, §1013(a)(9), restating it without change. See 1988 Amendment note above.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2021 AMENDMENT Amendment by section 80401(c) of Pub. L. 117-58 applicable to obligations issued in calendar years beginning after Nov. 15, 2021, see section 80401(d) of Pub. L. 117-58, set out as a note under section 142 of this title.Amendment by section 80402(c) of Pub. L. 117-58 applicable to obligations issued after Dec. 31, 2021, see section 80402(f) of Pub. L. 117-58, set out as a note under section 45Q of this title.
EFFECTIVE DATE OF 2017 AMENDMENT Amendment by Pub. L. 115-97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115-97, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 2008 AMENDMENT Amendment by section 3007(a) of Pub. L. 110-289 applicable to repayments of loans received after July 30, 2008, see section 3007(c) of Pub. L. 110-289, set out as a note under section 42 of this title. Amendment by section 3021(a) of Pub. L. 110-289 applicable to bonds issued after July 30, 2008, see section 3021(c) of Pub. L. 110-289, set out as a note under section 143 of this title.
EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109-59 applicable to bonds issued after Aug. 10, 2005, see section 11143(d) of Pub. L. 109-59, set out as a note under section 142 of this title.
EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108-357 applicable to bonds issued after Dec. 31, 2004, see section 701(e) of Pub. L. 108-357, set out as a note under section 142 of this title.
EFFECTIVE DATE OF 2001 AMENDMENT Amendment by Pub. L. 107-16 applicable to bonds issued after Dec. 31, 2001, see section 422(f) of Pub. L. 107-16, set out as a note under section 142 of this title.
EFFECTIVE DATE OF 2000 AMENDMENT Pub. L. 106-554, §1(a)(7) [title I, §161(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A-624, provided that: "The amendment made by this section [amending this section] shall apply to calendar years after 2000."
EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105-277, div. J, title II, §2021(b), Oct. 21, 1998, 112 Stat. 2681-903, provided that: "The amendment made by this section [amending this section] shall apply to calendar years after 1998."
EFFECTIVE DATE OF 1993 AMENDMENT Pub. L. 103-66, §13121(b), Aug. 10, 1993, 107 Stat. 432, provided that: "The amendment made by subsection (a) [amending this section] shall apply to bonds issued after December 31, 1993."
EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102-486 applicable to bonds issued after Oct. 24, 1992, see section 1921(c) of Pub. L. 102-486, set out as a note under section 142 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such amendment relates, see section 7817 of Pub. L. 101-239, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT Amendment by section 1013(a)(9), (10), (28), (40) 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.Amendment by section 6180(b)(3) of Pub. L. 100-647 applicable to bonds issued after Nov. 10, 1988, see section 6180(c) of Pub. L. 100-647, set out as a note under section 142 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100-203 applicable, with certain exceptions, to bonds issued after Oct. 13, 1987 (other than bonds issued to refund bonds issued on or before such date), see section 10631(c) of Pub. L. 100-203, set out as a note under section 141 of this title.
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- State
- The term "State" shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.
- student
- The term "student" means any individual-(i) who is temporarily present in the United States-(I) under subparagraph (F) or (M) of section 101(15) of the Immigration and Nationality Act, or(II) as a student under subparagraph (J) or (Q) of such section 101(15), and(ii) who substantially complies with the requirements for being so present.