Special rules for determining eligible basis

Official source

(A) Federal grants not taken into account in determining eligible basis The eligible basis of a building shall not include any costs financed with the proceeds of a federally funded grant.

(B) Increase in credit for buildings in high cost areas (i) In general In the case of any building located in a qualified census tract or difficult development area which is designated for purposes of this subparagraph— (I) in the case of a new building, the eligible basis of such building shall be 130 percent of such basis determined without regard to this subparagraph, and (II) in the case of an existing building, the rehabilitation expenditures taken into account under subsection (e) shall be 130 percent of such expenditures determined without regard to this subparagraph. (ii) Qualified census tract (I) In general The term “qualified census tract” means any census tract which is designated by the Secretary of Housing and Urban Development and, for the most recent year for which census data are available on household income in such tract, either in which 50 percent or more of the households have an income which is less than 60 percent of the area median gross income for such year or which has a poverty rate of at least 25 percent. If the Secretary of Housing and Urban Development determines that sufficient data for any period are not available to apply this clause on the basis of census tracts, such Secretary shall apply this clause for such period on the basis of enumeration districts. (II) Limit on MSA’s designated The portion of a metropolitan statistical area which may be designated for purposes of this subparagraph shall not exceed an area having 20 percent of the population of such metropolitan statistical area. (III) Determination of areas For purposes of this clause, each metropolitan statistical area shall be treated as a separate area and all nonmetropolitan areas in a State shall be treated as 1 area. (iii) Difficult development areas (I) In general The term “difficult development areas” means any area designated by the Secretary of Housing and Urban Development as an area which has high construction, land, and utility costs relative to area median gross income. (II) Limit on areas designated The portions of metropolitan statistical areas which may be designated for purposes of this subparagraph shall not exceed an aggregate area having 20 percent of the population of such metropolitan statistical areas. A comparable rule shall apply to nonmetropolitan areas. (iv) Special rules and definitions For purposes of this subparagraph— (I) population shall be determined on the basis of the most recent decennial census for which data are available, (II) area median gross income shall be determined in accordance with subsection (g)(4), (III) the term “metropolitan statistical area” has the same meaning as when used in section 143(k)(2)(B), and (IV) the term “nonmetropolitan area” means any county (or portion thereof) which is not within a metropolitan statistical area. (v) Buildings designated by State housing credit agency Any building which is designated by the State housing credit agency as requiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project shall be treated for purposes of this subparagraph as located in a difficult development area which is designated for purposes of this subparagraph. The preceding sentence shall not apply to any building if paragraph (1) of subsection (h) does not apply to any portion of the eligible basis of such building by reason of paragraph (4) of such subsection.

Special rules for determining eligible basis

Official source

(A) Federal grants not taken into account in determining eligible basis The eligible basis of a building shall not include any costs financed with the proceeds of a federally funded grant.

- name: new_non_federally_subsidized_building_minimum_applicable_percentage kind: parameter dtype: Rate source: 26 USC 42(b) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: the applicable percentage shall not be less than 9 percent versions: - effective_from: '2024-01-01' formula: '0.09'

- name: other_building_minimum_applicable_percentage kind: parameter dtype: Rate source: 26 USC 42(b) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: the applicable percentage shall not be less than 4 percent versions: - effective_from: '2024-01-01' formula: '0.04'

- name: supportive_services_qualified_basis_increase_cap_rate kind: parameter dtype: Rate source: 26 USC 42(c) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: 20 percent of the qualified basis of such building versions: - effective_from: '2024-01-01' formula: '0.20'

- name: supportive_services_qualified_basis_increase kind: derived entity: Building dtype: Money period: Year unit: USD source: 26 USC 42(c) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: shall be increased by the lesser of - path: versions[0].formula kind: import import: target: us:statutes/26/42#supportive_services_qualified_basis_increase_cap_rate output: supportive_services_qualified_basis_increase_cap_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- if qualified_low_income_building_described_in_subsection_i_3_B_iii: min(eligible_basis_used_throughout_year_to_provide_supportive_services, supportive_services_qualified_basis_increase_cap_rate * qualified_basis_determined_without_supportive_services_increase) else: 0

- name: high_cost_area_eligible_basis_multiplier kind: parameter dtype: Decimal source: 26 USC 42(d) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: the eligible basis of such building shall be 130 percent versions: - effective_from: '2024-01-01' formula: '1.30'

- name: high_cost_area_new_building_eligible_basis kind: derived entity: Building dtype: Money period: Year unit: USD source: 26 USC 42(d) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: >- In the case of any building located in a qualified census tract or difficult development area - path: versions[0].formula kind: import import: target: us:statutes/26/42#high_cost_area_eligible_basis_multiplier output: high_cost_area_eligible_basis_multiplier hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- if new_building_located_in_designated_qualified_census_tract_or_difficult_development_area: high_cost_area_eligible_basis_multiplier * eligible_basis_determined_without_high_cost_area_increase else: eligible_basis_determined_without_high_cost_area_increase

- name: rehabilitation_minimum_adjusted_basis_rate kind: parameter dtype: Rate source: 26 USC 42(e) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: not less than 20 percent of the adjusted basis versions: - effective_from: '2024-01-01' formula: '0.20'

- name: rehabilitation_expenditures_meet_adjusted_basis_minimum kind: derived entity: Building dtype: Judgment period: Year source: 26 USC 42(e) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: the requirement of this subclause is met if such amount is not less than 20 percent - path: versions[0].formula kind: import import: target: us:statutes/26/42#rehabilitation_minimum_adjusted_basis_rate output: rehabilitation_minimum_adjusted_basis_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- rehabilitation_expenditures_during_eligible_period >= rehabilitation_minimum_adjusted_basis_rate * adjusted_basis_at_start_of_rehabilitation_period

- name: first_year_credit_period_months_denominator kind: parameter dtype: Count source: 26 USC 42(f) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: the denominator of which is 12 versions: - effective_from: '2024-01-01' formula: '12'

- name: first_year_applicable_fraction kind: derived entity: Building dtype: Rate period: Year source: 26 USC 42(f) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: >- the numerator of which is the sum of the applicable fractions determined ... as of the close of each full month - path: versions[0].formula kind: import import: target: us:statutes/26/42#first_year_credit_period_months_denominator output: first_year_credit_period_months_denominator hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- sum_of_month_end_applicable_fractions_for_full_in_service_months / first_year_credit_period_months_denominator

- name: twenty_fifty_test_minimum_unit_rate kind: parameter dtype: Rate source: 26 USC 42(g) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: 20 percent or more of the residential units versions: - effective_from: '2024-01-01' formula: '0.20'

- name: twenty_fifty_test_income_limit_rate kind: parameter dtype: Rate source: 26 USC 42(g) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: 50 percent or less of area median gross income versions: - effective_from: '2024-01-01' formula: '0.50'

- name: project_meets_twenty_fifty_test kind: derived entity: Project dtype: Judgment period: Year source: 26 USC 42(g) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: >- 20 percent or more of the residential units in such project are both rent-restricted and occupied - path: versions[0].formula kind: import import: target: us:statutes/26/42#twenty_fifty_test_minimum_unit_rate output: twenty_fifty_test_minimum_unit_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- rent_restricted_units_occupied_by_individuals_at_or_below_fifty_percent_area_median_income >= twenty_fifty_test_minimum_unit_rate * residential_units_in_project

- name: nonprofit_set_aside_maximum_other_project_rate kind: parameter dtype: Rate source: 26 USC 42(h) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: Not more than 90 percent of the State housing credit ceiling versions: - effective_from: '2024-01-01' formula: '0.90'

- name: maximum_state_ceiling_allocable_to_projects_other_than_qualified_nonprofit_projects kind: derived entity: HousingCreditAgency dtype: Money period: Year unit: USD source: 26 USC 42(h) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: Not more than 90 percent of the State housing credit ceiling - path: versions[0].formula kind: import import: target: us:statutes/26/42#nonprofit_set_aside_maximum_other_project_rate output: nonprofit_set_aside_maximum_other_project_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: nonprofit_set_aside_maximum_other_project_rate * state_housing_credit_ceiling

- name: qualified_nonprofit_financing_eligible_basis_attribution_limit_rate kind: parameter dtype: Rate source: 26 USC 42(k) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: not more than 60 percent of the eligible basis versions: - effective_from: '2024-01-01' formula: '0.60'

- name: qualified_nonprofit_financing_attribution_requirement_met kind: derived entity: Building dtype: Judgment period: Year source: 26 USC 42(k) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: >- not more than 60 percent of the eligible basis of the qualified low-income building is attributable to such financing - path: versions[0].formula kind: import import: target: us:statutes/26/42#qualified_nonprofit_financing_eligible_basis_attribution_limit_rate output: qualified_nonprofit_financing_eligible_basis_attribution_limit_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- eligible_basis_attributable_to_qualified_nonprofit_financing <= qualified_nonprofit_financing_eligible_basis_attribution_limit_rate * eligible_basis_of_qualified_low_income_building