PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2193
"(C) No REDUCTION FOR DEPRECIATION.—The adjusted basis of any building shall be determined without regard to paragraphs (2) and (3) of section 1016(a). "(5) ELIGIBLE BASIS DETERMINED WHEN BUILDING PLACED IN SERVICE.—
"(A) IN GENERAL.—Except as provided in subparagraph (B), the eligible basis of any building for the entire compliance period for such building shall be its eligible basis on the date such building is placed in service. "(B) ELIGIBLE BASIS REDUCED BY FEDERAL GRANTS.—If,
during any taxable year of the compliance period, a grant is made with respect to any building or the operation thereof and any portion of such grant is funded with Federal funds (whether or not includible in gross income), the eligible basis of such building for such taxable year and all succeeding taxable years shall be reduced by the portion of such grant which is so funded. "(6) CREDIT ALLOWABLE FOR CERTAIN FEDERALLY-ASSISTED BUILDINGS ACQUIRED DURING 10-YEAR PERIOD DESCRIBED IN PARAGRAPH (2)(B) (ii).—
"(A) IN GENERAL.—On application by the taxpayer, the Secretary (after consultation with the appropriate Federal official) may waive paragraph (2)(B)(ii) with respect to any federally-assisted building if the Secretary determines that such waiver is necessary— "(i) to avert an assignment of the mortgage secured by property in the project (of which such building is a part) to the Department of Housing and Urban Development or the Farmers' Home Administration, "(ii) to avert a claim against a Federal mortgage insurance fund (or such Department or Administration) with respect to a mortgage which is so secured, or "(iii) to the extent provided in regulations, by reason of other circumstances of financial distress. The preceding sentence shall not apply to any building described in paragraph (7)(B). "(B)
FEDERALLY-ASSISTED BUILDING.—For
purposes
of
subparagraph (A), the term 'federally-assisted building' means any building which is substantially assisted, financed, or operated under— "(i) section 8 of the United States Housing Act of 1937 "(ii) section 221(d)(3) or 236 of the National Housing Act of 1934, or "(iii) section 515 of the Housing Act of 1949, as such Acts are in effect on the date of the enactment of the Tax Reform Act of 1986. "(C) APPROPRIATE FEDERAL OFFICIAL.—For purposes of
subparagraph (A), the term 'appropriate Federal official' means— "(i) the Secretary of Housing and Urban Development in the case of any building described in subparagraph (B) by reason of clause (i) or (ii) thereof, and "(ii) the Secretary of Agriculture in the case of any building described in subparagraph (B) by reason of clause (iii) thereof.
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