12 2 STA T . 1 506PUBLIC LA W 110 – 2 34—M A Y 22 , 200 8credit r a te w it h re sp ect t o a nyqu a l i f ied ta x credit b ond shall be deter m ined as of the first day on which there is a bindin g, written contract for the sale or exchange of the bond .‘ ‘ (4)SPECIALRU LE FO RI S SUA N CE AN D REDE M P T ION. —I n the case of a bond which is issued during the 3- month period ending on a credit allowance date, the amount of the credit determined under this subsection with respect to such credit allowance date shall be a ratable portion of the credit otherwise determined based on the portion of the 3-month period during which the bond is outstanding. A similar rule shall apply when the bond is redeemed or matures. ‘‘(c) L IMITATION B ASED ON AMOUNT OF T A X .— ‘‘( 1 )IN G ENERAL.—The credit allowed under subsection (a) for any taxable year shall not exceed the excess of— ‘‘(A) the sum of the regular tax liability (as defined in section 26 (b)) plus the tax imposed by section 5 5,o v er ‘‘(B) the sum of the credits allowable under this part (other than subpart C and this subpart). ‘‘(2) CARR Y O V ER OF UNUSED CREDIT.—If the credit allowable under subsection (a) exceeds the limitation imposed by para- graph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year). ‘‘(d) Q UALIFIED TAX CREDIT BOND.— F or purposes of this sec- tion— ‘‘(1) QUALIFIED TAX CREDIT B OND.—The term ‘qualified tax credit bond ’ means a qualified forestry conservation bond which is part of an issue that meets the requirements of paragraphs (2), (3), (4), (5), and (6). ‘‘(2) SPECIAL RULES RELATING TO EXPENDITURES.— ‘‘(A) IN GENERAL.—An issue shall be treated as meeting the requirements of this paragraph if, as of the date of issuance, the issuer reasonably expects— ‘‘(i) 1 0 0 percent or more of the available pro j ect proceeds to be spent for 1 or more qualified purposes within the 3-year period beginning on such date of issuance, and ‘‘(ii) a binding commitment with a third party to spend at least 10 percent of such available project proceeds will be incurred within the 6-month period beginning on such date of issuance. ‘‘(B) FAILURE TO SPEND RE Q UIRED AMOUNT OF BOND PROCEEDS W IT H IN 3 YEARS.— ‘‘(i) IN GENERAL.—To the extent that less than 100 percent of the available project proceeds of the issue are expended by the close of the expenditure period for 1 or more qualified purposes, the issuer shall redeem all of the nonqualified bonds within 9 0 days after the end of such period. For purposes of this paragraph, the amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as under section 142. ‘‘(ii) E XPENDITURE PERIOD.—For purposes of this subpart, the term ‘expenditure period’ means, with respect to any issue, the 3-year period beginning on Ap p licab ili ty.
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