Credit may not exceed credit amount allocated to building

Official source

(A) In general The amount of the credit determined under this section for any taxable year with respect to any building shall not exceed the housing credit dollar amount allocated to such building under this subsection.

(B) Time for making allocation Except in the case of an allocation which meets the requirements of subparagraph (C), (D), (E), or (F), an allocation shall be taken into account under subparagraph (A) only if it is made not later than the close of the calendar year in which the building is placed in service.

(C) Exception where binding commitment An allocation meets the requirements of this subparagraph if there is a binding commitment (not later than the close of the calendar year in which the building is placed in service) by the housing credit agency to allocate a specified housing credit dollar amount to such building beginning in a specified later taxable year.

(D) Exception where increase in qualified basis (i) In general An allocation meets the requirements of this subparagraph if such allocation is made not later than the close of the calendar year in which ends the taxable year to which it will 1st apply but only to the extent the amount of such allocation does not exceed the limitation under clause (ii). (ii) Limitation The limitation under this clause is the amount of credit allowable under this section (without regard to this subsection) for a taxable year with respect to an increase in the qualified basis of the building equal to the excess of— (I) the qualified basis of such building as of the close of the 1st taxable year to which such allocation will apply, over (II) the qualified basis of such building as of the close of the 1st taxable year to which the most recent prior housing credit allocation with respect to such building applied. (iii) Housing credit dollar amount reduced by full allocation Notwithstanding clause (i), the full amount of the allocation shall be taken into account under paragraph (2).

(E) Exception where 10 percent of cost incurred (i) In general An allocation meets the requirements of this subparagraph if such allocation is made with respect to a qualified building which is placed in service not later than the close of the second calendar year following the calendar year in which the allocation is made. (ii) Qualified building For purposes of clause (i), the term “qualified building” means any building which is part of a project if the taxpayer’s basis in such project (as of the date which is 1 year after the date that the allocation was made) is more than 10 percent of the taxpayer’s reasonably expected basis in such project (as of the close of the second calendar year referred to in clause (i)). Such term does not include any existing building unless a credit is allowable under subsection (e) for rehabilitation expenditures paid or incurred by the taxpayer with respect to such building for a taxable year ending during the second calendar year referred to in clause (i) or the prior taxable year.

(F) Allocation of credit on a project basis (i) In general In the case of a project which includes (or will include) more than 1 building, an allocation meets the requirements of this subparagraph if— (I) the allocation is made to the project for a calendar year during the project period, (II) the allocation only applies to buildings placed in service during or after the calendar year for which the allocation is made, and (III) the portion of such allocation which is allocated to any building in such project is specified not later than the close of the calendar year in which the building is placed in service. (ii) Project period For purposes of clause (i), the term “project period” means the period— (I) beginning with the 1st calendar year for which an allocation may be made for the 1st building placed in service as part of such project, and (II) ending with the calendar year the last building is placed in service as part of such project.

Credit may not exceed credit amount allocated to building

Official source

- 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