View all text of Subpart A [§ 141 - § 147]

§ 146. Volume cap
(a) General rule
(b) Volume cap for State agenciesFor purposes of this section—
(1) In general
(2) Special rule where State has more than 1 agency
(c) Volume cap for other issuersFor purposes of this section—
(1) In generalThe 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—
(A) the population of the jurisdiction of such issuing authority, bears to
(B) the population of the entire State.
(2) Overlapping jurisdictions
(d) State ceilingFor purposes of this section—
(1) In generalThe State ceiling applicable to any State for any calendar year shall be the greater of—
(A) an amount equal to $75 ($62.50 in the case of calendar year 2001) multiplied by the State population, or
(B) $225,000,000 ($187,500,000 in the case of calendar year 2001).
(2) Cost-of-living adjustmentIn 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—
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 2001” for “calendar year 2016” in subparagraph (A)(ii) thereof.
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.
(3) Special rule for States with constitutional home rule citiesFor purposes of this section—
(A) In general
(B) Coordination with other allocations
(C) Constitutional home rule city
(4) Special rule for possessions with populations of less than the population of the least populous State
(A) In general
(B) LimitationThe limitation determined under this subparagraph, with respect to a possession, for any calendar year is an amount equal to the product of—
(i) the fraction—(I) the numerator of which is the amount applicable under paragraph (1)(B) for such calendar year, and(II) the denominator of which is the State population of the least populous State (other than a possession) for such calendar year, and
(ii) the population of such possession for such calendar year.
(5) Increase and set aside for housing bonds for 2008
(A) Increase for 2008In 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—
(i) the numerator of which is the State ceiling applicable to the State for calendar year 2008, determined without regard to this paragraph, and
(ii) the denominator of which is the sum of the State ceilings determined under clause (i) for all States.
(B) Set aside
(i) In general
(ii) Qualified housing issueFor purposes of this paragraph, the term “qualified housing issue” means—(I) an issue described in section 142(a)(7) (relating to qualified residential rental projects), or(II) a qualified mortgage issue (determined by substituting “12-month period” for “42-month period” each place it appears in section 143(a)(2)(D)(i)).
(e) State may provide for different allocationFor purposes of this section—
(1) In general
(2) Interim authority for Governor
(A) In general
(B) Termination of authorityThe authority provided in subparagraph (A) shall not apply to bonds issued after the earlier of—
(i) the last day of the 1st calendar year after 1986 during which the legislature of the State met in regular session, or
(ii) the effective date of any State legislation with respect to the allocation of the State ceiling.
(3) State may not alter allocation to constitutional home rule cities
(f) Elective carryforward of unused limitation for specified purpose
(1) In generalIf—
(A) an issuing authority’s volume cap for any calendar year after 1985, exceeds
(B) the aggregate amount of tax-exempt private activity bonds issued during such calendar year by such authority,
such authority may elect to treat all (or any portion) of such excess as a carryforward for 1 or more carryforward purposes.
(2) Election must identify purposeIn any election under paragraph (1), the issuing authority shall—
(A) identify the purpose for which the carryforward is elected, and
(B) specify the portion of the excess described in paragraph (1) which is to be a carryforward for each such purpose.
(3) Use of carryforward
(A) In general
(B) Order in which carryforward used
(4) Election
(5) Carryforward purposeThe term “carryforward purpose” means—
(A) the purpose of issuing exempt facility bonds described in 1 of the paragraphs of section 142(a),
(B) the purpose of issuing qualified mortgage bonds or mortgage credit certificates,
(C) the purpose of issuing qualified student loan bonds, and
(D) the purpose of issuing qualified redevelopment bonds.
(6) Special rules for increased volume cap under subsection (d)(5)No amount which is attributable to the increase under subsection (d)(5) may be used—
(A) for any issue other than a qualified housing issue (as defined in subsection (d)(5)), or
(B) to issue any bond after calendar year 2010.
(g) Exception for certain bonds
(1) any qualified veterans’ mortgage bond,
(2) any qualified 501(c)(3) bond,
(3) any exempt facility bond issued as part of an issue described in paragraph (1), (2), (12), (13), (14), or (15) of section 142(a),
(4) 75 percent of any exempt facility bond issued as part of an issue described in paragraph (11) of section 142(a) (relating to high-speed intercity rail facilities),
(5) 75 percent of any exempt facility bond issued as part of an issue described in paragraph (16) of section 142(a) (relating to qualified broadband projects), and
(6) 75 percent of any exempt facility bond issued as part of an issue described in paragraph (17) of section 142(a) (relating to qualified carbon dioxide capture facilities).
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)).
(h) Exception for government-owned solid waste disposal facilities
(1) In general
(2) Safe harbor for determination of government ownership
(i) Treatment of refunding issuesFor purposes of the volume cap imposed by this section—
(1) In general
(2) Special rules for student loan bondsIn 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—
(A) the average maturity date of the qualified student loan bonds to be refunded by the issue of which the refunding bond is a part, or
(B) the date 17 years after the date on which the refunded bond was issued (or in the case of a series of refundings, the date on which the original bond was issued).
(3) Special rules for qualified mortgage bondsIn 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—
(A) the average maturity date of the qualified mortgage bonds to be refunded by the issue of which the refunding bond is a part, or
(B) the date 32 years after the date on which the refunded bond was issued (or in the case of a series of refundings, the date on which the original bond was issued).
(4) Average maturity
(5) Exception for advance refunding
(6) Treatment of certain residential rental project bonds as refunding bonds irrespective of obligor
(A) In general
(B) LimitationsSubparagraph (A) shall apply to only one refunding of the original issue and only if—
(i) the refunding issue is issued not later than 4 years after the date on which the original issue was issued,
(ii) the latest maturity date of any bond of the refunding issue is not later than 34 years after the date on which the refunded bond was issued, and
(iii) the refunding issue is approved in accordance with section 147(f) before the issuance of the refunding issue.
(j) Population
(k) Facility must be located within State
(1) In general
(2) Exception for certain facilities where State will get proportionate share of benefits
(3) Treatment of governmental bonds to which volume cap allocatedParagraph (1) shall not apply to any bond to which volume cap is allocated under section 141(b)(5)—
(A) for an output facility, or
(B) for a facility of a type described in paragraph (4), (5), (6), or (10) of section 142(a),
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.
(l) Issuer of qualified scholarship funding bonds
(m) Treatment of amounts allocated to private activity portion of government use bonds
(1) In general
(2) Advance refundings
(n) Reduction for mortgage credit certificates, etc.The volume cap of any issuing authority for any calendar year shall be reduced by the sum of—
(1) the amount of qualified mortgage bonds which such authority elects not to issue under section 25(c)(2)(A)(ii) during such year, plus
(2) the amount of any reduction in such ceiling under section 25(f) applicable to such authority for such year.
(Added Pub. L. 99–514, title XIII, § 1301(b), Oct. 22, 1986, 100 Stat. 2630; amended Pub. L. 100–203, title X, § 10631(b), Dec. 22, 1987, 101 Stat. 1330–455; Pub. L. 100–647, title I, § 1013(a)(9), (10), (28), (40), title VI, § 6180(b)(3), Nov. 10, 1988, 102 Stat. 3538, 3543, 3544, 3728; Pub. L. 101–239, title VII, § 7816(s)(2), Dec. 19, 1989, 103 Stat. 2423; Pub. L. 102–486, title XIX, § 1921(b)(3), Oct. 24, 1992, 106 Stat. 3028; Pub. L. 103–66, title XIII, § 13121(a), Aug. 10, 1993, 107 Stat. 432; Pub. L. 105–277, div. J, title II, § 2021(a), Oct. 21, 1998, 112 Stat. 2681–903; Pub. L. 106–554, § 1(a)(7) [title I, § 161(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–624; Pub. L. 107–16, title IV, § 422(c), June 7, 2001, 115 Stat. 66; Pub. L. 108–357, title VII, § 701(c), Oct. 22, 2004, 118 Stat. 1539; Pub. L. 109–59, title XI, § 11143(c), Aug. 10, 2005, 119 Stat. 1965; Pub. L. 110–289, div. C, title I, §§ 3007(a), 3021(a), July 30, 2008, 122 Stat. 2886, 2892; Pub. L. 115–97, title I, § 11002(d)(1)(O), Dec. 22, 2017, 131 Stat. 2060; Pub. L. 117–58, div. H, title IV, §§ 80401(c), 80402(c), Nov. 15, 2021, 135 Stat. 1331, 1334.)