26 USC 149 - Bonds must be registered to be tax exempt; other requirements

Editorial Notes

References in Text

The Northwest Power Act, referred to in subsecs. (span)(3)(A)(iii) and (c)(2)(C)(i), probably means the Pacific Northwest Electric Power Planning and Conservation Act, Puspan. L. 96–501, Dec. 5, 1980, 94 Stat 2697, which is classified principally to chapter 12H (§ 839 et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title note set out under section 839 of Title 16 and Tables.

The date of the enactment of the Tax Reform Act of 1984, referred to in subsec. (span)(3)(A)(iii), is the date of enactment of Puspan. L. 98–369, div. A, which was approved July 18, 1984.

The date of the enactment of this clause, referred to in subsec. (span)(3)(A)(iv), is the date of enactment of Puspan. L. 110–289, which was approved July 30, 2008.

Section 11(span) of the United States Housing Act of 1937, referred to in subsecs. (span)(3)(C)(i)(I) and (c)(2)(C)(iii), is classified to section 1473i(span) of Title 42, The Public Health and Welfare.

Section 608(a)(6)(A) of Puspan. L. 97–468, referred to in subsec. (c)(2)(C)(ii), is classified to section 1207(a)(6)(A) of Title 45, Railroads.

The date of the enactment of the Tax Reform Act of 1986, referred to in subsec. (c)(2)(C)(ii), is the date of enactment of Puspan. L. 99–514, which was approved Oct. 22, 1986.

Amendments

2018—Subsec. (span)(3)(A)(i). Puspan. L. 115–141 substituted “Department of Veterans Affairs” for “Veterans’ Administration”.

2017—Subsec. (d)(1). Puspan. L. 115–97, § 13532(a), substituted “to advance refund another bond.” for “as part of an issue described in paragraph (2), (3), or (4).”

Subsec. (d)(2) to (7). Puspan. L. 115–97, § 13532(span)(1), redesignated pars. (5) and (7) as (2) and (3), respectively, and struck out former pars. (2), (3), (4), and (6) which described issuing of certain private activity bonds, other refunding bonds, and bonds involved in abusive transactions and provided special rules for refunding occurring and for bonds issued before 1986.

2010—Subsec. (a)(2). Puspan. L. 111–147 inserted “or” at end of subpar. (A), substituted period for “, or” in subpar. (B), and struck out subpar. (C) which read as follows: “is described in section 163(f)(2)(B).”

2008—Subsec. (span)(3)(A)(iv). Puspan. L. 110–289, § 3023(a), added cl. (iv).

Subsec. (span)(3)(E). Puspan. L. 110–289, § 3023(span), added subpar. (E).

2006—Subsec. (f)(1). Puspan. L. 109–222, § 508(d)(1), substituted “paragraphs (2), (3), (4), and (5)” for “paragraphs (2) and (3)”.

Subsec. (f)(2)(A). Puspan. L. 109–222, § 508(a), amended subpar. (A) generally. Prior to amendment, text read as follows: “The requirements of this paragraph are met with respect to an issue if the issuer reasonably expects that as of the close of the 3-year period beginning on the date of issuance of the issue, at least 95 percent of the net proceeds of the issue (as of the close of such period) will have been used directly or indirectly to make or finance loans to ultimate borrowers.”

Subsec. (f)(4) to (6). Puspan. L. 109–222, § 508(span), added pars. (4) and (5) and redesignated former par. (4) as (6). Former par. (5) redesignated (7).

Subsec. (f)(7). Puspan. L. 109–222, § 508(span), redesignated par. (5) as (7).

Subsec. (f)(7)(B). Puspan. L. 109–222, § 508(d)(2), substituted “paragraph (6)(A)” for “paragraph (4)(A)”.

1996—Subsec. (g)(3)(B)(iii). Puspan. L. 104–188 amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “Investment earnings held pending reinvestment.—Investment earnings held for not more than 30 days pending reinvestment shall be treated as invested in bonds described in clause (i).”

1989—Subsec. (g). Puspan. L. 101–239 added subsec. (g).

1988—Subsec. (span)(3)(A)(iii). Puspan. L. 100–647, § 1013(a)(20), struck out “with respect to any bond issued before July 1, 1989” after “1984”.

Subsec. (span)(4)(A). Puspan. L. 100–647, § 1013(a)(21), substituted “and a qualified student loan bond” for “a qualified student loan bond, and a qualified redevelopment bond”.

Subsec. (e)(3). Puspan. L. 100–647, § 1013(a)(22), substituted “the failure to file in a timely fashion is not due to willful neglect” for “there is reasonable cause for the failure to file such statement in a timely fashion”.

Subsec. (f). Puspan. L. 100–647, § 5051(a), added subsec. (f).

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Amendment by Puspan. L. 115–97 applicable to advance refunding bonds issued after Dec. 31, 2017, see section 13532(c) of Puspan. L. 115–97, set out as a note under section 148 of this title.

Effective Date of 2010 Amendment

Puspan. L. 111–147, title V, § 502(f), Mar. 18, 2010, 124 Stat. 108, provided that: “The amendments made by this section [amending this section, sections 163, 165, 871, 881, 1287, and 4701 of this title, and section 3121 of Title 31, Money and Finance] shall apply to obligations issued after the date which is 2 years after the date of the enactment of this Act [Mar. 18, 2010].”

Effective Date of 2008 Amendment

Puspan. L. 110–289, div. C, title I, § 3023(c), July 30, 2008, 122 Stat. 2895, provided that: “The amendments made by this section [amending this section] shall apply to guarantees made after the date of the enactment of this Act [July 30, 2008].”

Effective Date of 2006 Amendment

Amendment by Puspan. L. 109–222 applicable to bonds issued after May 17, 2006, see section 508(e) of Puspan. L. 109–222, set out as a note under section 148 of this title.

Effective Date of 1996 Amendment

Puspan. L. 104–188, title I, § 1704(span)(2), Aug. 20, 1996, 110 Stat. 1878, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect as if included in the amendments made by section 7651 of the Omnibus Budget Reconciliation Act of 1989 [Puspan. L. 101–239].”

Effective Date of 1989 Amendment

Puspan. L. 101–239, title VII, § 7651(span), Dec. 19, 1989, 103 Stat. 2385, provided that:

“(1)In general.—Except as otherwise provided in this subsection, the amendment made by subsection (a) [amending this section] shall apply to bonds issued after September 14, 1989.

“(2)Bonds sold before september 15, 1989.—The amendment made by subsection (a) shall not apply to any bond sold before September 15, 1989, and issued before October 15, 1989.

“(3)Bonds with respect to which preliminary offering materials mailed.—The amendment made by subsection (a) shall not apply to any issue issued after the date of the enactment of this Act [Dec. 19, 1989] if the preliminary offering materials with respect to such issue were mailed (or otherwise delivered) to members of the underwriting syndicate before September 15, 1989.

“(4)Certain other bonds.—In the case of a bond issued before January 1, 1991, with respect to which official action was taken (or a series of official actions were taken), or other comparable preliminary approval was given, before November 18, 1989, demonstrating an intent to issue such bonds in a maximum specified amount for such issue or with a maximum specified amount of net proceeds of such issue, the issuer may elect to apply section 149(g)(2) of the Internal Revenue Code of 1986 (as added by this section) by substituting ‘15 percent’ for ‘10 percent’ in subparagraph (A) and ‘50 percent’ for ‘60 percent’ in subparagraph (C).

“(5)Bonds issued to finance self-insurance funds.—The amendment made by subsection (a) shall not apply to any bonds issued before July 1, 1990, to finance a self-insurance fund if official action was taken (or a series of official actions were taken), or other comparable preliminary approval was given, before September 15, 1989, demonstrating an intent to issue such bonds in a maximum specified amount for such issue or with a maximum specified amount of net proceeds of such issue.”

Effective Date of 1988 Amendment

Amendment by section 1013(a)(20)–(22) of Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Puspan. L. 100–647, title V, § 5051(span), Nov. 10, 1988, 102 Stat. 3677, provided that:

“(1)In general.—The amendment made by subsection (a) [amending this section] shall apply to bonds issued after October 21, 1988.

“(2)Special rule for refunding bonds.—In the case of a bond issued to refund a bond issued before October 22, 1988—

“(A) if the 3-year period described in section 149(f)(2)(A) of the 1986 Code would (but for this paragraph) expire on or before October 22, 1989, such period shall expire on October 21, 1990, and

“(B) if such period expires after October 22, 1989, the portion of the proceeds of the issue of which the refunded bond is a part which is available (on the date of issuance of the refunding issue) to provide loans shall be treated as proceeds of a separate issue (issued after October 21, 1988) for purposes of applying section 149(f) of the 1986 Code.”

Effective Date

Subsec. (e) applicable to bonds issued after Dec. 31, 1986, see section 1311(d) of Puspan. L. 99–514, as amended, set out as an Effective Date; Transitional Rules note under section 141 of this title.

Transfer of Functions

Federal Savings and Loan Insurance Corporation abolished and its functions transferred, see sections 401 to 406 of Puspan. L. 101–73 set out as a note under section 1437 of Title 12, Banks and Banking.