26 U.S.C. § 146
Section 146 · Volume cap
Version as of December 21, 2000, with additions and removals from the October 21, 1998 version.
A private activity bond issued as part of an issue meets the requirements of this section if the aggregate face amount of the private activity bonds issued pursuant to such issue, when added to the aggregate face amount of tax-exempt private activity bonds previously issued by the issuing authority during the calendar year, does not exceed such authority's volume cap for such calendar year.
A private activity bond issued as part of an issue meets the requirements of this section if the aggregate face amount of the private activity bonds issued pursuant to such issue, when added to the aggregate face amount of tax-exempt private activity bonds previously issued by the issuing authority during the calendar year, does not exceed such authority's volume cap for such calendar year.
For purposes of this section—
For purposes of this section—
(1) In general
(1) In general
The volume cap for any agency of the State authorized to issue tax-exempt private activity bonds for any calendar year shall be 50 percent of the State ceiling for such calendar year.
The volume cap for any agency of the State authorized to issue tax-exempt private activity bonds for any calendar year shall be 50 percent of the State ceiling for such calendar year.
(2) Special rule where State has more than 1 agency
(2) Special rule where State has more than 1 agency
If more than 1 agency of the State is authorized to issue tax-exempt private activity bonds, all such agencies shall be treated as a single agency.
If more than 1 agency of the State is authorized to issue tax-exempt private activity bonds, all such agencies shall be treated as a single agency.
For purposes of this section—
For purposes of this section—
(1) In general
(1) In general
The 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—
The 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
(A) the population of the jurisdiction of such issuing authority, bears to
(B) the population of the entire State.
(B) the population of the entire State.
(2) Overlapping jurisdictions
(2) Overlapping jurisdictions
For purposes of paragraph (1)(A), if an area is within the jurisdiction of 2 or more governmental units, such area shall be treated as only within the jurisdiction of the unit having jurisdiction over the smallest geographical area unless such unit agrees to surrender all or part of such jurisdiction for such calendar year to the unit with overlapping jurisdiction which has the next smallest geographical area.
For purposes of paragraph (1)(A), if an area is within the jurisdiction of 2 or more governmental units, such area shall be treated as only within the jurisdiction of the unit having jurisdiction over the smallest geographical area unless such unit agrees to surrender all or part of such jurisdiction for such calendar year to the unit with overlapping jurisdiction which has the next smallest geographical area.
For purposes of this section—
For purposes of this section—
(1) In general
(1) In general
The State ceiling applicable to any State for any calendar year shall be the greater of—
The State ceiling applicable to any State for any calendar year shall be the greater of—
(B) the aggregate limit for such year.
Subparagraph (B) shall not apply to any possession of the United States.
(2) Per capita limit; aggregate limit
For purposes of paragraph (1), the per capita limit, and the aggregate limit, for any calendar year shall be determined in accordance with the following table:
(B) $225,000,000 ($187,500,000 in the case of calendar year 2001).
(2) Cost-of-living adjustment
In 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 1992” in subparagraph (B) 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 cities
(3) Special rule for States with constitutional home rule cities
For purposes of this section—
For purposes of this section—
(A) In general
(A) In general
The volume cap for any constitutional home rule city for any calendar year shall be determined under paragraph (1) of subsection (c) by substituting “100 percent” for “50 percent”.
The volume cap for any constitutional home rule city for any calendar year shall be determined under paragraph (1) of subsection (c) by substituting “100 percent” for “50 percent”.
(B) Coordination with other allocations
(B) Coordination with other allocations
In the case of any State which contains 1 or more constitutional home rule cities, for purposes of applying subsections (b) and (c) with respect to issuing authorities in such State other than constitutional home rule cities, the State ceiling for any calendar year shall be reduced by the aggregate volume caps determined for such year for all constitutional home rule cities in such State.
In the case of any State which contains 1 or more constitutional home rule cities, for purposes of applying subsections (b) and (c) with respect to issuing authorities in such State other than constitutional home rule cities, the State ceiling for any calendar year shall be reduced by the aggregate volume caps determined for such year for all constitutional home rule cities in such State.
(C) Constitutional home rule city
(C) Constitutional home rule city
For purposes of this section, the term “constitutional home rule city” means, with respect to any calendar year, any political subdivision of a State which, under a State constitution which was adopted in 1970 and effective on July 1, 1971, had home rule powers on the 1st day of the calendar year.
For purposes of this section, the term “constitutional home rule city” means, with respect to any calendar year, any political subdivision of a State which, under a State constitution which was adopted in 1970 and effective on July 1, 1971, had home rule powers on the 1st day of the calendar year.
(4) Special rule for possessions with populations of less than the population of the least populous State
(4) Special rule for possessions with populations of less than the population of the least populous State
(A) In general
(A) In general
If the population of any possession of the United States for any calendar year is less than the population of the least populous State (other than a possession) for such calendar year, the limitation under paragraph (1)(A) shall not be less than the amount determined under subparagraph (B) for such calendar year.
If the population of any possession of the United States for any calendar year is less than the population of the least populous State (other than a possession) for such calendar year, the limitation under paragraph (1)(A) shall not be less than the amount determined under subparagraph (B) for such calendar year.
(B) Limitation
(B) Limitation
The limitation determined under this subparagraph, with respect to a possession, for any calendar year is an amount equal to the product of—
The 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 fraction—
(I) the numerator of which is the amount applicable under paragraph (1)(B) for such calendar year, and
(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 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.
(ii) the population of such possession for such calendar year.
For purposes of this section—
For purposes of this section—
(1) In general
(1) In general
Except as provided in paragraph (3), a State may, by law provide a different formula for allocating the State ceiling among the governmental units (or other authorities) in such State having authority to issue tax-exempt private activity bonds.
Except as provided in paragraph (3), a State may, by law provide a different formula for allocating the State ceiling among the governmental units (or other authorities) in such State having authority to issue tax-exempt private activity bonds.
(2) Interim authority for Governor
(2) Interim authority for Governor
(A) In general
(A) In general
Except as otherwise provided in paragraph (3), the Governor of any State may proclaim a different formula for allocating the State ceiling among the governmental units (or other authorities) in such State having authority to issue private activity bonds.
Except as otherwise provided in paragraph (3), the Governor of any State may proclaim a different formula for allocating the State ceiling among the governmental units (or other authorities) in such State having authority to issue private activity bonds.
(B) Termination of authority
(B) Termination of authority
The authority provided in subparagraph (A) shall not apply to bonds issued after the earlier of—
The 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
(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.
(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
(3) State may not alter allocation to constitutional home rule cities
Except as otherwise provided in a State constitutional amendment (or law changing the home rule provision adopted in the manner provided by the State constitution), the authority provided in this subsection shall not apply to that portion of the State ceiling which is allocated to any constitutional home rule city in the State unless such city agrees to such different allocation.
Except as otherwise provided in a State constitutional amendment (or law changing the home rule provision adopted in the manner provided by the State constitution), the authority provided in this subsection shall not apply to that portion of the State ceiling which is allocated to any constitutional home rule city in the State unless such city agrees to such different allocation.
(1) In general
(1) In general
If—
If—
(A) an issuing authority's volume cap for any calendar year after 1985, exceeds
(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,
(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.
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 purpose
(2) Election must identify purpose
In any election under paragraph (1), the issuing authority shall—
In any election under paragraph (1), the issuing authority shall—
(A) identify the purpose for which the carryforward is elected, and
(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.
(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
(3) Use of carryforward
(A) In general
(A) In general
If any issuing authority elects a carryforward under paragraph (1) with respect to any carryforward purpose, any private activity bonds issued by such authority with respect to such purpose during the 3 calendar years following the calendar year in which the carryforward arose shall not be taken into account under subsection (a) to the extent the amount of such bonds does not exceed the amount of the carryforward elected for such purpose.
If any issuing authority elects a carryforward under paragraph (1) with respect to any carryforward purpose, any private activity bonds issued by such authority with respect to such purpose during the 3 calendar years following the calendar year in which the carryforward arose shall not be taken into account under subsection (a) to the extent the amount of such bonds does not exceed the amount of the carryforward elected for such purpose.
(B) Order in which carryforward used
(B) Order in which carryforward used
Carryforwards elected with respect to any purpose shall be used in the order of the calendar years in which they arose.
Carryforwards elected with respect to any purpose shall be used in the order of the calendar years in which they arose.
(4) Election
(4) Election
Any election under this paragraph (and any identification or specification contained therein), once made, shall be irrevocable.
Any election under this paragraph (and any identification or specification contained therein), once made, shall be irrevocable.
(5) Carryforward purpose
(5) Carryforward purpose
The term “carryforward purpose” means—
The term “carryforward purpose” means—
(A) the purpose of issuing exempt facility bonds described in 1 of the paragraphs of section 142(a),
(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,
(B) the purpose of issuing qualified mortgage bonds or mortgage credit certificates,
(C) the purpose of issuing qualified student loan bonds, and
(C) the purpose of issuing qualified student loan bonds, and
(D) the purpose of issuing qualified redevelopment bonds.
(D) the purpose of issuing qualified redevelopment bonds.
Only for purposes of this section, the term “private activity bond” shall not include—
Only for purposes of this section, the term “private activity bond” shall not include—
(1) any qualified veterans’ mortgage bond,
(1) any qualified veterans’ mortgage bond,
(2) any qualified 501(c)(3) bond,
(2) any qualified 501(c)(3) bond,
(3) any exempt facility bond issued as part of an issue described in paragraph (1), (2), or (12) of section 142(a) (relating to airports, docks and wharves, and environmental enhancements of hydroelectric generating facilities), and
(3) any exempt facility bond issued as part of an issue described in paragraph (1), (2), or (12) of section 142(a) (relating to airports, docks and wharves, and environmental enhancements of hydroelectric generating facilities), and
(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).
(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).
Paragraph (4) 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)).
Paragraph (4) 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)).
(1) In general
(1) In general
Only for purposes of this section, the term “private activity bond” shall not include any exempt facility bond described in section 142(a)(6) which is issued as part of an issue if all of the property to be financed by the net proceeds of such issue is to be owned by a governmental unit.
Only for purposes of this section, the term “private activity bond” shall not include any exempt facility bond described in section 142(a)(6) which is issued as part of an issue if all of the property to be financed by the net proceeds of such issue is to be owned by a governmental unit.
(2) Safe harbor for determination of government ownership
(2) Safe harbor for determination of government ownership
In determining ownership for purposes of paragraph (1), section 142(b)(1)(B) shall apply, except that a lease term shall be treated as satisfying clause (ii) thereof if it is not more than 20 years.
In determining ownership for purposes of paragraph (1), section 142(b)(1)(B) shall apply, except that a lease term shall be treated as satisfying clause (ii) thereof if it is not more than 20 years.
For purposes of the volume cap imposed by this section—
For purposes of the volume cap imposed by this section—
(1) In general
(1) In general
The term “private activity bond” shall not include any bond which is issued to refund another bond to the extent that the amount of such bond does not exceed the outstanding amount of the refunded bond.
The term “private activity bond” shall not include any bond which is issued to refund another bond to the extent that the amount of such bond does not exceed the outstanding amount of the refunded bond.
(2) Special rules for student loan bonds
(2) Special rules for student loan bonds
In 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—
In 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
(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).
(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 bonds
(3) Special rules for qualified mortgage bonds
In 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—
In 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
(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).
(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
(4) Average maturity
For purposes of paragraphs (2) and (3), average maturity shall be determined in accordance with section 147(b)(2)(A).
For purposes of paragraphs (2) and (3), average maturity shall be determined in accordance with section 147(b)(2)(A).
(5) Exception for advance refunding
(5) Exception for advance refunding
This subsection shall not apply to any bond issued to advance refund another bond.
This subsection shall not apply to any bond issued to advance refund another bond.
For purposes of this section, determinations of the population of any State (or issuing authority) shall be made with respect to any calendar year on the basis of the most recent census estimate of the resident population of such State (or issuing authority) released by the Bureau of Census before the beginning of such calendar year.
For purposes of this section, determinations of the population of any State (or issuing authority) shall be made with respect to any calendar year on the basis of the most recent census estimate of the resident population of such State (or issuing authority) released by the Bureau of Census before the beginning of such calendar year.
(1) In general
(1) In general
Except as provided in paragraphs (2) and (3), no portion of the State ceiling applicable to any State for any calendar year may be used with respect to financing for a facility located outside such State.
Except as provided in paragraphs (2) and (3), no portion of the State ceiling applicable to any State for any calendar year may be used with respect to financing for a facility located outside such State.
(2) Exception for certain facilities where State will get proportionate share of benefits
(2) Exception for certain facilities where State will get proportionate share of benefits
Paragraph (1) shall not apply to any exempt facility bond described in paragraph (4), (5), (6), or (10) of section 142(a) if the issuer establishes that the State's share of the use of the facility (or its output) will equal or exceed the State's share of the private activity bonds issued to finance the facility.
Paragraph (1) shall not apply to any exempt facility bond described in paragraph (4), (5), (6), or (10) of section 142(a) if the issuer establishes that the State's share of the use of the facility (or its output) will equal or exceed the State's share of the private activity bonds issued to finance the facility.
(3) Treatment of governmental bonds to which volume cap allocated
(3) Treatment of governmental bonds to which volume cap allocated
Paragraph (1) shall not apply to any bond to which volume cap is allocated under section 141(b)(5)—
Paragraph (1) shall not apply to any bond to which volume cap is allocated under section 141(b)(5)—
(A) for an output facility, or
(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),
(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.
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.
In the case of a qualified scholarship funding bond, such bond shall be treated for purposes of this section as issued by a State or local issuing authority (whichever is appropriate).
In the case of a qualified scholarship funding bond, such bond shall be treated for purposes of this section as issued by a State or local issuing authority (whichever is appropriate).
(1) In general
(1) In general
The volume cap of an issuer shall be reduced by the amount allocated by the issuer to an issue under section 141(b)(5).
The volume cap of an issuer shall be reduced by the amount allocated by the issuer to an issue under section 141(b)(5).
(2) Advance refundings
(2) Advance refundings
Except as otherwise provided by the Secretary, any advance refunding of any part of an issue to which an amount was allocated under section 141(b)(5) (or would have been allocated if such section applied to such issue) shall be taken into account under this section to the extent of the amount of the volume cap which was (or would have been) so allocated.
Except as otherwise provided by the Secretary, any advance refunding of any part of an issue to which an amount was allocated under section 141(b)(5) (or would have been allocated if such section applied to such issue) shall be taken into account under this section to the extent of the amount of the volume cap which was (or would have been) so allocated.
The volume cap of any issuing authority for any calendar year shall be reduced by the sum of—
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
(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.
(2) the amount of any reduction in such ceiling under section 25(f) applicable to such authority for such year.