Page:United States Statutes at Large Volume 104 Part 2.djvu/885

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PUBLIC LAW 101-508 —NOV. 5, 1990 104 STAT. 1388-477 SEC. 11408. QUALIFIED MORTGAGE BONDS. (a) IN GENERAL. —Subparagraph (B) of section 143(a)(l) (defining qualified mortgage bond) is amended by striking "September 30, 1990" each place it appears and inserting "December 31, 1991". G)) MORTGAGE CREDIT CERTIFICATES.— Subsection (h) of section 25 (relating to interest on certain home mortgages) is amended by striking "September 30, 1990" and inserting "December 31, 1991". (c) MODIFICATION AND SIMPUFICATION OF RECAPTURE RULES.— (1) MODIFICATION OF HOLDING PERIOD PERCENTAGE. — (A) Clause (i) of section 143(m)(4)(C) is amended to read as follows: "(i) IN GENERAL.—The term 'holding period percentage' means the percentage determined in accordance with the following table: "If the disposition occurs during a year after the The holding period testing date which is: percentage is: The 1st such year 20 The 2d such year 40 The 3d such year 60 The 4th such year 80 The 5th such year 100 The 6th such year 80 The 7th such year 60 The 8th such year 40 The 9th such year 20. " (B) Subparagraph (C) of section 143(m)(4) is amended by striking clause (ii) and by redesignating clause (iii) as clause (ii). (C) Subparagraph (B) of section 143(m)(2) is amended by striking "10 years" and inserting "9 years". (2) MODIFICATION OF RECAPTURE AMOUNT BASED ON TAXPAYER'S INCOME. — (A) Subparagraph (A) of section 143(m)(4) is amended by striking "and" at the end of clause (i), by striking the period at the end of clause (ii) and inserting ", and", and by adding at the end thereof the following new clause: "(iii) the income percentage." (B) Paragraph (4) of section 143(m) is amended by adding at the end thereof the following new subparagraph: "(E) INCOME PERCENTAGE. —The term 'income percentage' means the percentage (but not greater than 100 percent) which— "(i) the excess of— "(I) the modified adjusted gross income of the taxpayer for the taxable year in which the disposition occurs, over "(II) the adjusted qualifying income for such taxable year, bears to "(ii) $5,000. The percentage determined under the preceding sentence shall be rounded to the nearest whole percentage point (or, if it includes a half of a percentage point, shall be increased to the nearest whole percentage point)." (C)(i) Paragraph (5) of section 143(m) is amended by striking all that precedes subparagraph (C) and inserting the following: