104 STAT. 1388-478 PUBLIC LAW 101-508—NOV. 5, 1990 " (5) ADJUSTED QUALIFYING INCOME; MODIFIED ADJUSTED GROSS INCOME. — " (A) ADJUSTED QUALIFyiNG INCOME.—For purposes of paragraph (4), the term 'adjusted qualifying income' means the product of— "(i) the highest family income which (as of the date the financing was provided) would have met the requirements of subsection (f) with respect to the residents, and "(ii) 1.05 to the nth power where 'n' equals the number of full years during the period beginning on the date the financing was provided and ending on the date of the disposition. For purposes of clause (i), highest family income shall be determined without regard to subsection (fK3XA) and on the basis of the number of members of the taxpayer's family as of the date of the disposition." (ii) Subparagraph (C) of section 143(m)(5) is redesignated as subparagraph (B) and is amended by striking "this paragraph' and inserting "paragraph (4)". (3) QniER CHANGES.— (A) Paragraph (1) of section 143(m) is amended by striking "increased by and all that follows and inserting 'Increased by the lesser of— "(A) the recapture amount with respect to such indebtedness, or "(B) 50 percent of the gain (if any) on the disposition of such interest." (B) Paragraph (6) of section 143(m) is amended— (i) by striking "LIMITATION" in the heading and inserting "SPECIAL RULES RELATING TO LIMITATION, (ii) by striking the first sentence of subparagraph (A), and (iii) by striking "the preceding sentence" in subparagraph (A) and inserting "paragraph (1)". (C) Clause (ii) of section 143(m)(7)(B) is amended to read as follows: "(ii) the adjusted qualifying income (as defined in paragraph (5)) for each category of family size for each year of the 9-year period beginning on the date the financing was provided." 26 USC 143 note. (d) EFFECTIVE DATES. — (1) BONDS. —The amendment made by subsection (a) shall apply to bonds issued after September 30, 1990. (2) CERTIFICATES. — The amendment made by subsection (b) shall apply to elections for periods after September 30, 1990. (3) SIMPLIFICATION. — The amendment made by subsection (c) shall take effect as if included in the amendments made by section 4005 of the Technical and Miscellaneous Revenue Act of 1988. SEC. 11409. QUALIFIED SMALL ISSUE BONDS. (a) IN GENERAL. — Subparagraph (B) of section 144(a)(12) (relating to termination dates) is amended by striking "September 30, 1990 ' and inserting "December 31, 1991". 26 USC 144 note. 0)) EFFECTIVE DATE.—The amendment made by this section shall apply to bonds issued after September 30, 1990.