114 STAT. 2763A-610 PUBLIC LAW 106-554—APPENDIX G "(13) the new markets tax credit determined under section 45D(a).". (2) LIMITATION ON CARRYBACK.— Subsection (d) of section 39 is amended by adding at the end the following new paragraph: "(9) No CARRYBACK OF NEW MARKETS TAX CREDIT BEFORE JANUARY 1, 2001.— No portion of the unused business credit for any taxable year which is attributable to the credit under section 45D may be carried back to a taxable year ending before January 1, 2001.". (c) DEDUCTION FOR UNUSED CREDIT. — Subsection (c) of section 196 is amended by striking "and" at the end of paragraph (7), by striking the period at the end of paragraph (8) and inserting ", and", and by adding at the end the following new paragraph: "(9) the new markets tax credit determined under section 45D(a).". (d) CLERICAL AMENDMENT.— The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: "Sec. 45D. New markets tax credit.". (e) EFFECTIVE DATE. —The amendments made by this section shall apply to investments made after December 31, 2000. (f) GUIDANCE ON ALLOCATION OF NATIONAL LIMITATION.— Not later than 120 days after the date of the enactment of this Act, the Secretary of the Treasury or the Secretary's delegate shall issue guidance which specifies— (1) how entities shall apply for an allocation under section 45D(f)(2) of the Internal Revenue Code of 1986, as added by this section; (2) the competitive procedure through which such allocations are made; and (3) the actions that such Secretary or delegate shall take to ensure that such allocations are properly made to appropriate entities. (g) AUDIT AND REPORT. —Not later than January 31 of 2004, 2007, and 2010, the Comptroller General of the United States shall, pursuant to an audit of the new markets tax credit program established under section 45D of the Internal Revenue Code of 1986 (as added by subsection (a)), report to Congress on such program, including all qualified community development entities that receive an allocation under the new markets credit under such section. Subtitle D—Improvements in Low-Income Housing Credit SEC. 131. MODIFICATION OF STATE CEILING ON LOW-INCOME HOUS- ING CREDIT. (a) IN GENERAL.— Clauses (i) and (ii) of section 42(h)(3)(C) (relating to State housing credit ceiling) are amended to read as follows: "(i) the unused State housing credit ceiling (if any) of such State for the preceding calendar year, "(ii) the greater of—
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