PUBLIC LAW 109–135—DEC. 21, 2005
119 STAT. 2589
‘‘(4) SPECIAL RULES.—For purposes of paragraph (1), rules similar to the rules of paragraphs (2) and (3) of section 172(i) shall apply with respect to such portion. ‘‘(l) CREDIT TO HOLDERS OF GULF TAX CREDIT BONDS.— ‘‘(1) ALLOWANCE OF CREDIT.—If a taxpayer holds a Gulf tax credit bond on one or more credit allowance dates of the bond occurring during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under paragraph (2) with respect to such dates. ‘‘(2) AMOUNT OF CREDIT.— ‘‘(A) IN GENERAL.—The amount of the credit determined under this paragraph with respect to any credit allowance date for a Gulf tax credit bond is 25 percent of the annual credit determined with respect to such bond. ‘‘(B) ANNUAL CREDIT.—The annual credit determined with respect to any Gulf tax credit bond is the product of— ‘‘(i) the credit rate determined by the Secretary under subparagraph (C) for the day on which such bond was sold, multiplied by ‘‘(ii) the outstanding face amount of the bond. ‘‘(C) DETERMINATION.—For purposes of subparagraph (B), with respect to any Gulf tax credit bond, the Secretary shall determine daily or cause to be determined daily a credit rate which shall apply to the first day on which there is a binding, written contract for the sale or exchange of the bond. The credit rate for any day is the credit rate which the Secretary or the Secretary’s designee estimates will permit the issuance of Gulf tax credit bonds with a specified maturity or redemption date without discount and without interest cost to the issuer. ‘‘(D) CREDIT ALLOWANCE DATE.—For purposes of this subsection, the term ‘credit allowance date’ means March 15, June 15, September 15, and December 15. Such term also includes the last day on which the bond is outstanding. ‘‘(E) SPECIAL RULE FOR ISSUANCE AND REDEMPTION.— In the case of a bond which is issued during the 3-month period ending on a credit allowance date, the amount of the credit determined under this paragraph with respect to such credit allowance date shall be a ratable portion of the credit otherwise determined based on the portion of the 3-month period during which the bond is outstanding. A similar rule shall apply when the bond is redeemed or matures. ‘‘(3) LIMITATION BASED ON AMOUNT OF TAX.—The credit allowed under paragraph (1) for any taxable year shall not exceed the excess of— ‘‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over ‘‘(B) the sum of the credits allowable under part IV of subchapter A (other than subpart C and this subsection). ‘‘(4) GULF TAX CREDIT BOND.—For purposes of this subsection— ‘‘(A) IN GENERAL.—The term ‘Gulf tax credit bond’ means any bond issued as part of an issue if—
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