Qualified improvements.
Qualified improvements. Proceeds that provide a governmentally owned improvement to a governmentally owned building (including its structural components and land functionally related and subordinate to the building) are not used for a private business use if
(i) The building was placed in service more than 1 year before the construction or acquisition of the improvement is begun;
(ii) The improvement is not an enlargement of the building or an improvement of interior space occupied exclusively for any private business use;
(iii) No portion of the improved building or any payments in respect of the improved building are taken into account under section 141(b)(2)(A) (the private security test); and
(iv) No more than 15 percent of the improved building is used for a private business use.