26 U.S. Code § 853A - Credits from tax credit bonds allowed to shareholders
(a) General rule
A regulated investment company—
(1)which holds (directly or indirectly) one or more tax credit bonds on one or more applicable dates during the taxable year, and
may elect the application of this section with respect to credits allowable to the investment company during such taxable year with respect to such bonds.
(b) Effect of election
If the election provided in subsection (a) is in effect for any taxable year—
(1)the regulated investment company shall not be allowed any credits to which subsection (a) applies for such taxable year,
(2)the regulated investment company shall—
(A)include in gross income (as interest) for such taxable year an amount equal to the amount that such investment company would have included in gross income with respect to such credits if this section did not apply, and
(3)each shareholder of such investment company shall—
(A)include in gross income an amount equal to such shareholder’s proportionate share of the interest income attributable to such credits, and
(c) Statements to shareholders
For purposes of subsection (b)(3), the shareholder’s proportionate share of—
shall not exceed the amounts so reported by the regulated investment company in a written statement furnished to such shareholder.
(d) Manner of making election
The election provided in subsection (a) shall be made in such manner as the Secretary may prescribe.
(e) Definitions and special rules
For purposes of this subsection—
(A) Tax credit bond
The term “tax credit bond” means—
(B) Applicable date
The term “applicable date” means—
(i)in the case of a qualified tax credit bond or a bond described in subparagraph (A)(iii), any credit allowance date (as defined in section 54A(e)(1)), and
Source(Added Pub. L. 111–5, div. B, title I, § 1541(a),Feb. 17, 2009, 123 Stat. 360; amended Pub. L. 111–325, title III, § 301(d),Dec. 22, 2010, 124 Stat. 3544.)
2010—Subsec. (c). Pub. L. 111–325, § 301(d)(1), substituted “Statements” for “Notice” in heading and “so reported by the regulated investment company in a written statement furnished to such shareholder” for “so designated by the regulated investment company in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year” in concluding provisions.
Subsec. (d). Pub. L. 111–325, § 301(d)(2), struck out “and notifying shareholders” after “election” in heading and “and the notice to shareholders required by subsection (c)” after “subsection (a)” in text.
Effective Date of 2010 Amendment
Amendment by Pub. L. 111–325applicable to taxable years beginning after Dec. 22, 2010, see section 301(h) ofPub. L. 111–325, set out as a note under section 852 of this title.
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