[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.103(n)-4T]
[Page 410-411]
TITLE 26--INTERNAL REVENUE
CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
(CONTINUED)
PART 1--INCOME TAXES--Table of Contents
Sec. 1.103(n)-4T Elective carryforward of unused private activity bond limit (temporary).
Q-1: May an issuing authority carry forward any of its unused
private activity bond limit for a calendar year?
A-1: In any calendar year after 1983 in which an issuing authority's
private activity bond limit exceeds the aggregate amount of private
activity bonds issued during such calendar year by such issuing
authority, such issuing authority may elect to treat all, or any
portion, of such excess as a carryforward for any one or more projects
described in A-5 of this Sec. 1.103(n)-4T (carryforward projects).
Q-2: How is the election to carry forward an issuing authority's
unused private activity bond limit made?
A-2: (i) An issuing authority may make the election by means of a
statement, signed by an authorized public official responsible for
making allocations of such issuing authority's private activity bond
limit, that the issuing authority elects to carry forward its unused
private activity bond limit. The statement shall be filed with the
Internal Revenue Service Center, Philadelphia, Pennsylvania 19255.
Except with respect to elections to carry forward any unused private
activity bond limit for calendar year 1984, the election must be filed
prior to the end of the calendar year with respect to which the issuing
authority has the unused private activity bond limit; elections with
respect to unused private activity bond limit for calendar year 1984
must be filed prior to February 26, 1985. The statement is to be titled
``Carryforward election under section 103(n)''.
(ii) The statement required by (i) of this A-2 shall contain the
following information:
(A) The name, address, and TIN of the issuing authority,
(B) The issuing authority's private activity bond limit for the
calendar year,
(C) The aggregate amount of private activity bonds issued by the
issuing authority during the calendar year for which the election is
being made,
(D) The unused private activity bond limit of the issuing authority,
and
(E) For each carryforward project--
(1) A description of the project, including its address (by its
street address or, if none, by a general description designed to
indicate its specific location) and the general type of facility (e.g.,
an airport described in section 103(b)(4)(D)),
(2) The name, address, and TIN of the initial owner, operator, or
manager, and
(3) The amount to be carried forward for the project.
(iii) For purposes of (ii)(E) of this A-2, in the case of a
carryforward project for which the initial owner, operator, or manager
is to be selected pursuant to a competitive bidding process, the
election may include up to 3 prospective addresses for the project and
the name, address, and TIN of more than one prospective initial owner,
operator, or manager, if prior to the end of the calendar year for which
the election is made--
(A) In the case of elections for calendar years other than 1984, the
issuing authority has taken preliminary official action approving the
undertaking of the carryforward project,
(B) All persons included as prospective owners, operators, or
managers have met all applicable conditions (if any) to submit proposals
to provide the project, and
(C) The issuing authority has expended (or has entered into binding
contracts to expend) in connection with the planning and construction of
the carryforward project the lesser of $500,000 or 2\1/2\ percent of the
carryforward amount.
[[Page 411]]
(iv) For purposes of (ii) of this A-2, in the case of a carryforward
election for the purpose of issuing student loan bonds, the statement
need not include the address of a facility or the name, address, and TIN
of an initial owner, operator, or manager of a project but shall state
that the carryforward election is for the purpose of issuing student
loan bonds.
Q-3: Is a carryforward election revocable?
A-3: Any carryforward election, and any specification contained
therein, shall be irrevocable after the last day of the calendar year in
which the election is made. Thus, for example, obligations issued to
finance a carryforward project with a different initial owner, operator,
or manager from the owner, operator, or manager specified in the
carryforward election shall not be issued purusant to such carryforward
election. An insubstantial deviation from a specification contained in a
carryforward election shall not prevent obligations from being issued
pursuant to such carryforward election. In addition, where a
carryforward election is made with respect to more than one carryforward
project, a substantial deviation with respect to one carryforward
project shall not prevent obligations from being issued pursuant to such
carryforward election with respect to the other carryforward projects.
Q-4: How is a carryforward used?
A-4: Any private activity bonds issued during the three calendar
years (six calendar years in the case of a project described in section
103(b)(4)(F)) following the calendard year in which the carryforward
election was first made with respect to a carryforward project shall not
be taken into account in determining whether the issue meets the
requirements of section 103(n). If, however, the amount of private
activity bonds issued for the carryforward project exceeds the amount of
the carryforward elected with respect to the project, then the portion
of the issue that exceeds the carryforward shall be taken into account
in determining whether the issue meets with the requirements of section
103(n); if that portion of the issue does not meet the requirements of
section 103(n) then the entire issue is treated as consisting of
obligations not described in section 103(a). Carryforwards elected with
respect to any project shall be used in the order of the calendar years
in which they arose. Thus, for example, if an issuing authority makes
carryforward elections in 1986 and 1988 for a carryforward project and
issues private activity bonds for that project in 1989 and 1990, the
obligations issued in 1989 will be applied to the 1986 carryforward
election to the extent thereof.
Q-5: For what projects may a carryforward election be made?
A-5: A carryforward election may be made for any project described
in section 103(b) (4) or (5), and for the purpose of issuing student
loan bonds. Thus, for example, an issuing authority may elect to carry
forward its unused private activity bond limit in order to provide a
sports facility described in section 103(b)(4)(B). In addition, a
governmental unit may elect to carry forward its unused private activity
bond limit in order to issue qualified scholarship funding bonds. An
issuing authority may not, however, elect to carry forward its unused
private activity bond limit in order to issue an exempt small issue of
industrial development bonds under section 103(b)(6).
(Secs. 103(n) and 7805 of the Internal Revenue Code of 1954 (98 Stat.
916, 26 U.S.C.103(n); 68A Stat. 917, 26 U.S.C. 7805); sec. 644(b) of the
Tax Reform Act of 1984 (98 Stat. 940); secs. 103(n) and 7805 of the
Internal Revenue Code of 1954 (98 Stat. 915, 26 U.S.C. 103(n); 68A Stat.
917, 26 U.S.C. 7805))
[T.D. 7981, 49 FR 39325, Oct. 5, 1984, as amended by T.D. 8001, 49 FR
50389, Dec. 28, 1984]