AMENDMENTS RELATED TO TAX REFORM ACT OF 1988.

SEC. 7831. AMENDMENTS RELATED TO TAX REFORM ACT OF 1988. (a) Amendment Related to Section 101 of the 1986 Act.—Subparagraph (B) of section l(f)(6) (relating to rounding of inflation adjustments for married individuals filing separately) is amended by striking “(other than with respect to section 63(c)(4))” and inserting the following: “(other than with respect to subsection (c)(4) of section 63 (as it applies to subsections (c)(5)(A) and (f) of such section) and section 151(d)(3))”. 103 STAT. 2426 (b) Amendment Related to Section 201 of the 1986 Act.—Paragraph (5) of section 1250(b) is amended— (1) by striking “in the case of recovery property” in subparagraph (A) and inserting “in the case of property to which section 168 applies”, and (2) by striking “in the case of any property which is not recovery property” in subparagraph (B) and inserting “in the case any property to which section 168 does not apply”. (c) Amendments Related to Section 252 of the 1986 Act.— (1) Subparagraph (B) of section 42(i)(3) (defining low-income unit) is amended by inserting “(as determined under regulations prescribed by the Secretary taking into account local health, safety, and building codes)” after “suitable for occupancy”. (2) Paragraph (3) of section 42(i) is amended by adding at the end the following new subparagraph: “(D) Students in government-supported job training programs not to disqualify unit.—A unit shall not fail to be treated as a low-income unit merely because it is occupied by an individual who is enrolled in a job training program receiving assistance under the Job Training Partnership Act or under other similar Federal, State, or local laws.” (3) Subsection (i) of section 42 (relating to special rules) is amended by adding at the end the following new paragraph: “(6) Application to estates and trusts.—In the case of an estate or trust, the amount of the credit determined under subsection (a) and any increase in tax under subsection (j) shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each.” (4) Subsection (f) of section 42 is amended by adding at the end the following new paragraph: “(4) Dispositions of property.—If a building (or an interest therein) is disposed of during any year for which credit is allowable under subsection (a), such credit shall be allocated between the parties on the basis of the number of days during such year the building (or interest) was held by each. In any such case, proper adjustments shall be made in the application of subsection (j).” (5) Subsection (m) of section 42 (relating to regulations) is amended by striking “and” at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting “, and”, and by adding at the end the following new paragraph: “(4) providing the opportunity for housing credit agencies to correct administrative errors and omissions with respect to allocations and record keeping within a reasonable period after their discovery, taking into account the availability of regulations and other administrative guidance from the Secretary.” (6) Subparagraph (A) of section 42(d)(7) is amended by inserting “(or interest therein)” after “a building described in subparagraph (B)”. (d) Amendments Related to Section 803 of the 1986 Act.— (1) Subparagraph (A) of section 803(d)(4) of the Tax Reform Act of 1986 is amended by striking so much of such subparagraph as precedes clause (i) thereof and inserting the following: “(A) Transition property exempted from interest capitalization.—Section 263A of the Internal Revenue 103 STAT. 2427Code of 1986 (as added by this section) and the amendment made by subsection (b)(1) shall not apply to interest costs which are allocable to any property—”. (2) If any interest costs incurred after December 31, 1986, are attributable to costs incurred before January 1, 1987, the amendments made by section 803 of the Tax Reform Act of 1986 shall apply to such interest costs only to the extent such interest costs are attributable to costs which were required to be capitalized under section 263 of the Internal Revenue Code of 1954 and which would have been taken into account in applying section 189 of the Internal Revenue Code of 1954 (as in effect before its repeal by section 803 of the Tax Reform Act of 1986) or, if applicable, section 266 of such Code. (e) Application of Future Legislation to Transitioned Bonds.—Section 1318 of the Tax Reform Act of 1986 is amended by adding at the end the following new paragraph: “(8) Application of future legislation to transitioned bonds.— In the case of any bond to which the amendments made by section 1301 do not apply by reason of a provision of this Act, any amendment of the 1986 Code (and any other provision applicable to such Code) included in any law enacted after October 22, 1986, shall be treated as included in section 103 and section 103A (as appropriate) of the 1954 Code with respect to such bond unless— “(A) such law expressly provides that such amendment (or other provision) shall not apply to such bond, or “(B) such amendment (or other provision) applies to a provision of the 1986 Code— “(i) for which there is no corresponding provision in section 103 and section 103A (as appropriate) of the 1954 Code, and “(ii) which is not otherwise treated as included in such sections 103 and 103A with respect to such bond.” (f) Amendment Related to Section 1114 of the 1986 Act.—Subparagraphs (A) and (B) of section 1114(b)(9) of the Tax Reform Act of 1986 are each amended by striking “consist of supervising” and inserting “consist in supervising”. (g) Effective Date.—Any amendment made by this section shall take effect as if included in the provision of the Tax Reform Act of 1986 to which such amendment relates.