§ 21 — Definitions

§ 21. Definitions. 1. (a) "Applicable percentage" means the\nappropriate percentage (depending on whether a building is new,\nexisting, or federally subsidized) prescribed by the secretary of the\ntreasury for purposes of section 42 of the internal revenue code for the\nmonth which is the earlier of\n (i) the month in which the eligible low-income building is placed in\nservice, or\n (ii) at the election of the taxpayer,\n (A) the month in which the taxpayer and the commissioner enter into an\nagreement with respect to such building (which is binding on the\ncommissioner, the taxpayer, and all successors in interest) as to the\nhousing credit dollar amount to be allocated to such building, or\n (B) in the case of any building to which subsection (h)(4)(B) of such\nsection 42 applies, the month in which the tax-exempt obligations are\nissued.\n (b) A month may be elected under subparagraph (ii) of paragraph (a) of\nthis subdivision only if the election is made not later than the fifth\nday after the close of such month. Such election, once made, shall be\nirrevocable.\n (c) If, as of the close of any taxable year in the credit period, the\nqualified basis of an eligible low-income building exceeds such basis as\nof the close of the first year of the credit period, the applicable\npercentage which shall apply to such excess shall be two-thirds of the\napplicable percentage originally ascribed to such building.\n 2. "Compliance period" means, with respect to any building, the period\nof fifteen taxable years beginning with the first taxable year of the\ncredit period with respect to such building.\n 3. "Credit period" means, with respect to any eligible low-income\nbuilding, the period of ten taxable years beginning with\n (a) the taxable year in which the building is placed in service, or\n (b) at the election of the taxpayer, the succeeding taxable year,\nbut only if the building is an eligible low-income building as of the\nclose of the first year of such period. The election under paragraph (b)\nof this subdivision, once made, shall be irrevocable.\n 4. "Eligibility statement" means a statement issued by the\ncommissioner certifying that a building is an eligible low-income\nbuilding. Such statement shall set forth the taxable year in which such\nbuilding is placed in service, the dollar amount of low-income housing\ncredit allocated by the commissioner to such building as provided in\nsubdivision five of section twenty-two of this article, the applicable\npercentage and maximum qualified basis with respect to such building\ntaken into account in determining such dollar amount, sufficient\ninformation to identify each such building and the taxpayer or taxpayers\nwith respect to each such building, and such other information as the\ncommissioner, in consultation with the commissioner of taxation and\nfinance, shall prescribe. Such statement shall be first issued following\nthe close of the first taxable year in the credit period, and\nthereafter, to the extent required by the commissioner of taxation and\nfinance, following the close of each taxable year of the compliance\nperiod.\n 5. "Eligible low-income building" means a building located in this\nstate which either\n (a) is a qualified low-income building as defined in section 42(c) of\nthe internal revenue code, or\n (b) would be a qualified low-income building under such section if the\n20-50 test specified in subsection (g)(1) of such section were\ndisregarded and the 40-60 test specified in such subsection (requiring\nthat at least forty percent of residential units be both rent-restricted\nand occupied by individuals whose income is sixty percent or less of\narea median gross income) were a 40-90 test.\n 6. "Qualified basis" of an eligible low-income building means the\nqualified basis of such building determined under section 42(c) of the\ninternal revenue code, or which would be determined under such section\nif the 40-90 test specified in paragraph (b) of subdivision five of this\nsection applied under such section 42 to determine if such building were\npart of a qualified low-income housing project.\n 7. References in this article to section 42 of the internal revenue\ncode shall mean such section as amended from time to time.\n