Internal Revenue Bulletin:  2003-46 

November 17, 2003 

Rev. Rul. 2003-117


Table of Contents

Low-income housing credit; satisfactory bond; “bond factor” amounts for the period October through December 2003. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period October through December 2003. This ruling also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2003.

In Rev. Rul. 90-60, 1990-2 C.B. 3, the Internal Revenue Service provided guidance to taxpayers concerning the general methodology used by the Treasury Department in computing the bond factor amounts used in calculating the amount of bond considered satisfactory by the Secretary under § 42(j)(6) of the Internal Revenue Code. It further announced that the Secretary would publish in the Internal Revenue Bulletin a table of bond factor amounts for dispositions occurring during each calendar month.

Rev. Proc. 99-11, 1999-1 C.B. 275, established a collateral program as an alternative to providing a surety bond for taxpayers to avoid or defer recapture of the low-income housing tax credits under § 42(j)(6). Under this program, taxpayers may establish a Treasury Direct Account and pledge certain United States Treasury securities to the Internal Revenue Service as security.

This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under § 42(j)(6) or the amount of United States Treasury securities to pledge in a Treasury Direct Account under Rev. Proc. 99-11 for dispositions of qualified low-income buildings or interests therein during the period October through December 2003. Table 1 also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2003.

Table 1 Rev. Rul. 2003-117
Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits
  Calendar Year Building Placed in Service or, if Section 42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Jan ’03 16.23 30.04 41.83 51.93 60.50 60.24 60.12 60.11 60.18 60.39 60.62
Feb ’03 16.23 30.04 41.83 51.93 60.50 60.09 59.97 59.96 60.03 60.24 60.47
Mar ’03 16.23 30.04 41.83 51.93 60.50 59.94 59.82 59.82 59.89 60.10 60.33
Apr '03 16.23 30.04 41.83 51.93 60.50 59.79 59.68 59.68 59.75 59.96 60.20
May '03 16.23 30.04 41.83 51.93 60.50 59.65 59.54 59.54 59.61 59.83 60.07
Jun '03 16.23 30.04 41.83 51.93 60.50 59.51 59.40 59.40 59.48 59.70 59.95
Jul '03 16.23 30.04 41.83 51.93 60.50 59.37 59.27 59.27 59.35 59.58 59.83
Aug '03 16.23 30.04 41.83 51.93 60.50 59.24 59.14 59.14 59.23 59.45 59.72
Sep '03 16.23 30.04 41.83 51.93 60.50 59.11 59.01 59.02 59.10 59.34 59.60
Oct '03 15.43 28.55 39.76 49.36 57.50 55.51 54.87 54.34 53.89 53.57 53.29
Nov '03 15.43 28.55 39.76 49.36 57.50 55.39 54.76 54.23 53.78 53.47 53.20
Dec '03 15.43 28.55 39.76 49.36 57.50 55.28 54.64 54.12 53.68 53.38 53.12
Table 1 (cont'd) Rev. Rul. 2003-117
Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits
  Calendar Year Building Placed in Service or, if Section 42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition 2000 2001 2002 2003              
Jan ’03 60.89 61.55 62.49 62.68              
Feb ’03 60.75 61.41 62.33 62.68              
Mar ’03 60.62 61.27 62.19 62.68              
Apr '03 60.49 61.15 62.06 62.68              
May '03 60.37 61.04 61.96 62.68              
Jun '03 60.26 60.93 61.86 62.68              
Jul '03 60.15 60.83 61.77 62.68              
Aug '03 60.05 60.74 61.70 62.68              
Sep '03 59.95 60.65 61.63 62.68              
Oct '03 53.09 53.21 53.58 54.15              
Nov '03 53.01 53.15 53.54 54.15              
Dec '03 52.94 53.09 53.50 54.15              

For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see: Rev. Rul. 98-3, 1998-1 C.B. 248; Rev. Rul. 2001-2, 2001-1 C.B. 255; Rev. Rul. 2001-53, 2001-2 C.B. 488; and Rev. Rul. 2002-72, 2002-2 C.B. 759.

DRAFTING INFORMATION

The principal author of this revenue ruling is Gregory N. Doran of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. Doran at (202) 622-3040 (not a toll-free call).


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