Section 141 - Private Business Use Tests, Government Use, Management Contracts

 

The freely available Adobe Acrobat Reader software is required to view, print, and search the rulings and memoranda listed below.


Private Business Use Tests:

PLR 201830006
This letter responds to a request for a ruling that an agreement will not cause the Bonds to meet the private business tests under Internal Revenue Code (IRC) Section 141(b) (“IRC 141(b)”).

PLR 201739002
This letter responds to the request submitted on behalf of Issuer for a ruling that the City's proposed contracts will not result in private business use of the proceeds of the Bonds under IRC 141.

PLR 201727003
This responds to Issuer's request for rulings regarding its proposed issuance of the Bonds and the implications under IRC Sections 103(b)(2)(B)(ii), 141(b)(6), and 148. Also, Income Tax Regulations Sections 1.141-7(h) and 1.148-9(h)(4)(v)(D).

PLR 201726007
This letter responds to Issuer's request for a ruling that the Agreement will not result in private business use of the Hospital under IRC 141(b).

PLR 201641002
This letter responds to Issuer's request for a ruling that the Agreement does not result in private business use of the Bond proceeds under IRC 145(a)(2)(B).

PLR 201630011
This letter responds to the request for a ruling submitted by City that the use of the proceeds of the Bonds by Authority, an instrumentality of City, to acquire an undivided ownership interest in an electric generating facility and related assets and property under the circumstances described below will not result in private business use of the Bonds (as defined in IRC 141(b)(6) for purposes of IRC 141(b)(1)).

PLR 201622003
This letter responds to a request for a ruling that the management contract described herein will not result in private business use of the Hotel under Treas. Reg. Section 1.141-3(b)(4)(i).

PLR 201519015
This letter responds to a request for a ruling that the fare revenues collected by Issuer for bus service along the managed lanes are not payments in respect of the managed lanes under IRC 141(b)(2)(B) and Section 1.141-4 of the Income Tax Regulations.

PLR 201507002
This letter responds to the request for a ruling submitted on behalf of Issuer pertaining to the proposed issuance of the Bonds, in part, as governmental bonds (as defined in Section 1.150-1(b) of the Income Tax Regulations) and, in part, as exempt facility bonds under IRC 142.

PLR 201435013
This letter responds to a request for rulings that (1) the Issuer can make certain proposed allocations related to Issue 2, Issue 3, and Issue 4 under Treas. Reg. Sections 1.141-6(a) and 1.148-6; (2) the expenditure of earnings that accrue subsequent to the project period (within the meaning of Section 1.141-1) from the investment of sale proceeds of Issue 3 and Issue 4 in a reasonably required reserve to pay principal and interest that is not a capital expenditure on an issue will not cause Issue 3 and Issue 4 to fail to be qualified bonds within the meaning of Section 54AA(g)(2); and (3) Section 1.148-6(d)(3)(ii)(A)(7) may be applied to account for the expenditure of proceeds of Issue 3 and Issue 4.

PLR 201412011
This letter responds to the Authority's request for a ruling that the Amended Agreement does not result in private business use of the Bonds under IRC 141(b).

PLR 201346002
This letter responds to a request for a ruling that the lease arrangement described herein will not cause the Bonds to meet the private security or payment test under IRC 141(b)(2).

PLR 201338031
This letter responds to a request for a ruling that a management contract, as amended, includes certain proposed compensation provisions and will not result in private business use of the Hotel under Section 1.141-3(b)(4) of the Income Tax Regulations.

PLR 201338026
This letter responds to a request for a ruling that the Management Contract will not result in private business use under Section 1.141-3(b)(4)(i) of the Income Tax Regulations.

PLR 201246032
This letter responds to a request for a ruling that the Lease Revenue Bonds, as defined herein, will not satisfy the private loan financing test under IRC 141(c). A second private letter ruling concerning the Assessment Bonds, as defined herein, will be issued on the same date as this letter..

PLR 201246007
This letter responds to a request for a ruling that the Assessment Bonds will not satisfy the private loan financing test under IRC 141(c). A second private letter ruling concerning the Lease Revenue Bonds will be issued on the same date as this letter.

PLR 201228029
This letter responds to the Authority's request for a ruling that the Agreement will not result in private business use of the Bonds under IRC 141(b).

PLR 201216009
This letter responds to a request for a ruling regarding the effect of the strategic alliance agreement. Specifically, you requested that the strategic alliance agreement will not cause private business use of the District's tax-exempt bond financed facilities under IRC 141.

PLR 201213010
This responds to the request by the Issuers for a ruling that the interest on the Bonds will be excludable from gross income under IRC 103(a). The request is submitted under Section 4 of Rev. Proc. 96-16, 1996-1 C.B. 630, as a ruling subject to review under the declaratory judgment provisions of IRC 7478.

PLR 201148005
This letter responds to a request for a ruling submitted on behalf of Issuer that the Proposed Bonds (described below) will be qualified 501(c)(3) bonds under IRC Section 145.

PLR 201145005
This responds to the Authority's request for a ruling that the Management Contract does not result in private business use of the Facility under Section 1.141-3(b)(4) of the Income Tax Regulations.

PLR 201128010
This letter responds to a request for a ruling that (1) for purposes of determining whether the Bonds are private activity bonds under IRC 141, the output from the Issuer's reserved portion of the Facility's net rated capacity under the Power Sales Contract taken by issuer is treated as the government use portion of the Facility under the Advance Notice of Proposed Rulemaking, published on September 23, 2002 (67 FR 59767), 2002-2 C.B. 685), and (2) the Operation Agreement between Issuer and Corporation is not treated as a management contract that results in private business use under Section 1.141-3(b)(4) of the Income Tax Regulations.

PLR 201114003
This responds to a request for a ruling that the forbearance to exercise certain termination rights with respect to a wholesale electricity requirements contract, will not cause that contract to be treated as entered into after September 19, 2002, for purposes of Section 1.141-15(f)(2) of the Income Tax Regulations.

PLR 201043001
This letter responds to a request for a ruling that the Issuer's proposed Category B Bonds and Category C Bonds will not be private activity bonds within the meaning of IRC 141.

PLR 201049003
This letter responds to a request for a ruling that the rights exercisable by Corporation under the agreement will not cause the private business use test in IRC 141(b)(1) to be met with respect to the proposed bonds and the improvements financed by those bonds.

PLR 201037006
This letter responds to a request for a ruling that Issuer's sales of renewable energy certificates will not result in private business use within the meaning of IRC 141(b)(1).

PLR 200524015
A request for rulings on behalf of Agency (whose members are natural gas and electrical joint action agencies and natural gas and electric distribution systems) that Agency and subsidiary are instrumentalities and use of bond proceeds will not constitute use meeting the private business tests.

PLR 200502012
This letter responds to the Authority's request for a ruling that the acquisition of various interests in land and will not give rise to private business use under IRC 141 and that the related arrangements are uses related and not disproportionate to the government’s use of the proceeds.

PLR 200441025
This letter responds to a request for the following rulings: 1) That the proposed allocation of proceeds of the Bonds to the Parking Unit is reasonable; and 2) That certain contractual arrangements for the use of the Project will not cause the Bonds to meet the private business tests.

PLR 200347009
This letter responds to a request for the following three rulings: (1) the License Agreement described below will not cause the Series A and Series B Bonds (collectively, "the bonds") to satisfy the private business use test under IRC Sections 145(a)(2)(B) and 141(b)(1); (2) the Scientist Agreement described below will not cause the Bonds to satisfy the private business use test under Sections 145(a)(2)(B) and 141(b)(1); and (3) the right of the Large Contributors described below to require the Organization to transfer shares of the Class A Stock to one or more Section 501(c)(3) organizations chosen by the Large Contributors will not cause the Bonds to satisfy the private business use test under IRC 145(a)(2)(B) and IRC 141(b)(1).

PLR 200336001
This letter responds to a request for a ruling that the distribution of the District cable television programming by the Provider, under the facts and terms described below, does not constitute private business use under IRC 141(b)(1) of the facilities used to produce that programming.

PLR 200323006
This letter responds to the City's request for a ruling that the proposed naming rights contract described herein will not cause the Issue to meet the private business use test under IRC 141(b).

PLR 200250031
This letter responds to a request, on behalf of the Authority, for a ruling that the Lease of the System between the City and the Operator will not adversely affect the tax-exempt status of the Bonds.

PLR 200250004
This letter responds to a request for a ruling that the Bonds to be issued to finance certain costs incurred by Port in connection with a project to improve the channels and returning basins of Port's harbor will not meet the private business use test of IRC 141(b)(1).

PLR 200230028
This letter responds to a request, on behalf of the Agency, for a ruling that the actions taken by some of its members to become participating transmission owners in the independent system operation will not be treated as a deliberate action that causes the Bonds to be private activity bonds under IRC 141.

PLR 200026020
This letter responds to a request for a ruling that interest on the Bonds will be excluded from the gross income of holders of the Bonds under IRC 103(a). The Bonds will meet the private business tests of IRC 141(b).


Government Use:

PLR 200336019
This letter responds to a request for a ruling that the acquisition of certain electric power generators by Agency will not constitute the acquisition of nongovernmental output property under IRC 141(d)(2).

PLR 200306001
This letter responds to a request for rulings that (1) the Issuer is an instrumentality for purposes of IRC 141 and (2) the Proposed Bonds will be treated as financing property used for governmental purposes under IRC 103 and IRC 131.

PLR 200304015
This letter responds to the request on behalf of the issuer for a ruling regarding the qualified 501(c)(3) bonds that it proposes to issue to finance a portion of the construction of the facility. You have requested a ruling that the proceeds of the Bonds may be allocated to University and government use of the facility.

PLR 200301008
This letter responds to a letter dated January 24, 2002, requesting a ruling that the income of Authority is an instrumentality for purposes of IRC 141.

PLR 200225010
This letter responds to an amended ruling request, submitted on behalf of the Authority, which requested a ruling that the Authority is an "instrumentality of its governmental members".

PLR 200211003
This letter responds to a request for a ruling that the proposed use of the Center by specified groups of users ("proposed user groups") and for the specified uses ("proposed uses") described in the request does not constitute private business use under IRC 141.

PLR 200211022
This letter responds to a request, on behalf of the Agency, for a ruling that the Agency's becoming a member of the independent system operators will not be a deliberate action that causes the Bonds to be private activity bonds under IRC 141.

PLR 200209005
This letter responds to a request on behalf of the Issuer for a ruling that the Issuer's change in the Program will not cause the Bonds to fail to be described in the Provision.

PLR 200205009 (11/02/2001)
This letter responds to a request for a ruling that the Agreement as described below is a management contract that meets the requirements of Rev. Proc. 97-13, 1997-1 C.B. 632.

PLR 200132017
This letter responds to a request for a ruling that the proceeds of the Bonds may be allocated to the portions of the Research Facilities (hereinafter defined) used for research arrangements that do not constitute private business use based on a revenue allocation test.

PLR 200026013
This letter responds to a ruling request submitted on behalf of Authority, concerning the status of Authority for purposes of IRC 141. On Date 1 we issued a ruling that the Authority is a wholly owned instrumentality of the Members for purposes of IRC sections 141, 3121(b)(7) and 3306(c)(7). You have requested a ruling that, for purposes of IRC 141, Authority remains an "instrumentality" of its governmental members.


Management Contracts:

PLR 200330010 (04/17/2003)
This letter responds to the Issuer's request for a ruling that the management contract will not cause bonds issued by the Issuer to finance the facilities to meet the private business use test of IRC 141(b)(1).

PLR 200222006 (02/19/2002)
This letter responds to the Issuer's request for a ruling that the management contract more fully described below does not constitute private business use under Rev. Proc. 97-13, Section 5.03(1), 1997-1 C.B. 632, or, in the alternative, under Section 1.141-3(b)(4) of the Income Tax Regulations.

PLR 200205009 (11/02/2001)
This letter is in response to a request for a ruling that the Agreement as described below is a management contract that meets the requirements of Revenue Procedure 97-13, 1997-1 C.B. 632.

PLR 200123057
This letter responds to a request for a ruling that, based on all the facts and circumstances, C does not have any role or relationship with B, the qualified user, that substantially limits B's ability to exercise its rights, including cancellation rights, under the professional service agreement.