SECTION 7. DRAFTING — Internal Revenue Bulletin 2003-47

INFORMATION

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

started occupying the unit, whichever is later; and

(5) The unit has been a low-income unit under § 42(i)(3)(B), (C), (D), and (E) from either the date the existing building was acquired by the taxpayer or the date the individuals started occupying the unit, whichever is later, to the beginning of the first taxable year of the building’s credit period.

.02 New buildings under § 42(i)(4) (not including new buildings under § 42(e)(1)). A residential unit in a new building under § 42(i)(4) will be considered a low-income unit under § 42(i)(3)(A) at the beginning of the first taxable year of the building’s credit period under § 42(f)(1) if:

(1) The individuals occupying the unit have incomes that are at or below the applicable income limitation under § 42(g)(1) or § 142(d)(4)(B)(i) on the date the individuals started occupying the unit (based on the area median gross income on that date), but their incomes exceed the applicable income limitation in effect at the beginning of the first taxable year of the building’s credit period (based on the area median gross income on that date);

(2) The incomes of the individuals occupying the unit are first tested for purposes of the available unit rule under

§ 42(g)(2)(D)(ii) and § 1.42–15 at the beginning of the first taxable year of the building’s credit period;

(3) The unit has been rent-restricted under § 42(g)(2) from the date the individuals started occupying the unit to the beginning of the first taxable year of the building’s credit period;

(4) The taxpayer elects under § 42(f)(1)(B) to treat the taxable year succeeding the taxable year the building was placed in service as the first taxable year of the credit period; and

(5) The unit has been a low-income unit under § 42(i)(3)(B), (C), (D), and (E) from the date the individuals started occupying the unit to the beginning of the first taxable year of the building’s credit period.