SECTION 11. ELECTION TO TREAT

HALF OF THE ALLOCATION AS PAYMENT OF TAX

In lieu of issuing bonds pursuant to an allocation of some of the QFCB National Limitation, an applicant may elect to treat 50 percent of any such allocation to it as a deemed payment of a tax, which the IRS must then refund to the applicant. See section 54B(h). Any such election must be included with the Final Application but must be set forth in a document separate from the application. The election document must contain also—

cant that, within three years of the receipt of the refund, the applicant will use the deemed payment, exclusively for the qualified forestry conservation purpose described in the application; and

cant that between the time the applicant receives the refund and the time it acquires the land, it will comply with the last paragraph of Section 3 of this notice.

In describing the amounts to be used for qualifying forestry conservation purposes, the application must be consistent with whether the requested allocation will be used to issue bonds or to qualify for a refund of a deemed payment. Whether an applicant makes the election will affect the amount of funds available for the purchase of land described in section 54B(e). Because the minimum amount of land to be

transferred to USFS is “one half of the land acquired,” making the election will affect the amount of that minimum transfer but will not affect its fractional relation to the amount of land acquired.