Rev. Rul. 99-1, 1999-2 I.R.B. 4

                       Internal Revenue Service
                                 Revenue Ruling

     LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; "BOND FACTOR" AMOUNTS FOR
                    THE PERIOD OCTOBER THROUGH DECEMBER 1998

                          Published: January 11, 1999

Section 32. - Earned Income, 26 CFR 1.32--2: Earned income credit for taxable years beginning after December 31, 1978.

Section 42. - Low-Income Housing Credit

Section 280G. - Golden Parachute Payments

Section 382. - Limitation on Net Operating Loss Carryforwards and Certain Built- In Losses Following Ownership Change

Section 412. - Minimum Funding Standards

Section 467. - Certain Payments for the Use of Property or Services

Section 468. - Special Rules for Mining and Solid Waste Reclamation and Closing Costs

Section 482. - Allocation of Income and Deductions Among Taxpayers

Section 483. - Interest on Certain Deferred Payments

Section 642. - Special Rules for Credits and Deductions

Section 807. - Rules for Certain Reserves

Section 846. - Discounted Unpaid Losses Defined

  Low-income housing credit; satisfactory bond; "bond factor" amounts for the period October through December 1998. 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 1998.

  Are payments received by individuals with respect to certain work activities performed in state programs under part A of title IV of the Social Security Act, as amended by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ("Temporary Assistance for Needy Families") earned income for purposes of the earned income credit.

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.

  Federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.

  The adjusted federal long-term rate is set forth for the month of January 1999.

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.

  Federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.

  Federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.

  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.

  This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under § 42(j)(6) for dispositions of qualified low-income buildings or interests therein during the period October through December 1998.

                                             Table 1

                                         Rev. Rul. 99--1

     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
        1987   1988   1989   1990   1991   1992   1993   1994   1995   1996   1997
Oct.'98 61.09  75.25  74.73  76.61  78.85  81.41  84.01  86.47  88.89  91.53  94.25
Nov.'98 61.09  75.25  74.54  76.41  78.65  81.20  83.79  86.25  88.68  91.33  94.09
Dec.'98 61.09  75.25  74.35  76.22  78.45  80.99  83.58  86.04  88.47  91.14  93.94

  For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see the following revenue rulings: Rev. Rul. 95-- 83, 1995-2 C.B. 8, for dispositions occurring during calendar year 1995; Rev. Rul. 98--3, 1998--2 I.R.B. 4, for dispositions occurring during the calendar years 1996 and 1997; Rev. Rul. 98--13, 1998--11 I.R.B. 4, for dispositions occurring during the period January through March 1998; Rev. Rul. 98--31, 1998--25 I.R.B. 4, for dispositions occurring during the period April through June 1998; and Rev. Rul. 98-45, 1998-38 I.R.B. 4, for dispositions occurring during the period July through September 1998.

DRAFTING INFORMATION

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

Rev. Rul. 99-1