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Rev. Rul. 2003-22
Rev. Rul. 2003-22, 2003-8 I.R.B. 494, 2003-1 C.B. 494
                       Internal Revenue Service (I.R.S.)
                                 Revenue Ruling
     LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; "BOND FACTOR" AMOUNTS FOR
                     THE PERIOD JANUARY THROUGH MARCH 2003
                          Published: February 24, 2003

Section 42.--Low-Income Housing Credit

Low-income housing credit; satisfactory bond; "bond factor" amounts for the period January through March 2003. This ruling announces errors in the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period January through March 2003. It also provides a list of the corrected bond factor amounts. Rev. Rul. 2003-2 revoked.

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 s 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 low-income housing tax credits under s 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 s 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 January through March 2003.

Due to a miscalculation, Rev. Rul. 2003-2, 2003-2 I.R.B. 251, is in error regarding dispositions of qualified low-income buildings or interests therein during the period January through March 2003. The present revenue ruling provides the corrected bond factor amounts.

Under the authority of s 7805(b), taxpayers that posted bonds and taxpayers that established Treasury Direct Accounts under Rev. Proc. 99-11, based upon the above mentioned bond factor amounts may continue to rely on those figures. Taxpayers that choose to amend their previously posted bonds by using the corrected bond factor amounts listed in this revenue ruling may do so by submitting an amended Form 8693, Low-Income Housing Tax Credit Disposition Bond, to the Internal Revenue Service Center, Philadelphia, PA 19255. The amended form may be submitted either by the taxpayer or the surety. Taxpayers that choose to amend the amount of securities pledged in their previously established Treasury Direct Account by using the corrected bond factor amounts listed in this revenue ruling should contact the Bureau of Public Debt, Division of Customer Service, IRS Collateral Desk at (304) 480-6158 for further information.

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Table is too wide to be displayed as one table. Part one of two
    Table 1 Rev. Rul. 2003-22 Monthly Bond Factor Amounts for Dispositions
                  Expressed As a Percentage of Total Credits
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              Calendar Year Building Placed in Service or, if Section 42(f)(1)
                      Election Was Made, the Succeeding Calendar Year
-------------------------------------------------------------------------------
Month of     1989     1990     1991     1992     1993    1994    1995    1996
Disposition
-------------------------------------------------------------------------------
Jan '03       16.23    30.04    41.83    51.93   60.50   60.24   60.12   60.11
Feb '03       16.23    30.04    41.83    51.93   60.50   60.09   59.97   59.96
Mar '03       16.23    30.04    41.83    51.93   60.50   59.94   59.82   59.82
-------------------------------------------------------------------------------
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Table continued. Part two of two.
    Table 1 Rev. Rul. 2003-22 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      1997      1998      1999      2000      2001     2002     2003
Disposition
-------------------------------------------------------------------------------
Jan '03       60.18     60.39     60.62     60.89     61.55     62.49    62.68
Feb '03       60.03     60.24     60.47     60.75     61.41     62.33    62.68
Mar '03       59.89     60.10     60.33     60.62     61.27     62.19    62.68
-------------------------------------------------------------------------------

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, 2002-44 I.R.B. 759.

EFFECT ON OTHER REVENUE RULINGS

Rev. Rul. 2003-2, 2003-2 I.R.B. 251, is revoked.

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).

Rev. Rul. 2003-22, 2003-8 I.R.B. 494, 2003-1 C.B. 494