[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.141-1]

[Page 626-627]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.141-1  Definitions and rules of general application.

    (a) In general. For purposes of Sec. Sec. 1.141-0 through 1.141-16, 
the following definitions and rules apply: the definitions in this 
section, the definitions in Sec. 1.150-1, the definition of placed in 
service under Sec. 1.150-2(c), the definition of grant under Sec. 
1.148-6(d)(4)(iii), the definition of reasonably required reserve or 
replacement fund in Sec. 1.148-2(f), and the following definitions 
under Sec. 1.148-1: bond year, commingled fund, fixed yield issue, 
higher yielding investments, investment, investment proceeds, issue 
price, issuer, nonpurpose investment, purpose investment, qualified 
guarantee, qualified hedge, reasonable expectations or reasonableness, 
rebate amount, replacement proceeds, sale proceeds, variable yield 
issue, and yield.
    (b) Certain general definitions.
    Common areas means portions of a facility that are equally available 
to all users of a facility on the same basis for uses that are 
incidental to the primary use of the facility. For example, hallways and 
elevators generally are treated as common areas if they are used by the 
different lessees of a facility in connection with the primary use of 
that facility.
    Consistently applied means applied uniformly to account for proceeds 
and other amounts.
    Deliberate action is defined in Sec. 1.141-2(d)(3).
    Discrete portion means a portion of a facility that consists of any 
separate and discrete portion of a facility to which use is limited, 
other than common areas. A floor of a building and a portion of a 
building separated by walls, partitions, or other physical barriers are 
examples of a discrete portion.
    Disposition is defined in Sec. 1.141-12(c)(1).
    Disposition proceeds is defined in Sec. 1.141-12(c)(1).
    Essential governmental function is defined in Sec. 1.141-
5(d)(4)(ii).
    Financed means constructed, reconstructed, or acquired with proceeds 
of an issue.
    Governmental bond means a bond issued as part of an issue no portion 
of which consists of private activity bonds.
    Governmental person means a state or local governmental unit as 
defined in Sec. 1.103-1 or any instrumentality thereof. It does not 
include the United States or any agency or instrumentality thereof.
    Hazardous waste remediation bonds is defined in Sec. 1.141-4(f)(1).
    Measurement period is defined in Sec. 1.141-3(g)(2).
    Nongovernmental person means a person other than a governmental 
person.
    Output facility means electric and gas generation, transmission, 
distribution, and related facilities, and water collection, storage, and 
distribution facilities.
    Private business tests means the private business use test and the 
private security or payment test of section 141(b).
    Proceeds means the sale proceeds of an issue (other than those sale 
proceeds used to retire bonds of the issue that are not deposited in a 
reasonably required reserve or replacement fund). Proceeds also include 
any investment proceeds from investments that accrue during the project 
period (net of rebate amounts attributable to the project period). 
Disposition proceeds of an issue are treated as proceeds to the extent 
provided in Sec. 1.141-12. The Commissioner may treat any replaced 
amounts as proceeds.
    Project period means the period beginning on the issue date and 
ending on the date that the project is placed in service. In the case of 
a multipurpose

[[Page 627]]

issue, the issuer may elect to treat the project period for the entire 
issue as ending on either the expiration of the temporary period 
described in Sec. 1.148-2(e)(2) or the end of the fifth bond year after 
the issue date.
    Public utility property means public utility property as defined in 
section 168(i)(10).
    Qualified bond means a qualified bond as defined in section 141(e).
    Renewal option means a provision under which either party has a 
legally enforceable right to renew the contract. Thus, for example, a 
provision under which a contract is automatically renewed for 1-year 
periods absent cancellation by either party is not a renewal option 
(even if it is expected to be renewed).
    Replaced amounts means replacement proceeds other than amounts that 
are treated as replacement proceeds solely because they are sinking 
funds or pledged funds.
    Weighted average maturity is determined under section 147(b).
    Weighted average reasonably expected economic life is determined 
under section 147(b). The reasonably expected economic life of property 
may be determined by reference to the class life of the property under 
section 168.
    (c) Elections. Elections must be made in writing on or before the 
issue date and retained as part of the bond documents, and, once made, 
may not be revoked without the permission of the Commissioner.
    (d) Related parties. Except as otherwise provided, all related 
parties are treated as one person and any reference to ``person'' 
includes any related party.

[T.D. 8712, 62 FR 2284, Jan. 16, 1997]