[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: 26CFR1.141-15] [Page 667-668] TITLE 26--INTERNAL REVENUE CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) PART 1_INCOME TAXES--Table of Contents Sec. 1.141-15 Effective dates. (a) Scope. The effective dates of this section apply for purposes of Sec. Sec. 1.141-1 through 1.141-6(a), 1.141-7 through 1.141-14, 1.145-1 through 1.145-2, 1.150-1(a)(3) and the definition of bond documents contained in Sec. 1.150-1(b). (b) Effective dates--(1) In general. Except as otherwise provided in this section, Sec. Sec. 1.141-1 through 1.141-6(a), 1.141-9 through 1.141-14, 1.145-1 through 1.145-2, 1.150-1(a)(3) and the definition of bond documents contained in Sec. 1.150-1(b) apply to bonds issued on or after May 16, 1997, that are subject to section 1301 of the Tax Reform Act of 1986 (100 Stat. 2602). (2) Certain short-term arrangements. The provisions of Sec. 1.141-3 that refer to arrangements for 200 days, 100 days, or 50 days apply to any bond sold on or after November 20, 2001 and may be applied to any bond outstanding on November 20, 2001 to which Sec. 1.141-3 applies. (3) Certain prepayments. Except as provided in paragraph (c) of this section, paragraphs (c)(2)(ii), (c)(2)(iii) and (c)(2)(iv) of Sec. 1.141-5 apply to bonds sold on or after October 3, 2003. Issuers may apply paragraphs (c)(2)(ii), (c)(2)(iii) and (c)(2)(iv) of Sec. 1.141- 5, in whole but not in part, to bonds sold before October 3, 2003 that are subject to Sec. 1.141-5. (c) Refunding bonds. Sections 1.141-1 through 1.141-6(a), 1.141-9 through 1.141-14, 1.145-1 through 1.145-2, 1.150-1(a)(3) and the definition of bond documents contained in Sec. 1.150-1(b) do not apply to any bonds issued on or after May 16, 1997, to refund a bond to which those sections do not apply unless-- (1) The refunding bonds are subject to section 1301 of the Tax Reform Act of 1986 (100 Stat. 2602); and (2)(i) The weighted average maturity of the refunding bonds is longer than-- (A) The weighted average maturity of the refunded bonds; or (B) In the case of a short-term obligation that the issuer reasonably expects to refund with a long-term financing (such as a bond anticipation note), 120 percent of the weighted average reasonably expected economic life of the facilities financed; or (ii) A principal purpose for the issuance of the refunding bonds is to make one or more new conduit loans. (d) Permissive application of regulations. Except as provided in paragraph (e) of this section, Sec. Sec. 1.141-1 through 1.141-6(a), 1.141-9 through 1.141-14, 1.145-1 through 1.145-2, 1.150-1(a)(3) and the definition of bond documents contained in Sec. 1.150-1(b) may be applied in whole, but not in part, to actions taken before February 23, 1998, with respect to-- (1) Bonds that are outstanding on May 16, 1997, and subject to section 141; or (2) Refunding bonds issued on or after May 16, 1997 that are subject to section 141. (e) Permissive application of certain sections. The following sections may each be applied to any bonds-- (1) Section 1.141-3(b)(4); (2) Section 1.141-3(b)(6); and (3) Section 1.141-12. [[Page 668]] (f) Effective dates for certain regulations relating to output facilities--(1) General rule. Except as otherwise provided in this section, Sec. Sec. 1.141-7 and 1.141-8 apply to bonds sold on or after November 22, 2002, that are subject to section 1301 of the Tax Reform Act of 1986 (100 Stat. 2602). (2) Transition rule for requirements contracts. For bonds otherwise subject to Sec. Sec. 1.141-7 and 1.141-8, Sec. 1.141-7(c)(3) applies to output contracts entered into on or after September 19, 2002. An output contract is treated as entered into on or after that date if it is amended on or after that date, but only if the amendment results in a change in the parties to the contract or increases the amount of requirements covered by the contract by reason of an extension of the contract term or a change in the method for determining such requirements. For purposes of this paragraph (f)(2)-- (i) The extension of the term of a contract causes the contract to be treated as entered into on the first day of the additional term; (ii) The exercise by a party of a legally enforceable right that was provided under a contract before September 19, 2002, on terms that were fixed and determinable before such date, is not treated as an amendment of the contract. For example, the exercise by a purchaser after September 19, 2002 of a renewal option that was provided under a contract before that date, on terms identical to the original contract, is not treated as an amendment of the contract; and (iii) An amendment that increases the amount of requirements covered by the contract by reason of a change in the method for determining such requirements is treated as a separate contract that is entered into as of the effective date of the amendment, but only with respect to the increased output to be provided under the contract. (g) Refunding bonds for output facilities. Except as otherwise provided in paragraph (h) or (i) of this section, Sec. Sec. 1.141-7 and 1.141-8 do not apply to any bonds sold on or after November 22, 2002, to refund a bond to which Sec. Sec. 1.141-7 and 1.141-8 do not apply unless-- (1) The refunding bonds are subject to section 1301 of the Tax Reform Act of 1986 (100 Stat. 2602); and (2)(i) The weighted average maturity of the refunding bonds is longer than-- (A) The weighted average maturity of the refunded bonds; or (B) In the case of a short-term obligation that the issuer reasonably expects to refund with a long-term financing (such as a bond anticipation note), 120 percent of the weighted average reasonably expected economic life of the facilities financed; or (ii) A principal purpose for the issuance of the refunding bonds is to make one or more new conduit loans. (h) Permissive retroactive application. Except as provided in paragraphs (d), (e) or (i) of this section, Sec. Sec. 1.141-1 through 1.141-6(a), 1.141-7 through 1.141-14, 1.145-1 through 1.145-2, 1.150- 1(a)(3) and the definition of bond documents contained in Sec. 1.150- 1(b) may be applied by issuers in whole, but not in part, to-- (1) Outstanding bonds that are sold before November 22, 2002, and subject to section 141; or (2) Refunding bonds that are sold on or after November 22, 2002, and subject to section 141. (i) Permissive application of certain regulations relating to output facilities. Issuers may apply Sec. Sec. 1.141-7(f)(3) and 1.141-7(g) to any bonds. [T.D. 8757, 63 FR 3265, Jan. 22, 1998, as amended by T.D. 8941, 66 FR 4670, Jan. 18, 2001; T.D. 8967, 66 FR 58062, Nov. 20, 2001; T.D. 9016, 67 FR 59765, Sept. 23, 2002; T.D. 9085, 68 FR 45775, Aug. 4, 2003]