Code of Federal Regulations Title 26. Internal Revenue § 26.1.141–16 Effective dates for qualified private activity bond provisions

(d) Certain remedial actions—(1) General rule. The provisions of § 1.142–2(e) apply to failures to properly use proceeds that occur on or after August 13, 2004 and may be applied by issuers to failures to properly use proceeds that occur on or after May 14, 2004, provided that the bonds are subject to § 1.142–2.

(2) Special rule for allocations of nonqualified bonds. For purposes of § 1.142–2(e)(2), in addition to the allocation methods permitted in § 1.142–2(e)(2), an issuer may treat bonds with the longest maturities (determined on a bond-by-bond basis) as the nonqualified bonds, but only with respect to failures to properly use proceeds that occur on or after May 14, 2004, with respect to bonds sold before August 13, 2004.