§ 21. Definitions. 1. (a) "Applicable percentage" means the
appropriate percentage (depending on whether a building is new,
existing, or federally subsidized) prescribed by the secretary of the
treasury for purposes of section 42 of the internal revenue code for the
month which is the earlier of

(i) the month in which the eligible low-income building is placed in
service, or

(ii) at the election of the taxpayer,

(A) the month in which the taxpayer and the commissioner enter into an
agreement with respect to such building (which is binding on the
commissioner, the taxpayer, and all successors in interest) as to the
housing credit dollar amount to be allocated to such building, or

(B) in the case of any building to which subsection (h)(4)(B) of such
section 42 applies, the month in which the tax-exempt obligations are
issued.

(b) A month may be elected under subparagraph (ii) of paragraph (a) of
this subdivision only if the election is made not later than the fifth
day after the close of such month. Such election, once made, shall be
irrevocable.

(c) If, as of the close of any taxable year in the credit period, the
qualified basis of an eligible low-income building exceeds such basis as
of the close of the first year of the credit period, the applicable
percentage which shall apply to such excess shall be two-thirds of the
applicable percentage originally ascribed to such building.

2. "Compliance period" means, with respect to any building, the period
of fifteen taxable years beginning with the first taxable year of the
credit period with respect to such building.

3. "Credit period" means, with respect to any eligible low-income
building, the period of ten taxable years beginning with

(a) the taxable year in which the building is placed in service, or

(b) at the election of the taxpayer, the succeeding taxable year,
but only if the building is an eligible low-income building as of the
close of the first year of such period. The election under paragraph (b)
of this subdivision, once made, shall be irrevocable.

4. "Eligibility statement" means a statement issued by the
commissioner certifying that a building is an eligible low-income
building. Such statement shall set forth the taxable year in which such
building is placed in service, the dollar amount of low-income housing
credit allocated by the commissioner to such building as provided in
subdivision five of section twenty-two of this article, the applicable
percentage and maximum qualified basis with respect to such building
taken into account in determining such dollar amount, sufficient
information to identify each such building and the taxpayer or taxpayers
with respect to each such building, and such other information as the
commissioner, in consultation with the commissioner of taxation and
finance, shall prescribe. Such statement shall be first issued following
the close of the first taxable year in the credit period, and
thereafter, to the extent required by the commissioner of taxation and
finance, following the close of each taxable year of the compliance
period.

5. "Eligible low-income building" means a building located in this
state which either

(a) is a qualified low-income building as defined in section 42(c) of
the internal revenue code, or

(b) would be a qualified low-income building under such section if the
20-50 test specified in subsection (g)(1) of such section were
disregarded and the 40-60 test specified in such subsection (requiring
that at least forty percent of residential units be both rent-restricted
and occupied by individuals whose income is sixty percent or less of
area median gross income) were a 40-90 test.

6. "Qualified basis" of an eligible low-income building means the
qualified basis of such building determined under section 42(c) of the
internal revenue code, or which would be determined under such section
if the 40-90 test specified in paragraph (b) of subdivision five of this
section applied under such section 42 to determine if such building were
part of a qualified low-income housing project.

7. References in this article to section 42 of the internal revenue
code shall mean such section as amended from time to time.