Qualified Costs. The Borrower hereby represents, covenants and warrants that the proceeds of the Funding Loan shall be used or deemed used exclusively to pay costs which (i) are (A) capital expenditures (as defined in Section 1.150-1(a) of the Code’s regulations) and (B) not made for the acquisition of existing property, to the extent prohibited in Section 147(d) of the Code and that for the greatest number of buildings the proceeds of the Funding Loan shall be deemed allocated on a pro rata basis to each building in the Project and the land on which it is located so that each building and the land on which it is located will have been financed fifty percent (50%) or more by the proceeds of the Funding Loan for the purpose of complying with Section 42(h)(4)(B) of the Code; provided however, the foregoing representation, covenant and warranty is made for the benefit of the Borrower and its partners and neither the Funding Lender nor the Governmental Lender shall have any obligation to enforce this statement nor shall they incur any liability to any person, including without limitation, the Borrower, the partners of the Borrower, any other affiliate of the Borrower or the holders or payees of the Funding Loan and the Borrower Notes for any failure to meet the intent expressed in the foregoing representation, covenant and warranty; and provided further, failure to comply with this representation, covenant and warranty shall not constitute a default or event of default under this Borrower Loan Agreement or the Funding Loan Agreement.
Qualified Costs. The Borrower hereby represents, covenants and warrants that the proceeds of the Funding Loan shall be used or deemed used by Borrower exclusively to pay Qualified Project Costs.
Qualified Costs. Section 4996(h)(3) defines “ qualified costs” as any amount paid or incurred for exploring for, or developing or producing, one or more oil or gas xxxxx on the property. The proposed regulations provide that this term includes any amounts paid or incurred for overhead or indirect costs that are attributable to the activities described in the preceding sentence. The proposed regulations also provide that the term “ qualified costs” does not include any amount that is paid or incurred with respect to the tax imposed by chapter 45. Comments and Requests for Public U .S .C . 553 do not apply. Accordingly, these proposed regulations do not constitute regulations subject to the Regulatory Flexibility A ct (5 U .S .C . Chapter 6). Drafting Information List of Subjects in 26 CFR Part 51 Excise tax, Petroleum, Crude Oil Windfall Profit Tax Act Act of 1980. Proposed Amendments to the Regulations The proposed amendments to 26 CFR Part 51 are as follows:
Qualified Costs. The term “ qualified costs” means any amount paid or incurred for exploring, developing, or producing natural gas or crude oil from a reservoir on the property. The term includes any overhead or indirect costs paid or incurred that are attributable to the activities described in the preceding sentence. The term does not include any amount that is paid or incurred with respect to the tax imposed by chapter 45.
