ADVANCE RULINGS ON EXEMPTION ON INDUSTRIAL DEVELOPMENT BONDS

SECTION 1. BACKGROUND

Rev. Proc. 83-22, 1983-1 C.B. 680 sets forth areas in which advance rulings or determination letters will not be issued by the Internal Revenue Service. Section 4 of Rev. Proc. 83-22 is entitled Areas in Which Rulings or Determination Letters Will Not Ordinarily Be Issued.

SECTION 2. PROCEDURE

Rev. Proc. 83-22 is amplified to include the following under section 4:

Section 103.--Interest on Certain Governmental Obligations: Whether an issue of industrial development bonds is exempt under section 103(b) of the Code when 10 percent or more of the proceeds of the issue (minus "neutral costs" as described in Rev. Rul. 80-171, 1980-2 C.B. 44) are used to finance a facility in which an owner (or a related person) or a lessee (or a related person), who was a user of the facility at any time before the bonds were issued, will be a user of the facility after the bonds are issued.

SECTION 3. EFFECTIVE DATE

This revenue procedure will apply to all ruling requests on hand in the National Office on February 27, 1984, the date of publication of this Revenue Procedure in the Internal Revenue Bulletin, as well as to requests received thereafter.

SECTION 4. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 83-22 is amplified.