Section 108 can refer to different legal provisions depending on the context, but two primary meanings stand out:
1. Section 108 Loan Guarantee Program (HUD)
This is a federal program administered by the U.S. Department of Housing and Urban Development (HUD). It allows communities that receive Community Development Block Grants (CDBG) to leverage their annual grant allocations to obtain low-cost, flexible, federally guaranteed loans. These loans finance economic development, housing, public facility, infrastructure projects, and disaster resilience efforts. The program helps local governments fund larger projects by filling financing gaps and catalyzing private investment in underserved areas. It is considered a powerful public investment tool with flexible repayment terms and compatibility with other financing sources like New Markets Tax Credits and Low Income Housing Tax Credits
2. Section 108 of the Internal Revenue Code (IRC) – Income from Discharge
of Indebtedness
In U.S. tax law, Section 108 of the IRC governs the tax treatment of debt forgiveness or discharge of indebtedness. Generally, if a debt is forgiven, the amount forgiven is considered taxable income unless specific exclusions apply (e.g., insolvency or bankruptcy). This section provides rules on how discharged debt affects taxable income, including limitations and reductions of tax attributes. It also defines terms related to bankruptcy and insolvency in this context. This provision is important for taxpayers and businesses to understand the tax implications of debt forgiveness and bankruptcy proceedings
Summary Table
Section 108 Context| Description| Administered By| Purpose/Use
---|---|---|---
HUD Section 108 Loan Guarantee| Loan guarantee program leveraging CDBG funds
for community development projects| U.S. Department of HUD| Financing economic
development, housing, infrastructure, and public facilities
IRC Section 108 (Tax Code)| Tax rules on income from discharge of indebtedness
(debt forgiveness)| Internal Revenue Service| Defines when forgiven debt is
taxable income and provides exclusions for insolvency/bankruptcy
In summary, "Section 108" most commonly refers either to a HUD loan guarantee program for community development or to a tax code provision dealing with the tax consequences of forgiven debt, depending on the legal or policy context
