(1) Definition of disproportionate use.
A private business use is disproportionate to a related government use only to the extent that the amount of proceeds used for that private business use exceeds the amount of proceeds used for the related government use. For example, a private use of $100 of proceeds that is related to a government use of $70 of proceeds results in $30 of disproportionate use.
(2) Aggregation of related uses.
If two or more private business uses of the proceeds of an issue relate to a single government use of those proceeds, those private business uses are aggregated to apply the disproportionate use test.
(3) Allocation rule.
If a private business use relates to more than a single use of the proceeds of the issue (for example, two or more government uses of the proceeds of the issue or a government use and a private use), the amount of any disproportionate use may be determined by --
(i) Reasonably allocating the proceeds used for the private business use among the related uses;
(ii) Aggregating government uses that are directly related to each other; or
(iii) Allocating the private business use to the government use to which it is primarily related.