may be taken into account under this section with respect to such building. The applicable percentage and maximum qualified basis so specified shall not exceed the applicable percentage and qualified basis determined under this section without regard to this subsection. (7) Increase in State ceiling dedicated to certain rural development projects (A) In general The State housing credit ceiling for any calendar year shall be increased by an amount equal to 5 percent of the amount determined under paragraph (3)(C)(ii). (B) Use of increased amount (i) In general The amount of the increase under subparagraph (A) for any calendar year may only be allocated to buildings located in a rural area. (ii) Rural area For purposes of clause (i), the term rural area means any non-metropolitan area, or any rural area as defined by section 520 of the Housing Act of 1949, which is identified by the qualified allocation plan under subsection (l)(1)(B). (8) Other definitions For purposes of this subsection— (A) Housing credit agency The term housing credit agency means any agency authorized to carry out this subsection. (B) Possessions treated as States The term State includes a possession of the United States. (9) Credit for buildings financed by tax-exempt bonds subject to volume cap not taken into account Rules similar to the rules of subsections (h)(4), (m)(1)(D), and (m)(2)(D) of section 42 shall apply for purposes of this subsection. (10) Election to transfer State housing credit ceiling for allocations to low-income buildings (A) In general If a State housing credit agency makes an election under this paragraph with respect to a calendar year— (i) the State housing credit ceiling for such calendar year under paragraph (3) (determined before application of paragraph (7)) shall be reduced by the amount specified in such election, (ii) the amount determined under paragraph (7) for such calendar year shall be reduced by the amount specified in such election, and (iii) the amount determined under section 42(h)(3)(C)(ii) for such