S.Amdt. 2604

1. Adds SEC. __. HOME LEAD HAZARD REDUCTION ACTIVITY TAX CREDIT at the end of title IV

   Adds a section

   In S. 2020 · Placed on Calendar Senate

   (d) Effective Date.--The amendments made by this section shall apply to amounts paid or accrued during the period beginning after December 31, 2006, and before January 1, 2008, and properly allocable to such period, with respect to mortgage insurance contracts issued after December 31, 2006.

   Inserted: SEC. __. HOME LEAD HAZARD REDUCTION ACTIVITY TAX CREDIT.

   Inserted: (a) In General.--Subpart B of part IV of subchapter A of chapter 1 (relating to foreign tax credit, etc.) is amended by adding at the end the following new section:

   Inserted: "SEC. 30D. HOME LEAD HAZARD REDUCTION ACTIVITY.

   Inserted: "(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the lead hazard reduction activity cost paid or incurred by the taxpayer during the taxable year for each eligible dwelling unit.

   Inserted: "(b) Limitation.--The amount of the credit allowed under subsection (a) for any eligible dwelling unit for any taxable year shall not exceed--

   Inserted: "(1) either--

   Inserted: "(A) $3,000 in the case of lead hazard reduction activity cost including lead abatement measures described in clauses (i), (ii), (iv) and (v) of subsection (c)(1)(A), or

   Inserted: "(B) $1,000 in the case of lead hazard reduction activity cost including interim lead control measures described in clauses (i), (iii), (iv), and (v) of subsection (c)(1)(A), reduced by

   Inserted: "(2) the aggregate lead hazard reduction activity cost taken into account under subsection (a) with respect to such unit for all preceding taxable years.

   Inserted: "(c) Definitions and Special Rules.--For purposes of this section:

   Inserted: "(1) Lead hazard reduction activity cost.--

   Inserted: "(A) In general.--The term 'lead hazard reduction activity cost' means, with respect to any eligible dwelling unit--

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   Inserted: "(i) the cost for a certified risk assessor to conduct an assessment to determine the presence of a lead-based paint hazard,

   Inserted: "(ii) the cost for performing lead abatement measures by a certified lead abatement supervisor, including the removal of paint and dust, the permanent enclosure or encapsulation of lead-based paint, the replacement of painted surfaces, windows, or fixtures, or the removal or permanent covering of soil when lead-based paint hazards are present in such paint, dust, or soil,

   Inserted: "(iii) the cost for performing interim lead control measures to reduce exposure or likely exposure to lead-based paint hazards, including specialized cleaning, repairs, maintenance, painting, temporary containment, ongoing monitoring of lead-based paint hazards, and the establishment and operation of management and resident education programs, but only if such measures are evaluated and completed by a certified lead abatement supervisor using accepted methods, are conducted by a qualified contractor, and have an expected useful life of more than 10 years,

   Inserted: "(iv) the cost for a certified lead abatement supervisor, those working under the supervision of such supervisor, or a qualified contractor to perform all preparation, cleanup, disposal, and clearance testing activities associated with the lead abatement measures or interim lead control measures, and

   Inserted: "(v) costs incurred by or on behalf of any occupant of such dwelling unit for any relocation which is necessary to achieve occupant protection (as defined under section 35.1345 of title 24, Code of Federal Regulations).

   Inserted: "(B) Limitation.--The term 'lead hazard reduction activity cost' does not include any cost to the extent such cost is funded by any grant, contract, or otherwise by another person (or any governmental agency).

   Inserted: "(2) Eligible dwelling unit.--

   Inserted: "(A) In general.--The term 'eligible dwelling unit' means, with respect to any taxable year, any dwelling unit--

   Inserted: "(i) placed in service before 1960,

   Inserted: "(ii) located in the United States,

   Inserted: "(iii) in which resides, for a total period of not less than 50 percent of the taxable year, at least 1 child who has not attained the age of 6 years or 1 woman of child-bearing age, and

   Inserted: "(iv) each of the residents of which during such taxable year has an adjusted gross income of less than 185 percent of the poverty line (as determined for such taxable year in accordance with criteria established by the Director of the Office of Management and Budget).

   Inserted: "(B) Dwelling unit.--The term 'dwelling unit' has the meaning given such term by section 280A(f)(1).

   Inserted: "(3) Lead-based paint hazard.--The term 'lead-based paint hazard' has the meaning given such term by section 745.61 of title 40, Code of Federal Regulations.

   Inserted: "(4) Certified lead abatement supervisor.--The term 'certified lead abatement supervisor' means an individual certified by the Environmental Protection Agency pursuant to section 745.226 of title 40, Code of Federal Regulations, or an appropriate State agency pursuant to section 745.325 of title 40, Code of Federal Regulations.

   Inserted: "(5) Certified inspector.--The term 'certified inspector' means an inspector certified by the Environmental Protection Agency pursuant to section 745.226 of title 40, Code of Federal Regulations, or an appropriate State agency pursuant to section 745.325 of title 40, Code of Federal Regulations.

   Inserted: "(6) Certified risk assessor.--The term 'certified risk assessor' means a risk assessor certified by the Environmental Protection Agency pursuant to section 745.226 of title 40, Code of Federal Regulations, or an appropriate State agency pursuant to section 745.325 of title 40, Code of Federal Regulations.

   Inserted: "(7) Qualified contractor.--The term 'qualified contractor' means any contractor who has successfully completed a training course on lead safe work practices which has been approved by the Department of Housing and Urban Development and the Environmental Protection Agency.

   Inserted: "(8) Documentation required for credit allowance.--No credit shall be allowed under subsection (a) with respect to any eligible dwelling unit for any taxable year unless--

   Inserted: "(A) after lead hazard reduction activity is complete, a certified inspector or certified risk assessor provides written documentation to the taxpayer that includes--

   Inserted: "(i) evidence that--

   Inserted: "(I) the eligible dwelling unit passes the clearance examinations required by the Department of Housing and Urban Development under part 35 of title 40, Code of Federal Regulations,

   Inserted: "(II) the eligible dwelling unit does not contain lead dust hazards (as defined by section 745.227(e)(8)(viii) of such title 40), or

   Inserted: "(III) the eligible dwelling unit meets lead hazard evaluation criteria established under an authorized State or local program, and

   Inserted: "(ii) documentation showing that the lead hazard reduction activity meets the requirements of this section, and

   Inserted: "(B) the taxpayer files with the appropriate State agency and attaches to the tax return for the taxable year--

   Inserted: "(i) the documentation described in subparagraph (A),

   Inserted: "(ii) documentation of the lead hazard reduction activity costs paid or incurred during the taxable year with respect to the eligible dwelling unit, and

   Inserted: "(iii) a statement certifying that the dwelling unit qualifies as an eligible dwelling unit for such taxable year.

   Inserted: "(9) Basis reduction.--The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (d)).

   Inserted: "(10) No double benefit.--Any deduction allowable for costs taken into account in computing the amount of the credit for lead-based paint abatement shall be reduced by the amount of such credit attributable to such costs.

   Inserted: "(d) Limitation Based on Amount of Tax.--The credit allowed under subsection (a) for the taxable year shall not exceed the excess of--

   Inserted: "(1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

   Inserted: "(2) the sum of the credits allowable under subpart A and sections 27, 29, 30, 30A, 30B, and 30C for the taxable year.

   Inserted: "(e) Carryforward Allowed.--

   Inserted: "(1) In general.--If the credit amount allowable under subsection (a) for a taxable year exceeds the amount of the limitation under subsection (d) for such taxable year (referred to as the 'unused credit year' in this subsection), such excess shall be allowed as a credit carryforward for each of the 20 taxable years following the unused credit year.

   Inserted: "(2) Rules.--Rules similar to the rules of section 39 shall apply with respect to the credit carryforward under paragraph (1).".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Section 1016(a) of the Internal Revenue Code of 1986 is amended by striking "and" in paragraph (36), by striking the period and inserting ", and" in paragraph (37), and by inserting at the end the following new paragraph:

   Inserted: "(38) in the case of an eligible dwelling unit with respect to which a credit for any lead hazard reduction activity cost was allowed under section 30D, to the extent provided in section 30D(c)(9).".

   Inserted: (2) The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 30C the following new item:

   Inserted: "Sec. 30D. Home lead hazard reduction activity.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to lead hazard reduction activity costs incurred after December 31, 2005, in taxable years ending after that date.

   Inserted: SEC. __. MODIFICATION OF EXCLUSION FOR CITIZENS LIVING ABROAD.

   Inserted: (a) Inflation Adjustment of Foreign Earned Income Limitation.--Clause (ii) of section 911(b)(2)(D) (relating to inflation adjustment) is amended--

   Inserted: (1) by striking "2007" and inserting "2005", and

   Inserted: (2) by striking "2006" in subclause (II) and inserting "2004".

   Inserted: (b) Modification of Housing Cost Amount.--

   Inserted: (1) Minimum amount.--Clause (i) of section 911(c)(1)(B) is amended to read as follows:

   Inserted: "(i) 16 percent of the amount (computed on a daily basis) in effect under subsection (b)(2)(D) for the calendar year in which such taxable year begins, multiplied by".

   Inserted: (2) Maximum amount of exclusion.--

   Inserted: (A) In general.--Subparagraph (A) of section 911(c)(1) is amended by inserting "to the extent such expenses do not exceed the amount determined under paragraph (2)" after "the taxable year".

   Inserted: (B) Limitation.--Subsection (c) of section 911 is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph:

   Inserted: "(2) Limitation.--The amount determined under this paragraph is an amount equal to the product of--

   Inserted: "(A) 30 percent of the amount (computed on a daily basis) in effect under subsection (b)(2)(D) for the calendar year in which the taxable year of the individual begins, multiplied by

   Inserted: "(B) the number of days of such taxable year within the applicable period described in subparagraph (A) or (B) of subsection (d)(1).".

   Inserted: (C) Conforming amendments.--

   Inserted: (i) Section 911(d)(4) is amended by striking "and (c)(1)(B)(ii)" and inserting ", (c)(1)(B)(ii), and (c)(2)(B)"

   Inserted: (ii) Section 911(d)(7) is amended by striking "subsection (c)(3)" and inserting "subsection (c)(4)".

   Inserted: (c) Rates of Tax Applicable to Nonexcluded Income.--Section 911 (relating to exclusion of certain income of citizens and residents of the United States living abroad) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

   Inserted: "(f) Determination of Tax Liability on Nonexcluded Amounts.--If any amount is excluded from the gross income of a taxpayer under subsection (a) for any taxable year, then, notwithstanding section 1 or 55--

   Inserted: "(1) the tax imposed by section 1 on the taxpayer for such taxable year shall be equal to the excess (if any) of--

   Inserted: "(A) the tax which would be imposed by section 1 for the taxable year if the taxpayer's taxable income were equal to the sum of--

   Inserted: "(i) the taxpayer's taxable income for the taxable year (determined without regard to this subsection), plus

   Inserted: "(ii) the amount excluded under subsection (a) for the taxable year, over

   Inserted: "(B) the tax which would be imposed by section 1 for the taxable year if the taxpayer's taxable income were equal to the amount excluded under subsection (a) for the taxable year, and

   Inserted: "(2) the tax imposed by section 55 for such taxable year shall be equal to the excess (if any) of--

   Inserted: "(A) the amount which would be the tentative minimum tax under section 55 for the taxable year if the taxpayer's alternative minimum taxable income were equal to the sum of--

   Inserted: "(i) the taxpayer's alternative minimum taxable income for the taxable year (determined without regard to this subsection), plus

   Inserted: "(ii) the amount excluded under subsection (a) for the taxable year, over

   Inserted: "(B) the sum of--

   Inserted: "(i) the amount which would be the tentative minimum tax under section 55 for the taxable year if the taxpayer's alternative minimum taxable income were equal to the amount excluded under subsection (a) for the taxable year, plus

   Inserted: "(ii) the amount which would be the regular tax for the taxable year if the tax imposed by section 1 were the tax computed under paragraph (1). For purposes of this subsection, the amount excluded under subsection (a) shall be reduced by the aggregate amount of any deductions or exclusions disallowed under subsection (d)(6) with respect to such excluded amount.".

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2005.

   Original wording

   At the end of title IV, add the following:

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As printed