S.Amdt. 4011

1. Adds SEC. 104. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS; TEMPORARY INCREASED VOLUME CAP FOR CERTAIN HOUSING BONDS at the end of title I

   Adds a section

   In H.R. 5140 · Placed on Calendar Senate

   (d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2007, in taxable years ending after such date.

   Inserted: SEC. 104. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS; TEMPORARY INCREASED VOLUME CAP FOR CERTAIN HOUSING BONDS.

   Inserted: (a) Use of Qualified Mortgage Bonds Proceeds for Subprime Refinancing Loans.--Section 143(k) of the Internal Revenue Code of 1986 (relating to other definitions and special rules) is amended by adding at the end the following new paragraph:

   Inserted: "(12) Special rules for subprime refinancings.--

   Inserted: "(A) In general.--Notwithstanding the requirements of subsection (i)(1), the proceeds of a qualified mortgage issue may be used to refinance a mortgage on a residence which was originally financed by the mortgagor through a qualified subprime loan.

   Inserted: "(B) Special rules.--In applying this paragraph to any case in which the proceeds of a qualified mortgage issue are used for any refinancing described in subparagraph (A)--

   Inserted: "(i) subsection (a)(2)(D)(i) shall be applied by substituting '12-month period' for '42-month period' each place it appears,

   Inserted: "(ii) subsection (d) (relating to 3-year requirement) shall not apply, and

   Inserted: "(iii) subsection (e) (relating to purchase price requirement) shall be applied by using the market value of the residence at the time of refinancing in lieu of the acquisition cost.

   Inserted: "(C) Qualified subprime loan.--The term 'qualified subprime loan' means an adjustable rate single-family residential mortgage loan originated after December 31, 2001, and before January 1, 2008, that the bond issuer determines would be reasonably likely to cause financial hardship to the borrower if not refinanced.

   Inserted: "(D) Termination.--This paragraph shall not apply to any bonds issued after December 31, 2010.".

   Inserted: (b) Increased Volume Cap for Certain Bonds.--

   Inserted: (1) In general.--Subsection (d) of section 146 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

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   Inserted: "(5) Increase and set aside for housing bonds for 2008.--

   Inserted: "(A) Increase for 2008.--In the case of calendar year 2008, the State ceiling for each State shall be increased by an amount equal to $10,000,000,000 multiplied by a fraction--

   Inserted: "(i) the numerator of which is the population of such State (as reported in the most recent decennial census), and

   Inserted: "(ii) the denominator of which is the total population of all States (as reported in the most recent decennial census).

   Inserted: "(B) Set aside.--

   Inserted: "(i) In general.--Any amount of the State ceiling for any State which is attributable to an increase under this paragraph shall be allocated solely for one or more qualified purposes.

   Inserted: "(ii) Qualified purpose.--For purposes of this paragraph, the term 'qualified purpose' means--

   Inserted: "(I) the issuance of exempt facility bonds used solely to provide qualified residential rental projects, or

   Inserted: "(II) a qualified mortgage issue (determined by substituting '12-month period' for '42-month period' each place it appears in section 143(a)(2)(D)(i)).".

   Inserted: (2) Carryforward of unused limitations.--Subsection (f) of section 146 of such Code is amended by adding at the end the following new paragraph:

   Inserted: "(6) Special rules for increased volume cap under subsection (d)(5).--

   Inserted: "(A) In general.--No amount which is attributable to the increase under subsection (d)(5) may be used--

   Inserted: "(i) for a carryforward purpose other than a qualified purpose (as defined in subsection (d)(5)), and

   Inserted: "(ii) to issue any bond after calendar year 2010.

   Inserted: "(B) Ordering rules.--For purposes of subparagraph (A), any carryforward of an issuing authority's volume cap for calendar year 2008 shall be treated as attributable to such increase to the extent of such increase.".

   Inserted: (c) Alternative Minimum Tax.--

   Inserted: (1) In general.--Clause (ii) of section 57(a)(5)(C) of the Internal Revenue Code of 1986 is amended by striking "shall not include" and all that follows and inserting "shall not include--

   Inserted: "(I) any qualified 501(c)(3) bond (as defined in section 145), or

   Inserted: "(II) any qualified mortgage bond (as defined in section 143(a)) or qualified veterans' mortgage bond (as defined in section 143(b)) issued after the date of the enactment of this subclause and before January 1, 2011.".

   Inserted: (2) Conforming amendment.--The heading for section 57(a)(5)(C)(ii) is amended by striking "qualified 501(c)(3) bonds" and inserting "certain bonds".

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.

   Original wording

   At the end of title I, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed