S.Amdt. 303

SA 303. Mrs. LINCOLN (for herself and Mr. Kerry) submitted an
amendment intended to be proposed to amendment SA 98 proposed by Mr.
Inouye (for himself and Mr. Baucus) to the bill H.R. 1, making
supplemental appropriations for job preservation and creation,
infrastructure investment, energy efficiency and science, assistance to
the unemployed, and State and local fiscal stabilization, for fiscal
year ending September 30, 2009, and for other purposes; which was
ordered to lie on the table; as follows:

On page 570, after line 8, insert the following:

SEC. ___. MODIFICATIONS TO REHABILITATION CREDIT.

(a) Recapture Exemption for Foreclosure Transactions With
Respect to Investment Credit Property Placed in Service
Within 24 Months of Enactment.--Subsection (a) of section 50
is amended by adding at the end the following new paragraph:
``(6) Temporary special rule for certain foreclosure
transactions.--Paragraphs (1) and (2) shall not apply to any
transfer or deemed sale of any investment credit property
that arises from a foreclosure or instrument in lieu of
foreclosure or any similar transaction if--
``(A) such property is placed in service during the 24-
month period beginning on the date of the enactment of the
American Recovery and Reinvestment Tax Act of 2009, and
``(B) the transferee in such transfer or deemed sale is not
a related person (within the meaning of section 267(b)) of
the taxpayer.''.
(b) Use for Lodging Not to Disqualify Certain Buildings for
Rehabilitation Credit.--Paragraph (2) of section 50(b) is
amended--
(1) by striking ``and'' at the end of subparagraph (C),
(2) by redesignating subparagraph (D) as subparagraph (E),
and
(3) by inserting after subparagraph (C) the following new
subparagraph:
``(D) a building other than a certified historic structure
which is--
``(i) located within a qualified census tract (within the
meaning of section 42(d)(5)(B)(ii)) or a difficult
development area (within the meaning of section
42(d)(5)(B)(iii)); and
``(ii) placed in service during the 24-month period
beginning on the date of the enactment of the American
Recovery and Reinvestment Tax Act of 2009; and''.
(c) Date by Which Buildings Must Be First Placed in
Service.--Paragraph (1) of section 47(c) is amended by adding
at the end the following new subparagraph:
``(E) Special rule for certain buildings placed in service
in 2009 and 2010.--In the case of a building other than a
certified historic structure which is--
``(i) located within a qualified census tract (within the
meaning of section 42(d)(5)(B)(ii)) or a difficult
development area (within the meaning of section
42(d)(5)(B)(iii)), and
``(ii) placed in service during the 24-month period
beginning on the date of the enactment of the American
Recovery and Reinvestment Tax Act of 2009,

[[Page S1590]]

subparagraph (B) shall be applied by substituting `not less
than 50 years before the year in which qualified
rehabilitation expenditures are first taken into account
under subsection (b)(1)' for `before 1936'.''.
(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
______