To clarify the low-income housing credits that are eligible for the low-income housing elections, and for other purposes.

SA 3374. Mr. BAYH (for himself, Mrs. Lincoln, Mr. Wicker, Mr. Vitter,
and Mr. Bond) submitted an amendment intended to be proposed to
amendment SA 3338 submitted by Mr. Thune to the amendment SA 3336
proposed by Mr. Baucus to the bill H.R. 4213, to amend the Internal
Revenue Code of 1986 to extend certain expiring provisions, and for
other purposes; which was ordered to lie on the table; as follows:

Strike section 121 and insert the following:

SEC. 121. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT
FOR 2010.

(a) In General.--Section 42 is amended by redesignating
subsection (n) as subsection (o) and by inserting after
subsection (m) the following new subsection:
``(n) Election for Refundable Credits.--
``(1) In general.--The housing credit agency of each State
shall be allowed a credit in an amount equal to such State's
2010 low-income housing refundable credit election amount,
which shall be payable by the Secretary as provided in
paragraph (5).
``(2) 2010 low-income housing refundable credit election
amount.--For purposes of this subsection, the term `2010 low-
income housing refundable credit election amount' means, with
respect to any State, such amount as the State may elect
which does not exceed 85 percent of the product of--
``(A) the sum of--
``(i) 100 percent of the State housing credit ceiling for
2010 which is attributable to amounts described in clauses
(i) and (iii) of subsection (h)(3)(C), plus any increase in
the State housing credit ceiling for 2010 made by reason of
section 1400N(c) (including as such section is applied by
reason of sections 702(d)(2) and 704(b) of the Tax Extenders
and Alternative Minimum Tax Relief Act of 2008), and
``(ii) 40 percent of the State housing credit ceiling for
2010 which is attributable to amounts described in clauses
(ii) and (iv) of such subsection, plus any increase in the
State housing credit ceiling for 2010 made by reason of the
application of such section 702(d)(2) and 704(b), multiplied
by
``(B) 10.
For purposes of subparagraph (A)(ii), in the case of any area
to which section 702(d)(2) or 704(b) of the Tax Extenders and
Alternative Minimum Tax Relief Act of 2008 applies, section
1400N(c)(1)(A) shall be applied without regard to clause (i)
``(3) Coordination with non-refundable credit.--For
purposes of this section, the amounts described in clauses
(i) through (iv) of subsection (h)(3)(C) with respect to any
State for 2010 shall each be reduced by so much of such
amount as is taken into account in determining the amount of
the credit allowed with respect to such State under paragraph
(1).
``(4) Special rule for basis.--Basis of a qualified low-
income building shall not be reduced by the amount of any
payment made under this subsection.
``(5) Payment of credit; use to finance low-income
buildings.--The Secretary shall pay to the housing credit
agency of each State an amount equal to the credit allowed
under paragraph (1). Rules similar to the rules of
subsections (c) and (d) of section 1602 of the American
Recovery and Reinvestment Tax Act of 2009 shall apply with
respect to any payment made under this paragraph, except that
such subsection (d) shall be applied by substituting `January
1, 2012' for `January 1, 2011'.''.
(b) Conforming Amendment.--Section 1324(b)(2) of title 31,
United States Code, is amended by inserting ``42(n),'' after
``36A,''.

SEC. 122. LOW-INCOME HOUSING GRANT ELECTION.

(a) Clarification of Eligibility of Low-Income Housing
Credits for Low-Income Housing Grant Election.--Paragraph (1)
of section 1602(b) of the American Recovery and Reinvestment
Tax Act of 2009 is amended--
(1) by inserting ``, plus any increase in the State housing
credit ceiling for 2009 attributable to any State housing
credit ceiling returned in 2009 to the State by reason of
section 1400N(c) of such Code (including as such section is
applied by reason of sections 702(d)(2) and 704(b) of the Tax
Extenders and Alternative Minimum Tax Relief Act of 2008)''
after ``1986'' in subparagraph (A), and
(2) by inserting ``, plus any increase in the State housing
credit ceiling for 2009 attributable to any additional State
housing credit ceiling made by reason of the application of
such section 702(d)(2) and 704(b)'' after ``such section'' in
subparagraph (B).
(b) Application of Additional Housing Credit Amount for
Purposes of 2009 Grant Election.--Subsection (b) of section
1602 of the American Recovery and Reinvestment Tax Act of
2009, as amended by subsection (a), is amended by adding at
the end the following flush sentence:

``For purposes of paragraph (1)(B), in the case of any area
to which section 702(d)(2) or 704(b) of the Tax Extenders and
Alternative Minimum Tax Relief Act of 2008 applies, section
1400N(c)(1)(A) of such Code shall be applied without regard
to clause (i).''.
(c) Effective Date.--The amendments made by this section
shall apply as if included in the enactment of section 1602
of the American Recovery and Reinvestment Tax Act of 2009.
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