S.Amdt. 4411

1. Adds SEC. _. ALLOWING LOW-INCOME HOUSING CREDITS TO OFFSET 100 PERCENT OF FEDERAL INCOME TAX LIABILITY wherever appropriate

   Adds a section

   Inserted: SEC. _. ALLOWING LOW-INCOME HOUSING CREDITS TO OFFSET 100 PERCENT OF FEDERAL INCOME TAX LIABILITY.

   Inserted: (a) In General.--Subsection (c) of section 38 of the Internal Revenue Code of 1986, as amended by this Act, is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:

   Inserted: "(6) Allowing low-income housing credit to offset 100 percent of federal income tax liability.--

   Inserted: "(A) In general.--In the case of applicable low-income housing credits--

   Inserted: "(i) this section and section 39 shall be applied separately with respect to such credits, and

   Inserted: "(ii) in applying paragraph (1) to such credits--

   Inserted: "(I) the tentative minimum tax and the net regular tax liability shall be treated as being zero solely for purposes of applying subparagraphs (A) and (B) thereof, and

   Inserted: "(II) the limitation under paragraph (1) shall be the net income tax (as defined in paragraph (1) without regard to subclause (I) of this clause) reduced by the credit allowed under subsection (a) for the taxable year (other than the applicable low-income housing credits).

   Inserted: "(B) Applicable low-income housing credits.--For purposes of this subpart--

   Inserted: "(i) In general.--The term 'applicable low-income housing credit' means the credit determined under section 42 for a taxable year ending after December 31, 2008, and beginning before January 1, 2011 (including carryforwards of such credit to such years) with respect to which the taxpayer elects the application of this subparagraph, and to the extent provided in subparagraph (D).

   Inserted: "(ii) Eligible taxpayers.--Clause (i) shall not apply in the case of any taxpayer which is a government-sponsored enterprise (as defined in section 1004(f) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989).

   Inserted: "(C) Election.--

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   Inserted: "(i) In general.--An election under this subparagraph may be made only with respect to 1 taxable year of the taxpayer.

   Inserted: "(ii) Manner of election.--Any election under this subparagraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extensions of time) for filing the return (or any amendment thereto) for the taxpayer's last taxable year beginning in 2010. Any such election, once made, shall be irrevocable.

   Inserted: "(D) Investments in new small business projects.--

   Inserted: "(i) In general.--Subparagraph (B) shall apply to credits under section 42 for a taxable year only--

   Inserted: "(I) if the taxpayer has, during the applicable period, entered into 1 or more binding commitments to invest equity with respect to investments in 1 or more future qualified small business projects (which are binding on the taxpayer and all successors in interest), directly or through a fund organized for the purpose of making such investments, which specify the dollar amount of each such commitment, and

   Inserted: "(II) to the extent such credits do not exceed the dollar amount of such investment commitments.

   Inserted: "(ii) Applicable period.--For purposes of this subparagraph, the applicable period is the period beginning on June 1, 2010, and ending on the date which is 9 months after the date of the enactment of the Creating Small Business Jobs Act of 2010.

   Inserted: "(iii) Qualified small business project.--For purposes of this subparagraph, the term 'qualified small business project' means a low-income housing project--

   Inserted: "(I) the eligible basis of which (as determined under section 42(d)) does not exceed $50,000,000,

   Inserted: "(II) the credit period of which begins after December 31, 2009,

   Inserted: "(III) for which the taxpayer has acquired ownership, and has contributed capital in an amount which is not less than 20 percent of the total amount of capital the taxpayer has committed to contribute, not later than December 31, 2011, and

   Inserted: "(IV) which has received an allocation of low-income housing credits under section 42 from a State housing credit agency not later than December 31, 2011.".

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2008, and to carrybacks of credits from such taxable years.

   Inserted: SEC. _. FIVE-YEAR CARRYBACK OF LOW-INCOME HOUSING CREDIT.

   Inserted: (a) In General.--Subsection (a) of section 39 of the Internal Revenue Code of 1986, as amended by this Act, is amended by adding at the end the following new paragraph:

   Inserted: "(5) 5-year carryback for applicable low-income housing credits.--Notwithstanding subsection (d), in the case of applicable low-income housing credits (within the meaning of section 38(c)(6)(B)), paragraph (1) shall be applied by substituting 'each of the 5 taxable years' for 'the taxable year' in subparagraph (A) thereof.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Section 39(a)(3)(A) of the Internal Revenue Code of 1986 is amended by inserting "or the applicable low-income housing credits" after "credit)".

   Inserted: (2) Section 39(a)(3)(A) of such Code, as amended by this Act, is amended by striking "credit) or the eligible small business credits or the applicable low-income housing credits" and inserting "credit), the eligible small business credits, or the applicable low-income housing credits".

   Inserted: (3) Subparagraph (A) of section 39(a)(4) of the Internal Revenue Code of 1986, as added by this Act, is amended by inserting "paragraph (5) and" after "Notwithstanding".

   Inserted: (c) Effective Dates.--

   Inserted: (1) In general.--The amendments made by subsection (a) and subsection (b)(1) shall apply to credits determined in taxable years beginning after December 31, 2008, and to carrybacks of credits from such taxable years.

   Inserted: (2) Conforming amendment.--The amendments made by paragraphs (2) and (3) of subsection (b) shall apply to credits determined in taxable years beginning after December 31, 2009.

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   Original wording

   At the appropriate place, insert the following:

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As printed