S.Amdt. 1748

SA 1748. Mr. CARDIN (for himself, Mrs. Murray, Mr. Casey, and Ms.
Stabenow) submitted an amendment intended to be proposed by him to the
bill H.R. 1, to provide for reconciliation pursuant to titles II and V
of the concurrent resolution on the budget for fiscal year 2018; which
was ordered to lie on the table; as follows:

At the end of part IX of subtitle C of title I, insert the
following new subpart:

Subpart C--Incentives for Economic Development

CHAPTER 1--REHABILITATION CREDIT

SEC. 13901. INCREASE IN THE REHABILITATION CREDIT FOR CERTAIN
SMALL PROJECTS.

(a) In General.--Section 47 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subsection:
``(e) Special Rule Regarding Certain Small Projects.--
``(1) In general.--In the case of any qualified
rehabilitated building or portion thereof--
``(A) which is placed in service after the date of the
enactment of this subsection, and
``(B) which is a small project,
subsection (a)(2) shall be applied by substituting `30
percent' for `20 percent'.
``(2) Maximum credit.--The credit under this section (after
application of this subsection) with respect to any project
for all taxable years shall not exceed $750,000.
``(3) Small project.--
``(A) In general.--For purposes of this subsection, the
term `small project' means any certified historic structure
or portion thereof if--
``(i) the total qualified rehabilitation expenditures taken
into account for purposes of this section with respect to the
rehabilitation do not exceed $3,750,000, and
``(ii) no credit was allowed under this section for either
of the two immediately preceding taxable years with respect
to such building.
``(B) Progress expenditures.--Credit allowable by reason of
subsection (d) shall not

[[Page S7602]]

be taken into account under subparagraph (A)(ii).''.
(b) Effective Date.--The amendment made by this section
shall apply to periods after the date of the enactment of
this Act, under rules similar to the rules of section 48(m)
of the Internal Revenue Code of 1986 (as in effect on the day
before the date of the enactment of the Revenue
Reconciliation Act of 1990).

SEC. 13902. ALLOWANCE FOR THE TRANSFER OF CREDITS FOR CERTAIN
SMALL PROJECTS.

(a) In General.--Section 47(e) of the Internal Revenue Code
of 1986, as added by section 13901, is amended by adding at
the end the following new paragraph:
``(4) Transfer of small project credit.--
``(A) In general.--Subject to subparagraph (B) and such
regulations or other guidance as the Secretary may provide,
the taxpayer may transfer to any other taxpayer all or a
portion of the credit allowable to the taxpayer under
subsection (a) for a small project.
``(B) Certification.--A transfer under subparagraph (A)
shall be accompanied by a certificate which includes--
``(i) the certification for the certified historic
structure,
``(ii) the taxpayer's name, address, and tax identification
number,
``(iii) the transferee's name, address, and tax
identification number,
``(iv) the date of project completion and the amount of
credit being transferred, and
``(v) such other information as may be required by the
Secretary.
``(C) Credit may only be transferred once.--A credit
transferred under subparagraph (A) is not transferable by the
transferee to any other taxpayer.
``(D) Tax treatment of transfer.--
``(i) Disallowance of deduction.--No deduction shall be
allowed for any amount of consideration paid or incurred by
the transferee in return for the transfer of any credit under
this paragraph.
``(ii) Allowance of credit.--The amount of credit
transferred under subparagraph (A)--

``(I) shall not be allowed to the transferor for any
taxable year, and
``(II) shall be allowable to the transferee as a credit
under this section for the taxable year of the transferee in
which such credit is transferred.

``(E) Recapture and other special rules.--For purposes of
section 50, the transferee of a credit with respect to a
smaller project under this paragraph shall be treated as the
taxpayer with respect to the smaller project.
``(F) Information reporting.--The transferor and the
transferee shall each make such reports regarding the
transfer of an amount of credit under subparagraph (A), and
containing such information, as the Secretary may require.
The reports required by this subparagraph shall be filed at
such time and in such manner as may be required by the
Secretary.''.
(b) Effective Date.--The amendment made by this section
shall apply to periods after December 31, 2016.

SEC. 13903. INCREASING THE TYPE OF BUILDINGS ELIGIBLE FOR
REHABILITATION.

(a) In General.--Section 47(c)(1)(C)(i)(I) of the Internal
Revenue Code of 1986 is amended by inserting ``50 percent
of'' before ``the adjusted basis''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2016.

SEC. 13904. REDUCTION OF BASIS ADJUSTMENT FOR REHABILITATION
PROPERTY.

(a) In General.--Section 50(c) of the Internal Revenue Code
of 1986 is amended by adding at the end the following:
``(6) Special rule relating to the rehabilitation credit.--
In the case of any rehabilitation credit--
``(A) only 50 percent of such credit shall be taken into
account under paragraph (1), and
``(B) only 50 percent of any recapture amount attributable
to such credit shall be taken into account under paragraph
(2).''.
(b) Coordination With Basis Adjustment.--Subsection (d) of
section 50 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new sentence: ``For purposes
of paragraph (5), in applying the provisions of section
48(d)(5)(B) (as so in effect) to a lease of property eligible
for the credit under section 47, gross income of the lessee
of such property shall include, ratably over the shortest
recovery period applicable to such property under section
168, an amount equal to 50 percent of the amount of the
credit allowable under section 38 to such lessee with respect
to such property.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 13905. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT USE
PROPERTY.

(a) In General.--Section 47(c)(2)(B)(v)(I) of the Internal
Revenue Code of 1986 is amended by inserting ``, and
subclauses (I), (II), and (III) of section 168(h)(1)(B)(ii)
shall not apply'' after ``thereof''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.

CHAPTER 2--NEW MARKETS TAX CREDIT

SEC. 13911. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.

(a) Extension.--
(1) In general.--Subparagraph (G) of section 45D(f)(1) of
the Internal Revenue Code of 1986 is amended by striking
``for each of calendar years 2010 through 2019'' and
inserting ``for calendar year 2010 and each calendar year
thereafter''.
(2) Conforming amendment.--Section 45D(f)(3) of such Code
is amended by striking the last sentence.
(b) Inflation Adjustment.--Subsection (f) of section 45D of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new paragraph:
``(4) Inflation adjustment.--
``(A) In general.--In the case of any calendar year
beginning after 2016, the dollar amount in paragraph (1)(G)
shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year, determined by
substituting `calendar year 2000' for `calendar year 1992' in
subparagraph (B) thereof.
``(B) Rounding rule.--Any increase under subparagraph (A)
which is not a multiple of $1,000,000 shall be rounded to the
nearest multiple of $1,000,000.''.
(c) Allocations Designated for Areas Impacted by Decline in
Manufacturing.--Section 45D(f) of such Code, as amended by
subsection (b), is amended by adding at the end the following
new paragraph:
``(5) Allocations for areas impacted by decline in
manufacturing.--The new markets tax credit limitation
otherwise determined under paragraph (1) for each calendar
year shall be increased by $1,000,000,000. A qualified
community development entity shall be eligible for an
allocation under paragraph (2) of the increase described in
the preceding sentence only if a significant mission of such
entity is providing investments and services to persons in
the trade or business of manufacturing products in
communities which have suffered major manufacturing job
losses or a major manufacturing job loss event, as designated
by the Secretary. Paragraph (3) shall be applied separately
with respect to the increase provided under this
paragraph.''.
(d) Alternative Minimum Tax Relief.--Subparagraph (B) of
section 38(c)(4) of the Internal Revenue Code of 1986 is
amended--
(1) by redesignating clauses (v) through (xi) as clauses
(vi) through (xii), respectively, and
(2) by inserting after clause (iv) the following new
clause:
``(v) the credit determined under section 45D, but only
with respect to credits determined with respect to qualified
equity investments (as defined in section 45D(b)) initially
made after December 31, 2016,''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2016.
(2) Alternative minimum tax relief.--The amendments made by
subsection (d) shall apply to credits determined with respect
to qualified equity investments (as defined in section 45D(b)
of the Internal Revenue Code of 1986) initially made after
December 31, 2016.

CHAPTER 3--LOW INCOME HOUSING TAX CREDIT

SEC. 13921. INCREASES IN STATE ALLOCATIONS.

(a) Phase-In of Increases.--
(1) In general.--Clause (ii) of section 42(h)(3)(C) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``$1.75'' in subclause (I) and inserting
``the per capita dollar amount'', and
(B) by striking ``$2,000,000'' in subclause (II) and
inserting ``the minimum ceiling amount''.
(2) Per capita dollar amount; minimum ceiling amount.--
Subparagraph (I) of section 42(h)(3) of such Code is amended
to read as follows:
``(I) Per capita dollar amount; minimum ceiling amount.--
For purposes of this paragraph--
``(i) Per capita dollar amount.--The per capita dollar
amount is--

``(I) for calendar year 2017, $2.35,
``(II) for calendar year 2018, $2.59,
``(III) for calendar year 2019, $2.82,
``(IV) for calendar year 2020, $3.06,
``(V) for calendar year 2021, $3.29, and
``(VI) $3.53 thereafter.

``(ii) Minimum ceiling amount.--The minimum ceiling amount
is--

``(I) for calendar year 2017, $2,710,000,
``(II) for calendar year 2018, $2,981,000,
``(III) for calendar year 2019, $3,252,000,
``(IV) for calendar year 2020, $3,523,000,
``(V) for calendar year 2021, $3,794,000, and
``(VI) $4,065,000 thereafter.''.

(3) Modification of cost-of-living adjustment.--
Subparagraph (H) of section 42(h)(3) of such Code is
amended--
(A) by striking ``2002'' in clause (i) and inserting
``2017'',
(B) by striking ``the $2,000,000 and $1.75 amounts in
subparagraph (C)'' in clause (i) and inserting ``the dollar
amounts applicable to such calendar year under clauses (i)
and (ii) of subparagraph (I)'',
(C) by striking ``2001'' in clause (i)(II) and inserting
``2016'',
(D) by striking ``$2,000,000'' in clause (ii)(I) and
inserting ``minimum ceiling'', and
(E) by striking ``$1.75'' in clause (ii)(II) and inserting
``per capita dollar''.

[[Page S7603]]

(4) Effective date.--The amendments made by this subsection
shall apply to calendar years beginning after December 31,
2017.
(b) Permanent Increases.--
(1) In general.--Clause (ii) of section 42(h)(3)(C) of the
Internal Revenue Code of 1986, as amended by subsection
(a)(1), is amended--
(A) by striking ``the per capita dollar amount'' in
subclause (I) and inserting ``$3.53'', and
(B) by striking ``the minimum ceiling amount'' in subclause
(II) and inserting ``$4,065,000''.
(2) Conforming amendment.--Paragraph (3) of section 42(h)
of such Code is amended by striking subparagraph (I), as
amended by subsection (a)(2).
(3) Cost-of-living adjustment.--Subparagraph (H) of section
42(h)(3) of such Code, as amended by subsection (a)(3), is
amended--
(A) by striking ``the dollar amounts applicable to such
calendar year under clauses (i) and (ii) of subparagraph
(I)'' in clause (i) and inserting ``the $4,065,000 and $3.53
amounts in subparagraph (C)'',
(B) by striking ``minimum ceiling'' in clause (ii)(I) and
inserting ``$4,065,000'', and
(C) by striking ``per capita dollar'' in clause (ii)(II)
and inserting ``$3.53''.
(4) Effective date.--The amendments made by this subsection
shall apply to calendar years beginning after December 31,
2022.

SEC. 13922. AVERAGE INCOME TEST.

(a) In General.--Paragraph (1) of section 42(g) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``subparagraph (A) or (B)'' and inserting
``subparagraph (A), (B), or (C)'', and
(2) by inserting after subparagraph (B) the following new
subparagraph:
``(C) Average income test.--
``(i) In general.--The project meets the minimum
requirements of this subparagraph if 40 percent or more (25
percent or more in the case of a project described in section
142(d)(6)) of the residential units in such project are both
rent-restricted and occupied by individuals whose income does
not exceed the imputed income limitation designated by the
taxpayer with respect to the respective unit.
``(ii) Special rules relating to income limitation.--For
purposes of clause (i)--

``(I) Designation.--The taxpayer shall designate the
imputed income limitation of each unit taken into account
under such clause.
``(II) Average test.--The average of the imputed income
limitations designated under subclause (I) shall not exceed
60 percent of area median gross income.
``(III) 10-percent increments.--The designated imputed
income limitation of any unit under subclause (I) shall be 20
percent, 30 percent, 40 percent, 50 percent, 60 percent, 70
percent, or 80 percent of area median gross income.''.

(b) Rules Relating to Next Available Unit.--Subparagraph
(D) of section 42(g)(2) of the Internal Revenue Code of 1986
is amended--
(1) in clause (i), by striking ``clause (ii)'' and
inserting ``clauses (ii), (iii), and (iv)'',
(2) in clause (ii)--
(A) by striking ``If'' and inserting ``In the case of a
project with respect to which the taxpayer elects the
requirements of subparagraph (A) or (B) of paragraph (1),
if'',
(B) by striking the second sentence, and
(C) by striking ``Next available unit must be rented to
low-income tenant if income rises above 140 percent of income
limit'' in the heading and inserting ``Rental of next
available unit in case of 20-50 or 40-60 test'', and
(3) by adding at the end the following new clauses:
``(iii) Rental of next available unit in case of average
income test.--In the case of a project with respect to which
the taxpayer elects the requirements of subparagraph (C) of
paragraph (1), if the income of the occupants of the unit
increases above 140 percent of the greater of--

``(I) 60 percent of area median gross income, or
``(II) the imputed income limitation designated with
respect to the unit under paragraph (1)(C)(ii)(I),

clause (i) shall cease to apply to any such unit if any
residential rental unit in the building (of a size comparable
to, or smaller than, such unit) is occupied by a new resident
whose income exceeds the limitation described in clause (v).
``(iv) Deep rent skewed projects.--In the case of a project
described in section 142(d)(4)(B), clause (ii) or (iii),
whichever is applicable, shall be applied by substituting
`170 percent' for `140 percent', and--

``(I) in the case of clause (ii), by substituting `any low-
income unit in the building is occupied by a new resident
whose income exceeds 40 percent of area median gross income'
for `any residential rental unit' and all that follows in
such clause, and
``(II) in the case of clause (iii), by substituting `any
low-income unit in the building is occupied by a new resident
whose income exceeds the lesser of 40 percent of area median
gross income or the imputed income limitation designated with
respect to such unit under paragraph (1)(C)(ii)(I)' for `any
residential rental unit' and all that follows in such clause.

``(v) Limitation described.--For purposes of clause (iii),
the limitation described in this clause with respect to any
unit is--

``(I) the imputed income limitation designated with respect
to such unit under paragraph (1)(C)(ii)(I), in the case of a
unit which was taken into account as a low-income unit prior
to becoming vacant, and
``(II) the imputed income limitation which would have to be
designated with respect to such unit under such paragraph in
order for the project to continue to meet the requirements of
paragraph (1)(C)(ii)(II), in the case of any other unit.''.

(c) Effective Date.--The amendments made by this section
shall apply to elections made under section 42(g)(1) of the
Internal Revenue Code of 1986 after the date of the enactment
of this Act.

SEC. 13923. UNIFORM INCOME ELIGIBILITY FOR RURAL PROJECTS.

(a) In General.--Paragraph (8) of section 42(i) of the
Internal Revenue Code of 1986 is amended by striking the
second sentence.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2017.

SEC. 13924. CODIFICATION OF RULES RELATING TO INCREASED
TENANT INCOME.

(a) In General.--Clause (i) of section 42(g)(2)(D) of the
Internal Revenue Code of 1986, as amended by this Act, is
amended by striking ``clauses (ii), (iii), and (iv)'' and all
that follows and inserting ``clauses (ii), (iii), (iv), and
(vi), notwithstanding an increase in the income of the
occupants above the income limitation applicable under
paragraph (1)--

``(I) a low-income unit shall continue to be treated as a
low-income unit if the income of such occupants initially was
60 percent or less of area median gross income and such unit
continues to be rent-restricted, and
``(II) a unit to which, at the time of initial occupancy by
such occupants, any Federal, State, or local government
income restriction applied, and which subsequently becomes
part of a building with respect to which rehabilitation
expenditures are taken into account under subsection (e),
shall be treated as a low-income unit if the income of such
occupants initially was 60 percent or less of area median
gross income and does not exceed 120 percent of area median
gross income as of the date of acquisition of the property by
the taxpayer.''.

(b) Exception.--Subparagraph (D) of section 42(g)(2) of the
Internal Revenue Code of 1986, as amended by this Act, is
amended by adding at the end the following new clause:
``(vi) Exception to rule relating to increased tenant
income.--In the case of an occupant of a low-income unit who
initially qualified to occupy such unit by reason of
paragraph (1)(C) with an income in excess of 60 percent of
area median gross income but not in excess of 80 percent of
area median gross income, clause (i) shall be applied for
substituting `80 percent' for `60 percent' each place it
appears.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2016.

SEC. 13925. MODIFICATION OF STUDENT OCCUPANCY RULES.

(a) In General.--Subparagraph (D) of section 42(i)(3) of
the Internal Revenue Code of 1986 is amended to read as
follows:
``(D) Rules relating to students.--
``(i) In general.--A unit occupied solely by individuals
who--

``(I) have not attained age 24, and
``(II) are enrolled in a full-time course of study at an
institution of higher education (as defined in section
3304(f)),

shall not be treated as a low-income unit.
``(ii) Exception for certain federal programs.--In the case
of a federally assisted building (as defined in subsection
(d)(6)(C)(i)), clause (i) shall not apply to a unit the
occupants of which meet all requirements applicable under the
housing program described in subsection (d)(6)(C)(i) through
which the building is assisted, financed, or operated.
``(iii) Other exceptions.--Clause (i) shall not apply to a
unit occupied by an individual who--

``(I) is married,
``(II) is a person with disabilities (as defined in section
3(b)(3)(E) of the United States Housing Act of 1937),
``(III) is a veteran (as defined in section 101(2) of title
38, United States Code),
``(IV) has one or more qualifying children (as defined in
section 152(c)), or
``(V) meets the income limitation applicable under
subsection (g)(1) to the project of which the building is a
part and is, or was immediately prior to attaining the age of
majority--

``(aa) an emancipated minor or in legal guardianship as
determined by a court of competent jurisdiction in the
individual's State of legal residence,
``(bb) under the care and placement responsibility of the
State agency responsible for administering a plan under part
B or part E of title IV of the Social Security Act, or
``(cc) was an unaccompanied youth (within the meaning of
section 725(6) of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11434a(6))) or a homeless child or youth (within
the meaning of section 725(2) of such Act (42 U.S.C.
11434a(2))).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2017.

SEC. 13926. TENANT VOUCHER PAYMENTS TAKEN INTO ACCOUNT AS
RENT FOR CERTAIN PURPOSES.

(a) In General.--Subparagraph (B) of section 42(g)(2) of
the Internal Revenue Code of

[[Page S7604]]

1986 is amended by adding at the end the following new
sentence: ``In the case of a project with respect to which
the taxpayer elects the requirements of subparagraph (C) of
paragraph (1), or the portion of a project to which
subsection (d)(5)(C) applies, clause (i) shall not apply with
respect to any tenant-based assistance (as defined in section
8(f)(7) of the United States Housing Act of 1937 (42 U.S.C.
1437f(f)(7))).''.
(b) Effective Date.--The amendments made by this section
shall apply to rent paid in taxable years beginning after
December 31, 2017.

SEC. 13927. MINIMUM CREDIT RATE.

(a) In General.--Subsection (b) of section 42 of the
Internal Revenue Code of 1986 is amended--
(1) by redesignating paragraph (3) as paragraph (4), and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) Minimum credit rate.--In the case of any new or
existing building to which paragraph (2) does not apply and
which is placed in service by the taxpayer after December 31,
2016, the applicable percentage shall not be less than 4
percent.''.
(b) Effective Date.--The amendments made by this section
shall apply to buildings placed in service after December 31,
2016.

SEC. 13928. RECONSTRUCTION OR REPLACEMENT PERIOD AFTER
CASUALTY LOSS.

(a) In General.--Subparagraph (E) of section 42(j)(4) of
the Internal Revenue Code of 1986 is amended by striking ``a
reasonable period established by the Secretary'' and
inserting ``a reasonable period established by the applicable
housing credit agency (not to exceed 25 months from the date
on which the casualty loss arises). The determination under
paragraph (1) shall not be made with respect to a property
the basis of which is affected by a casualty loss until the
period described in the preceding sentence with respect to
such property has expired.''.
(b) Effective Date.--The amendment made by this section
shall apply to casualty losses arising after the date of the
enactment of this Act.

SEC. 13929. MODIFICATION OF RIGHTS RELATING TO BUILDING
PURCHASE.

(a) In General.--Subparagraph (A) of section 42(i)(7) of
the Internal Revenue Code of 1986 is amended--
(1) by striking ``a right of 1st refusal'' and inserting
``an option'', and
(2) by striking ``the property'' and inserting ``the
property or a partnership interest relating to the
property''.
(b) Conforming Amendment.--Subparagraph (B) of section
42(i)(7) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new sentence: ``In the case
of a purchase of a partnership interest, the minimum purchase
price is an amount equal to such interest's ratable share of
the amount determined under the first sentence of this
subparagraph.''.
(c) Effective Date.--The amendments made by this section
shall apply to agreements entered into or amended after the
date of the enactment of this Act.

SEC. 13930. MODIFICATION OF 10-YEAR RULE; LIMITATION ON
ACQUISITION BASIS.

(a) In General.--Clause (ii) of section 42(d)(2)(B) of the
Internal Revenue Code of 1986 is amended by inserting ``, or
the taxpayer elects the application of subparagraph (C)(ii)''
after ``service''.
(b) Limitation on Acquisition Basis.--Subparagraph (C) of
section 42(d)(2) of the Internal Revenue Code of 1986 is
amended--
(1) by striking ``For purposes of subparagraph (A), the
adjusted basis'' and inserting ``For purposes of subparagraph
(A)--
``(i) In general.--The adjusted basis'', and
(2) by adding at the end the following new clauses:
``(ii) Buildings in service within previous 10 years.--If
the period between the date of acquisition of the building by
the taxpayer and the date the building was last placed in
service is less than 10 years, the taxpayer's basis
attributable to the acquisition of the building which is
taken into account in determining the adjusted basis shall
not exceed the sum of--

``(I) the lowest amount paid for acquisition of the
building by any person during the 10 years preceding the date
of the acquisition of the building by the taxpayer, adjusted
as provided in clause (iii), and
``(II) the value of any capital improvements made by the
person who sells the building to the taxpayer which are
reflected in such seller's basis.

``(iii) Adjustment.--With respect to a basis determination
made in any taxable year, the amount described in clause
(ii)(I) shall be increased by an amount equal to--

``(I) such amount, multiplied by
``(II) a cost-of-living adjustment, determined in the same
manner as under section 1(f)(3) for the calendar year in
which the taxable year begins by taking into account the
acquisition year in lieu of calendar year 1992.

For purposes of the preceding sentence, the acquisition year
is the calendar year in which the lowest amount referenced in
clause (ii)(I) was paid for the acquisition of the
building.''.
(c) Conforming Amendments.--Clause (i) of section
42(d)(2)(D) of the Internal Revenue Code of 1986 is amended--
(1) by striking ``for subparagraph (b)'' in the heading,
and
(2) by striking ``subparagraph (B)(ii)'' in the matter
preceding subclause (I) and inserting ``subparagraph (B)(ii)
or (C)(ii)''.
(d) Effective Date.--The amendments made by this section
shall apply to buildings placed in service after December 31,
2016.

SEC. 13931. CERTAIN RELOCATION COSTS TAKEN INTO ACCOUNT AS
REHABILITATION EXPENDITURES.

(a) In General.--Paragraph (2) of section 42(e) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:
``(C) Certain relocation costs.--In the case of a
rehabilitation of a building to which section 280B does not
apply, costs relating to the relocation of occupants,
including--
``(i) amounts paid to occupants,
``(ii) amounts paid to third parties for services relating
to such relocation, and
``(iii) amounts paid for temporary housing for occupants,
shall be treated as chargeable to capital account and taken
into account as rehabilitation expenditures.''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred after December
31, 2016.

SEC. 13932. REPEAL OF QUALIFIED CENSUS TRACT POPULATION CAP.

(a) In General.--Clause (ii) of section 42(d)(5)(B) of the
Internal Revenue Code of 1986 is amended--
(1) by striking subclauses (II) and (III), and
(2) by striking ``Qualified census tract.--

``(I) In general.--The term'',

and inserting ``Qualified census tract.--The term''.
(b) Technical Corrections.--Sections 42(d)(4)(C)(i) and
42(m)(1)(B)(ii)(III) of the Internal Revenue Code of 1986 are
each amended by striking ``as defined in paragraph (5)(C)''
and inserting ``as defined in paragraph (5)(B)(ii)''.
(c) Effective Date.--The amendment made by subsection (a)
shall apply to designations of qualified census tracts under
section 42(d)(5)(B)(ii) of the Internal Revenue Code of 1986
after December 31, 2017.

SEC. 13933. DETERMINATION OF COMMUNITY REVITALIZATION PLAN TO
BE MADE BY HOUSING CREDIT AGENCY.

(a) In General.--Subclause (III) of section 42(m)(1)(B)(ii)
of the Internal Revenue Code of 1986 is amended by inserting
``, as determined by the housing credit agency according to
criteria established by such agency,'' after ``(d)(5)(C))
and''.
(b) Criteria.--Paragraph (1) of section 42(m) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:
``(E) Criteria for determination relating to concerted
community revitalization plan.--For purposes of subparagraph
(B)(ii)(III), the criteria which shall be established by a
housing credit agency for determining whether the development
of a project contributes to a concerted community development
plan shall take into account any factors the agency deems
appropriate, including the extent to which the proposed
plan--
``(i) is geographically specific,
``(ii) outlines a clear plan for implementation and goals
for outcomes,
``(iii) includes a strategy for applying for or obtaining
commitments of public or private investment (or both) in
nonhousing infrastructure, amenities, or services, and
``(iv) demonstrates the need for community
revitalization.''.
(c) Effective Date.--The amendments made by this section
shall apply to allocations of housing credit dollar amounts
made under qualified allocation plans (as defined in section
42(m)(1)(B) of the Internal Revenue Code of 1986) adopted
after December 31, 2017.

SEC. 13934. PROHIBITION OF LOCAL APPROVAL AND CONTRIBUTION
REQUIREMENTS.

(a) In General.--Paragraph (1) of section 42(m) of the
Internal Revenue Code of 1986, as amended by section 13933,
is further amended--
(1) by striking clause (ii) of subparagraph (A) and by
redesignating clauses (iii) and (iv) thereof as clauses (ii)
and (iii), and
(2) by adding at the end the following new subparagraph:
``(F) Local approval or contribution not taken into
account.--The selection criteria under a qualified allocation
plan shall not include consideration of--
``(i) any support or opposition with respect to the project
from local or elected officials, or
``(ii) any local government contribution to the project,
except to the extent such contribution is taken into account
as part of a broader consideration of the project's ability
to leverage outside funding sources, and is not prioritized
over any other source of outside funding.''.
(b) Effective Date.--The amendments made by this section
shall apply to allocations of housing credit dollar amounts
made after December 31, 2017.

SEC. 13935. INCREASE IN CREDIT FOR CERTAIN PROJECTS
DESIGNATED TO SERVE EXTREMELY LOW-INCOME
HOUSEHOLDS.

(a) In General.--Paragraph (5) of section 42(d) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:
``(C) Increase in credit for projects designated to serve
extremely low-income households.--In the case of any
building--
``(i) 20 percent or more of the residential units in which
are designated by the taxpayer for occupancy by households
the aggregate household income of which does not exceed the
greater of--

[[Page S7605]]

``(I) 30 percent of area median gross income, or
``(II) 100 percent of an amount equal to the Federal
poverty line (within the meaning of section 36B(d)(3)), and

``(ii) which is designated by the housing credit agency as
requiring the increase in credit under this subparagraph in
order for such building to be financially feasible as part of
a qualified low-income housing project,
subparagraph (B) shall not apply to the portion of such
building which is comprised of such units, and the eligible
basis of such portion of the building shall be 150 percent of
such basis determined without regard to this subparagraph.''.
(b) Effective Date.--The amendment made by this section
shall apply to buildings placed in service after December 31,
2016.

SEC. 13936. INCREASE IN CREDIT FOR BOND-FINANCED PROJECTS
DESIGNATED BY STATE AGENCY.

(a) In General.--Clause (v) of section 42(d)(5)(B) of the
Internal Revenue Code of 1986 is amended by striking the
second sentence.
(b) Technical Amendment.--Clause (v) of section 42(d)(5)(B)
of the Internal Revenue Code of 1986, as amended by
subsection (a), is further amended--
(1) by striking ``State'' in the heading, and
(2) by striking ``State housing credit agency'' and
inserting ``housing credit agency''.
(c) Effective Date.--The amendments made by this section
shall apply to buildings placed in service after December 31,
2016.

SEC. 13937. ELIMINATION OF BASIS REDUCTION FOR LOW-INCOME
HOUSING PROPERTIES RECEIVING CERTAIN ENERGY
BENEFITS.

(a) New Energy Efficient Home Credit.--Subsection (e) of
section 45L of the Internal Revenue Code of 1986 is amended--
(1) by striking ``Adjustment.--For purposes'' and inserting
``Adjustment.--
``(1) In general.--For purposes'', and
(2) by adding at the end the following new paragraph:
``(2) Exception for affordable housing properties.--
Paragraph (1) shall not apply to any property with respect to
which a credit is allowed under section 42.''.
(b) Energy Efficient Commercial Buildings Deduction.--
Subsection (e) of section 179D of the Internal Revenue Code
of 1986 is amended--
(1) by striking ``Reduction.--For purposes'' and inserting
``Reduction.--
``(1) In general.--For purposes'', and
(2) by adding at the end the following new paragraph:
``(2) Exception for affordable housing properties.--
Paragraph (1) shall not apply to any property with respect to
which a credit is allowed under section 42.''.
(c) Energy Credit.--Paragraph (3) of section 50(c) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``and'' at the end of subparagraph (A),
(2) by striking the period at the end of subparagraph (B)
and inserting ``, and'', and
(3) by adding at the end the following new subparagraph:
``(C) paragraph (1) shall not apply to any property with
respect to which a credit is allowed under section 42.''.
(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2016.

SEC. 13938. RESTRICTION OF PLANNED FORECLOSURES.

(a) In General.--Subclause (I) of section 42(h)(6)(E)(i) of
the Internal Revenue Code of 1986 is amended to read as
follows:

``(I) on the 61st day after the taxpayer (or a successor in
interest) provides notice to the housing credit agency that
the building has been acquired by foreclosure (or instrument
in lieu of foreclosure) and that the taxpayer intends the
termination of such period, unless the housing credit agency
determines that such acquisition is part of an arrangement
with the taxpayer a purpose of which is to terminate such
period, or''.

(b) Conforming Amendment.--The second sentence of clause
(i) of section 42(h)(6)(E) of the Internal Revenue Code of
1986 is amended by striking ``Subclause (II)'' and inserting
``Subclauses (I) and (II)''.
(c) Effective Date.--The amendments made by this section
shall apply to acquisitions by foreclosure (or instrument in
lieu of foreclosure) after December 31, 2017.

SEC. 13939. INCREASE OF POPULATION CAP FOR DIFFICULT
DEVELOPMENT AREAS.

(a) In General.--Subclause (II) of section 42(d)(5)(B)(iii)
of the Internal Revenue Code of 1986 is amended by striking
``20 percent'' and inserting ``30 percent''.
(b) Effective Date.--The amendment made by this section
shall apply to designations made under section
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 after
December 31, 2017.

SEC. 13940. SELECTION CRITERIA UNDER QUALIFIED ALLOCATION
PLANS.

(a) In General.--Subparagraph (C) of section 42(m)(1) of
the Internal Revenue Code of 1986 is amended by striking
``and'' at the end of clause (ix), by striking the period at
the end of clause (x) and inserting ``, and'', and by adding
at the end the following new clause:
``(xi) the affordable housing needs of individuals in the
State who are members of Indian tribes (as defined in section
45A(c)(6)).''.
(b) Effective Date.--The amendments made by this section
shall apply to allocations of credits under section 42 of the
Internal Revenue Code of 1986 made after December 31, 2017.

SEC. 13941. INCLUSION OF INDIAN AREAS AS DIFFICULT
DEVELOPMENT AREAS FOR PURPOSES OF CERTAIN
BUILDINGS.

(a) In General.--Subclause (I) of section 42(d)(5)(B)(iii)
of the Internal Revenue Code of 1986 is amended by inserting
before the period the following: ``, and any Indian area''.
(b) Indian Area.--Clause (iii) of section 42(d)(5)(B) of
the Internal Revenue Code of 1986 is amended by redesignating
subclause (II) as subclause (III) and by inserting after
subclause (I) the following new subclause:

``(II) Indian area.--For purposes of subclause (I), the
term `Indian area' means any Indian area (as defined in
section 4(11) of the Native American Housing Assistance and
Self Determination Act of 1996 (25 U.S.C. 4103(11)).''.

(c) Eligible Buildings.--Clause (iii) of section
42(d)(5)(B) of the Internal Revenue Code of 1986, as amended
by subsection (b), is amended by adding at the end the
following new subclause:

``(IV) Special rule for buildings in indian areas.--In the
case of an area which is a difficult development area solely
because it is an Indian area, a building shall not be treated
as located in such area unless such building is assisted or
financed under the Native American Housing Assistance and
Self Determination Act of 1996 (25 U.S.C. 4101 et seq.) or
the project sponsor is an Indian tribe (as defined in section
45A(c)(6)), a tribally designated housing entity (as defined
in section 4(22) of such Act (25 U.S.C. 4103(22))), or wholly
owned or controlled by such an Indian tribe or tribally
designated housing entity.''.

(d) Effective Date.--The amendments made by this section
shall apply to buildings placed in service after December 31,
2017.

SEC. 13942. AFFORDABLE HOUSING TAX CREDIT.

(a) In General.--The heading of section 42 of the Internal
Revenue Code of 1986 is amended by striking ``low-income''
and inserting ``affordable''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 42 of the Internal Revenue
Code of 1986 is amended by striking ``low-income'' and
inserting ``affordable''.
(2) Paragraph (5) of section 38(b) of such Code is amended
by striking ``low-income'' and inserting ``affordable''.
(3) The heading of subparagraph (D) of section 469(i)(3) of
such Code is amended by striking ``low-income'' and inserting
``affordable''.
(4) The heading of subparagraph (B) of section 469(i)(6) of
such Code is amended by striking ``low-income'' and inserting
``affordable''.
(5) Paragraph (7) of section 772(a) of such Code is amended
by striking ``low-income'' and inserting ``affordable''.
(6) Paragraph (5) of section 772(d) of such Code is amended
by striking ``low-income'' and inserting ``affordable''.
(c) Clerical Amendment.--The item relating to section 42 in
the table of sections for subpart D of part IV of subchapter
A of chapter 1 of the Internal Revenue Code of 1986 is
amended to read as follows:

``Sec. 42. Affordable housing credit.''.

CHAPTER 4--MANUFACTURING AND EDUCATION BONDS

SEC. 13951. MODIFICATIONS TO QUALIFIED SMALL ISSUE BONDS.

(a) Manufacturing Facilities To Include Production of
Intangible Property and Functionally Related Facilities.--
Section 144(a)(12)(C) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(C) Manufacturing facility.--For purposes of this
paragraph--
``(i) In general.--The term `manufacturing facility' means
any facility which--

``(I) is used in the manufacturing or production of
tangible personal property (including the processing
resulting in a change in the condition of such property),
``(II) is used in the creation or production of intangible
property which is described in section 197(d)(1)(C)(iii), or
``(III) is functionally related and subordinate to a
facility described in subclause (I) or (II) if such facility
is located on the same site as the facility described in
subclause (I) or (II).

``(ii) Certain facilities included.--The term
`manufacturing facility' includes facilities that are
directly related and ancillary to a manufacturing facility
(determined without regard to this clause) if--

``(I) those facilities are located on the same site as the
manufacturing facility, and
``(II) not more than 25 percent of the net proceeds of the
issue are used to provide those facilities.

``(iii) Limitation on office space.--A rule similar to the
rule of section 142(b)(2) shall apply for purposes of clause
(i).
``(iv) Limitation on refundings for certain property.--
Subclauses (II) and (III) of clause (i) shall not apply to
any bond issued on or before the date of the enactment of the
Tax Cuts and Jobs Act, or to any bond issued to refund a bond
issued on or before such date (other than a bond to which
clause (iii) of this subparagraph (as in effect before the
date of the enactment of the Tax Cuts and Jobs Act applies)),
either directly or in a series of refundings.''.
(b) Increase in Limitations.--Section 144(a)(4) of such
Code is amended--
(1) by striking ``$10,000,000'' in subparagraph (A)(i) and
inserting ``$30,000,000'', and
(2) by striking ``$10,000,000'' in the heading and
inserting ``$30,000,000''.

[[Page S7606]]

(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.

SEC. 13952. EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.

(a) Construction of a Public School Facility.--Subparagraph
(A) of section 54E(d)(3) of the Internal Revenue Code of 1986
is amended by striking ``rehabilitating or repairing'' and
inserting ``constructing, rehabilitating, retrofitting, or
repairing''.
(b) Removal of Private Business Contribution Requirement.--
Section 54E of the Internal Revenue Code of 1986 is amended--
(1) in subsection (a)(3)--
(A) in subparagraph (A), by inserting ``and'' at the end;
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as subparagraph (B);
(2) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively; and
(3) in paragraph (1) of subsection (b) (as so
redesignated)--
(A) by striking ``and $400,000,0000'' and inserting
``$400,000,000''; and
(B) by striking ``and, except as provided'' and all that
follows through the period at the end and inserting ``, and
$1,400,000,000 for 2018 and each year thereafter.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2017.

CHAPTER 5--REPEAL OF CERTAIN PROVISIONS

SEC. 13961. REHABILITATION CREDIT.

The amendments made by section 13402 of this Act shall be
null and void.

SEC. 13962. LOW-INCOME HOUSING CREDIT.

The amendments made by subpart B of part V of this subtitle
shall be null and void.

SEC. 13963. ADVANCE REFUNDING BONDS.

The amendments made by section 13532 of this Act shall be
null and void.
______