I
110th CONGRESS
1st Session
H. R. 1043
IN THE HOUSE OF REPRESENTATIVES
February 14, 2007
Mrs. Jones of Ohio (for herself, Mr. English of Pennsylvania, Mr. Neal of Massachusetts, Mr. Emanuel, Mr. Blumenauer, Mr. Pascrell, Ms. Berkley, Mr. Davis of Alabama, Mr. Turner, Mr. Holt, Mr. Miller of Florida, Mr. Marshall, Mr. Paul, Mr. Ehlers, Mr. Langevin, Mr. Schiff, Mr. Miller of North Carolina, Ms. McCollum of Minnesota, Ms. Schakowsky, Mr. Kennedy, Mr. Ross, Ms. Eddie Bernice Johnson of Texas, Ms. Herseth, Ms. Carson, and Mr. Filner) introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to modify the rehabilitation credit and the low-income housing credit.
Short title
This Act may be cited as the
Community Restoration and
Revitalization Act of 2007
.
Modifications to rules for determining the applicable percentage for certain buildings eligible for low-income housing credit
In general
Subparagraph (B) of section 42(b)(2) of the Internal
Revenue Code of 1986 (relating to the method of prescribing the applicable
percentage) is amended by striking and
at the end of clause (i),
by striking the period at the end of clause (ii) and inserting a comma, and by
adding at the end the following new clauses:
87.5 percent of the qualified basis of a building described in paragraph (1)(A), if the basis of the building is subject to the basis adjustment for rehabilitation credit property required under section 50(c), and
37.5 percent of the qualified basis of a building described in paragraph (1)(B), if the basis of the building is subject to the basis adjustment for rehabilitation credit property required under section 50(c).
.
Effective date
The amendments made by this section shall apply to—
housing credit dollar amounts allocated after December 31, 2006, and
buildings placed in service after such date to the extent paragraph (1) of section 42(h) of the Internal Revenue Code of 1986 does not apply to any building by reason of paragraph (4) thereof, but only with respect to bonds issued after such date.
Modification to basis adjustment rule
In general
Paragraph (3) of subsection 50(c) of the Internal Revenue
Code of 1986 (relating to special rules for determining basis) is amended by
inserting or rehabilitation credit
after energy
credit
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2006.
Increase in the rehabilitation credit for certain smaller projects
In general
Section 47 of the Internal Revenue Code of 1986 (relating to rehabilitation credit) is amended by adding at the end the following new subsection:
Special rule regarding certain smaller projects
In general
In the case of any qualified rehabilitated building or portion thereof—
which is placed in service after the date of the enactment of this subsection, and
which is a smaller project,
40 percentfor
20 percentwith respect to qualified rehabilitation expenditures not over $1,000,000, and
20 percentwith respect to qualified rehabilitation expenditures of over $1,000,000.
Smaller project defined
For purposes of this section, the term smaller project means any qualified rehabilitated building or portion thereof as to which—
the qualified rehabilitation expenditures reported by the taxpayer for purposes of calculating the credit under this section are not over $2,000,000, except that for purposes of making this determination, qualified rehabilitation expenditures attributable to the provisions of subsection (c)(2)(E) shall be disregarded, and
no credit was allowable under this section during any of the two prior taxable years, provided that this subparagraph shall not apply to any building as to which the election provided for in subsection (d)(5) shall have been made.
Coordination with subsection (d)
With respect to any building as to which the election provided for in subsection (d)(5) shall have been made, such building shall be deemed a smaller project only if the qualified rehabilitation expenditures reported by the taxpayer for purposes of calculating the credit under this section with respect to the taxable years to which such election shall apply are, in the aggregate, not over $2,000,000.
.
Effective date
The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.
Use for lodging not to disqualify for rehabilitation credit property which is not a certified historic structure
In general
Subparagraph (C) of section 50(b)(2) of the Internal
Revenue Code of 1986 (relating to property eligible for the investment credit)
is amended by striking certified historic structure
and
inserting qualified rehabilitated building
.
Effective date
The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.
Date by which building must be first placed in service
In General
Subparagraph (B) of section 47(c)(1) of the Internal Revenue Code of 1986 (relating to the date by which building must be first placed in service) is amended—
by
striking Building must be first
placed in service before 1936
and inserting
Date by which building must first
be placed in service
, and
by striking
before 1936
at the end of the subparagraph and inserting
no less than 50 years prior to the year in which qualified
rehabilitation expenditures are taken into account under subsection
(b)(1)
.
Effective date
The amendments made by section shall apply to property placed in service after the date of the enactment of this Act.
Modifications regarding certain tax-exempt use property
In general
Clause (I) of section 47(c)(2)(B)(v) of the Internal
Revenue Code of 1986 (relating to tax-exempt use property) is amended by
striking ).
at the end and inserting , except that for
purposes of this clause,
.50 percent
shall be substituted for
35 percent
in applying section
168(h)(1)(B)(iii)).
Effective date
The amendments made by section shall apply to property placed in service after the date of the enactment of this Act.
Increase in rehabilitation credit for buildings in high cost areas
In general
Paragraph (2) of subsection 47(c) of the Internal Revenue Code of 1986 (relating to the definition of qualified rehabilitation expenditures) is amended by adding at the end the following new subparagraph:
Increase in credit for buildings in high cost areas
In general
In the case of any qualified rehabilitated building located in a qualified census tract or difficult development area which is designated for purposes of this subparagraph, the qualified rehabilitation expenditures for purposes of this section shall be 130 percent of such expenditures determined without regard to this subparagraph.
Rules
For purposes of clause (i), rules similar to the rules of section 42(d)(5)(C) (excluding clause (i) thereof) shall be applied.
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Recapture of rehabilitation credit for certified historic structure not triggered by condominium transaction
In general
Subsection (a) of section 50 of the Internal Revenue Code of 1986 (relating to recapture of credits upon disposition of property) is amended by adding at the end thereof the following new paragraph:
Special rule for certified historic structures
In the case of the rehabilitation credit determined under section 47(a)(2), paragraphs (1) and (2) shall not apply to a transaction in which a portion of the building is transferred as a condominium unit.
.
Effective date
The amendment made by this section shall apply to transfers after the date of enactment of this Act.