| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 2410 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to provide an investment |
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| 6 | 6 | | credit for converting non-residential buildings to affordable housing. |
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| 7 | 7 | | IN THE HOUSE OF REPRESENTATIVES |
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| 8 | 8 | | MARCH27, 2025 |
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| 9 | 9 | | Mr. C |
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| 10 | 10 | | AREY(for himself, Mr. GOMEZ, Mr. LARSONof Connecticut, Mr. |
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| 11 | 11 | | F |
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| 12 | 12 | | ITZPATRICK, Ms. SEWELL, Ms. TENNEY, Mr. BEYER, Mr. KUSTOFF, |
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| 13 | 13 | | Ms. C |
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| 14 | 14 | | HU, Mr. KELLYof Pennsylvania, Mr. PANETTA, Mrs. MILLERof |
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| 15 | 15 | | West Virginia, Mr. D |
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| 16 | 16 | | AVISof Illinois, Mr. MOOREof Utah, Mr. EVANS |
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| 17 | 17 | | of Pennsylvania, Ms. M |
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| 18 | 18 | | ALLIOTAKIS, Mr. SUOZZI, Mr. MORAN, Mr. BOYLE |
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| 19 | 19 | | of Pennsylvania, Mr. L |
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| 20 | 20 | | AHOOD, Ms. SA´NCHEZ, Mr. MILLERof Ohio, Ms. |
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| 21 | 21 | | M |
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| 22 | 22 | | OOREof Wisconsin, Mr. AMODEIof Nevada, Mr. SCHNEIDER, Mr. |
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| 23 | 23 | | C |
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| 24 | 24 | | ISCOMANI, Mr. HORSFORD, and Ms. DELBENE) introduced the following |
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| 25 | 25 | | bill; which was referred to the Committee on Ways and Means |
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| 26 | 26 | | A BILL |
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| 27 | 27 | | To amend the Internal Revenue Code of 1986 to provide |
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| 28 | 28 | | an investment credit for converting non-residential build- |
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| 29 | 29 | | ings to affordable housing. |
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| 30 | 30 | | Be it enacted by the Senate and House of Representa-1 |
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| 31 | 31 | | tives of the United States of America in Congress assembled, 2 |
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| 32 | 32 | | SECTION 1. SHORT TITLE. 3 |
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| 33 | 33 | | This Act may be cited as the ‘‘Revitalizing Down-4 |
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| 34 | 34 | | towns and Main Streets Act’’. 5 |
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| 36 | 36 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 37 | 37 | | •HR 2410 IH |
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| 38 | 38 | | SEC. 2. INVESTMENT CREDIT FOR CONVERSION OF NON- 1 |
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| 39 | 39 | | RESIDENTIAL BUILDINGS TO AFFORDABLE 2 |
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| 40 | 40 | | HOUSING. 3 |
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| 41 | 41 | | (a) I |
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| 42 | 42 | | NGENERAL.—Subpart E of part IV of sub-4 |
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| 43 | 43 | | chapter A of chapter 1 of subtitle A of the Internal Rev-5 |
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| 44 | 44 | | enue Code of 1986 is amended by inserting after section 6 |
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| 45 | 45 | | 48E the following new section: 7 |
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| 46 | 46 | | ‘‘SEC. 48F. AFFORDABLE HOUSING CONVERSION CREDIT. 8 |
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| 47 | 47 | | ‘‘(a) A |
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| 48 | 48 | | LLOWANCE OFCREDIT.—For purposes of sec-9 |
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| 49 | 49 | | tion 46, the affordable housing conversion credit for any 10 |
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| 50 | 50 | | taxable year is an amount equal to 20 percent of the quali-11 |
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| 51 | 51 | | fied conversion expenditures of the taxpayer with respect 12 |
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| 52 | 52 | | to a qualified affordable housing building placed in service 13 |
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| 53 | 53 | | by the taxpayer during the taxable year. 14 |
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| 54 | 54 | | ‘‘(b) Q |
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| 55 | 55 | | UALIFIEDCONVERSIONEXPENDITURES.—For 15 |
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| 56 | 56 | | purposes of this section— 16 |
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| 57 | 57 | | ‘‘(1) I |
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| 58 | 58 | | N GENERAL.—The term ‘qualified conver-17 |
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| 59 | 59 | | sion expenditures’ means, with respect to any quali-18 |
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| 60 | 60 | | fied affordable housing building, any amount prop-19 |
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| 61 | 61 | | erly chargeable to capital account— 20 |
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| 62 | 62 | | ‘‘(A) for property for which depreciation is 21 |
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| 63 | 63 | | allowable under section 168, and 22 |
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| 64 | 64 | | ‘‘(B) in connection with the qualified con-23 |
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| 65 | 65 | | version of a qualified affordable housing build-24 |
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| 66 | 66 | | ing. 25 |
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| 68 | 68 | | ssavage on LAPJG3WLY3PROD with BILLS 3 |
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| 69 | 69 | | •HR 2410 IH |
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| 70 | 70 | | ‘‘(2) CERTAIN EXPENDITURES NOT IN -1 |
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| 71 | 71 | | CLUDED.—The term ‘qualified conversion expendi-2 |
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| 72 | 72 | | tures’ does not include— 3 |
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| 73 | 73 | | ‘‘(A) L |
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| 74 | 74 | | IMITATION ON PERIOD OF CONVER -4 |
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| 75 | 75 | | SION.—Except as provided in subsection (f), 5 |
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| 76 | 76 | | any amount paid or incurred other than during 6 |
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| 77 | 77 | | the 2-year period ending on the date on which 7 |
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| 78 | 78 | | the taxpayer places the qualified affordable 8 |
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| 79 | 79 | | housing building in service. 9 |
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| 80 | 80 | | ‘‘(B) C |
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| 81 | 81 | | OST OF ACQUISITION.—The cost of 10 |
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| 82 | 82 | | acquiring any building or interest therein. 11 |
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| 83 | 83 | | ‘‘(3) S |
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| 84 | 84 | | PECIAL RULE FOR BROWNFIELDS .— 12 |
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| 85 | 85 | | Paragraph (1)(A) shall not apply with respect to any 13 |
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| 86 | 86 | | expenditure for clean up of qualifying brownfield 14 |
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| 87 | 87 | | property (as defined in section 512(b)(19)). 15 |
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| 88 | 88 | | ‘‘(4) C |
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| 89 | 89 | | OORDINATION WITH REHABILITATION 16 |
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| 90 | 90 | | CREDIT.—In the case of any qualified conversion ex-17 |
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| 91 | 91 | | penditures which are taken into account for pur-18 |
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| 92 | 92 | | poses of determining the rehabilitation credit under 19 |
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| 93 | 93 | | section 47, the amount of such expenditures taken 20 |
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| 94 | 94 | | into account under this section (determined without 21 |
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| 95 | 95 | | regard to this paragraph) shall be reduced by 50 22 |
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| 96 | 96 | | percent. 23 |
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| 97 | 97 | | ‘‘(c) Q |
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| 98 | 98 | | UALIFIEDCONVERSION.—For purposes of this 24 |
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| 99 | 99 | | section— 25 |
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| 101 | 101 | | ssavage on LAPJG3WLY3PROD with BILLS 4 |
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| 102 | 102 | | •HR 2410 IH |
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| 103 | 103 | | ‘‘(1) IN GENERAL.—The term ‘qualified conver-1 |
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| 104 | 104 | | sion’ means the conversion of an eligible commercial 2 |
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| 105 | 105 | | building into a qualified affordable housing building 3 |
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| 106 | 106 | | if the qualified conversion expenditures of the tax-4 |
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| 107 | 107 | | payer with respect to such conversion exceed the 5 |
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| 108 | 108 | | greater of— 6 |
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| 109 | 109 | | ‘‘(A) an amount equal to 50 percent of the 7 |
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| 110 | 110 | | adjusted basis of such building (determined im-8 |
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| 111 | 111 | | mediately prior to such conversion), or 9 |
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| 112 | 112 | | ‘‘(B) $100,000. 10 |
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| 113 | 113 | | ‘‘(2) E |
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| 114 | 114 | | LIGIBLE COMMERCIAL BUILDING .—The 11 |
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| 115 | 115 | | term ‘eligible commercial building’ means any build-12 |
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| 116 | 116 | | ing which, with respect to any conversion— 13 |
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| 117 | 117 | | ‘‘(A) was originally placed in service not 14 |
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| 118 | 118 | | less than 20 years before the date on which 15 |
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| 119 | 119 | | such conversion begins, and 16 |
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| 120 | 120 | | ‘‘(B) immediately prior to such conversion, 17 |
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| 121 | 121 | | was nonresidential real property (as defined in 18 |
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| 122 | 122 | | section 168). 19 |
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| 123 | 123 | | ‘‘(d) Q |
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| 124 | 124 | | UALIFIEDAFFORDABLE HOUSINGBUILD-20 |
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| 125 | 125 | | ING.—For purposes of this section— 21 |
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| 126 | 126 | | ‘‘(1) I |
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| 127 | 127 | | N GENERAL.—The term ‘qualified afford-22 |
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| 128 | 128 | | able housing building’ means any residential building 23 |
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| 129 | 129 | | if during the 30-year period beginning on the date 24 |
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| 130 | 130 | | on which such building is placed in service by the 25 |
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| 132 | 132 | | ssavage on LAPJG3WLY3PROD with BILLS 5 |
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| 133 | 133 | | •HR 2410 IH |
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| 134 | 134 | | taxpayer, not less than 20 percent of the residential 1 |
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| 135 | 135 | | units in the building are both rent-restricted and re-2 |
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| 136 | 136 | | served for individuals whose income is 80 percent or 3 |
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| 137 | 137 | | less of the area median income. 4 |
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| 138 | 138 | | ‘‘(2) R |
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| 139 | 139 | | ENT AND INCOME LIMITATION .—For 5 |
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| 140 | 140 | | purposes of this subsection, rules similar to the rules 6 |
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| 141 | 141 | | of subsection (g) of section 42 shall apply to deter-7 |
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| 142 | 142 | | mine whether a unit is rent-restricted, treatment of 8 |
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| 143 | 143 | | units occupied by individuals whose incomes rise 9 |
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| 144 | 144 | | above the limit, and the treatment of units where 10 |
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| 145 | 145 | | Federal rental assistance is reduced as tenant’s in-11 |
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| 146 | 146 | | come increases. 12 |
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| 147 | 147 | | ‘‘(e) L |
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| 148 | 148 | | IMITATION ONAGGREGATECREDITALLOW-13 |
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| 149 | 149 | | ABLE.— 14 |
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| 150 | 150 | | ‘‘(1) C |
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| 151 | 151 | | REDIT MAY NOT EXCEED CREDIT 15 |
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| 152 | 152 | | AMOUNT ALLOCATED TO BUILDING .— 16 |
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| 153 | 153 | | ‘‘(A) I |
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| 154 | 154 | | N GENERAL.—The amount of the 17 |
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| 155 | 155 | | credit determined under this section with re-18 |
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| 156 | 156 | | spect to any building shall not exceed the quali-19 |
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| 157 | 157 | | fied conversion credit dollar amount allocated to 20 |
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| 158 | 158 | | such building under this subsection by the 21 |
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| 159 | 159 | | housing credit agency of the State in which 22 |
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| 160 | 160 | | such building is located. 23 |
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| 161 | 161 | | ‘‘(B) T |
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| 162 | 162 | | IME FOR MAKING ALLOCATION .— 24 |
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| 163 | 163 | | Except in the case of an allocation which meets 25 |
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| 165 | 165 | | ssavage on LAPJG3WLY3PROD with BILLS 6 |
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| 166 | 166 | | •HR 2410 IH |
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| 167 | 167 | | the requirements of subparagraph (C), an allo-1 |
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| 168 | 168 | | cation shall be taken into account under sub-2 |
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| 169 | 169 | | paragraph (A) only if it is made not later than 3 |
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| 170 | 170 | | the close of the calendar year in which the 4 |
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| 171 | 171 | | building is placed in service. 5 |
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| 172 | 172 | | ‘‘(C) E |
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| 173 | 173 | | XCEPTION WHERE BINDING COM -6 |
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| 174 | 174 | | MITMENT.—An allocation meets the require-7 |
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| 175 | 175 | | ments of this subparagraph if there is a binding 8 |
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| 176 | 176 | | commitment (not later than the close of the cal-9 |
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| 177 | 177 | | endar year in which the building is placed in 10 |
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| 178 | 178 | | service) by the housing credit agency to allocate 11 |
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| 179 | 179 | | a specified housing credit dollar amount to such 12 |
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| 180 | 180 | | building beginning in a later taxable year. 13 |
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| 181 | 181 | | ‘‘(2) S |
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| 182 | 182 | | TATE LIMITATION.— 14 |
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| 183 | 183 | | ‘‘(A) I |
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| 184 | 184 | | N GENERAL.—The aggregate quali-15 |
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| 185 | 185 | | fied conversion credit dollar amount which a 16 |
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| 186 | 186 | | housing credit agency of any State may allocate 17 |
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| 187 | 187 | | is the sum of— 18 |
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| 188 | 188 | | ‘‘(i) the amount which bears the same 19 |
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| 189 | 189 | | ratio to the national qualified conversion 20 |
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| 190 | 190 | | credit limitation as— 21 |
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| 191 | 191 | | ‘‘(I) the population of such State, 22 |
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| 192 | 192 | | bears to 23 |
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| 193 | 193 | | ‘‘(II) the population of all States, 24 |
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| 194 | 194 | | plus 25 |
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| 196 | 196 | | ssavage on LAPJG3WLY3PROD with BILLS 7 |
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| 197 | 197 | | •HR 2410 IH |
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| 198 | 198 | | ‘‘(ii) the sum of any amounts deter-1 |
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| 199 | 199 | | mined under subparagraph (C). 2 |
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| 200 | 200 | | ‘‘(B) N |
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| 201 | 201 | | ATIONAL QUALIFIED CONVERSION 3 |
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| 202 | 202 | | CREDIT LIMITATION.—The national qualified 4 |
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| 203 | 203 | | conversion credit limitation is $12,000,000,000. 5 |
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| 204 | 204 | | ‘‘(C) A |
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| 205 | 205 | | DDITIONAL AMOUNTS PROVIDED 6 |
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| 206 | 206 | | FOR CERTAIN BUILDINGS IN ECONOMICALLY 7 |
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| 207 | 207 | | DISTRESSED AREAS.— 8 |
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| 208 | 208 | | ‘‘(i) I |
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| 209 | 209 | | N GENERAL.—For purposes of 9 |
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| 210 | 210 | | subparagraph (A)(ii), in any case in 10 |
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| 211 | 211 | | which— 11 |
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| 212 | 212 | | ‘‘(I) the housing credit agency of 12 |
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| 213 | 213 | | a State allocates an amount to a 13 |
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| 214 | 214 | | building which is located in an eco-14 |
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| 215 | 215 | | nomically distressed area, and 15 |
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| 216 | 216 | | ‘‘(II) the Secretary subsequently 16 |
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| 217 | 217 | | designates such amount for purposes 17 |
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| 218 | 218 | | of this paragraph, 18 |
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| 219 | 219 | | the amount determined under this para-19 |
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| 220 | 220 | | graph with respect to such building shall 20 |
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| 221 | 221 | | be the amount originally allocated by the 21 |
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| 222 | 222 | | housing credit agency of the State under 22 |
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| 223 | 223 | | clause (i). 23 |
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| 224 | 224 | | ‘‘(ii) L |
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| 225 | 225 | | IMITATION.—The aggregate 24 |
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| 226 | 226 | | amount which the Secretary may designate 25 |
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| 228 | 228 | | ssavage on LAPJG3WLY3PROD with BILLS 8 |
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| 229 | 229 | | •HR 2410 IH |
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| 230 | 230 | | under clause (i)(II) shall not exceed 1 |
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| 231 | 231 | | $3,000,000,000. 2 |
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| 232 | 232 | | ‘‘(iii) M |
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| 233 | 233 | | ANNER OF DESIGNATION .— 3 |
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| 234 | 234 | | Not later than 120 days after the date of 4 |
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| 235 | 235 | | the enactment of this section, the Sec-5 |
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| 236 | 236 | | retary shall establish a program for deter-6 |
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| 237 | 237 | | mining the designation of amounts that 7 |
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| 238 | 238 | | may be designated under this subpara-8 |
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| 239 | 239 | | graph. 9 |
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| 240 | 240 | | ‘‘(D) R |
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| 241 | 241 | | EALLOCATION OF CERTAIN 10 |
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| 242 | 242 | | AMOUNTS.— 11 |
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| 243 | 243 | | ‘‘(i) I |
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| 244 | 244 | | N GENERAL.—Notwithstanding 12 |
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| 245 | 245 | | subparagraph (A)— 13 |
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| 246 | 246 | | ‘‘(I) no amount may be allocated 14 |
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| 247 | 247 | | under paragraph (1) by a housing 15 |
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| 248 | 248 | | credit agency of an undersubscribed 16 |
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| 249 | 249 | | State after December 31, 2028, and 17 |
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| 250 | 250 | | ‘‘(II) the dollar amount deter-18 |
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| 251 | 251 | | mined under subparagraph (A) with 19 |
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| 252 | 252 | | respect to any oversubscribed State 20 |
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| 253 | 253 | | after such date shall be increased by 21 |
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| 254 | 254 | | such State’s share of the reallocation 22 |
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| 255 | 255 | | amount. 23 |
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| 256 | 256 | | ‘‘(ii) S |
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| 257 | 257 | | TATE SHARE.—For purposes of 24 |
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| 258 | 258 | | clause (i), an oversubscribed State’s share 25 |
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| 260 | 260 | | ssavage on LAPJG3WLY3PROD with BILLS 9 |
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| 261 | 261 | | •HR 2410 IH |
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| 262 | 262 | | of the reallocation amount is the amount 1 |
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| 263 | 263 | | which bears the same ratio to the realloca-2 |
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| 264 | 264 | | tion amount as— 3 |
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| 265 | 265 | | ‘‘(I) the population of such State, 4 |
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| 266 | 266 | | bears to 5 |
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| 267 | 267 | | ‘‘(II) the population of all over-6 |
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| 268 | 268 | | subscribed States. 7 |
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| 269 | 269 | | ‘‘(iii) D |
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| 270 | 270 | | EFINITIONS.—For purposes of 8 |
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| 271 | 271 | | this subparagraph— 9 |
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| 272 | 272 | | ‘‘(I) U |
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| 273 | 273 | | NDERSUBSCRIBED 10 |
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| 274 | 274 | | STATE.—The term ‘undersubscribed 11 |
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| 275 | 275 | | State’ means any State that is not an 12 |
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| 276 | 276 | | oversubscribed State. 13 |
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| 277 | 277 | | ‘‘(II) O |
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| 278 | 278 | | VERSUBSCRIBED 14 |
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| 279 | 279 | | STATE.—The term ‘oversubscribed 15 |
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| 280 | 280 | | State’ means any State the housing 16 |
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| 281 | 281 | | credit agency of which has allocated 17 |
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| 282 | 282 | | all of the qualified conversion credit 18 |
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| 283 | 283 | | dollar amount which may be allocated 19 |
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| 284 | 284 | | by it before the date described in 20 |
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| 285 | 285 | | clause (i)(I). 21 |
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| 286 | 286 | | ‘‘(III) R |
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| 287 | 287 | | EALLOCATION 22 |
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| 288 | 288 | | AMOUNT.—The term ‘reallocation 23 |
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| 289 | 289 | | amount’ means the sum of the 24 |
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| 290 | 290 | | amounts described in subparagraph 25 |
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| 292 | 292 | | ssavage on LAPJG3WLY3PROD with BILLS 10 |
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| 293 | 293 | | •HR 2410 IH |
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| 294 | 294 | | (A) which have not been allocated by 1 |
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| 295 | 295 | | undersubscribed States before the 2 |
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| 296 | 296 | | date described in clause (i)(I). 3 |
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| 297 | 297 | | ‘‘(3) M |
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| 298 | 298 | | ANNER OF ALLOCATION .— 4 |
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| 299 | 299 | | ‘‘(A) P |
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| 300 | 300 | | LAN FOR ALLOCATION.— 5 |
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| 301 | 301 | | ‘‘(i) I |
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| 302 | 302 | | N GENERAL.—Notwithstanding 6 |
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| 303 | 303 | | any other provision of this section, the 7 |
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| 304 | 304 | | qualified conversion credit dollar amount 8 |
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| 305 | 305 | | with respect to any building shall be zero 9 |
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| 306 | 306 | | unless such amount was allocated pursuant 10 |
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| 307 | 307 | | to a conversion credit allocation plan of the 11 |
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| 308 | 308 | | housing credit agency which is approved by 12 |
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| 309 | 309 | | the governmental unit (in accordance with 13 |
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| 310 | 310 | | rules similar to the rules of section 14 |
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| 311 | 311 | | 147(f)(2) (other than subparagraph (B)(ii) 15 |
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| 312 | 312 | | thereof)) of which such agency is a part. 16 |
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| 313 | 313 | | ‘‘(ii) C |
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| 314 | 314 | | ONVERSION CREDIT ALLOCA -17 |
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| 315 | 315 | | TION PLAN.—For purposes of this sub-18 |
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| 316 | 316 | | paragraph, the term ‘conversion credit allo-19 |
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| 317 | 317 | | cation plan’ means a plan— 20 |
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| 318 | 318 | | ‘‘(I) which sets selection criteria 21 |
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| 319 | 319 | | for allocations, taking into account— 22 |
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| 320 | 320 | | ‘‘(aa) whether the credit is 23 |
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| 321 | 321 | | needed to assure the financial 24 |
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| 322 | 322 | | feasibility of the conversion, 25 |
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| 324 | 324 | | ssavage on LAPJG3WLY3PROD with BILLS 11 |
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| 325 | 325 | | •HR 2410 IH |
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| 326 | 326 | | ‘‘(bb) the extent to which 1 |
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| 327 | 327 | | the conversion results in the cre-2 |
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| 328 | 328 | | ation of affordable housing, 3 |
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| 329 | 329 | | ‘‘(cc) the extent to which the 4 |
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| 330 | 330 | | conversion results in the creation 5 |
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| 331 | 331 | | of housing near transportation, 6 |
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| 332 | 332 | | employment, and commercial op-7 |
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| 333 | 333 | | portunities, 8 |
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| 334 | 334 | | ‘‘(dd) the extent to which 9 |
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| 335 | 335 | | the conversion will support small 10 |
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| 336 | 336 | | businesses and economic revital-11 |
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| 337 | 337 | | ization in the surrounding area, 12 |
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| 338 | 338 | | ‘‘(ee) the degree of local gov-13 |
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| 339 | 339 | | ernment support for the conver-14 |
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| 340 | 340 | | sion, and 15 |
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| 341 | 341 | | ‘‘(ff) the readiness of the 16 |
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| 342 | 342 | | building for a qualified conver-17 |
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| 343 | 343 | | sion, and 18 |
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| 344 | 344 | | ‘‘(II) which provides a procedure 19 |
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| 345 | 345 | | that the agency (or an agent or other 20 |
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| 346 | 346 | | private contractor of such agency) will 21 |
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| 347 | 347 | | follow in monitoring for noncompli-22 |
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| 348 | 348 | | ance with the requirements of sub-23 |
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| 349 | 349 | | section (d) and in notifying the Inter-24 |
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| 351 | 351 | | ssavage on LAPJG3WLY3PROD with BILLS 12 |
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| 352 | 352 | | •HR 2410 IH |
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| 353 | 353 | | nal Revenue Service of such non-1 |
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| 354 | 354 | | compliance. 2 |
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| 355 | 355 | | ‘‘(B) B |
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| 356 | 356 | | INDING ALLOCATION AGREEMENTS ; 3 |
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| 357 | 357 | | REPORTING.—In making allocations of qualified 4 |
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| 358 | 358 | | conversion credit dollar amounts, each housing 5 |
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| 359 | 359 | | credit agency shall— 6 |
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| 360 | 360 | | ‘‘(i) enter into binding agreements 7 |
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| 361 | 361 | | with taxpayers for the allocation of quali-8 |
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| 362 | 362 | | fied conversion credit dollar amounts, 9 |
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| 363 | 363 | | which agreements shall specify the amount 10 |
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| 364 | 364 | | of qualified conversion credit dollar amount 11 |
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| 365 | 365 | | allocated to the building and the terms for 12 |
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| 366 | 366 | | any modifications or withdrawal of such al-13 |
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| 367 | 367 | | location, and 14 |
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| 368 | 368 | | ‘‘(ii) report to the Secretary, at such 15 |
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| 369 | 369 | | time and in such manner as the Secretary 16 |
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| 370 | 370 | | may require, the amount of allocations 17 |
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| 371 | 371 | | made with respect to any building. 18 |
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| 372 | 372 | | ‘‘(C) S |
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| 373 | 373 | | TATE EXTENDED USE REQUIRE -19 |
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| 374 | 374 | | MENTS PERMITTED PAST 30 YEARS .—For pur-20 |
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| 375 | 375 | | poses of this paragraph, a housing credit agen-21 |
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| 376 | 376 | | cy’s plan shall not fail to be treated as a con-22 |
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| 377 | 377 | | version credit allocation plan merely because it 23 |
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| 378 | 378 | | includes, and nothing in this section shall be 24 |
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| 379 | 379 | | construed to limit a binding allocation agree-25 |
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| 381 | 381 | | ssavage on LAPJG3WLY3PROD with BILLS 13 |
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| 382 | 382 | | •HR 2410 IH |
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| 383 | 383 | | ment from including, affordability or rent re-1 |
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| 384 | 384 | | striction requirements with respect to the build-2 |
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| 385 | 385 | | ing that apply for a longer period than the 30- 3 |
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| 386 | 386 | | year period described in subsections (d) and 4 |
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| 387 | 387 | | (g)(1)(B). 5 |
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| 388 | 388 | | ‘‘(4) D |
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| 389 | 389 | | EFINITIONS AND OTHER RULES .— 6 |
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| 390 | 390 | | ‘‘(A) H |
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| 391 | 391 | | OUSING CREDIT AGENCY .—The 7 |
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| 392 | 392 | | term ‘housing credit agency’ means, with re-8 |
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| 393 | 393 | | spect to any State, the housing credit agency 9 |
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| 394 | 394 | | authorized under section 42(h)(8) or such other 10 |
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| 395 | 395 | | agency as authorized by the State for purposes 11 |
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| 396 | 396 | | of this section. 12 |
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| 397 | 397 | | ‘‘(B) E |
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| 398 | 398 | | CONOMICALLY DISTRESSED AREA .— 13 |
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| 399 | 399 | | The term ‘economically distressed area’ means 14 |
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| 400 | 400 | | any area which— 15 |
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| 401 | 401 | | ‘‘(i) has been designated as a qualified 16 |
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| 402 | 402 | | census tract under section 42(d)(5)(B)(ii) 17 |
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| 403 | 403 | | or as a difficult development area under 18 |
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| 404 | 404 | | section 42(d)(5)(B)(iii), or 19 |
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| 405 | 405 | | ‘‘(ii) meets the requirement of section 20 |
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| 406 | 406 | | 301(a)(3) of the Public Works and Eco-21 |
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| 407 | 407 | | nomic Development Act of 1965. 22 |
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| 408 | 408 | | ‘‘(C) S |
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| 409 | 409 | | TATE.—The term ‘State’ includes a 23 |
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| 410 | 410 | | possession of the United States. 24 |
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| 413 | 413 | | •HR 2410 IH |
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| 414 | 414 | | ‘‘(D) OTHER RULES.—Rules similar to the 1 |
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| 415 | 415 | | rules of subparagraphs (A) and (B) of section 2 |
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| 416 | 416 | | 42(h)(7) shall apply for purposes of this sec-3 |
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| 417 | 417 | | tion. 4 |
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| 418 | 418 | | ‘‘(f) P |
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| 419 | 419 | | ROGRESSEXPENDITURES.—If the Secretary 5 |
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| 420 | 420 | | determines, on the basis of architectural plans and speci-6 |
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| 421 | 421 | | fications that a qualified conversion is reasonably expected 7 |
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| 422 | 422 | | to exceed 2 years, rules similar to the rules of section 8 |
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| 423 | 423 | | 47(d) shall apply with respect to such conversion for pur-9 |
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| 424 | 424 | | poses of this section. 10 |
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| 425 | 425 | | ‘‘(g) S |
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| 426 | 426 | | PECIALRULES FORCERTAINAREAS.— 11 |
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| 427 | 427 | | ‘‘(1) Q |
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| 428 | 428 | | UALIFIED CENSUS TRACTS AND DIF -12 |
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| 429 | 429 | | FICULT DEVELOPMENT AREAS .—In the case of a 13 |
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| 430 | 430 | | qualified affordable housing building— 14 |
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| 431 | 431 | | ‘‘(A) which is located in any area which is 15 |
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| 432 | 432 | | designated as a qualified census tract under 16 |
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| 433 | 433 | | section 42(d)(5)(B)(ii) or as a difficult develop-17 |
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| 434 | 434 | | ment area under section 42(d)(5)(B)(iii)), and 18 |
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| 435 | 435 | | ‘‘(B) with respect to which during 30-year 19 |
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| 436 | 436 | | period beginning on the date on which such 20 |
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| 437 | 437 | | building is placed in service by the taxpayer, 21 |
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| 438 | 438 | | not less than 20 percent of the residential units 22 |
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| 439 | 439 | | in the building are both rent-restricted and re-23 |
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| 440 | 440 | | served for individuals whose income is 60 per-24 |
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| 441 | 441 | | cent or less of the area median income, 25 |
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| 444 | 444 | | •HR 2410 IH |
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| 445 | 445 | | subsection (a) shall be applied by substituting ‘30 1 |
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| 446 | 446 | | percent’ for ‘20 percent’. 2 |
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| 447 | 447 | | ‘‘(2) H |
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| 448 | 448 | | ISTORIC PRESERVATION IN RURAL 3 |
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| 449 | 449 | | AREAS.— 4 |
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| 450 | 450 | | ‘‘(A) I |
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| 451 | 451 | | N GENERAL.—In the case of a quali-5 |
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| 452 | 452 | | fied affordable housing building which is in a 6 |
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| 453 | 453 | | rural area and is part of an historic preserva-7 |
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| 454 | 454 | | tion project, the taxpayer may elect to sub-8 |
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| 455 | 455 | | stitute ‘35 percent’ for ‘20 percent’ under sub-9 |
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| 456 | 456 | | section (a) with respect to such portion of the 10 |
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| 457 | 457 | | aggregate qualified conversion expenditures 11 |
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| 458 | 458 | | taken into account under such subsection as 12 |
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| 459 | 459 | | does not exceed $2,000,000. 13 |
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| 460 | 460 | | ‘‘(B) D |
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| 461 | 461 | | EFINITIONS.—For purposes of this 14 |
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| 462 | 462 | | paragraph— 15 |
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| 463 | 463 | | ‘‘(i) R |
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| 464 | 464 | | URAL AREA.—The term ‘rural 16 |
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| 465 | 465 | | area’ shall have the meaning given such 17 |
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| 466 | 466 | | term under section 1393(a)(2). 18 |
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| 467 | 467 | | ‘‘(ii) H |
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| 468 | 468 | | ISTORIC PRESERVATION 19 |
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| 469 | 469 | | PROJECT.—The term ‘historic preservation 20 |
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| 470 | 470 | | project’ means a qualified conversion which 21 |
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| 471 | 471 | | involves the certified rehabilitation of a 22 |
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| 472 | 472 | | certified historic structure. Whether con-23 |
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| 473 | 473 | | version of a certified historic structure in-24 |
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| 474 | 474 | | volves certified rehabilitation shall be de-25 |
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| 476 | 476 | | ssavage on LAPJG3WLY3PROD with BILLS 16 |
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| 477 | 477 | | •HR 2410 IH |
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| 478 | 478 | | termined under rules similar to the rules of 1 |
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| 479 | 479 | | section 47(c)(2)(C). 2 |
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| 480 | 480 | | ‘‘(h) R |
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| 481 | 481 | | EGULATIONS.—The Secretary shall issue such 3 |
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| 482 | 482 | | regulations or other guidance as may be necessary or ap-4 |
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| 483 | 483 | | propriate to carry out the purposes of this section, includ-5 |
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| 484 | 484 | | ing regulations or other guidance— 6 |
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| 485 | 485 | | ‘‘(1) providing for the recapture of the credit 7 |
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| 486 | 486 | | determined under subsection (a) if the qualified af-8 |
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| 487 | 487 | | fordable housing building ceases to be a qualified af-9 |
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| 488 | 488 | | fordable housing building during the 30-year period 10 |
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| 489 | 489 | | beginning on the date that such building is placed 11 |
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| 490 | 490 | | in service by the taxpayer, 12 |
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| 491 | 491 | | ‘‘(2) detailing any certifications required from 13 |
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| 492 | 492 | | the taxpayer or any housing credit agency of a 14 |
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| 493 | 493 | | State, 15 |
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| 494 | 494 | | ‘‘(3) with respect to the application of sub-16 |
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| 495 | 495 | | section (b)(4), 17 |
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| 496 | 496 | | ‘‘(4) with respect to information reporting on 18 |
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| 497 | 497 | | allocations of qualified conversion credit dollar 19 |
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| 498 | 498 | | amounts, 20 |
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| 499 | 499 | | ‘‘(5) providing rules for making a determination 21 |
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| 500 | 500 | | as to whether an area is described in subsection 22 |
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| 501 | 501 | | (e)(4)(B), and 23 |
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| 502 | 502 | | ‘‘(6) which encourages housing credit agencies 24 |
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| 503 | 503 | | to allocate, to the extent practicable, qualified con-25 |
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| 505 | 505 | | ssavage on LAPJG3WLY3PROD with BILLS 17 |
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| 506 | 506 | | •HR 2410 IH |
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| 507 | 507 | | version credit dollar amounts to non-metropolitan 1 |
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| 508 | 508 | | counties within a State in proportion to the non- 2 |
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| 509 | 509 | | metropolitan population of the State, but only to the 3 |
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| 510 | 510 | | extent it is demonstrated within such non-metropoli-4 |
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| 511 | 511 | | tan counties that there are sufficient qualified con-5 |
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| 512 | 512 | | version expenditures to warrant such allocations.’’. 6 |
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| 513 | 513 | | (b) T |
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| 514 | 514 | | RANSFERABILITY OF CREDIT.—Section 7 |
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| 515 | 515 | | 6418(f)(1)(A) of such Code is amended by adding at the 8 |
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| 516 | 516 | | end the following new clause: 9 |
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| 517 | 517 | | ‘‘(xii) The affordable housing conver-10 |
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| 518 | 518 | | sion credit determined under section 11 |
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| 519 | 519 | | 48F.’’. 12 |
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| 520 | 520 | | (c) C |
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| 521 | 521 | | ONFORMINGAMENDMENTS.— 13 |
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| 522 | 522 | | (1) Section 46 of such Code is amended in 14 |
|---|
| 523 | 523 | | paragraph (5) by striking ‘‘and’’ at the end, in para-15 |
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| 524 | 524 | | graph (6) by striking the period at the end and in-16 |
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| 525 | 525 | | serting ‘‘, and’’, and by adding at the end the fol-17 |
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| 526 | 526 | | lowing new paragraph: 18 |
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| 527 | 527 | | ‘‘(7) the affordable housing conversion credit.’’. 19 |
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| 528 | 528 | | (2) Section 49(a)(1)(C) of such Code is amend-20 |
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| 529 | 529 | | ed by striking ‘‘and’’ at the end of clause (v), in 21 |
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| 530 | 530 | | clause (vi) by striking the period at the end and in-22 |
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| 531 | 531 | | serting ‘‘, and’’, and by adding at the end the follow 23 |
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| 532 | 532 | | new clause: 24 |
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| 534 | 534 | | ssavage on LAPJG3WLY3PROD with BILLS 18 |
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| 535 | 535 | | •HR 2410 IH |
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| 536 | 536 | | ‘‘(vii) the basis of any property which 1 |
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| 537 | 537 | | is being converted as part of a qualified 2 |
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| 538 | 538 | | conversion under section 48F.’’. 3 |
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| 539 | 539 | | (3) Section 50(a)(2)(E) of such Code is amend-4 |
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| 540 | 540 | | ed by striking ‘‘or 48E(e)’’ and inserting ‘‘48E(e), 5 |
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| 541 | 541 | | or 48F(f)’’. 6 |
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| 542 | 542 | | (4) The table of sections for subpart E of part 7 |
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| 543 | 543 | | IV of subchapter A of chapter 1 of subtitle A of 8 |
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| 544 | 544 | | such Code is amended by adding at the end the fol-9 |
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| 545 | 545 | | lowing new item: 10 |
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| 546 | 546 | | ‘‘Sec. 48F. Affordable housing conversion credit.’’. |
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| 547 | 547 | | (d) EFFECTIVEDATE.—The amendments made by 11 |
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| 548 | 548 | | this section shall apply to qualified affordable housing 12 |
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| 549 | 549 | | buildings (as defined in section 48F of the Internal Rev-13 |
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| 550 | 550 | | enue Code of 1986, as added by this section) placed in 14 |
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| 551 | 551 | | service after the date of the enactment of this Act. 15 |
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| 552 | 552 | | Æ |
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