Us Congress 2025-2026 Regular Session

Us Congress House Bill HB893 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 893
5	5	To amend the Internal Revenue Code of 1986 to provide a credit for working
6	6	families housing development, and for other purposes.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	JANUARY31, 2025
9	9	Mr. R
10	10	YANintroduced the following bill; which was referred to the Committee
11	11	on Ways and Means, and in addition to the Committees on Energy and
12	12	Commerce, and Transportation and Infrastructure, for a period to be
13	13	subsequently determined by the Speaker, in each case for consideration
14	14	of such provisions as fall within the jurisdiction of the committee con-
15	15	cerned
16	16	A BILL
17	17	To amend the Internal Revenue Code of 1986 to provide
18	18	a credit for working families housing development, and
19	19	for other purposes.
20	20	Be it enacted by the Senate and House of Representa-1
21	21	tives of the United States of America in Congress assembled, 2
22	22	SECTION 1. SHORT TITLE. 3
23	23	This Act may be cited as the ‘‘Working Families 4
24	24	Housing Tax Credit Act’’. 5
25	25	SEC. 2. SENSE OF CONGRESS RELATING TO THE WORKING 6
26	26	FAMILIES HOUSING TAX CREDIT. 7
27	27	It is the sense of Congress that— 8
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31	31	(1) the working family housing tax credit under 1
32	32	section 42A of the Internal Revenue Code of 1986 2
33	33	is a critically important Federal Government policy 3
34	34	tool to encourage the production of quality housing 4
35	35	for our teachers, firefighters, police officers, vet-5
36	36	erans, and all hard-working Americans; and 6
37	37	(2) Congress should further improve and en-7
38	38	hance the working families housing tax credit by 8
39	39	passing pro-housing legislation. 9
40	40	SEC. 3. WORKING FAMILIES HOUSING TAX CREDIT. 10
41	41	(a) I
42	42	NGENERAL.—Subpart D of part IV of sub-11
43	43	chapter A of chapter 1 of the Internal Revenue Code of 12
44	44	1986 is amended by inserting after section 42 the fol-13
45	45	lowing new section: 14
46	46	‘‘SEC. 42A. WORKING FAMILIES HOUSING CREDIT. 15
47	47	‘‘(a) I
48	48	NGENERAL.—For purposes of section 38, the 16
49	49	amount of the working families housing credit determined 17
50	50	under this section for any taxable year in the credit period 18
51	51	shall be an amount equal to— 19
52	52	‘‘(1) the applicable percentage, of 20
53	53	‘‘(2) the qualified basis of each qualified work-21
54	54	ing families building. 22
55	55	‘‘(b) A
56	56	PPLICABLEPERCENTAGE.— 23
57	57	‘‘(1) D
58	58	ETERMINATION OF APPLICABLE PER -24
59	59	CENTAGE.—For purposes of this section— 25
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63	63	‘‘(A) IN GENERAL.—The term ‘applicable 1
64	64	percentage’ means, with respect to any building, 2
65	65	the appropriate percentage prescribed by the 3
66	66	Secretary for the earlier of— 4
67	67	‘‘(i) the month in which such building 5
68	68	is placed in service, or 6
69	69	‘‘(ii) at the election of the taxpayer, 7
70	70	the month in which the taxpayer and the 8
71	71	housing credit agency enter into an agree-9
72	72	ment with respect to such building (which 10
73	73	is binding on such agency, the taxpayer, 11
74	74	and all successors in interest) as to the 12
75	75	housing credit dollar amount to be allo-13
76	76	cated to such building. 14
77	77	A month may be elected under clause (ii) only 15
78	78	if the election is made not later than the 5th 16
79	79	day after the close of such month. Such an elec-17
80	80	tion, once made, shall be irrevocable. 18
81	81	‘‘(B) M
82	82	ETHOD OF PRESCRIBING PERCENT -19
83	83	AGES.—The percentages prescribed by the Sec-20
84	84	retary for any month shall be percentages which 21
85	85	will yield over a 15-year period amounts of 22
86	86	credit under subsection (a) which have a 23
87	87	present value equal to— 24
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91	91	‘‘(i) 50 percent of the qualified basis 1
92	92	of a new building, and 2
93	93	‘‘(ii) 60 percent of the qualified basis 3
94	94	of a building not described in clause (i). 4
95	95	‘‘(C) M
96	96	ETHOD OF DISCOUNTING .—The 5
97	97	present value under subparagraph (B) shall be 6
98	98	determined— 7
99	99	‘‘(i) as of the last day of the 1st year 8
100	100	of the 15-year period referred to in sub-9
101	101	paragraph (B), 10
102	102	‘‘(ii) by using a discount rate equal to 11
103	103	72 percent of the average of the annual 12
104	104	Federal mid-term rate and the annual 13
105	105	Federal long-term rate applicable under 14
106	106	section 1274(d)(1) to the month applicable 15
107	107	under clause (i) or (ii) of subparagraph 16
108	108	(A) and compounded annually, and 17
109	109	‘‘(iii) by assuming that the credit al-18
110	110	lowable under this section for any year is 19
111	111	received on the last day of such year. 20
112	112	‘‘(2) M
113	113	INIMUM CREDIT RATE.— 21
114	114	‘‘(A) I
115	115	N GENERAL.—The applicable per-22
116	116	centage for any building which is not Federally 23
117	117	subsidized for the taxable year shall not be less 24
118	118	than 5 percent. 25
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122	122	‘‘(B) MINIMUM CREDIT RATE FOR FEDER -1
123	123	ALLY SUBSIDIZED BUILDINGS .—In the case of 2
124	124	any building to which subparagraph (A) does 3
125	125	not apply, except as provided in paragraph (3), 4
126	126	the applicable percentage shall not be less than 5
127	127	2 percent. 6
128	128	‘‘(3) E
129	129	XCEPTION FOR CERTAIN FEDERALLY 7
130	130	SUBSIDIZED BUILDINGS.—In the case of any build-8
131	131	ing to which paragraph (2)(A) does not apply, the 9
132	132	applicable percentage is zero unless— 10
133	133	‘‘(A) a credit is allowed under section 42 11
134	134	with respect to such building for the taxable 12
135	135	year, and 13
136	136	‘‘(B) such building is financed by tax-ex-14
137	137	empt bonds as described in section 42(h)(4). 15
138	138	‘‘(4) C
139	139	ROSS REFERENCES.— 16
140	140	‘‘(A) For treatment of certain rehabilita-17
141	141	tion expenditures as separate new buildings, see 18
142	142	subsection (e). 19
143	143	‘‘(B) For determination of applicable per-20
144	144	centage for increases in qualified basis after the 21
145	145	1st year of the credit period, see subsection 22
146	146	(f)(3). 23
147	147	‘‘(C) For authority of housing credit agen-24
148	148	cy to limit applicable percentage and qualified 25
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152	152	basis which may be taken into account under 1
153	153	this section with respect to any building, see 2
154	154	subsection (h)(6). 3
155	155	‘‘(c) Q
156	156	UALIFIEDBASIS; QUALIFIEDWORKINGFAMI-4
157	157	LIESBUILDING.—For purposes of this section— 5
158	158	‘‘(1) Q
159	159	UALIFIED BASIS.— 6
160	160	‘‘(A) D
161	161	ETERMINATION.—The qualified 7
162	162	basis of any qualified working families building 8
163	163	for any taxable year is an amount equal to— 9
164	164	‘‘(i) the applicable fraction (deter-10
165	165	mined as of the close of such taxable year) 11
166	166	of 12
167	167	‘‘(ii) the eligible basis of such building 13
168	168	(determined under subsection (d)). 14
169	169	‘‘(B) A
170	170	PPLICABLE FRACTION .—For pur-15
171	171	poses of subparagraph (A), the term ‘applicable 16
172	172	fraction’ means the smaller of the unit fraction 17
173	173	or the floor space fraction. 18
174	174	‘‘(C) U
175	175	NIT FRACTION.—For purposes of 19
176	176	subparagraph (B), the term ‘unit fraction’ 20
177	177	means the fraction— 21
178	178	‘‘(i) the numerator of which is the 22
179	179	number of working families units in the 23
180	180	building, and 24
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184	184	‘‘(ii) the denominator of which is the 1
185	185	number of residential rental units (whether 2
186	186	or not occupied) in such building. 3
187	187	‘‘(D) F
188	188	LOOR SPACE FRACTION .—For pur-4
189	189	poses of subparagraph (B), the term ‘floor 5
190	190	space fraction’ means the fraction— 6
191	191	‘‘(i) the numerator of which is the 7
192	192	total floor space of the working families 8
193	193	units in such building, and 9
194	194	‘‘(ii) the denominator of which is the 10
195	195	total floor space of the residential rental 11
196	196	units (whether or not occupied) in such 12
197	197	building. 13
198	198	‘‘(2) Q
199	199	UALIFIED WORKING FAMILIES BUILD -14
200	200	ING.—The term ‘qualified working families building’ 15
201	201	means any building which is part of a qualified 16
202	202	working families housing project at all times during 17
203	203	the period— 18
204	204	‘‘(A) beginning on the 1st day in the credit 19
205	205	period on which such building is part of such a 20
206	206	project, and 21
207	207	‘‘(B) ending on the last day of the credit 22
208	208	period with respect to such building. 23
209	209	‘‘(d) E
210	210	LIGIBLEBASIS.—For purposes of this sec-24
211	211	tion— 25
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215	215	‘‘(1) NEW BUILDINGS.—The eligible basis of a 1
216	216	new building is its adjusted basis as of the close of 2
217	217	the 1st taxable year of the credit period. 3
218	218	‘‘(2) E
219	219	XISTING BUILDINGS.— 4
220	220	‘‘(A) I
221	221	N GENERAL.—The eligible basis of 5
222	222	an existing building is— 6
223	223	‘‘(i) in the case of a building which 7
224	224	meets the requirements of subparagraph 8
225	225	(B), its adjusted basis as of the close of 9
226	226	the 1st taxable year of the credit period, 10
227	227	and 11
228	228	‘‘(ii) zero in any other case. 12
229	229	‘‘(B) R
230	230	EQUIREMENTS.—A building meets 13
231	231	the requirements of this subparagraph if— 14
232	232	‘‘(i) the building is acquired by pur-15
233	233	chase (as defined in section 179(d)(2)), 16
234	234	‘‘(ii) there is a period of at least 10 17
235	235	years between the date of its acquisition by 18
236	236	the taxpayer and the date the building was 19
237	237	last placed in service, 20
238	238	‘‘(iii) the building was not previously 21
239	239	placed in service by the taxpayer or by any 22
240	240	person who was a related person with re-23
241	241	spect to the taxpayer as of the time pre-24
242	242	viously placed in service, and 25
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246	246	‘‘(iv) except as provided in subsection 1
247	247	(f)(5), a credit is allowable under sub-2
248	248	section (a) by reason of subsection (e) with 3
249	249	respect to the building. 4
250	250	‘‘(C) A
251	251	DJUSTED BASIS.—For purposes of 5
252	252	subparagraph (A), the adjusted basis of any 6
253	253	building shall not include so much of the basis 7
254	254	of such building as is determined by reference 8
255	255	to the basis of other property held at any time 9
256	256	by the person acquiring the building. 10
257	257	‘‘(D) S
258	258	PECIAL RULES.— 11
259	259	‘‘(i) S
260	260	PECIAL RULES FOR CERTAIN 12
261	261	TRANSFERS.—For purposes of determining 13
262	262	under subparagraph (B)(ii) when a build-14
263	263	ing was last placed in service, there shall 15
264	264	not be taken into account any placement in 16
265	265	service— 17
266	266	‘‘(I) in connection with the acqui-18
267	267	sition of the building in a transaction 19
268	268	in which the basis of the building in 20
269	269	the hands of the person acquiring it is 21
270	270	determined in whole or in part by ref-22
271	271	erence to the adjusted basis of such 23
272	272	building in the hands of the person 24
273	273	from whom acquired, 25
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277	277	‘‘(II) by a person whose basis in 1
278	278	such building is determined under sec-2
279	279	tion 1014(a) (relating to property ac-3
280	280	quired from a decedent), 4
281	281	‘‘(III) by any governmental unit 5
282	282	or qualified nonprofit organization if 6
283	283	the requirements of subparagraph 7
284	284	(B)(ii) are met with respect to the 8
285	285	placement in service by such unit or 9
286	286	organization and all the income from 10
287	287	such property is exempt from Federal 11
288	288	income taxation, 12
289	289	‘‘(IV) by any person who ac-13
290	290	quired such building by foreclosure 14
291	291	(or by instrument in lieu of fore-15
292	292	closure) of any purchase-money secu-16
293	293	rity interest held by such person if the 17
294	294	requirements of subparagraph (B)(ii) 18
295	295	are met with respect to the placement 19
296	296	in service by such person and such 20
297	297	building is resold within 12 months 21
298	298	after the date such building is placed 22
299	299	in service by such person after such 23
300	300	foreclosure, or 24
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304	304	‘‘(V) of a single-family residence 1
305	305	by any individual who owned and used 2
306	306	such residence for no other purpose 3
307	307	than as his principal residence. 4
308	308	‘‘(ii) R
309	309	ELATED PERSON .—For pur-5
310	310	poses of subparagraph (B)(iii), a person 6
311	311	(hereinafter in this subclause referred to as 7
312	312	the ‘related person’) is related to any per-8
313	313	son if the related person bears a relation-9
314	314	ship to such person specified in section 10
315	315	267(b) or 707(b)(1), or the related person 11
316	316	and such person are engaged in trades or 12
317	317	businesses under common control (within 13
318	318	the meaning of subsections (a) and (b) of 14
319	319	section 52). 15
320	320	‘‘(3) S
321	321	PECIAL RULES RELATING TO DETER -16
322	322	MINATION OF ADJUSTED BASIS .—For purposes of 17
323	323	this subsection— 18
324	324	‘‘(A) I
325	325	N GENERAL.—Except as provided in 19
326	326	subparagraph (B), the adjusted basis of any 20
327	327	building shall be determined without regard to 21
328	328	the adjusted basis of any property which is not 22
329	329	residential rental property. 23
330	330	‘‘(B) B
331	331	ASIS OF PROPERTY IN COMMON 24
332	332	AREAS, ETC., INCLUDED.— 25
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336	336	‘‘(i) IN GENERAL.—Except as pro-1
337	337	vided in clause (ii), the adjusted basis of 2
338	338	any building shall be determined by taking 3
339	339	into account the adjusted basis of property 4
340	340	(of a character subject to the allowance for 5
341	341	depreciation) used in common areas or 6
342	342	provided as comparable amenities to all 7
343	343	residential rental units in such building. 8
344	344	‘‘(ii) S
345	345	PECIAL RULE.—In the case of 9
346	346	any building for which the low-income 10
347	347	housing tax credit is allowable under sec-11
348	348	tion 42, the adjusted basis of the building 12
349	349	under this section shall be determined 13
350	350	without regard to property used in com-14
351	351	mon areas or provided as comparable 15
352	352	amenities to all residential rental units in 16
353	353	such building. 17
354	354	‘‘(C) N
355	355	O REDUCTION FOR DEPRECIA -18
356	356	TION.—The adjusted basis of any building shall 19
357	357	be determined without regard to paragraphs (2) 20
358	358	and (3) of section 1016(a). 21
359	359	‘‘(4) S
360	360	PECIAL RULES FOR DETERMINING ELIGI -22
361	361	BLE BASIS.— 23
362	362	‘‘(A) F
363	363	EDERAL GRANTS NOT TAKEN INTO 24
364	364	ACCOUNT IN DETERMINING ELIGIBLE BASIS .— 25
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368	368	The eligible basis of a building shall not include 1
369	369	any costs financed with the proceeds of a Fed-2
370	370	erally funded grant. 3
371	371	‘‘(B) I
372	372	NCREASE IN CREDIT FOR BUILDINGS 4
373	373	IN HIGH COST AREAS.— 5
374	374	‘‘(i) I
375	375	N GENERAL.—In the case of any 6
376	376	building located in a difficult development 7
377	377	area which is designated for purposes of 8
378	378	this subparagraph— 9
379	379	‘‘(I) in the case of a new build-10
380	380	ing, the eligible basis of such building 11
381	381	shall be 130 percent of such basis de-12
382	382	termined without regard to this sub-13
383	383	paragraph, and 14
384	384	‘‘(II) in the case of an existing 15
385	385	building, the rehabilitation expendi-16
386	386	tures taken into account under sub-17
387	387	section (e) shall be 130 percent of 18
388	388	such expenditures determined without 19
389	389	regard to this subparagraph. 20
390	390	‘‘(ii) L
391	391	IMITATION.—Clause (i) shall 21
392	392	not apply to any building if paragraph (1) 22
393	393	of subsection (h) does not apply to any 23
394	394	portion of the eligible basis of such build-24
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398	398	ing by reason of paragraph (9) of such 1
399	399	subsection. 2
400	400	‘‘(iii) D
401	401	IFFICULT DEVELOPMENT 3
402	402	AREAS.— 4
403	403	‘‘(I) I
404	404	N GENERAL.—The term 5
405	405	‘difficult development areas’ means 6
406	406	any area designated by the Secretary 7
407	407	of Housing and Urban Development 8
408	408	as an area which has high construc-9
409	409	tion, land, or utility costs relative to 10
410	410	area median gross income, any rural 11
411	411	area, and any Indian area. 12
412	412	‘‘(II) R
413	413	URAL AREA.—For pur-13
414	414	poses of subclause (I), the term ‘rural 14
415	415	area’ means any non-metropolitan 15
416	416	area, or any rural area as defined by 16
417	417	section 520 of the Housing Act of 17
418	418	1949, which is identified by the quali-18
419	419	fied allocation plan under subsection 19
420	420	(m)(1)(B). 20
421	421	‘‘(III) I
422	422	NDIAN AREA.—For pur-21
423	423	poses of subclause (I), the term ‘In-22
424	424	dian area’ means any Indian area (as 23
425	425	defined in section 4(11) of the Native 24
426	426	American Housing Assistance and 25
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430	430	Self Determination Act of 1996 (25 1
431	431	U.S.C. 4103(11))). 2
432	432	‘‘(IV) S
433	433	PECIAL RULE FOR BUILD -3
434	434	INGS IN INDIAN AREAS.—In the case 4
435	435	of an area which is a difficult develop-5
436	436	ment area solely because it is an In-6
437	437	dian area, a building shall not be 7
438	438	treated as located in such area unless 8
439	439	such building is assisted or financed 9
440	440	under the Native American Housing 10
441	441	Assistance and Self Determination 11
442	442	Act of 1996 (25 U.S.C. 4101 et seq.) 12
443	443	or the project sponsor is an Indian 13
444	444	tribe (as defined in section 14
445	445	45A(c)(6)), a tribally designated hous-15
446	446	ing entity (as defined in section 4(22) 16
447	447	of such Act (25 U.S.C. 4103(22))), or 17
448	448	wholly owned or controlled by such an 18
449	449	Indian tribe or tribally designated 19
450	450	housing entity. 20
451	451	‘‘(V) L
452	452	IMIT ON AREAS DES -21
453	453	IGNATED.—The portions of metropoli-22
454	454	tan statistical areas which may be 23
455	455	designated for purposes of this sub-24
456	456	paragraph shall not exceed an aggre-25
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460	460	gate area having 20 percent of the 1
461	461	population of such metropolitan sta-2
462	462	tistical areas. A comparable rule shall 3
463	463	apply to nonmetropolitan areas. 4
464	464	‘‘(iv) S
465	465	PECIAL RULES AND DEFINI -5
466	466	TIONS.—For purposes of this subpara-6
467	467	graph— 7
468	468	‘‘(I) population shall be deter-8
469	469	mined on the basis of the most recent 9
470	470	decennial census for which data are 10
471	471	available, 11
472	472	‘‘(II) area median gross income 12
473	473	shall be determined in accordance 13
474	474	with subsection (g)(4), 14
475	475	‘‘(III) the term ‘metropolitan sta-15
476	476	tistical area’ has the same meaning as 16
477	477	when used in section 143(k)(2)(B), 17
478	478	and 18
479	479	‘‘(IV) the term ‘nonmetropolitan 19
480	480	area’ means any county (or portion 20
481	481	thereof) which is not within a metro-21
482	482	politan statistical area. 22
483	483	‘‘(v) B
484	484	UILDINGS DESIGNATED BY 23
485	485	STATE HOUSING CREDIT AGENCY .—Any 24
486	486	building which is designated by the State 25
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489	489	•HR 893 IH
490	490	housing credit agency as requiring the in-1
491	491	crease in credit under this subparagraph in 2
492	492	order for such building to be financially 3
493	493	feasible as part of a qualified working fam-4
494	494	ilies housing project shall be treated for 5
495	495	purposes of this subparagraph as located 6
496	496	in a difficult development area which is 7
497	497	designated for purposes of this subpara-8
498	498	graph. 9
499	499	‘‘(5) C
500	500	REDIT ALLOWABLE FOR CERTAIN BUILD -10
501	501	INGS ACQUIRED DURING 10 -YEAR PERIOD.—On ap-11
502	502	plication by the taxpayer, the Secretary may waive 12
503	503	paragraph (2)(B)(ii) with respect to any building ac-13
504	504	quired from an insured depository institution in de-14
505	505	fault (as defined in section 3 of the Federal Deposit 15
506	506	Insurance Act) or from a receiver or conservator of 16
507	507	such an institution. 17
508	508	‘‘(6) A
509	509	CQUISITION OF BUILDING BEFORE END 18
510	510	OF PRIOR CREDIT PERIOD.— 19
511	511	‘‘(A) I
512	512	N GENERAL.—Under regulations 20
513	513	prescribed by the Secretary, in the case of a 21
514	514	building described in subparagraph (B) (or in-22
515	515	terest therein) which is acquired by the tax-23
516	516	payer— 24
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518	518	ssavage on LAPJG3WLY3PROD with BILLS 18
519	519	•HR 893 IH
520	520	‘‘(i) paragraph (2)(B) shall not apply, 1
521	521	but 2
522	522	‘‘(ii) the credit allowable by reason of 3
523	523	subsection (a) to the taxpayer for any pe-4
524	524	riod after such acquisition shall be equal to 5
525	525	the amount of credit which would have 6
526	526	been allowable under subsection (a) for 7
527	527	such period to the prior owner referred to 8
528	528	in subparagraph (B) had such owner not 9
529	529	disposed of the building. 10
530	530	‘‘(B) D
531	531	ESCRIPTION OF BUILDING .—A 11
532	532	building is described in this subparagraph if— 12
533	533	‘‘(i) a credit was allowed by reason of 13
534	534	subsection (a) to any prior owner of such 14
535	535	building, and 15
536	536	‘‘(ii) the taxpayer acquired such build-16
537	537	ing before the end of the credit period for 17
538	538	such building with respect to such prior 18
539	539	owner (determined without regard to any 19
540	540	disposition by such prior owner). 20
541	541	‘‘(e) R
542	542	EHABILITATIONEXPENDITURESTREATED AS 21
543	543	S
544	544	EPARATENEWBUILDING.— 22
545	545	‘‘(1) I
546	546	N GENERAL.—Rehabilitation expenditures 23
547	547	paid or incurred by the taxpayer with respect to any 24
548	548	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
549	549	ssavage on LAPJG3WLY3PROD with BILLS 19
550	550	•HR 893 IH
551	551	building shall be treated for purposes of this section 1
552	552	as a separate building which is not a new building. 2
553	553	‘‘(2) R
554	554	EHABILITATION EXPENDITURES .—For 3
555	555	purposes of paragraph (1)— 4
556	556	‘‘(A) I
557	557	N GENERAL.—The term ‘rehabilita-5
558	558	tion expenditures’ means amounts chargeable to 6
559	559	capital account and incurred for property (or 7
560	560	additions or improvements to property) of a 8
561	561	character subject to the allowance for deprecia-9
562	562	tion in connection with the rehabilitation of a 10
563	563	building. 11
564	564	‘‘(B) C
565	565	OST OF ACQUISITION, ETC., NOT IN-12
566	566	CLUDED.—Such term does not include the cost 13
567	567	of acquiring any building (or interest therein) 14
568	568	or any amount not permitted to be taken into 15
569	569	account under paragraph (3) of subsection (d). 16
570	570	‘‘(C) C
571	571	ERTAIN RELOCATION COSTS .—In 17
572	572	the case of a rehabilitation of a building to 18
573	573	which section 280B does not apply, costs relat-19
574	574	ing to the relocation of occupants, including— 20
575	575	‘‘(i) amounts paid to occupants, 21
576	576	‘‘(ii) amounts paid to third parties for 22
577	577	services relating to such relocation, and 23
578	578	‘‘(iii) amounts paid for temporary 24
579	579	housing for occupants, 25
580	580	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
581	581	ssavage on LAPJG3WLY3PROD with BILLS 20
582	582	•HR 893 IH
583	583	shall be treated as chargeable to capital account 1
584	584	and taken into account as rehabilitation ex-2
585	585	penditures. 3
586	586	‘‘(3) M
587	587	INIMUM EXPENDITURES TO QUALIFY .— 4
588	588	‘‘(A) I
589	589	N GENERAL.—Paragraph (1) shall 5
590	590	apply to rehabilitation expenditures with respect 6
591	591	to any building only if— 7
592	592	‘‘(i) the expenditures are allocable to 8
593	593	1 or more working families units or sub-9
594	594	stantially benefit such units, and 10
595	595	‘‘(ii) the amount of such expenditures 11
596	596	during any 24-month period meets the re-12
597	597	quirements of whichever of the following 13
598	598	subclauses requires the greater amount of 14
599	599	such expenditures: 15
600	600	‘‘(I) The requirement of this sub-16
601	601	clause is met if such amount is not 17
602	602	less than 20 percent of the adjusted 18
603	603	basis of the building (determined as of 19
604	604	the 1st day of such period and with-20
605	605	out regard to paragraphs (2) and (3) 21
606	606	of section 1016(a)). 22
607	607	‘‘(II) The requirement of this 23
608	608	subclause is met if the qualified basis 24
609	609	attributable to such amount, when di-25
610	610	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
611	611	ssavage on LAPJG3WLY3PROD with BILLS 21
612	612	•HR 893 IH
613	613	vided by the number of working fami-1
614	614	lies units in the building, is equal to 2
615	615	or greater than the dollar amount in 3
616	616	effect under section 42(e)(3)(A)(ii)(II) 4
617	617	for the calendar year in which such 5
618	618	expenditures are treated as placed in 6
619	619	service under paragraph (4). 7
620	620	‘‘(B) D
621	621	ATE OF DETERMINATION .—The de-8
622	622	termination under subparagraph (A) shall be 9
623	623	made as of the close of the 1st taxable year in 10
624	624	the credit period with respect to such expendi-11
625	625	tures. 12
626	626	‘‘(4) S
627	627	PECIAL RULES.—For purposes of apply-13
628	628	ing this section with respect to expenditures which 14
629	629	are treated as a separate building by reason of this 15
630	630	subsection— 16
631	631	‘‘(A) such expenditures shall be treated as 17
632	632	placed in service at the close of the 24-month 18
633	633	period referred to in paragraph (3)(A), and 19
634	634	‘‘(B) the applicable fraction under sub-20
635	635	section (c)(1) shall be the applicable fraction for 21
636	636	the building (without regard to paragraph (1)) 22
637	637	with respect to which the expenditures were in-23
638	638	curred. 24
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640	640	ssavage on LAPJG3WLY3PROD with BILLS 22
641	641	•HR 893 IH
642	642	Nothing in subsection (d)(2) shall prevent a credit 1
643	643	from being allowed by reason of this subsection. 2
644	644	‘‘(5) N
645	645	O DOUBLE COUNTING .—Rehabilitation 3
646	646	expenditures may, at the election of the taxpayer, be 4
647	647	taken into account under this subsection or sub-5
648	648	section (d)(2)(A)(i) but not under both such sub-6
649	649	sections. 7
650	650	‘‘(6) R
651	651	EGULATIONS TO APPLY SUBSECTION 8
652	652	WITH RESPECT TO GROUP OF UNITS IN BUILDING .— 9
653	653	The Secretary may prescribe regulations, consistent 10
654	654	with the purposes of this subsection, treating a 11
655	655	group of units with respect to which rehabilitation 12
656	656	expenditures are incurred as a separate new build-13
657	657	ing. 14
658	658	‘‘(f) D
659	659	EFINITION ANDSPECIALRULESRELATING TO 15
660	660	C
661	661	REDITPERIOD.— 16
662	662	‘‘(1) C
663	663	REDIT PERIOD DEFINED .—For purposes 17
664	664	of this section, the term ‘credit period’ means, with 18
665	665	respect to any building, the period of 15 taxable 19
666	666	years beginning with— 20
667	667	‘‘(A) the taxable year in which the building 21
668	668	is placed in service, or 22
669	669	‘‘(B) at the election of the taxpayer, the 23
670	670	succeeding taxable year, 24
671	671	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
672	672	ssavage on LAPJG3WLY3PROD with BILLS 23
673	673	•HR 893 IH
674	674	but only if the building is a qualified working fami-1
675	675	lies building as of the close of the 1st year of such 2
676	676	period. The election under subparagraph (B), once 3
677	677	made, shall be irrevocable. 4
678	678	‘‘(2) S
679	679	PECIAL RULE FOR 1ST YEAR OF CREDIT 5
680	680	PERIOD.— 6
681	681	‘‘(A) I
682	682	N GENERAL.—The credit allowable 7
683	683	under subsection (a) with respect to any build-8
684	684	ing for the 1st taxable year of the credit period 9
685	685	shall be determined by substituting for the ap-10
686	686	plicable fraction under subsection (c)(1) the 11
687	687	fraction— 12
688	688	‘‘(i) the numerator of which is the 13
689	689	sum of the applicable fractions determined 14
690	690	under subsection (c)(1) as of the close of 15
691	691	each full month of such year during which 16
692	692	such building was in service, and 17
693	693	‘‘(ii) the denominator of which is 12. 18
694	694	‘‘(B) D
695	695	ISALLOWED 1ST-YEAR CREDIT AL-19
696	696	LOWED IN 16TH YEAR .—Any reduction by rea-20
697	697	son of subparagraph (A) in the credit allowable 21
698	698	(without regard to subparagraph (A)) for the 22
699	699	1st taxable year of the credit period shall be al-23
700	700	lowable under subsection (a) for the 1st taxable 24
701	701	year following the credit period. 25
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703	703	ssavage on LAPJG3WLY3PROD with BILLS 24
704	704	•HR 893 IH
705	705	‘‘(3) DETERMINATION OF APPLICABLE PER -1
706	706	CENTAGE WITH RESPECT TO INCREASES IN QUALI -2
707	707	FIED BASIS AFTER 1ST YEAR OF CREDIT PERIOD .— 3
708	708	‘‘(A) I
709	709	N GENERAL.—In the case of any 4
710	710	building which was a qualified working families 5
711	711	building as of the close of the 1st year of the 6
712	712	credit period, if— 7
713	713	‘‘(i) as of the close of any taxable year 8
714	714	in the credit period (after the 1st year of 9
715	715	such period) the qualified basis of such 10
716	716	building, exceeds 11
717	717	‘‘(ii) the qualified basis of such build-12
718	718	ing as of the close of the 1st year of the 13
719	719	credit period, 14
720	720	the applicable percentage which shall apply 15
721	721	under subsection (a) for the taxable year to 16
722	722	such excess shall be the percentage equal to
723	723	2
724	724	⁄3 17
725	725	of the applicable percentage which (after the 18
726	726	application of subsection (h)) would but for this 19
727	727	paragraph apply to such basis. 20
728	728	‘‘(B) 1
729	729	ST YEAR COMPUTATION APPLIES .— 21
730	730	A rule similar to the rule of paragraph (2)(A) 22
731	731	shall apply to any increase in qualified basis to 23
732	732	which subparagraph (A) applies for the 1st year 24
733	733	of such increase. 25
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735	735	ssavage on LAPJG3WLY3PROD with BILLS 25
736	736	•HR 893 IH
737	737	‘‘(4) DISPOSITIONS OF PROPERTY .—If a build-1
738	738	ing (or an interest therein) is disposed of during any 2
739	739	year for which credit is allowable under subsection 3
740	740	(a), such credit shall be allocated between the par-4
741	741	ties on the basis of the number of days during such 5
742	742	year the building (or interest) was held by each. 6
743	743	‘‘(5) C
744	744	REDIT PERIOD FOR EXISTING BUILDINGS 7
745	745	NOT TO BEGIN BEFORE REHABILITATION CREDIT 8
746	746	ALLOWED.— 9
747	747	‘‘(A) I
748	748	N GENERAL.—The credit period for 10
749	749	an existing building shall not begin before the 11
750	750	1st taxable year of the credit period for reha-12
751	751	bilitation expenditures with respect to the build-13
752	752	ing. 14
753	753	‘‘(B) A
754	754	CQUISITION CREDIT ALLOWED FOR 15
755	755	CERTAIN BUILDINGS NOT ALLOWED A REHA -16
756	756	BILITATION CREDIT.— 17
757	757	‘‘(i) I
758	758	N GENERAL.—In the case of a 18
759	759	building described in clause (ii)— 19
760	760	‘‘(I) subsection (d)(2)(B)(iv) 20
761	761	shall not apply, and 21
762	762	‘‘(II) the credit period for such 22
763	763	building shall not begin before the 23
764	764	taxable year which would be the 1st 24
765	765	taxable year of the credit period for 25
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767	767	ssavage on LAPJG3WLY3PROD with BILLS 26
768	768	•HR 893 IH
769	769	rehabilitation expenditures with re-1
770	770	spect to the building under the modi-2
771	771	fications described in clause (ii)(II). 3
772	772	‘‘(ii) B
773	773	UILDING DESCRIBED.—A build-4
774	774	ing is described in this clause if— 5
775	775	‘‘(I) a waiver is granted under 6
776	776	subsection (d)(4) with respect to the 7
777	777	acquisition of the building, and 8
778	778	‘‘(II) a credit would be allowed 9
779	779	for rehabilitation expenditures with 10
780	780	respect to such building if subsection 11
781	781	(e)(3)(A)(ii)(I) did not apply and if 12
782	782	the dollar amount in effect under sub-13
783	783	section (e)(3)(A)(ii)(II) were two- 14
784	784	thirds of such amount. 15
785	785	‘‘(g) Q
786	786	UALIFIEDWORKINGFAMILIESHOUSING 16
787	787	P
788	788	ROJECT.—For purposes of this section— 17
789	789	‘‘(1) Q
790	790	UALIFIED WORKING FAMILIES HOUSING 18
791	791	PROJECT.— 19
792	792	‘‘(A) I
793	793	N GENERAL.—The term ‘qualified 20
794	794	working families housing project’ means any 21
795	795	project for residential rental property if such 22
796	796	project meets the low-income requirements of 23
797	797	subparagraph (B) and the working families re-24
798	798	quirements of subparagraph (C). 25
799	799	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
800	800	ssavage on LAPJG3WLY3PROD with BILLS 27
801	801	•HR 893 IH
802	802	‘‘(B) LOW-INCOME REQUIREMENTS .—The 1
803	803	project meets the low-income requirements of 2
804	804	this subparagraph if 20 percent or more of the 3
805	805	residential units in such project are both rent- 4
806	806	restricted and occupied by individuals whose in-5
807	807	come is 60 percent or less of area median gross 6
808	808	income. 7
809	809	‘‘(C) W
810	810	ORKING FAMILIES REQUIRE -8
811	811	MENTS.— 9
812	812	‘‘(i) I
813	813	N GENERAL.—The project meets 10
814	814	the working families requirements of this 11
815	815	subparagraph if 40 percent or more of the 12
816	816	residential units in such project are both 13
817	817	rent-restricted and occupied by individuals 14
818	818	whose income does not exceed the imputed 15
819	819	income limitation designated by the tax-16
820	820	payer with respect to the respective unit. 17
821	821	‘‘(ii) S
822	822	PECIAL RULES RELATING TO 18
823	823	INCOME LIMITATION .—For purposes of 19
824	824	clause (i)— 20
825	825	‘‘(I) D
826	826	ESIGNATION.—The tax-21
827	827	payer shall designate the imputed in-22
828	828	come limitation of each unit taken 23
829	829	into account under such clause. 24
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832	832	•HR 893 IH
833	833	‘‘(II) AVERAGE TEST.—The aver-1
834	834	age of the imputed income limitations 2
835	835	designated under subclause (I) shall 3
836	836	not exceed 100 percent of area me-4
837	837	dian gross income. 5
838	838	‘‘(III) P
839	839	ERMITTED INCRE -6
840	840	MENTS.—The designated imputed in-7
841	841	come limitation of any unit under sub-8
842	842	clause (I) shall be 70, 80, 90, 100, 9
843	843	110, 120, 130, 140, 150, 160, 170, or 10
844	844	180 percent of area median gross in-11
845	845	come. 12
846	846	Any designation under this paragraph, once made, 13
847	847	shall be irrevocable. For purposes of this paragraph, 14
848	848	any property shall not be treated as failing to be res-15
849	849	idential rental property merely because part of the 16
850	850	building in which such property is located is used for 17
851	851	purposes other than residential rental purposes. 18
852	852	‘‘(2) R
853	853	ENT-RESTRICTED UNITS.— 19
854	854	‘‘(A) I
855	855	N GENERAL.—For purposes of para-20
856	856	graph (1), a residential unit is rent-restricted if 21
857	857	the gross rent with respect to such unit does 22
858	858	not exceed 30 percent of the imputed income 23
859	859	limitation applicable to such unit. For purposes 24
860	860	of the preceding sentence, the amount of the in-25
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862	862	ssavage on LAPJG3WLY3PROD with BILLS 29
863	863	•HR 893 IH
864	864	come limitation under paragraph (1) applicable 1
865	865	for any period shall not be less than such limi-2
866	866	tation applicable for the earliest period the 3
867	867	building (which contains the unit) was included 4
868	868	in the determination of whether the project is 5
869	869	a qualified working families housing project. 6
870	870	‘‘(B) G
871	871	ROSS RENT.—For purposes of sub-7
872	872	paragraph (A), gross rent— 8
873	873	‘‘(i) includes any utility allowance de-9
874	874	termined by the Secretary after taking into 10
875	875	account such determinations under section 11
876	876	8 of the United States Housing Act of 12
877	877	1937, 13
878	878	‘‘(ii) does not include any fee for a 14
879	879	supportive service which is paid to the 15
880	880	owner of the unit (on the basis of the 16
881	881	working families status of the tenant of the 17
882	882	unit) by any governmental program of as-18
883	883	sistance (or by an organization described 19
884	884	in section 501(c)(3) and exempt from tax 20
885	885	under section 501(a)) if such program (or 21
886	886	organization) provides assistance for rent 22
887	887	and the amount of assistance provided for 23
888	888	rent is not separable from the amount of 24
889	889	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
890	890	ssavage on LAPJG3WLY3PROD with BILLS 30
891	891	•HR 893 IH
892	892	assistance provided for supportive services, 1
893	893	and 2
894	894	‘‘(iii) does not include any rental pay-3
895	895	ment to the owner of the unit to the extent 4
896	896	such owner pays an equivalent amount to 5
897	897	the Farmers’ Home Administration under 6
898	898	section 515 of the Housing Act of 1949. 7
899	899	For purposes of clause (ii), the term ‘supportive 8
900	900	service’ means any service provided under a 9
901	901	planned program of services designed to enable 10
902	902	residents of a residential rental property to re-11
903	903	main independent and avoid placement in a 12
904	904	hospital, nursing home, or intermediate care fa-13
905	905	cility for the mentally or physically handi-14
906	906	capped. 15
907	907	‘‘(C) I
908	908	MPUTED INCOME LIMITATION APPLI -16
909	909	CABLE TO UNIT.—For purposes of this para-17
910	910	graph, the imputed income limitation applicable 18
911	911	to a unit is the income limitation which would 19
912	912	apply under paragraph (1) to individuals occu-20
913	913	pying the unit if the number of individuals oc-21
914	914	cupying the unit were as follows: 22
915	915	‘‘(i) In the case of a unit which does 23
916	916	not have a separate bedroom, 1 individual. 24
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918	918	ssavage on LAPJG3WLY3PROD with BILLS 31
919	919	•HR 893 IH
920	920	‘‘(ii) In the case of a unit which has 1
921	921	1 or more separate bedrooms, 1.5 individ-2
922	922	uals for each separate bedroom. 3
923	923	In the case of a project with respect to which 4
924	924	a credit is allowable by reason of this section 5
925	925	and for which financing is provided by a bond 6
926	926	described in section 142(a)(7), the imputed in-7
927	927	come limitation shall apply in lieu of the other-8
928	928	wise applicable income limitation for purposes 9
929	929	of applying section 142(d)(4)(B)(ii). 10
930	930	‘‘(D) T
931	931	REATMENT OF UNITS OCCUPIED BY 11
932	932	INDIVIDUALS WHOSE INCOMES RISE ABOVE 12
933	933	LIMIT.— 13
934	934	‘‘(i) I
935	935	N GENERAL.—Except as pro-14
936	936	vided in clause (ii), notwithstanding an in-15
937	937	crease in the income of the occupants of a 16
938	938	working families unit above the income 17
939	939	limitation applicable under paragraph (1), 18
940	940	such unit shall continue to be treated as a 19
941	941	working families unit if the income of such 20
942	942	occupants initially met such income limita-21
943	943	tion and such unit continues to be rent-re-22
944	944	stricted. 23
945	945	‘‘(ii) N
946	946	EXT AVAILABLE UNIT MUST BE 24
947	947	RENTED TO WORKING FAMILIES TENANT 25
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950	950	•HR 893 IH
951	951	IF INCOME RISES ABOVE 140 PERCENT OF 1
952	952	INCOME LIMIT.—If the income of the occu-2
953	953	pants of the unit increases above 140 per-3
954	954	cent of the income limitation applicable 4
955	955	under paragraph (1), clause (i) shall cease 5
956	956	to apply to such unit if any residential 6
957	957	rental unit in the building (of a size com-7
958	958	parable to, or smaller than, such unit) is 8
959	959	occupied by a new resident whose income 9
960	960	exceeds such income limitation. 10
961	961	‘‘(3) D
962	962	ATE FOR MEETING REQUIREMENTS .— 11
963	963	‘‘(A) I
964	964	N GENERAL.—Except as otherwise 12
965	965	provided in this paragraph, a building shall be 13
966	966	treated as a qualified working families building 14
967	967	only if the project (of which such building is a 15
968	968	part) meets the requirements of paragraph (1) 16
969	969	not later than the close of the 1st year of the 17
970	970	credit period for such building. 18
971	971	‘‘(B) B
972	972	UILDINGS WHICH RELY ON LATER 19
973	973	BUILDINGS FOR QUALIFICATION .— 20
974	974	‘‘(i) I
975	975	N GENERAL.—In determining 21
976	976	whether a building (hereinafter in this sub-22
977	977	paragraph referred to as the ‘prior build-23
978	978	ing’) is a qualified working families build-24
979	979	ing, the taxpayer may take into account 1 25
980	980	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
981	981	ssavage on LAPJG3WLY3PROD with BILLS 33
982	982	•HR 893 IH
983	983	or more additional buildings placed in serv-1
984	984	ice during the 12-month period described 2
985	985	in subparagraph (A) with respect to the 3
986	986	prior building only if the taxpayer elects to 4
987	987	apply clause (ii) with respect to each addi-5
988	988	tional building taken into account. 6
989	989	‘‘(ii) T
990	990	REATMENT OF ELECTED 7
991	991	BUILDINGS.—In the case of a building 8
992	992	which the taxpayer elects to take into ac-9
993	993	count under clause (i), the period under 10
994	994	subparagraph (A) for such building shall 11
995	995	end at the close of the 12-month period ap-12
996	996	plicable to the prior building. 13
997	997	‘‘(iii) D
998	998	ATE PRIOR BUILDING IS 14
999	999	TREATED AS PLACED IN SERVICE .—For 15
1000	1000	purposes of determining the credit period 16
1001	1001	for the prior building, the prior building 17
1002	1002	shall be treated for purposes of this section 18
1003	1003	as placed in service on the most recent 19
1004	1004	date any additional building elected by the 20
1005	1005	taxpayer (with respect to such prior build-21
1006	1006	ing) was placed in service. 22
1007	1007	‘‘(C) S
1008	1008	PECIAL RULE.—A building— 23
1009	1009	‘‘(i) other than the 1st building placed 24
1010	1010	in service as part of a project, and 25
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1012	1012	ssavage on LAPJG3WLY3PROD with BILLS 34
1013	1013	•HR 893 IH
1014	1014	‘‘(ii) other than a building which is 1
1015	1015	placed in service during the 12-month pe-2
1016	1016	riod described in subparagraph (A) with 3
1017	1017	respect to a prior building which becomes 4
1018	1018	a qualified working families building, 5
1019	1019	shall in no event be treated as a qualified work-6
1020	1020	ing families building unless the project is a 7
1021	1021	qualified working families housing project 8
1022	1022	(without regard to such building) on the date 9
1023	1023	such building is placed in service. 10
1024	1024	‘‘(D) P
1025	1025	ROJECTS WITH MORE THAN 1 11
1026	1026	BUILDING MUST BE IDENTIFIED .—For pur-12
1027	1027	poses of this section, a project shall be treated 13
1028	1028	as consisting of only 1 building unless, before 14
1029	1029	the close of the 1st calendar year in the project 15
1030	1030	period (as defined in subsection (h)(1)(F)(ii)), 16
1031	1031	each building which is (or will be) part of such 17
1032	1032	project is identified in such form and manner 18
1033	1033	as the Secretary may provide. 19
1034	1034	‘‘(4) C
1035	1035	ERTAIN RULES MADE APPLICABLE .— 20
1036	1036	Paragraphs (2) (other than subparagraph (A) there-21
1037	1037	of), (3), and (7) of section 142(d), and section 22
1038	1038	6652(j), shall apply for purposes of determining 23
1039	1039	whether any project is a qualified working families 24
1040	1040	housing project and whether any unit is a working 25
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1042	1042	ssavage on LAPJG3WLY3PROD with BILLS 35
1043	1043	•HR 893 IH
1044	1044	families unit; except that, in applying such provi-1
1045	1045	sions for such purposes— 2
1046	1046	‘‘(A) the term ‘gross rent’ shall have the 3
1047	1047	meaning given such term by paragraph (2)(B) 4
1048	1048	of this subsection, and 5
1049	1049	‘‘(B) the term ‘applicable income limit’ 6
1050	1050	means the limitation under paragraph (1) of 7
1051	1051	this subsection. 8
1052	1052	‘‘(5) E
1053	1053	LECTION TO TREAT BUILDING AFTER 9
1054	1054	CREDIT PERIOD AS NOT PART OF A PROJECT .—For 10
1055	1055	purposes of this section, the taxpayer may elect to 11
1056	1056	treat any building as not part of a qualified working 12
1057	1057	families housing project for any period beginning 13
1058	1058	after the credit period for such building. 14
1059	1059	‘‘(6) S
1060	1060	PECIAL RULE WHERE DE MINIMIS EQ -15
1061	1061	UITY CONTRIBUTION.—Property shall not be treated 16
1062	1062	as failing to be residential rental property for pur-17
1063	1063	poses of this section merely because the occupant of 18
1064	1064	a residential unit in the project pays (on a voluntary 19
1065	1065	basis) to the lessor a de minimis amount to be held 20
1066	1066	toward the purchase by such occupant of a residen-21
1067	1067	tial unit in such project if— 22
1068	1068	‘‘(A) all amounts so paid are refunded to 23
1069	1069	the occupant on the cessation of his occupancy 24
1070	1070	of a unit in the project, and 25
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1073	1073	•HR 893 IH
1074	1074	‘‘(B) the purchase of the unit is not per-1
1075	1075	mitted until after the close of the credit period 2
1076	1076	with respect to the building in which the unit 3
1077	1077	is located. 4
1078	1078	Any amount paid to the lessor as described in the 5
1079	1079	preceding sentence shall be included in gross rent 6
1080	1080	under paragraph (2) for purposes of determining 7
1081	1081	whether the unit is rent-restricted. 8
1082	1082	‘‘(7) S
1083	1083	CATTERED SITE PROJECTS .—Buildings 9
1084	1084	which would (but for their lack of proximity) be 10
1085	1085	treated as a project for purposes of this section shall 11
1086	1086	be so treated if all of the dwelling units in each of 12
1087	1087	the buildings are rent-restricted (within the meaning 13
1088	1088	of paragraph (2)) residential rental units. 14
1089	1089	‘‘(8) W
1090	1090	AIVER OF CERTAIN RECERTIFI -15
1091	1091	CATIONS.—On application by the taxpayer, the Sec-16
1092	1092	retary may waive any annual recertification of ten-17
1093	1093	ant income for purposes of this subsection, if the en-18
1094	1094	tire building is occupied by working families tenants. 19
1095	1095	‘‘(9) C
1096	1096	LARIFICATION OF GENERAL PUBLIC USE 20
1097	1097	REQUIREMENT.—A project does not fail to meet the 21
1098	1098	general public use requirement solely because of oc-22
1099	1099	cupancy restrictions or preferences that favor ten-23
1100	1100	ants— 24
1101	1101	‘‘(A) with special needs, or 25
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1103	1103	ssavage on LAPJG3WLY3PROD with BILLS 37
1104	1104	•HR 893 IH
1105	1105	‘‘(B) who are members of a specified group 1
1106	1106	under a Federal program or State program or 2
1107	1107	policy that supports housing for such a speci-3
1108	1108	fied group. 4
1109	1109	‘‘(10) P
1110	1110	REVAILING WAGE REQUIREMENTS .—No 5
1111	1111	credit shall be determined under this section with re-6
1112	1112	spect to any building (including any rehabilitation 7
1113	1113	expenditures treated as a separate building under 8
1114	1114	subsection (e)) unless such building meets require-9
1115	1115	ments similar the requirements described in section 10
1116	1116	45(b)(7). 11
1117	1117	‘‘(h) L
1118	1118	IMITATION ONAGGREGATECREDITALLOW-12
1119	1119	ABLEWITHRESPECT TO PROJECTSLOCATED IN A 13
1120	1120	S
1121	1121	TATE.— 14
1122	1122	‘‘(1) C
1123	1123	REDIT MAY NOT EXCEED CREDIT 15
1124	1124	AMOUNT ALLOCATED TO BUILDING .— 16
1125	1125	‘‘(A) I
1126	1126	N GENERAL.—The amount of the 17
1127	1127	credit determined under this section for any 18
1128	1128	taxable year with respect to any building shall 19
1129	1129	not exceed the housing credit dollar amount al-20
1130	1130	located to such building under this subsection. 21
1131	1131	‘‘(B) T
1132	1132	IME FOR MAKING ALLOCATION .— 22
1133	1133	Except in the case of an allocation which meets 23
1134	1134	the requirements of subparagraph (C), (D), 24
1135	1135	(E), or (F), an allocation shall be taken into ac-25
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1137	1137	ssavage on LAPJG3WLY3PROD with BILLS 38
1138	1138	•HR 893 IH
1139	1139	count under subparagraph (A) only if it is 1
1140	1140	made not later than the close of the calendar 2
1141	1141	year in which the building is placed in service. 3
1142	1142	‘‘(C) E
1143	1143	XCEPTION WHERE BINDING COM -4
1144	1144	MITMENT.—An allocation meets the require-5
1145	1145	ments of this subparagraph if there is a binding 6
1146	1146	commitment (not later than the close of the cal-7
1147	1147	endar year in which the building is placed in 8
1148	1148	service) by the housing credit agency to allocate 9
1149	1149	a specified housing credit dollar amount to such 10
1150	1150	building beginning in a specified later taxable 11
1151	1151	year. 12
1152	1152	‘‘(D) E
1153	1153	XCEPTION WHERE INCREASE IN 13
1154	1154	QUALIFIED BASIS.— 14
1155	1155	‘‘(i) I
1156	1156	N GENERAL.—An allocation 15
1157	1157	meets the requirements of this subpara-16
1158	1158	graph if such allocation is made not later 17
1159	1159	than the close of the calendar year in 18
1160	1160	which ends the taxable year to which it will 19
1161	1161	1st apply but only to the extent the 20
1162	1162	amount of such allocation does not exceed 21
1163	1163	the limitation under clause (ii). 22
1164	1164	‘‘(ii) L
1165	1165	IMITATION.—The limitation 23
1166	1166	under this clause is the amount of credit 24
1167	1167	allowable under this section (without re-25
1168	1168	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1169	1169	ssavage on LAPJG3WLY3PROD with BILLS 39
1170	1170	•HR 893 IH
1171	1171	gard to this subsection) for a taxable year 1
1172	1172	with respect to an increase in the qualified 2
1173	1173	basis of the building equal to the excess 3
1174	1174	of— 4
1175	1175	‘‘(I) the qualified basis of such 5
1176	1176	building as of the close of the 1st tax-6
1177	1177	able year to which such allocation will 7
1178	1178	apply, over 8
1179	1179	‘‘(II) the qualified basis of such 9
1180	1180	building as of the close of the 1st tax-10
1181	1181	able year to which the most recent 11
1182	1182	prior housing credit allocation with re-12
1183	1183	spect to such building applied. 13
1184	1184	‘‘(iii) H
1185	1185	OUSING CREDIT DOLLAR 14
1186	1186	AMOUNT REDUCED BY FULL ALLOCA -15
1187	1187	TION.—Notwithstanding clause (i), the full 16
1188	1188	amount of the allocation shall be taken 17
1189	1189	into account under paragraph (2). 18
1190	1190	‘‘(E) E
1191	1191	XCEPTION WHERE 10 PERCENT OF 19
1192	1192	COST INCURRED.— 20
1193	1193	‘‘(i) I
1194	1194	N GENERAL.—An allocation 21
1195	1195	meets the requirements of this subpara-22
1196	1196	graph if such allocation is made with re-23
1197	1197	spect to a qualified building which is 24
1198	1198	placed in service not later than the close of 25
1199	1199	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1200	1200	ssavage on LAPJG3WLY3PROD with BILLS 40
1201	1201	•HR 893 IH
1202	1202	the second calendar year following the cal-1
1203	1203	endar year in which the allocation is made. 2
1204	1204	‘‘(ii) Q
1205	1205	UALIFIED BUILDING.—For pur-3
1206	1206	poses of clause (i), the term ‘qualified 4
1207	1207	building’ means any building which is part 5
1208	1208	of a project if the taxpayer’s basis in such 6
1209	1209	project (as of the date which is 1 year 7
1210	1210	after the date that the allocation was 8
1211	1211	made) is more than 10 percent of the tax-9
1212	1212	payer’s reasonably expected basis in such 10
1213	1213	project (as of the close of the second cal-11
1214	1214	endar year referred to in clause (i)). Such 12
1215	1215	term does not include any existing building 13
1216	1216	unless a credit is allowable under sub-14
1217	1217	section (e) for rehabilitation expenditures 15
1218	1218	paid or incurred by the taxpayer with re-16
1219	1219	spect to such building for a taxable year 17
1220	1220	ending during the second calendar year re-18
1221	1221	ferred to in clause (i) or the prior taxable 19
1222	1222	year. 20
1223	1223	‘‘(F) A
1224	1224	LLOCATION OF CREDIT ON A 21
1225	1225	PROJECT BASIS.— 22
1226	1226	‘‘(i) I
1227	1227	N GENERAL.—In the case of a 23
1228	1228	project which includes (or will include) 24
1229	1229	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1230	1230	ssavage on LAPJG3WLY3PROD with BILLS 41
1231	1231	•HR 893 IH
1232	1232	more than 1 building, an allocation meets 1
1233	1233	the requirements of this subparagraph if— 2
1234	1234	‘‘(I) the allocation is made to the 3
1235	1235	project for a calendar year during the 4
1236	1236	project period, 5
1237	1237	‘‘(II) the allocation only applies 6
1238	1238	to buildings placed in service during 7
1239	1239	or after the calendar year for which 8
1240	1240	the allocation is made, and 9
1241	1241	‘‘(III) the portion of such alloca-10
1242	1242	tion which is allocated to any building 11
1243	1243	in such project is specified not later 12
1244	1244	than the close of the calendar year in 13
1245	1245	which the building is placed in service. 14
1246	1246	‘‘(ii) P
1247	1247	ROJECT PERIOD.—For pur-15
1248	1248	poses of clause (i), the term ‘project pe-16
1249	1249	riod’ means the period— 17
1250	1250	‘‘(I) beginning with the 1st cal-18
1251	1251	endar year for which an allocation 19
1252	1252	may be made for the 1st building 20
1253	1253	placed in service as part of such 21
1254	1254	project, and 22
1255	1255	‘‘(II) ending with the calendar 23
1256	1256	year the last building is placed in 24
1257	1257	service as part of such project. 25
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1259	1259	ssavage on LAPJG3WLY3PROD with BILLS 42
1260	1260	•HR 893 IH
1261	1261	‘‘(2) ALLOCATED CREDIT AMOUNT TO APPLY 1
1262	1262	TO ALL TAXABLE YEARS ENDING DURING OR AFTER 2
1263	1263	CREDIT ALLOCATION YEAR .—Any housing credit dol-3
1264	1264	lar amount allocated to any building for any cal-4
1265	1265	endar year— 5
1266	1266	‘‘(A) shall apply to such building for all 6
1267	1267	taxable years in the credit period ending during 7
1268	1268	or after such calendar year, and 8
1269	1269	‘‘(B) shall reduce the aggregate housing 9
1270	1270	credit dollar amount of the allocating agency 10
1271	1271	only for such calendar year. 11
1272	1272	‘‘(3) H
1273	1273	OUSING CREDIT DOLLAR AMOUNT FOR 12
1274	1274	AGENCIES.— 13
1275	1275	‘‘(A) I
1276	1276	N GENERAL.—The aggregate hous-14
1277	1277	ing credit dollar amount which a housing credit 15
1278	1278	agency may allocate for any calendar year is 16
1279	1279	the portion of the State housing credit ceiling 17
1280	1280	allocated under this paragraph for such cal-18
1281	1281	endar year to such agency. 19
1282	1282	‘‘(B) S
1283	1283	TATE CEILING INITIALLY ALLO -20
1284	1284	CATED TO STATE HOUSING CREDIT AGEN -21
1285	1285	CIES.—Except as provided in subparagraph 22
1286	1286	(D), the State housing credit ceiling for each 23
1287	1287	calendar year shall be allocated to the housing 24
1288	1288	credit agency of such State. If there is more 25
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1290	1290	ssavage on LAPJG3WLY3PROD with BILLS 43
1291	1291	•HR 893 IH
1292	1292	than 1 housing credit agency of a State, all 1
1293	1293	such agencies shall be treated as a single agen-2
1294	1294	cy. 3
1295	1295	‘‘(C) S
1296	1296	TATE HOUSING CREDIT CEILING .— 4
1297	1297	The State housing credit ceiling applicable to 5
1298	1298	any State for any calendar year shall be an 6
1299	1299	amount equal to the sum of— 7
1300	1300	‘‘(i) the unused State housing credit 8
1301	1301	ceiling (if any) of such State for the pre-9
1302	1302	ceding calendar year, 10
1303	1303	‘‘(ii) the greater of— 11
1304	1304	‘‘(I) $1.00 multiplied by the 12
1305	1305	State population, or 13
1306	1306	‘‘(II) $1,500,000, plus 14
1307	1307	‘‘(iii) the amount of State housing 15
1308	1308	credit ceiling returned in the calendar year. 16
1309	1309	For purposes of clause (i), the unused State 17
1310	1310	housing credit ceiling for any calendar year is 18
1311	1311	the excess (if any) of the sum of the amounts 19
1312	1312	described in clauses (ii) (reduced by the aggre-20
1313	1313	gate amounts described in paragraph (10)(A)(i) 21
1314	1314	with respect to all elections made for such cal-22
1315	1315	endar year) and (iii) over the aggregate housing 23
1316	1316	credit dollar amount allocated for such year. 24
1317	1317	For purposes of clause (iii), the amount of 25
1318	1318	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1319	1319	ssavage on LAPJG3WLY3PROD with BILLS 44
1320	1320	•HR 893 IH
1321	1321	State housing credit ceiling returned in the cal-1
1322	1322	endar year equals the housing credit dollar 2
1323	1323	amount previously allocated within the State to 3
1324	1324	any project which fails to meet the 10 percent 4
1325	1325	test under paragraph (1)(E)(ii) on a date after 5
1326	1326	the close of the calendar year in which the allo-6
1327	1327	cation was made or which does not become a 7
1328	1328	qualified working families housing project with-8
1329	1329	in the period required by this section or the 9
1330	1330	terms of the allocation or to any project with 10
1331	1331	respect to which an allocation is cancelled by 11
1332	1332	mutual consent of the housing credit agency 12
1333	1333	and the allocation recipient. 13
1334	1334	‘‘(D) S
1335	1335	TATE MAY PROVIDE FOR DIF -14
1336	1336	FERENT ALLOCATION .—Rules similar to the 15
1337	1337	rules of section 146(e) (other than paragraph 16
1338	1338	(2)(B) thereof) shall apply for purposes of this 17
1339	1339	paragraph. 18
1340	1340	‘‘(E) P
1341	1341	OPULATION.—For purposes of this 19
1342	1342	paragraph, population shall be determined in 20
1343	1343	accordance with section 146(j). 21
1344	1344	‘‘(F) C
1345	1345	OST-OF-LIVING ADJUSTMENT.— 22
1346	1346	‘‘(i) I
1347	1347	N GENERAL.—In the case of a 23
1348	1348	calendar year after 2026, the $1,500,000 24
1349	1349	and $1.00 amounts in subparagraph (C) 25
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1351	1351	ssavage on LAPJG3WLY3PROD with BILLS 45
1352	1352	•HR 893 IH
1353	1353	shall each be increased by an amount equal 1
1354	1354	to— 2
1355	1355	‘‘(I) such dollar amount, multi-3
1356	1356	plied by 4
1357	1357	‘‘(II) the cost-of-living adjust-5
1358	1358	ment determined under section 1(f)(3) 6
1359	1359	for such calendar year by substituting 7
1360	1360	‘calendar year 2025’ for ‘calendar 8
1361	1361	year 2016’ in subparagraph (A)(ii) 9
1362	1362	thereof. 10
1363	1363	‘‘(ii) R
1364	1364	OUNDING.— 11
1365	1365	‘‘(I) In the case of the 12
1366	1366	$1,140,000 amount, any increase 13
1367	1367	under clause (i) which is not a mul-14
1368	1368	tiple of $5,000 shall be rounded to the 15
1369	1369	next lowest multiple of $5,000. 16
1370	1370	‘‘(II) In the case of the $1.00 17
1371	1371	amount, any increase under clause (i) 18
1372	1372	which is not a multiple of 5 cents 19
1373	1373	shall be rounded to the next lowest 20
1374	1374	multiple of 5 cents. 21
1375	1375	‘‘(4) P
1376	1376	ORTION OF STATE CEILING SET -ASIDE 22
1377	1377	FOR CERTAIN PROJECTS INVOLVING QUALIFIED 23
1378	1378	NONPROFIT ORGANIZATIONS .— 24
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1381	1381	•HR 893 IH
1382	1382	‘‘(A) IN GENERAL.—Not more than 90 1
1383	1383	percent of the State housing credit ceiling (de-2
1384	1384	termined without regard to paragraph (7)) for 3
1385	1385	any State for any calendar year shall be allo-4
1386	1386	cated to projects other than qualified working 5
1387	1387	families housing projects described in subpara-6
1388	1388	graph (B). 7
1389	1389	‘‘(B) P
1390	1390	ROJECTS INVOLVING QUALIFIED 8
1391	1391	NONPROFIT ORGANIZATIONS .—For purposes of 9
1392	1392	subparagraph (A), a qualified working families 10
1393	1393	housing project is described in this subpara-11
1394	1394	graph if a qualified nonprofit organization is to 12
1395	1395	own an interest in the project (directly or 13
1396	1396	through a partnership) and materially partici-14
1397	1397	pate (within the meaning of section 469(h)) in 15
1398	1398	the development and operation of the project 16
1399	1399	throughout the credit period. 17
1400	1400	‘‘(C) Q
1401	1401	UALIFIED NONPROFIT ORGANIZA -18
1402	1402	TION.—For purposes of this paragraph, the 19
1403	1403	term ‘qualified nonprofit organization’ means 20
1404	1404	any organization if— 21
1405	1405	‘‘(i) such organization is described in 22
1406	1406	paragraph (3) or (4) of section 501(c) and 23
1407	1407	is exempt from tax under section 501(a), 24
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1410	1410	•HR 893 IH
1411	1411	‘‘(ii) such organization is determined 1
1412	1412	by the State housing credit agency not to 2
1413	1413	be affiliated with or controlled by a for- 3
1414	1414	profit organization, and 4
1415	1415	‘‘(iii) one of the exempt purposes of 5
1416	1416	such organization includes the fostering of 6
1417	1417	working families housing. 7
1418	1418	‘‘(D) T
1419	1419	REATMENT OF CERTAIN SUBSIDI -8
1420	1420	ARIES.— 9
1421	1421	‘‘(i) I
1422	1422	N GENERAL.—For purposes of 10
1423	1423	this paragraph, a qualified nonprofit orga-11
1424	1424	nization shall be treated as satisfying the 12
1425	1425	ownership and material participation test 13
1426	1426	of subparagraph (B) if any qualified cor-14
1427	1427	poration in which such organization holds 15
1428	1428	stock satisfies such test. 16
1429	1429	‘‘(ii) Q
1430	1430	UALIFIED CORPORATION .—For 17
1431	1431	purposes of clause (i), the term ‘qualified 18
1432	1432	corporation’ means any corporation if 100 19
1433	1433	percent of the stock of such corporation is 20
1434	1434	held by 1 or more qualified nonprofit orga-21
1435	1435	nizations at all times during the period 22
1436	1436	such corporation is in existence. 23
1437	1437	‘‘(E) S
1438	1438	TATE MAY NOT OVERRIDE SET - 24
1439	1439	ASIDE.—Nothing in subparagraph (E) of para-25
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1442	1442	•HR 893 IH
1443	1443	graph (3) shall be construed to permit a State 1
1444	1444	not to comply with subparagraph (A) of this 2
1445	1445	paragraph. 3
1446	1446	‘‘(5) B
1447	1447	UILDINGS ELIGIBLE FOR CREDIT ONLY 4
1448	1448	IF MINIMUM LONG-TERM COMMITMENT TO WORKING 5
1449	1449	FAMILIES HOUSING.— 6
1450	1450	‘‘(A) I
1451	1451	N GENERAL.—No credit shall be al-7
1452	1452	lowed by reason of this section with respect to 8
1453	1453	any building for the taxable year unless an ex-9
1454	1454	tended working families housing commitment is 10
1455	1455	in effect as of the end of such taxable year. 11
1456	1456	‘‘(B) E
1457	1457	XTENDED WORKING FAMILIES 12
1458	1458	HOUSING COMMITMENT .—For purposes of this 13
1459	1459	paragraph, the term ‘extended working families 14
1460	1460	housing commitment’ means any agreement be-15
1461	1461	tween the taxpayer and the housing credit agen-16
1462	1462	cy— 17
1463	1463	‘‘(i) which requires that the applicable 18
1464	1464	fraction (as defined in subsection (c)(1)) 19
1465	1465	for the building for each taxable year in 20
1466	1466	the extended use period will not be less 21
1467	1467	than the applicable fraction specified in 22
1468	1468	such agreement and which prohibits the 23
1469	1469	actions described in subclauses (I) and (II) 24
1470	1470	of subparagraph (E)(ii), 25
1471	1471	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
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1473	1473	•HR 893 IH
1474	1474	‘‘(ii) which allows individuals who 1
1475	1475	meet the income limitation applicable to 2
1476	1476	the building under subsection (g) (whether 3
1477	1477	prospective, present, or former occupants 4
1478	1478	of the building) the right to enforce in any 5
1479	1479	State court the requirement and prohibi-6
1480	1480	tions of clause (i), 7
1481	1481	‘‘(iii) which prohibits the disposition 8
1482	1482	to any person of any portion of the build-9
1483	1483	ing to which such agreement applies unless 10
1484	1484	all of the building to which such agreement 11
1485	1485	applies is disposed of to such person, 12
1486	1486	‘‘(iv) which prohibits the refusal to 13
1487	1487	lease to a holder of a voucher or certificate 14
1488	1488	of eligibility under section 8 of the United 15
1489	1489	States Housing Act of 1937 because of the 16
1490	1490	status of the prospective tenant as such a 17
1491	1491	holder, 18
1492	1492	‘‘(v) which is binding on all successors 19
1493	1493	of the taxpayer, and 20
1494	1494	‘‘(vi) which, with respect to the prop-21
1495	1495	erty, is recorded pursuant to State law as 22
1496	1496	a restrictive covenant. 23
1497	1497	‘‘(C) A
1498	1498	LLOCATION OF CREDIT MAY NOT 24
1499	1499	EXCEED AMOUNT NECESSARY TO SUPPORT 25
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1502	1502	•HR 893 IH
1503	1503	COMMITMENT.—The housing credit dollar 1
1504	1504	amount allocated to any building may not ex-2
1505	1505	ceed the amount necessary to support the appli-3
1506	1506	cable fraction specified in the extended working 4
1507	1507	families housing commitment for such building, 5
1508	1508	including any increase in such fraction pursu-6
1509	1509	ant to the application of subsection (f)(3) if 7
1510	1510	such increase is reflected in an amended work-8
1511	1511	ing families housing commitment. 9
1512	1512	‘‘(D) E
1513	1513	XTENDED USE PERIOD .—For pur-10
1514	1514	poses of this paragraph, the term ‘extended use 11
1515	1515	period’ means the period— 12
1516	1516	‘‘(i) beginning on the 1st day in the 13
1517	1517	credit period on which such building is 14
1518	1518	part of a qualified working families hous-15
1519	1519	ing project, and 16
1520	1520	‘‘(ii) ending on the later of— 17
1521	1521	‘‘(I) the date specified by such 18
1522	1522	agency in such agreement, or 19
1523	1523	‘‘(II) the date which is 15 years 20
1524	1524	after the close of the credit period. 21
1525	1525	‘‘(E) E
1526	1526	XCEPTIONS IF FORECLOSURE OR IF 22
1527	1527	NO BUYER WILLING TO MAINTAIN WORKING 23
1528	1528	FAMILIES STATUS.— 24
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1531	1531	•HR 893 IH
1532	1532	‘‘(i) IN GENERAL.—The extended use 1
1533	1533	period for any building shall terminate on 2
1534	1534	the 61st day after the taxpayer (or a suc-3
1535	1535	cessor in interest) provides notice to the 4
1536	1536	Secretary and the housing credit agency 5
1537	1537	that the building has been acquired by 6
1538	1538	foreclosure (or instrument in lieu of fore-7
1539	1539	closure) and that the taxpayer intends the 8
1540	1540	termination of such period, unless, before 9
1541	1541	such date, the Secretary or the housing 10
1542	1542	credit agency determines that such acquisi-11
1543	1543	tion is part of an arrangement with the 12
1544	1544	taxpayer a purpose of which is to termi-13
1545	1545	nate such period. 14
1546	1546	‘‘(ii) E
1547	1547	VICTION, ETC., OF EXISTING 15
1548	1548	WORKING FAMILIES TENANTS NOT PER -16
1549	1549	MITTED.—The termination of an extended 17
1550	1550	use period under clause (i) shall not be 18
1551	1551	construed to permit before the close of the 19
1552	1552	3-year period following such termination— 20
1553	1553	‘‘(I) the eviction or the termi-21
1554	1554	nation of tenancy (other than for good 22
1555	1555	cause) of an existing tenant of any 23
1556	1556	working families unit, or 24
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1559	1559	•HR 893 IH
1560	1560	‘‘(II) any increase in the gross 1
1561	1561	rent with respect to such unit not oth-2
1562	1562	erwise permitted under this section. 3
1563	1563	‘‘(F) E
1564	1564	FFECT OF NONCOMPLIANCE .—If, 4
1565	1565	during a taxable year, there is a determination 5
1566	1566	that an extended working families housing 6
1567	1567	agreement was not in effect as of the beginning 7
1568	1568	of such year, such determination shall not apply 8
1569	1569	to any period before such year and subpara-9
1570	1570	graph (A) shall be applied without regard to 10
1571	1571	such determination if the failure is corrected 11
1572	1572	within 1 year from the date of the determina-12
1573	1573	tion. 13
1574	1574	‘‘(G) P
1575	1575	ROJECTS WHICH CONSIST OF MORE 14
1576	1576	THAN 1 BUILDING .—The application of this 15
1577	1577	paragraph to projects which consist of more 16
1578	1578	than 1 building shall be made under regulations 17
1579	1579	prescribed by the Secretary. 18
1580	1580	‘‘(6) S
1581	1581	PECIAL RULES.— 19
1582	1582	‘‘(A) B
1583	1583	UILDING MUST BE LOCATED WITH -20
1584	1584	IN JURISDICTION OF CREDIT AGENCY .—A hous-21
1585	1585	ing credit agency may allocate its aggregate 22
1586	1586	housing credit dollar amount only to buildings 23
1587	1587	located in the jurisdiction of the governmental 24
1588	1588	unit of which such agency is a part. 25
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1591	1591	•HR 893 IH
1592	1592	‘‘(B) AGENCY ALLOCATIONS IN EXCESS OF 1
1593	1593	LIMIT.—If the aggregate housing credit dollar 2
1594	1594	amounts allocated by a housing credit agency 3
1595	1595	for any calendar year exceed the portion of the 4
1596	1596	State housing credit ceiling allocated to such 5
1597	1597	agency for such calendar year, the housing 6
1598	1598	credit dollar amounts so allocated shall be re-7
1599	1599	duced (to the extent of such excess) for build-8
1600	1600	ings in the reverse of the order in which the al-9
1601	1601	locations of such amounts were made. 10
1602	1602	‘‘(C) C
1603	1603	REDIT REDUCED IF ALLOCATED 11
1604	1604	CREDIT DOLLAR AMOUNT IS LESS THAN CREDIT 12
1605	1605	WHICH WOULD BE ALLOWABLE WITHOUT RE -13
1606	1606	GARD TO PLACED IN SERVICE CONVENTION , 14
1607	1607	ETC.— 15
1608	1608	‘‘(i) I
1609	1609	N GENERAL.—The amount of 16
1610	1610	the credit determined under this section 17
1611	1611	with respect to any building shall not ex-18
1612	1612	ceed the clause (ii) percentage of the 19
1613	1613	amount of the credit which would (but for 20
1614	1614	this subparagraph) be determined under 21
1615	1615	this section with respect to such building. 22
1616	1616	‘‘(ii) D
1617	1617	ETERMINATION OF PERCENT -23
1618	1618	AGE.—For purposes of clause (i), the 24
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1621	1621	•HR 893 IH
1622	1622	clause (ii) percentage with respect to any 1
1623	1623	building is the percentage which— 2
1624	1624	‘‘(I) the housing credit dollar 3
1625	1625	amount allocated to such building, 4
1626	1626	bears to 5
1627	1627	‘‘(II) the credit amount deter-6
1628	1628	mined in accordance with clause (iii). 7
1629	1629	‘‘(iii) D
1630	1630	ETERMINATION OF CREDIT 8
1631	1631	AMOUNT.—The credit amount determined 9
1632	1632	in accordance with this clause is the 10
1633	1633	amount of the credit which would (but for 11
1634	1634	this subparagraph) be determined under 12
1635	1635	this section with respect to the building 13
1636	1636	if— 14
1637	1637	‘‘(I) this section were applied 15
1638	1638	without regard to paragraphs (2)(A) 16
1639	1639	and (3)(B) of subsection (f), and 17
1640	1640	‘‘(II) subsection (f)(3)(A) were 18
1641	1641	applied without regard to ‘the per-19
1642	1642	centage equal to
1643	1643	2
1644	1644	⁄3of’. 20
1645	1645	‘‘(D) H
1646	1646	OUSING CREDIT AGENCY TO SPECI -21
1647	1647	FY APPLICABLE PERCENTAGE AND MAXIMUM 22
1648	1648	QUALIFIED BASIS.—In allocating a housing 23
1649	1649	credit dollar amount to any building, the hous-24
1650	1650	ing credit agency shall specify the applicable 25
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1653	1653	•HR 893 IH
1654	1654	percentage and the maximum qualified basis 1
1655	1655	which may be taken into account under this 2
1656	1656	section with respect to such building. The appli-3
1657	1657	cable percentage and maximum qualified basis 4
1658	1658	so specified shall not exceed the applicable per-5
1659	1659	centage and qualified basis determined under 6
1660	1660	this section without regard to this subsection. 7
1661	1661	‘‘(7) I
1662	1662	NCREASE IN STATE CEILING DEDICATED 8
1663	1663	TO CERTAIN RURAL DEVELOPMENT PROJECTS .— 9
1664	1664	‘‘(A) I
1665	1665	N GENERAL.—The State housing 10
1666	1666	credit ceiling for any calendar year shall be in-11
1667	1667	creased by an amount equal to 20 percent of 12
1668	1668	the amount determined under paragraph 13
1669	1669	(3)(C)(ii). 14
1670	1670	‘‘(B) U
1671	1671	SE OF INCREASED AMOUNT .— 15
1672	1672	‘‘(i) I
1673	1673	N GENERAL.—The amount of 16
1674	1674	the increase under subparagraph (A) for 17
1675	1675	any calendar year may only be allocated to 18
1676	1676	buildings located in a rural area or 19
1677	1677	exurban area. 20
1678	1678	‘‘(ii) R
1679	1679	URAL AREA.—For purposes of 21
1680	1680	clause (i), the term ‘rural area’ means any 22
1681	1681	non-metropolitan area, or any rural area 23
1682	1682	as defined by section 520 of the Housing 24
1683	1683	Act of 1949, which is identified by the 25
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1686	1686	•HR 893 IH
1687	1687	qualified allocation plan under subsection 1
1688	1688	(l)(1)(B). 2
1689	1689	‘‘(iii) E
1690	1690	XURBAN AREA.—For purposes 3
1691	1691	of clause (i), the term ‘exurban area’ has 4
1692	1692	the meaning given such term by the Sec-5
1693	1693	retary after consultation with the Bureau 6
1694	1694	of the Census. 7
1695	1695	‘‘(8) O
1696	1696	THER DEFINITIONS.—For purposes of 8
1697	1697	this subsection— 9
1698	1698	‘‘(A) H
1699	1699	OUSING CREDIT AGENCY .—The 10
1700	1700	term ‘housing credit agency’ means any agency 11
1701	1701	authorized to carry out this subsection. 12
1702	1702	‘‘(B) P
1703	1703	OSSESSIONS TREATED AS STATES .— 13
1704	1704	The term ‘State’ includes a possession of the 14
1705	1705	United States. 15
1706	1706	‘‘(9) C
1707	1707	REDIT FOR BUILDINGS FINANCED BY 16
1708	1708	TAX-EXEMPT BONDS SUBJECT TO VOLUME CAP NOT 17
1709	1709	TAKEN INTO ACCOUNT .—Rules similar to the rules 18
1710	1710	of subsections (h)(4), (m)(1)(D), and (m)(2)(D) of 19
1711	1711	section 42 shall apply for purposes of this sub-20
1712	1712	section. 21
1713	1713	‘‘(10) E
1714	1714	LECTION TO TRANSFER STATE HOUSING 22
1715	1715	CREDIT CEILING FOR ALLOCATIONS TO LOW -INCOME 23
1716	1716	BUILDINGS.— 24
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1719	1719	•HR 893 IH
1720	1720	‘‘(A) IN GENERAL.—If a State housing 1
1721	1721	credit agency makes an election under this 2
1722	1722	paragraph with respect to a calendar year— 3
1723	1723	‘‘(i) the State housing credit ceiling 4
1724	1724	for such calendar year under paragraph 5
1725	1725	(3) (determined before application of para-6
1726	1726	graph (7)) shall be reduced by the amount 7
1727	1727	specified in such election, 8
1728	1728	‘‘(ii) the amount determined under 9
1729	1729	paragraph (7) for such calendar year shall 10
1730	1730	be reduced by the amount specified in such 11
1731	1731	election, and 12
1732	1732	‘‘(iii) the amount determined under 13
1733	1733	section 42(h)(3)(C)(ii) for such calendar 14
1734	1734	year shall be increased by the sum of the 15
1735	1735	amounts specified in clauses (i) and (ii), 16
1736	1736	except that any amount specified under 17
1737	1737	clause (ii)— 18
1738	1738	‘‘(I) may only be allocated under 19
1739	1739	such section to qualified low-income 20
1740	1740	buildings (as defined in section 42) lo-21
1741	1741	cated in a rural area or exurban area 22
1742	1742	(as defined in paragraph (7)), and 23
1743	1743	‘‘(II) shall not be taken into ac-24
1744	1744	count for purposes of determining the 25
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1747	1747	•HR 893 IH
1748	1748	unused housing credit ceiling under 1
1749	1749	the second sentence of section 2
1750	1750	42(h)(3)(C). 3
1751	1751	‘‘(B) T
1752	1752	IME AND MANNER FOR MAKING 4
1753	1753	ELECTION.— 5
1754	1754	‘‘(i) I
1755	1755	N GENERAL.—An election under 6
1756	1756	this paragraph— 7
1757	1757	‘‘(I) shall be made before the end 8
1758	1758	of the calendar year with respect to 9
1759	1759	which such election applies, 10
1760	1760	‘‘(II) shall be made in such man-11
1761	1761	ner as specified by the Secretary, and 12
1762	1762	‘‘(III) shall separately specify the 13
1763	1763	amount of reductions to be made 14
1764	1764	under paragraph (3) and paragraph 15
1765	1765	(7). 16
1766	1766	‘‘(ii) F
1767	1767	REQUENCY.—A State housing 17
1768	1768	credit agency may make more than one 18
1769	1769	election under this section with respect to 19
1770	1770	any calendar year, and any such election, 20
1771	1771	once made, shall be revocable only if such 21
1772	1772	revocation is made before the end of the 22
1773	1773	calendar year with respect to which such 23
1774	1774	election is made. 24
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1777	1777	•HR 893 IH
1778	1778	‘‘(C) LIMITATION.—The aggregate amount 1
1779	1779	specified in elections under this paragraph with 2
1780	1780	respect to any State housing credit agency for 3
1781	1781	calendar year shall not exceed the sum of— 4
1782	1782	‘‘(i) the amount determined under 5
1783	1783	paragraph (3)(C)(ii) for such calendar 6
1784	1784	year, plus 7
1785	1785	‘‘(ii) the amount determined under 8
1786	1786	paragraph (7) for such calendar year. 9
1787	1787	‘‘(i) D
1788	1788	EFINITIONS ANDSPECIALRULES.—For pur-10
1789	1789	poses of this section— 11
1790	1790	‘‘(1) W
1791	1791	ORKING FAMILIES UNIT.— 12
1792	1792	‘‘(A) I
1793	1793	N GENERAL.—The term ‘working 13
1794	1794	families unit’ means any unit in a building if— 14
1795	1795	‘‘(i) such unit is rent-restricted (as de-15
1796	1796	fined in subsection (g)(2)), and 16
1797	1797	‘‘(ii) the individuals occupying such 17
1798	1798	unit meet the income limitation applicable 18
1799	1799	under subsection (g)(1) to the project of 19
1800	1800	which such building is a part. 20
1801	1801	‘‘(B) E
1802	1802	XCEPTIONS.— 21
1803	1803	‘‘(i) E
1804	1804	XCLUSION OF LOW -INCOME 22
1805	1805	UNITS.—A unit shall not be treated as a 23
1806	1806	working families unit if such unit is a low- 24
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1810	1810	income unit (as defined under section 1
1811	1811	42(i)(3)). 2
1812	1812	‘‘(ii) U
1813	1813	NIT MUST BE SUITABLE FOR 3
1814	1814	PERMANENT OCCUPANCY .— 4
1815	1815	‘‘(I) I
1816	1816	N GENERAL.—A unit shall 5
1817	1817	not be treated as a working families 6
1818	1818	unit unless the unit is suitable for oc-7
1819	1819	cupancy and used other than on a 8
1820	1820	transient basis. 9
1821	1821	‘‘(II) S
1822	1822	UITABILITY FOR OCCU -10
1823	1823	PANCY.—For purposes of subclause 11
1824	1824	(I), the suitability of a unit for occu-12
1825	1825	pancy shall be determined under regu-13
1826	1826	lations prescribed by the Secretary 14
1827	1827	taking into account local health, safe-15
1828	1828	ty, and building codes. 16
1829	1829	‘‘(III) S
1830	1830	INGLE-ROOM OCCUPANCY 17
1831	1831	UNITS.—For purposes of subclause 18
1832	1832	(I), a single-room occupancy unit shall 19
1833	1833	not be treated as used on a transient 20
1834	1834	basis merely because it is rented on a 21
1835	1835	month-by-month basis. 22
1836	1836	‘‘(C) S
1837	1837	PECIAL RULE FOR BUILDINGS HAV -23
1838	1838	ING 4 OR FEWER UNITS .—In the case of any 24
1839	1839	building which has 4 or fewer residential rental 25
1840	1840	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1841	1841	ssavage on LAPJG3WLY3PROD with BILLS 61
1842	1842	•HR 893 IH
1843	1843	units, no unit in such building shall be treated 1
1844	1844	as a working families unit if the units in such 2
1845	1845	building are owned by— 3
1846	1846	‘‘(i) any individual who occupies a res-4
1847	1847	idential unit in such building, or 5
1848	1848	‘‘(ii) any person who is related (as de-6
1849	1849	fined in subsection (d)(2)(D)(ii)) to such 7
1850	1850	individual. 8
1851	1851	‘‘(D) R
1852	1852	ULES RELATING TO STUDENTS .— 9
1853	1853	‘‘(i) I
1854	1854	N GENERAL.—A unit occupied 10
1855	1855	solely by individuals who— 11
1856	1856	‘‘(I) have not attained age 24, 12
1857	1857	and 13
1858	1858	‘‘(II) are enrolled in a full-time 14
1859	1859	course of study at an institution of 15
1860	1860	higher education (as defined in section 16
1861	1861	3304(f)), 17
1862	1862	shall not be treated as a working families 18
1863	1863	unit. 19
1864	1864	‘‘(ii) E
1865	1865	XCEPTION FOR CERTAIN FED -20
1866	1866	ERAL PROGRAMS.—In the case of a Feder-21
1867	1867	ally-assisted building (as defined in sub-22
1868	1868	section (d)(6)(C)(i) of section 42), clause 23
1869	1869	(i) shall not apply to a unit all of the occu-24
1870	1870	pants of which meet all applicable require-25
1871	1871	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1872	1872	ssavage on LAPJG3WLY3PROD with BILLS 62
1873	1873	•HR 893 IH
1874	1874	ments under the housing program de-1
1875	1875	scribed in such subsection through which 2
1876	1876	the building is assisted, financed, or oper-3
1877	1877	ated. 4
1878	1878	‘‘(iii) O
1879	1879	THER EXCEPTIONS .—Clause 5
1880	1880	(i) shall not apply to a unit occupied by an 6
1881	1881	individual who— 7
1882	1882	‘‘(I) is married, if such individ-8
1883	1883	ual’s spouse also occupies the unit, 9
1884	1884	‘‘(II) is a person with disabilities 10
1885	1885	(as defined in section 3(b)(3)(E) of 11
1886	1886	the United States Housing Act of 12
1887	1887	1937), 13
1888	1888	‘‘(III) is a veteran (as defined in 14
1889	1889	section 101(2) of title 38, United 15
1890	1890	States Code), 16
1891	1891	‘‘(IV) has one or more qualifying 17
1892	1892	children (as defined in section 18
1893	1893	152(c)), if such children also occupy 19
1894	1894	the unit, the individual is not a de-20
1895	1895	pendent (as defined in section 152, 21
1896	1896	determined without regard to sub-22
1897	1897	sections (b)(1), (b)(2), and (d)(1)(B) 23
1898	1898	thereof) of another individual, and 24
1899	1899	such children are not claimed as de-25
1900	1900	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1901	1901	ssavage on LAPJG3WLY3PROD with BILLS 63
1902	1902	•HR 893 IH
1903	1903	pendents (as so defined) of another 1
1904	1904	individual, or 2
1905	1905	‘‘(V) is, or was immediately prior 3
1906	1906	to attaining the age of majority— 4
1907	1907	‘‘(aa) an emancipated minor 5
1908	1908	or in legal guardianship as deter-6
1909	1909	mined by a court of competent 7
1910	1910	jurisdiction in the individual’s 8
1911	1911	State of legal residence, 9
1912	1912	‘‘(bb) under the care and 10
1913	1913	placement responsibility of the 11
1914	1914	State agency responsible for ad-12
1915	1915	ministering a plan under part B 13
1916	1916	or part E of title IV of the Social 14
1917	1917	Security Act, or 15
1918	1918	‘‘(cc) was an unaccompanied 16
1919	1919	youth (within the meaning of sec-17
1920	1920	tion 725(6) of the McKinney- 18
1921	1921	Vento Homeless Assistance Act 19
1922	1922	(42 U.S.C. 11434a(6))) or a 20
1923	1923	homeless child or youth (within 21
1924	1924	the meaning of section 725(2) of 22
1925	1925	such Act (42 U.S.C. 23
1926	1926	11434a(2))). 24
1927	1927	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1928	1928	ssavage on LAPJG3WLY3PROD with BILLS 64
1929	1929	•HR 893 IH
1930	1930	‘‘(E) OWNER-OCCUPIED BUILDINGS HAV -1
1931	1931	ING 4 OR FEWER UNITS ELIGIBLE FOR CREDIT 2
1932	1932	WHERE DEVELOPMENT PLAN .— 3
1933	1933	‘‘(i) I
1934	1934	N GENERAL.—Subparagraph (C) 4
1935	1935	shall not apply to the acquisition or reha-5
1936	1936	bilitation of a building pursuant to a devel-6
1937	1937	opment plan of action sponsored by a 7
1938	1938	State or local government or a qualified 8
1939	1939	nonprofit organization. 9
1940	1940	‘‘(ii) L
1941	1941	IMITATION ON CREDIT.—In the 10
1942	1942	case of a building to which clause (i) ap-11
1943	1943	plies, the applicable fraction shall not ex-12
1944	1944	ceed 80 percent of the unit fraction. 13
1945	1945	‘‘(iii) C
1946	1946	ERTAIN UNRENTED UNITS 14
1947	1947	TREATED AS OWNER -OCCUPIED.—In the 15
1948	1948	case of a building to which clause (i) ap-16
1949	1949	plies, any unit which is not rented for 90 17
1950	1950	days or more shall be treated as occupied 18
1951	1951	by the owner of the building as of the 1st 19
1952	1952	day it is not rented. 20
1953	1953	‘‘(2) N
1954	1954	EW BUILDING.—The term ‘new building’ 21
1955	1955	means a building the original use of which begins 22
1956	1956	with the taxpayer. 23
1957	1957	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1958	1958	ssavage on LAPJG3WLY3PROD with BILLS 65
1959	1959	•HR 893 IH
1960	1960	‘‘(3) EXISTING BUILDING.—The term ‘existing 1
1961	1961	building’ means any building which is not a new 2
1962	1962	building. 3
1963	1963	‘‘(4) A
1964	1964	PPLICATION TO ESTATES AND TRUSTS .— 4
1965	1965	In the case of an estate or trust, the amount of the 5
1966	1966	credit determined under subsection (a) shall be ap-6
1967	1967	portioned between the estate or trust and the bene-7
1968	1968	ficiaries on the basis of the income of the estate or 8
1969	1969	trust allocable to each. 9
1970	1970	‘‘(5) I
1971	1971	MPACT OF TENANT’S OPTION TO ACQUIRE 10
1972	1972	PROPERTY.— 11
1973	1973	‘‘(A) I
1974	1974	N GENERAL.—No Federal income 12
1975	1975	tax benefit shall fail to be allowable to the tax-13
1976	1976	payer with respect to any qualified working 14
1977	1977	families building merely by reason of an option 15
1978	1978	held by the tenants (in cooperative form or oth-16
1979	1979	erwise) or resident management corporation of 17
1980	1980	such building or by a qualified nonprofit organi-18
1981	1981	zation or government agency to purchase the 19
1982	1982	property or all of the partnership interests 20
1983	1983	(other than interests of the person exercising 21
1984	1984	such option or a related party thereto (within 22
1985	1985	the meaning of section 267(b) or 707(b)(1))) 23
1986	1986	relating to the property after the close of the 24
1987	1987	credit period for a price which is not less than 25
1988	1988	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
1989	1989	ssavage on LAPJG3WLY3PROD with BILLS 66
1990	1990	•HR 893 IH
1991	1991	the minimum purchase price determined under 1
1992	1992	subparagraph (B). 2
1993	1993	‘‘(B) M
1994	1994	INIMUM PURCHASE PRICE .—For 3
1995	1995	purposes of subparagraph (A), the minimum 4
1996	1996	purchase price under this subparagraph is an 5
1997	1997	amount equal to the principal amount of out-6
1998	1998	standing indebtedness secured by the building 7
1999	1999	(other than indebtedness incurred within the 5- 8
2000	2000	year period ending on the date of the sale to 9
2001	2001	the tenants). In the case of a purchase of a 10
2002	2002	partnership interest, the minimum purchase 11
2003	2003	price is an amount equal to such interest’s rat-12
2004	2004	able share of the amount determined under the 13
2005	2005	preceding sentence. 14
2006	2006	‘‘(6) T
2007	2007	REATMENT OF RURAL PROJECTS .—For 15
2008	2008	purposes of this section, in the case of any project 16
2009	2009	for residential rental property located in a rural area 17
2010	2010	(as defined in section 520 of the Housing Act of 18
2011	2011	1949), any income limitation measured by reference 19
2012	2012	to area median gross income shall be measured by 20
2013	2013	reference to the greater of area median gross income 21
2014	2014	or national non-metropolitan median income. 22
2015	2015	‘‘(7) D
2016	2016	ETERMINATION OF WHETHER BUILDING 23
2017	2017	IS FEDERALLY SUBSIDIZED .— 24
2018	2018	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
2019	2019	ssavage on LAPJG3WLY3PROD with BILLS 67
2020	2020	•HR 893 IH
2021	2021	‘‘(A) IN GENERAL.—Except as otherwise 1
2022	2022	provided in this paragraph, for purposes of this 2
2023	2023	section, a project shall be treated as Federally 3
2024	2024	subsidized for any taxable year if, at any time 4
2025	2025	during such taxable year or any prior taxable 5
2026	2026	year, there is or was outstanding any obligation 6
2027	2027	the interest on which is exempt from tax under 7
2028	2028	section 103 the proceeds of which are or were 8
2029	2029	used (directly or indirectly) with respect to such 9
2030	2030	project or the operation thereof. 10
2031	2031	‘‘(B) S
2032	2032	PECIAL RULE FOR SUBSIDIZED CON -11
2033	2033	STRUCTION FINANCING .—Subparagraph (A) 12
2034	2034	shall not apply to any tax-exempt obligation 13
2035	2035	used to provide construction financing for any 14
2036	2036	building if— 15
2037	2037	‘‘(i) such obligation (when issued) 16
2038	2038	identified the building for which the pro-17
2039	2039	ceeds of such obligation would be used, 18
2040	2040	and 19
2041	2041	‘‘(ii) such obligation is redeemed be-20
2042	2042	fore such building is placed in service. 21
2043	2043	‘‘(8) R
2044	2044	EDUCTION IN BASIS.—In the case of any 22
2045	2045	building for which a credit is allowable under this 23
2046	2046	section and section 42, the basis of the building shall 24
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2048	2048	ssavage on LAPJG3WLY3PROD with BILLS 68
2049	2049	•HR 893 IH
2050	2050	be reduced by the amount of such credit allowed 1
2051	2051	under subsection (a). 2
2052	2052	‘‘(j) A
2053	2053	PPLICATION OFAT-RISKRULES.—For pur-3
2054	2054	poses of this section— 4
2055	2055	‘‘(1) I
2056	2056	N GENERAL.—Except as otherwise pro-5
2057	2057	vided in this subsection, rules similar to the rules of 6
2058	2058	section 49(a)(1) (other than subparagraphs 7
2059	2059	(D)(ii)(II) and (D)(iv)(I) thereof), section 49(a)(2), 8
2060	2060	and section 49(b)(1) shall apply in determining the 9
2061	2061	qualified basis of any building in the same manner 10
2062	2062	as such sections apply in determining the credit base 11
2063	2063	of property. 12
2064	2064	‘‘(2) S
2065	2065	PECIAL RULES FOR DETERMINING QUALI -13
2066	2066	FIED PERSON.—For purposes of paragraph (1)— 14
2067	2067	‘‘(A) I
2068	2068	N GENERAL.—If the requirements of 15
2069	2069	subparagraphs (B), (C), and (D) are met with 16
2070	2070	respect to any financing borrowed from a quali-17
2071	2071	fied nonprofit organization, the determination 18
2072	2072	of whether such financing is qualified commer-19
2073	2073	cial financing with respect to any qualified 20
2074	2074	working families building shall be made without 21
2075	2075	regard to whether such organization— 22
2076	2076	‘‘(i) is actively and regularly engaged 23
2077	2077	in the business of lending money, or 24
2078	2078	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
2079	2079	ssavage on LAPJG3WLY3PROD with BILLS 69
2080	2080	•HR 893 IH
2081	2081	‘‘(ii) is a person described in section 1
2082	2082	49(a)(1)(D)(iv)(II). 2
2083	2083	‘‘(B) F
2084	2084	INANCING SECURED BY PROP -3
2085	2085	ERTY.—The requirements of this subparagraph 4
2086	2086	are met with respect to any financing if such fi-5
2087	2087	nancing is secured by the qualified working 6
2088	2088	families building, except that this subparagraph 7
2089	2089	shall not apply in the case of a federally as-8
2090	2090	sisted building described in section 42(d)(6)(C) 9
2091	2091	if— 10
2092	2092	‘‘(i) a security interest in such build-11
2093	2093	ing is not permitted by a Federal agency 12
2094	2094	holding or insuring the mortgage secured 13
2095	2095	by such building, and 14
2096	2096	‘‘(ii) the proceeds from the financing 15
2097	2097	(if any) are applied to acquire or improve 16
2098	2098	such building. 17
2099	2099	‘‘(C) P
2100	2100	ORTION OF BUILDING ATTRIB -18
2101	2101	UTABLE TO FINANCING .—The requirements of 19
2102	2102	this subparagraph are met with respect to any 20
2103	2103	financing for any taxable year in the credit pe-21
2104	2104	riod if, as of the close of such taxable year, not 22
2105	2105	more than 60 percent of the eligible basis of the 23
2106	2106	qualified working families building is attrib-24
2107	2107	utable to such financing (reduced by the prin-25
2108	2108	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
2109	2109	ssavage on LAPJG3WLY3PROD with BILLS 70
2110	2110	•HR 893 IH
2111	2111	cipal and interest of any governmental financ-1
2112	2112	ing which is part of a wrap-around mortgage 2
2113	2113	involving such financing). 3
2114	2114	‘‘(D) R
2115	2115	EPAYMENT OF PRINCIPAL AND IN -4
2116	2116	TEREST.—The requirements of this subpara-5
2117	2117	graph are met with respect to any financing if 6
2118	2118	such financing is fully repaid on or before the 7
2119	2119	earliest of— 8
2120	2120	‘‘(i) the date on which such financing 9
2121	2121	matures, 10
2122	2122	‘‘(ii) the 90th day after the close of 11
2123	2123	the credit period with respect to the quali-12
2124	2124	fied working families building, or 13
2125	2125	‘‘(iii) the date of its refinancing or the 14
2126	2126	sale of the building to which such financ-15
2127	2127	ing relates. 16
2128	2128	In the case of a qualified nonprofit organization 17
2129	2129	which is not described in section 18
2130	2130	49(a)(1)(D)(iv)(II) with respect to a building, 19
2131	2131	clause (ii) of this subparagraph shall be applied 20
2132	2132	as if the date described therein were the 90th 21
2133	2133	day after the earlier of the date the building 22
2134	2134	ceases to be a qualified working families build-23
2135	2135	ing or the date which is 15 years after the close 24
2136	2136	of a credit period with respect thereto. 25
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2138	2138	ssavage on LAPJG3WLY3PROD with BILLS 71
2139	2139	•HR 893 IH
2140	2140	‘‘(3) PRESENT VALUE OF FINANCING .—If the 1
2141	2141	rate of interest on any financing described in para-2
2142	2142	graph (2)(A) is less than the rate which is 1 per-3
2143	2143	centage point below the applicable Federal rate as of 4
2144	2144	the time such financing is incurred, then the quali-5
2145	2145	fied basis (to which such financing relates) of the 6
2146	2146	qualified working families building shall be the 7
2147	2147	present value of the amount of such financing, using 8
2148	2148	as the discount rate such applicable Federal rate. 9
2149	2149	For purposes of the preceding sentence, the rate of 10
2150	2150	interest on any financing shall be determined by 11
2151	2151	treating interest to the extent of government sub-12
2152	2152	sidies as not payable. 13
2153	2153	‘‘(4) F
2154	2154	AILURE TO FULLY REPAY .— 14
2155	2155	‘‘(A) I
2156	2156	N GENERAL.—To the extent that the 15
2157	2157	requirements of paragraph (2)(D) are not met, 16
2158	2158	then the taxpayer’s tax under this chapter for 17
2159	2159	the taxable year in which such failure occurs 18
2160	2160	shall be increased by an amount equal to the 19
2161	2161	applicable portion of the credit under this sec-20
2162	2162	tion with respect to such building, increased by 21
2163	2163	an amount of interest for the period— 22
2164	2164	‘‘(i) beginning with the due date for 23
2165	2165	the filing of the return of tax imposed by 24
2166	2166	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
2167	2167	ssavage on LAPJG3WLY3PROD with BILLS 72
2168	2168	•HR 893 IH
2169	2169	chapter 1 for the 1st taxable year for 1
2170	2170	which such credit was allowable, and 2
2171	2171	‘‘(ii) ending with the due date for the 3
2172	2172	taxable year in which such failure occurs, 4
2173	2173	determined by using the underpayment rate and 5
2174	2174	method under section 6621. 6
2175	2175	‘‘(B) A
2176	2176	PPLICABLE PORTION .—For pur-7
2177	2177	poses of subparagraph (A), the term ‘applicable 8
2178	2178	portion’ means the aggregate decrease in the 9
2179	2179	credits allowed to a taxpayer under section 38 10
2180	2180	for all prior taxable years which would have re-11
2181	2181	sulted if the eligible basis of the building were 12
2182	2182	reduced by the amount of financing which does 13
2183	2183	not meet requirements of paragraph (2)(D). 14
2184	2184	‘‘(C) C
2185	2185	ERTAIN RULES TO APPLY .—Rules 15
2186	2186	similar to the rules of subparagraphs (A) and 16
2187	2187	(D) of section 42(j)(4) shall apply for purposes 17
2188	2188	of this subsection. 18
2189	2189	‘‘(k) C
2190	2190	ERTIFICATIONS ANDOTHERREPORTS TOSEC-19
2191	2191	RETARY.— 20
2192	2192	‘‘(1) C
2193	2193	ERTIFICATION WITH RESPECT TO 1ST 21
2194	2194	YEAR OF CREDIT PERIOD .—Following the close of 22
2195	2195	the 1st taxable year in the credit period with respect 23
2196	2196	to any qualified working families building, the tax-24
2197	2197	payer shall certify to the Secretary (at such time 25
2198	2198	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
2199	2199	ssavage on LAPJG3WLY3PROD with BILLS 73
2200	2200	•HR 893 IH
2201	2201	and in such form and in such manner as the Sec-1
2202	2202	retary prescribes)— 2
2203	2203	‘‘(A) the taxable year, and calendar year, 3
2204	2204	in which such building was placed in service, 4
2205	2205	‘‘(B) the adjusted basis and eligible basis 5
2206	2206	of such building as of the close of the 1st year 6
2207	2207	of the credit period, 7
2208	2208	‘‘(C) the maximum applicable percentage 8
2209	2209	and qualified basis permitted to be taken into 9
2210	2210	account by the appropriate housing credit agen-10
2211	2211	cy under subsection (h), and 11
2212	2212	‘‘(D) such other information as the Sec-12
2213	2213	retary may require. 13
2214	2214	In the case of a failure to make the certification re-14
2215	2215	quired by the preceding sentence on the date pre-15
2216	2216	scribed therefor, unless it is shown that such failure 16
2217	2217	is due to reasonable cause and not to willful neglect, 17
2218	2218	no credit shall be allowable by reason of subsection 18
2219	2219	(a) with respect to such building for any taxable 19
2220	2220	year ending before such certification is made. 20
2221	2221	‘‘(2) A
2222	2222	NNUAL REPORTS TO THE SECRETARY .— 21
2223	2223	The Secretary may require taxpayers to submit an 22
2224	2224	information return (at such time and in such form 23
2225	2225	and manner as the Secretary prescribes) for each 24
2226	2226	taxable year setting forth— 25
2227	2227	VerDate Sep 11 2014 17:02 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\H893.IH H893
2228	2228	ssavage on LAPJG3WLY3PROD with BILLS 74
2229	2229	•HR 893 IH
2230	2230	‘‘(A) the qualified basis for the taxable 1
2231	2231	year of each qualified working families building 2
2232	2232	of the taxpayer, 3
2233	2233	‘‘(B) the information described in para-4
2234	2234	graph (1)(C) for the taxable year, and 5
2235	2235	‘‘(C) such other information as the Sec-6
2236	2236	retary may require. 7
2237	2237	The penalty under section 6652(j) shall apply to any 8
2238	2238	failure to submit the return required by the Sec-9
2239	2239	retary under the preceding sentence on the date pre-10
2240	2240	scribed therefor. 11
2241	2241	‘‘(3) A
2242	2242	NNUAL REPORTS FROM HOUSING CREDIT 12
2243	2243	AGENCIES.—Each agency which allocates any hous-13
2244	2244	ing credit amount to any building for any calendar 14
2245	2245	year shall submit to the Secretary (at such time and 15
2246	2246	in such manner as the Secretary shall prescribe) an 16
2247	2247	annual report specifying— 17
2248	2248	‘‘(A) the amount of housing credit amount 18
2249	2249	allocated to each building for such year, 19
2250	2250	‘‘(B) sufficient information to identify each 20
2251	2251	such building and the taxpayer with respect 21
2252	2252	thereto, and 22
2253	2253	‘‘(C) such other information as the Sec-23
2254	2254	retary may require. 24
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2256	2256	ssavage on LAPJG3WLY3PROD with BILLS 75
2257	2257	•HR 893 IH
2258	2258	The penalty under section 6652(j) shall apply to any 1
2259	2259	failure to submit the report required by the pre-2
2260	2260	ceding sentence on the date prescribed therefor. 3
2261	2261	‘‘(l) R
2262	2262	ESPONSIBILITIES OFHOUSINGCREDITAGEN-4
2263	2263	CIES.— 5
2264	2264	‘‘(1) P
2265	2265	LANS FOR ALLOCATION OF CREDIT 6
2266	2266	AMONG PROJECTS.— 7
2267	2267	‘‘(A) I
2268	2268	N GENERAL.—Notwithstanding any 8
2269	2269	other provision of this section, the housing cred-9
2270	2270	it dollar amount with respect to any building 10
2271	2271	shall be zero unless— 11
2272	2272	‘‘(i) such amount was allocated pursu-12
2273	2273	ant to a qualified allocation plan of the 13
2274	2274	housing credit agency which is approved by 14
2275	2275	the governmental unit (in accordance with 15
2276	2276	rules similar to the rules of section 16
2277	2277	42(m)(1)) of which such agency is a part, 17
2278	2278	‘‘(ii) a comprehensive market study of 18
2279	2279	the housing needs of working family indi-19
2280	2280	viduals in the area to be served by the 20
2281	2281	project is conducted before the credit allo-21
2282	2282	cation is made and at the developer’s ex-22
2283	2283	pense by a disinterested party who is ap-23
2284	2284	proved by such agency, and 24
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2287	2287	•HR 893 IH
2288	2288	‘‘(iii) a written explanation is available 1
2289	2289	to the general public for any allocation of 2
2290	2290	a housing credit dollar amount which is 3
2291	2291	not made in accordance with established 4
2292	2292	priorities and selection criteria of the hous-5
2293	2293	ing credit agency. 6
2294	2294	‘‘(B) Q
2295	2295	UALIFIED ALLOCATION PLAN .—For 7
2296	2296	purposes of this paragraph, the term ‘qualified 8
2297	2297	allocation plan’ means any plan— 9
2298	2298	‘‘(i) which sets forth selection criteria 10
2299	2299	to be used to determine housing priorities 11
2300	2300	of the housing credit agency which are ap-12
2301	2301	propriate to local conditions, 13
2302	2302	‘‘(ii) which also gives preference in al-14
2303	2303	locating housing credit dollar amounts 15
2304	2304	among selected projects to— 16
2305	2305	‘‘(I) projects obligated to serve 17
2306	2306	qualified tenants for the longest peri-18
2307	2307	ods, 19
2308	2308	‘‘(II) projects in areas with insuf-20
2309	2309	ficient supply of housing affordable to 21
2310	2310	median income households, 22
2311	2311	‘‘(III) projects which target hous-23
2312	2312	ing to tenants at a range of incomes 24
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2315	2315	•HR 893 IH
2316	2316	between 60 and 100 percent of area 1
2317	2317	median gross income, and 2
2318	2318	‘‘(IV) projects located near tran-3
2319	2319	sit hubs, and 4
2320	2320	‘‘(iii) which provides a procedure that 5
2321	2321	the agency (or an agent or other private 6
2322	2322	contractor of such agency) will follow in 7
2323	2323	monitoring for noncompliance with the 8
2324	2324	provisions of this section and in notifying 9
2325	2325	the Internal Revenue Service of such non-10
2326	2326	compliance which such agency becomes 11
2327	2327	aware of and in monitoring for noncompli-12
2328	2328	ance with habitability standards through 13
2329	2329	regular site visits. 14
2330	2330	‘‘(C) C
2331	2331	ERTAIN SELECTION CRITERIA MUST 15
2332	2332	BE USED.—The selection criteria set forth in a 16
2333	2333	qualified allocation plan must include— 17
2334	2334	‘‘(i) project location, 18
2335	2335	‘‘(ii) housing needs characteristics, 19
2336	2336	‘‘(iii) project characteristics, including 20
2337	2337	whether the project includes the use of ex-21
2338	2338	isting housing as part of a community revi-22
2339	2339	talization plan, 23
2340	2340	‘‘(iv) sponsor characteristics, 24
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2343	2343	•HR 893 IH
2344	2344	‘‘(v) tenant populations with special 1
2345	2345	housing needs, 2
2346	2346	‘‘(vi) tenant populations of individuals 3
2347	2347	with children, 4
2348	2348	‘‘(vii) projects intended for eventual 5
2349	2349	tenant ownership, 6
2350	2350	‘‘(viii) the energy efficiency of the 7
2351	2351	project, and 8
2352	2352	‘‘(ix) the historic nature of the 9
2353	2353	project. 10
2354	2354	‘‘(D) C
2355	2355	ERTAIN SELECTION CRITERIA PRO -11
2356	2356	HIBITED.—The selection criteria set forth in a 12
2357	2357	qualified allocation plan shall not include a re-13
2358	2358	quirement of local approval or local contribu-14
2359	2359	tions, either as a threshold qualification re-15
2360	2360	quirement or as part of a point system to be 16
2361	2361	considered for allocations of housing credit dol-17
2362	2362	lar amount. 18
2363	2363	‘‘(2) C
2364	2364	REDIT ALLOCATED TO BUILDING NOT TO 19
2365	2365	EXCEED AMOUNT NECESSARY TO ASSURE PROJECT 20
2366	2366	FEASIBILITY.— 21
2367	2367	‘‘(A) I
2368	2368	N GENERAL.—The housing credit 22
2369	2369	dollar amount allocated to a project shall not 23
2370	2370	exceed the amount the housing credit agency 24
2371	2371	determines is necessary for the financial feasi-25
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2374	2374	•HR 893 IH
2375	2375	bility of the project and its viability as a quali-1
2376	2376	fied working families housing project through-2
2377	2377	out the credit period. 3
2378	2378	‘‘(B) A
2379	2379	GENCY EVALUATION .—In making 4
2380	2380	the determination under subparagraph (A), the 5
2381	2381	housing credit agency shall consider— 6
2382	2382	‘‘(i) the sources and uses of funds and 7
2383	2383	the total financing planned for the project, 8
2384	2384	‘‘(ii) any proceeds or receipts expected 9
2385	2385	to be generated by reason of tax benefits, 10
2386	2386	‘‘(iii) the percentage of the housing 11
2387	2387	credit dollar amount used for project costs 12
2388	2388	other than the cost of intermediaries, and 13
2389	2389	‘‘(iv) the reasonableness of the devel-14
2390	2390	opmental and operational costs of the 15
2391	2391	project. 16
2392	2392	Clause (iii) shall not be applied so as to impede 17
2393	2393	the development of projects in hard-to-develop 18
2394	2394	areas. Such a determination shall not be con-19
2395	2395	strued to be a representation or warranty as to 20
2396	2396	the feasibility or viability of the project. 21
2397	2397	‘‘(C) D
2398	2398	ETERMINATION MADE WHEN CRED -22
2399	2399	IT AMOUNT APPLIED FOR AND WHEN BUILDING 23
2400	2400	PLACED IN SERVICE.— 24
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2404	2404	‘‘(i) IN GENERAL.—A determination 1
2405	2405	under subparagraph (A) shall be made as 2
2406	2406	of each of the following times: 3
2407	2407	‘‘(I) The application for the 4
2408	2408	housing credit dollar amount. 5
2409	2409	‘‘(II) The allocation of the hous-6
2410	2410	ing credit dollar amount. 7
2411	2411	‘‘(III) The date the building is 8
2412	2412	placed in service. 9
2413	2413	‘‘(ii) C
2414	2414	ERTIFICATION AS TO AMOUNT 10
2415	2415	OF OTHER SUBSIDIES .—Prior to each de-11
2416	2416	termination under clause (i), the taxpayer 12
2417	2417	shall certify to the housing credit agency 13
2418	2418	the full extent of all Federal, State, and 14
2419	2419	local subsidies which apply (or which the 15
2420	2420	taxpayer expects to apply) with respect to 16
2421	2421	the building. 17
2422	2422	‘‘(m) R
2423	2423	EGULATIONS.—The Secretary shall prescribe 18
2424	2424	such regulations as may be necessary or appropriate to 19
2425	2425	carry out the purposes of this section, including— 20
2426	2426	‘‘(1) regulations dealing with— 21
2427	2427	‘‘(A) projects which include more than 1 22
2428	2428	building or only a portion of a building, or 23
2429	2429	‘‘(B) buildings which are placed in service 24
2430	2430	in portions, 25
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2433	2433	•HR 893 IH
2434	2434	‘‘(2) regulations providing for the application of 1
2435	2435	this section to short taxable years, 2
2436	2436	‘‘(3) regulations preventing the avoidance of the 3
2437	2437	rules of this section, 4
2438	2438	‘‘(4) regulations providing the opportunity for 5
2439	2439	housing credit agencies to correct administrative er-6
2440	2440	rors and omissions with respect to allocations and 7
2441	2441	record keeping within a reasonable period after their 8
2442	2442	discovery, taking into account the availability of reg-9
2443	2443	ulations and other administrative guidance from the 10
2444	2444	Secretary, and 11
2445	2445	‘‘(5) in consultation with the Secretary of 12
2446	2446	Housing and Urban Development, regulations or 13
2447	2447	guidance to promote uniform definitions and to 14
2448	2448	streamline requirements for with respect to qualified 15
2449	2449	working families buildings which receive funding 16
2450	2450	from programs administrated by the Department of 17
2451	2451	Housing and Urban Development, including pro-18
2452	2452	grams authorized by Native American Housing As-19
2453	2453	sistance and Self-Determination Act of 1996.’’. 20
2454	2454	(b) T
2455	2455	REATMENT AS PART OFGENERALBUSINESS 21
2456	2456	C
2457	2457	REDIT.—Section 38(b) of the Internal Revenue Code of 22
2458	2458	1986 is amended by striking ‘‘plus’’ at the end of para-23
2459	2459	graph (40), by striking the period at the end of paragraph 24
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2462	2462	•HR 893 IH
2463	2463	(41) and inserting ‘‘, plus’’, and by adding at the end the 1
2464	2464	following new paragraph: 2
2465	2465	‘‘(42) the working families housing credit deter-3
2466	2466	mined under section 42A(a).’’. 4
2467	2467	(c) R
2468	2468	EDUCTION INBASIS.—Section 1016(a) of the 5
2469	2469	Internal Revenue Code of 1986 is amended— 6
2470	2470	(1) by striking ‘‘and’’ at the end of paragraph 7
2471	2471	(37); 8
2472	2472	(2) by redesignating paragraph (38) as para-9
2473	2473	graph (39); and 10
2474	2474	(3) by inserting after paragraph (37) the fol-11
2475	2475	lowing new paragraph: 12
2476	2476	‘‘(38) to the extent provided in section 13
2477	2477	42A(i)(8), and’’. 14
2478	2478	(d) T
2479	2479	REATMENTUNDERBASEEROSIONMINIMUM 15
2480	2480	T
2481	2481	AX.—Section 59A(b)(4) of he Internal Revenue Code of 16
2482	2482	1986 is amended by redesignating subparagraphs (B) and 17
2483	2483	(C) as subparagraphs (C) and (D), respectively, and by 18
2484	2484	inserting after subparagraphs (A) the following new sub-19
2485	2485	paragraph: 20
2486	2486	‘‘(B) the working families housing credit 21
2487	2487	determined under section 42A(a),’’. 22
2488	2488	(e) C
2489	2489	ONFORMINGAMENDMENTSRELATING TOLOW- 23
2490	2490	I
2491	2491	NCOMEHOUSINGTAXCREDIT.—Section 42(n) of the In-24
2492	2492	ternal Revenue Code of 1986 is amended— 25
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2495	2495	•HR 893 IH
2496	2496	(1) by striking ‘‘regulations’’ in the matter pre-1
2497	2497	ceding paragraph (1), 2
2498	2498	(2) by inserting ‘‘regulations’’ before ‘‘dealing 3
2499	2499	with’’ in paragraph (1), 4
2500	2500	(3) by inserting ‘‘regulations’’ before ‘‘pro-5
2501	2501	viding’’ in paragraphs (2) and (4), 6
2502	2502	(4) by inserting ‘‘regulations’’ before ‘‘pre-7
2503	2503	venting’’ in paragraph (3), 8
2504	2504	(5) by striking ‘‘and’’ at the end of paragraph 9
2505	2505	(3), 10
2506	2506	(6) by striking the period at the end of para-11
2507	2507	graph (4) and inserting ‘‘, and’’, and 12
2508	2508	(7) by adding at the end the following new 13
2509	2509	paragraph: 14
2510	2510	‘‘(5) in consultation with the Secretary of 15
2511	2511	Housing and Urban Development, regulations or 16
2512	2512	guidance to promote uniform definitions and to 17
2513	2513	streamline requirements with respect to qualified 18
2514	2514	low-income buildings which receive funding from 19
2515	2515	programs administrated by the Department of Hous-20
2516	2516	ing and Urban Development, including programs au-21
2517	2517	thorized by Native American Housing Assistance 22
2518	2518	and Self-Determination Act of 1996.’’. 23
2519	2519	(f) C
2520	2520	ONFORMINGAMENDMENTS.— 24
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2523	2523	•HR 893 IH
2524	2524	(1) Section 45L(e) of the Internal Revenue 1
2525	2525	Code of 1986 is amended by inserting ‘‘or 42A’’ 2
2526	2526	after ‘‘42’’. 3
2527	2527	(2) Section 50(c)(3)(C) of such Code is amend-4
2528	2528	ed by inserting ‘‘or 42A’’ after ‘‘42’’. 5
2529	2529	(3) Section 55(c)(1) of such Code is amended 6
2530	2530	by inserting ‘‘42A(j),’’ before ‘‘45(e)(11)(C)’’. 7
2531	2531	(4) Subsections (i)(3)(C), (i)(6)(B)(i), and 8
2532	2532	(k)(1) of section 469 of such Code are each amended 9
2533	2533	by inserting ‘‘or 42A’’ after ‘‘42’’. 10
2534	2534	(5) The table of sections for subpart D of part 11
2535	2535	IV of subchapter A of chapter 1 of such Code is 12
2536	2536	amended by inserting after the item relating to sec-13
2537	2537	tion 42 the following new item: 14
2538	2538	‘‘Sec. 42A. Working families housing credit.’’.
2539	2539	(g) EFFECTIVEDATE.—The amendments made by 15
2540	2540	this section shall apply to buildings placed in service after 16
2541	2541	December 31, 2025, in taxable years ending after such 17
2542	2542	date. 18
2543	2543	SEC. 4. LOANS AND GRANTS FOR INFRASTRUCTURE 19
2544	2544	PROJECTS IN CONNECTION WITH QUALIFIED 20
2545	2545	WORKING FAMILIES HOUSING PROJECTS. 21
2546	2546	(a) I
2547	2547	NGENERAL.—The Secretary shall make grants 22
2548	2548	and below-market-rate loans (as the Secretary determines 23
2549	2549	appropriate) to local governments in rural and exurban 24
2550	2550	areas for covered infrastructure projects carried out in 25
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2553	2553	•HR 893 IH
2554	2554	connection with the development of qualified working fam-1
2555	2555	ilies housing projects. 2
2556	2556	(b) C
2557	2557	OVEREDINFRASTRUCTURE PROJECTS.—For 3
2558	2558	purposes of this section— 4
2559	2559	(1) I
2560	2560	N GENERAL.—The term ‘‘covered infra-5
2561	2561	structure project’’ means projects for electricity, 6
2562	2562	waters, sewers, local access roads, and such other 7
2563	2563	projects as the Secretary determines appropriate. 8
2564	2564	(2) C
2565	2565	LEAN ENERGY PRIORITIZATION .—With re-9
2566	2566	spect to any infrastructure project for electricity, the 10
2567	2567	Secretary shall give priority to clean energy projects. 11
2568	2568	(c) O
2569	2569	THERDEFINITIONS AND SPECIALRULES.— 12
2570	2570	Terms used in this section which are also used in section 13
2571	2571	42A of the Internal Revenue Code of 1986 shall have the 14
2572	2572	same meaning when used in this section as when used in 15
2573	2573	such section of such Code. Requirements similar to the 16
2574	2574	requirements of section 45(b)(7) of such Code shall apply 17
2575	2575	with respect to infrastructure projects with respect to 18
2576	2576	which grants or loans are made under this section. 19
2577	2577	(d) A
2578	2578	UTHORIZATION OF APPROPRIATIONS.—There 20
2579	2579	are authorized to be appropriated $100,000,000 to carry 21
2580	2580	out the purposes of this section. 22
2581	2581	Æ
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