II 109th CONGRESS 1st Session S. 1800 IN THE SENATE OF THE UNITED STATES September 29, 2005 Ms. Snowe (for herself, Mr. Rockefeller, and Mr. Bunning) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to extend the new markets tax credit.

1.

Short title

This Act may be cited as the New Markets Tax Credit Reauthorization Act of 2005.

2.

Extension of new markets tax credit

(a)

Extension

(1)

In general

Paragraph (1) of section 45D(f) of the Internal Revenue Code of 1986 (relating to new markets tax credit) is amended to read as follows: (1)

In general

There is a new markets tax credit limitation of $3,500,000,000 for each of calendar years 2008 through 2012. . (2)

Conforming amendment

Paragraph (3) of section 45D(f) of such Code is amended by striking 2014 and inserting 2019. (b)

Inflation adjustment

Subsection (f) of section 45D of such Code is amended by inserting at the end the following new paragraph: (4)

Inflation adjustment

(A)

In general

In the case of any calendar year beginning after 2008, the dollar amount in paragraph (1) shall be increased by an amount equal to— (i)such dollar amount, multiplied by (ii)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2007 for calendar year 1992 in subparagraph (B) thereof. (B)

Rounding rule

If a dollar amount in paragraph (1), as increased under subparagraph (A), is not a multiple of $1,000,000, such amount shall be rounded to the nearest multiple of $1,000,000. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2007.