[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1562 Referred in Senate (RFS)]

  1st Session
                                H. R. 1562


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 28, 2007

     Received; read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 AN ACT


 
To amend the Internal Revenue Code of 1986 to extend and expand certain 
             rules with respect to housing in the GO Zones.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Katrina Housing Tax Relief Act of 
2007''.

SEC. 2. EXTENSION AND EXPANSION OF LOW-INCOME HOUSING CREDIT RULES FOR 
              BUILDINGS IN THE GO ZONES.

    (a) Time for Making Low-Income Housing Credit Allocations.--
Subsection (c) of section 1400N of the Internal Revenue Code of 1986 
(relating to low-income housing credit) is amended by redesignating 
paragraph (5) as paragraph (6) and by inserting after paragraph (4) the 
following new paragraph:
            ``(5) Time for making low-income housing credit 
        allocations.--Section 42(h)(1)(B) shall not apply to an 
        allocation of housing credit dollar amount to a building 
        located in the Gulf Opportunity Zone, the Rita GO Zone, or the 
        Wilma GO Zone, if such allocation is made in 2006, 2007, or 
        2008, and such building is placed in service before January 1, 
        2011.''.
    (b) Extension of Period for Treating GO Zones as Difficult 
Development Areas.--
            (1) In general.--Subparagraph (A) of section 1400N(c)(3) of 
        such Code is amended by striking ``2006, 2007, or 2008'' and 
        inserting ``the period beginning on January 1, 2006, and ending 
        on December 31, 2010''.
            (2) Conforming amendment.--Clause (ii) of section 
        1400N(c)(3)(B) of such Code is amended by striking ``such 
        period'' and inserting ``the period described in subparagraph 
        (A)''.
    (c) Community Development Block Grants Not Taken Into Account in 
Determining if Buildings Are Federally Subsidized.--Subsection (c) of 
section 1400N of such Code (relating to low-income housing credit), as 
amended by this Act, is amended by redesignating paragraph (6) as 
paragraph (7) and by inserting after paragraph (5) the following new 
paragraph:
            ``(6) Community development block grants not taken into 
        account in determining if buildings are federally subsidized.--
        For purpose of applying section 42(i)(2)(D) to any building 
        which is placed in service in the Gulf Opportunity Zone, the 
        Rita GO Zone, or the Wilma GO Zone during the period beginning 
        on January 1, 2006, and ending on December 31, 2010, a loan 
        shall not be treated as a below market Federal loan solely by 
        reason of any assistance provided under section 106, 107, or 
        108 of the Housing and Community Development Act of 1974 by 
        reason of section 122 of such Act or any provision of the 
        Department of Defense Appropriations Act, 2006, or the 
        Emergency Supplemental Appropriations Act for Defense, the 
        Global War on Terror, and Hurricane Recovery, 2006.''.

SEC. 3. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR REPAIRS AND 
              RECONSTRUCTIONS OF RESIDENCES IN THE GO ZONES.

    Subsection (a) of section 1400N of the Internal Revenue Code of 
1986 (relating to tax-exempt bond financing) is amended by adding at 
the end the following new paragraph:
            ``(7) Special rule for repairs and reconstructions.--
                    ``(A) In general.--For purposes of section 143 and 
                this subsection, any qualified GO Zone repair or 
                reconstruction shall be treated as a qualified 
                rehabilitation.
                    ``(B) Qualified go zone repair or reconstruction.--
                For purposes of subparagraph (A), the term `qualified 
                GO Zone repair or reconstruction' means any repair of 
                damage caused by Hurricane Katrina, Hurricane Rita, or 
                Hurricane Wilma to a building located in the Gulf 
                Opportunity Zone, the Rita GO Zone, or the Wilma GO 
                Zone (or reconstruction of such building in the case of 
                damage constituting destruction) if the expenditures 
                for such repair or reconstruction are 25 percent or 
                more of the mortgagor's adjusted basis in the 
                residence. For purposes of the preceding sentence, the 
                mortgagor's adjusted basis shall be determined as of 
                the completion of the repair or reconstruction or, if 
                later, the date on which the mortgagor acquires the 
                residence.
                    ``(C) Termination.--This paragraph shall apply only 
                to owner-financing provided after the date of the 
                enactment of this paragraph and before January 1, 
                2011.''.

SEC. 4. GAO STUDY OF PRACTICES EMPLOYED BY STATE AND LOCAL GOVERNMENTS 
              IN ALLOCATING AND UTILIZING TAX INCENTIVES PROVIDED 
              PURSUANT TO THE GULF OPPORTUNITY ZONE ACT OF 2005.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the practices employed by State and local 
governments, and subdivisions thereof, in allocating and utilizing tax 
incentives provided pursuant to the Gulf Opportunity Zone Act of 2005 
and this Act.
    (b) Submission of Report.--Not later than one year after the date 
of the enactment of this Act, the Comptroller General shall submit a 
report on the findings of the study conducted under subsection (a) and 
shall include therein recommendations (if any) relating to such 
findings. The report shall be submitted to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate.
    (c) Congressional Hearings.--In the case that the report submitted 
under this section includes findings of significant fraud, waste or 
abuse, each Committee specified in subsection (b) shall, within 60 days 
after the date the report is submitted under subsection (b), hold a 
public hearing to review such findings.

SEC. 5. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES FOR 
              EMPLOYMENT TAX LIABILITIES.

    (a) In General.--Section 6330(f) of the Internal Revenue Code of 
1986 (relating to jeopardy and State refund collection) is amended--
            (1) by striking ``; or'' at the end of paragraph (1) and 
        inserting a comma,
            (2) by adding ``or'' at the end of paragraph (2), and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) the Secretary has served a disqualified employment 
        tax levy,''.
    (b) Disqualified Employment Tax Levy.--Section 6330 of such Code 
(relating to notice and opportunity for hearing before levy) is amended 
by adding at the end the following new subsection:
    ``(h) Disqualified Employment Tax Levy.--For purposes of subsection 
(f), a disqualified employment tax levy is any levy in connection with 
the collection of employment taxes for any taxable period if--
            ``(1) the person subject to the levy (or any predecessor 
        thereof) requested a hearing under this section with respect to 
        unpaid employment taxes arising in the most recent 2-year 
        period before the beginning of the taxable period with respect 
        to which the levy is served, and
            ``(2) such levy is served before February 29, 2016.
For purposes of the preceding sentence, the term `employment taxes' 
means any taxes under chapter 21, 22, 23, or 24.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to levies served on or after the date that is 120 days after the 
date of the enactment of this Act.

SEC. 6. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    Subparagraph (B) of section 401(1) of the Tax Increase Prevention 
and Reconciliation Act of 2005 is amended by striking ``106.25 
percent'' and inserting ``106.45 percent''.

            Passed the House of Representatives March 27, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.