[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3260 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3260

   To require the Secretary of the Treasury to modify regulations to 
provide that certain Federal subsidies shall not be considered a grant 
 made with respect to a building or its operation for purposes of the 
                     low-income housing tax credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2007

Mr. McDermott introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To require the Secretary of the Treasury to modify regulations to 
provide that certain Federal subsidies shall not be considered a grant 
 made with respect to a building or its operation for purposes of the 
                     low-income housing tax credit.

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

SECTION 1. MODIFICATION TO LOW-INCOME HOUSING CREDIT RULES FOR 
              REDUCTION OF ELIGIBLE BASIS BY GRANTS RECEIVED.

    (a) In General.--The Secretary of the Treasury shall modify 
Treasury Regulations section 1.42-16(b) to provide that none of the 
following shall be considered a grant made with respect to a building 
or its operation for purposes of section 42(d)(5)(A) of the Internal 
Revenue Code of 1986:
            (1) Rental assistance under section 521 of the Housing Act 
        of 1949 (42 U.S.C. 1490a).
            (2) Assistance under section 538(f)(5) of the Housing Act 
        of 1949 (42 U.S.C. 1490p-2(f)(5)).
            (3) Interest reduction payments under section 236 of the 
        National Housing Act (12 U.S.C. 1715z-1).
            (4) Rental assistance under section 202 of the Housing Act 
        of 1959 (12 U.S.C. 1701q).
            (5) Rental assistance under section 811 of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 8013).
            (6) Modernization, operating, and rental assistance 
        pursuant to section 202 of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4132).
            (7) Assistance under title IV of the Stewart B. McKinney 
        Homeless Assistance Act (42 U.S.C. 11361 et seq.).
            (8) Tenant-based rental assistance under section 212 of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        12742).
            (9) Assistane under the AIDS Housing Opportunity Act (42 
        U.S.C. 12901 et seq.).
            (10) Per diem payments under section 2012 of title 38, 
        United States Code.
            (11) Rent supplements under section 101 of the Housing and 
        Urban Development Act of 1965 (12 U.S.C. 1701s).
            (12) Assistance under section 542 of the Housing Act of 
        1949 (42 U.S.C. 1490r).
            (13) Any other ongoing payment similar to any of the 
        payments described in paragraphs (1) through (12) and designed 
        to reduce cash flow needs from rent to enable the property to 
        be rented to low-income tenants.
    (b) Effective Date.--The modifications required by this section 
shall apply to taxable years beginning after December 31, 2006.
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