110 HR 3260 IH: To require the Secretary of the Treasury to modify U.S. House of Representatives 2007-07-31 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 3260 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.

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.