[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2266 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2266

 To amend the Internal Revenue Code to provide for an alternative test 
          for qualifying as a cooperative housing corporation.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 30, 2007

  Mr. Schumer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code to provide for an alternative test 
          for qualifying as a cooperative housing corporation.

    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 ``Cooperative Tax Deduction 
Preservation Act of 2007''.

SEC. 2. ALTERNATIVE TESTS FOR QUALIFYING AS COOPERATIVE HOUSING 
              CORPORATION.

    (a) In General.--Subparagraph (D) of section 216(b)(1) of the 
Internal Revenue Code of 1986 (defining cooperative housing 
corporation) is amended to read as follows:
                    ``(D) meeting 1 or more of the following 
                requirements for the taxable year in which the taxes 
                and interest described in subsection (a) are paid or 
                incurred:
                            ``(i) 80 percent or more of the 
                        corporation's gross income for such taxable 
                        year is derived from tenant-stockholders.
                            ``(ii) At all times during such taxable 
                        year, 80 percent or more of the total square 
                        footage of the corporation's property is used 
                        or available for use by the tenant-stockholders 
                        for residential purposes or purposes ancillary 
                        to such residential use.
                            ``(iii) 90 percent or more of the 
                        expenditures of the corporation paid or 
                        incurred during such taxable year are paid or 
                        incurred for the acquisition, construction, 
                        management, maintenance, or care of the 
                        corporation's property for the benefit of the 
                        tenant-stockholders.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.
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