[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2636 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 577
110th CONGRESS
  2d Session
                                S. 2636

                   To provide needed housing reform.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 13, 2008

 Mr. Reid introduced the following bill; which was read the first time

                           February 14, 2008

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
                   To provide needed housing reform.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Foreclosure 
Prevention Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
       TITLE I--MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS

Sec. 101. Modifications on use of qualified mortgage bonds; temporary 
                            increased volume cap for certain housing 
                            bonds.
 TITLE II--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
                            FORECLOSED HOMES

Sec. 201. Emergency assistance for the redevelopment of abandoned and 
                            foreclosed homes.
                TITLE III--HOUSING COUNSELING RESOURCES

Sec. 301. Housing counseling resources.
      TITLE IV--HELPING FAMILIES SAVE THEIR HOME IN BANKRUPTCY ACT

Sec. 401. Short title.
                  Subtitle A--Minimizing Foreclosures

Sec. 411. Special rules for modification of loans secured by 
                            residences.
Sec. 412. Waiver of counseling requirement when homes are in 
                            foreclosure.
             Subtitle B--Providing Other Debtor Protections

Sec. 421. Combating excessive fees.
Sec. 422. Maintaining debtors' legal claims.
Sec. 423. Resolving disputes.
Sec. 424. Enacting a homestead floor for debtors over 55 years of age.
Sec. 425. Disallowing claims from violations of consumer protection 
                            laws.
              TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

Sec. 501. Short title.
Sec. 502. Enhanced mortgage loan disclosures.
                   TITLE VI--INCENTIVES FOR BUSINESS

Sec. 601. Carryback of certain net operating losses allowed for 5 
                            years; temporary suspension of 90 percent 
                            AMT limit.

       TITLE I--MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS

SEC. 101. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS; TEMPORARY 
              INCREASED VOLUME CAP FOR CERTAIN HOUSING BONDS.

    (a) Use of Qualified Mortgage Bonds Proceeds for Subprime 
Refinancing Loans.--Section 143(k) of the Internal Revenue Code of 1986 
(relating to other definitions and special rules) is amended by adding 
at the end the following new paragraph:
            ``(12) Special rules for subprime refinancings.--
                    ``(A) In general.--Notwithstanding the requirements 
                of subsection (i)(1), the proceeds of a qualified 
                mortgage issue may be used to refinance a mortgage on a 
                residence which was originally financed by the 
                mortgagor through a qualified subprime loan.
                    ``(B) Special rules.--In applying this paragraph to 
                any case in which the proceeds of a qualified mortgage 
                issue are used for any refinancing described in 
                subparagraph (A)--
                            ``(i) subsection (a)(2)(D)(i) shall be 
                        applied by substituting `12-month period' for 
                        `42-month period' each place it appears,
                            ``(ii) subsection (d) (relating to 3-year 
                        requirement) shall not apply, and
                            ``(iii) subsection (e) (relating to 
                        purchase price requirement) shall be applied by 
                        using the market value of the residence at the 
                        time of refinancing in lieu of the acquisition 
                        cost.
                    ``(C) Qualified subprime loan.--The term `qualified 
                subprime loan' means an adjustable rate single-family 
                residential mortgage loan originated after December 31, 
                2001, and before January 1, 2008, that the bond issuer 
                determines would be reasonably likely to cause 
                financial hardship to the borrower if not refinanced.
                    ``(D) Termination.--This paragraph shall not apply 
                to any bonds issued after December 31, 2010.''.
    (b) Increased Volume Cap for Certain Bonds.--
            (1) In general.--Subsection (d) of section 146 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(5) Increase and set aside for housing bonds for 2008.--
                    ``(A) Increase for 2008.--In the case of calendar 
                year 2008, the State ceiling for each State shall be 
                increased by an amount equal to $10,000,000,000 
                multiplied by a fraction--
                            ``(i) the numerator of which is the 
                        population of such State (as reported in the 
                        most recent decennial census), and
                            ``(ii) the denominator of which is the 
                        total population of all States (as reported in 
                        the most recent decennial census).
                    ``(B) Set aside.--
                            ``(i) In general.--Any amount of the State 
                        ceiling for any State which is attributable to 
                        an increase under this paragraph shall be 
                        allocated solely for one or more qualified 
                        purposes.
                            ``(ii) Qualified purpose.--For purposes of 
                        this paragraph, the term `qualified purpose' 
                        means--
                                    ``(I) the issuance of exempt 
                                facility bonds used solely to provide 
                                qualified residential rental projects, 
                                or
                                    ``(II) a qualified mortgage issue 
                                (determined by substituting `12-month 
                                period' for `42-month period' each 
                                place it appears in section 
                                143(a)(2)(D)(i)).''.
            (2) Carryforward of unused limitations.--Subsection (f) of 
        section 146 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(6) Special rules for increased volume cap under 
        subsection (d)(5).--
                    ``(A) In general.--No amount which is attributable 
                to the increase under subsection (d)(5) may be used--
                            ``(i) for a carryforward purpose other than 
                        a qualified purpose (as defined in subsection 
                        (d)(5)), and
                            ``(ii) to issue any bond after calendar 
                        year 2010.
                    ``(B) Ordering rules.--For purposes of subparagraph 
                (A), any carryforward of an issuing authority's volume 
                cap for calendar year 2008 shall be treated as 
                attributable to such increase to the extent of such 
                increase.''.
    (c) Alternative Minimum Tax.--
            (1) In general.--Clause (ii) of section 57(a)(5)(C) of the 
        Internal Revenue Code of 1986 is amended by striking ``shall 
        not include'' and all that follows and inserting ``shall not 
        include--
                                    ``(I) any qualified 501(c)(3) bond 
                                (as defined in section 145), or
                                    ``(II) any qualified mortgage bond 
                                (as defined in section 143(a)) or 
                                qualified veterans' mortgage bond (as 
                                defined in section 143(b)) issued after 
                                the date of the enactment of this 
                                subclause and before January 1, 
                                2011.''.
            (2) Conforming amendment.--The heading for section 
        57(a)(5)(C)(ii) is amended by striking ``qualified 501(c)(3) 
        bonds'' and inserting ``certain bonds''.
    (d) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this title.

 TITLE II--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
                            FORECLOSED HOMES

SEC. 201. EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
              FORECLOSED HOMES.

    (a) Direct Appropriations.--There shall be appropriated out of any 
money in the Treasury not otherwise appropriated for the fiscal year 
2008, $4,000,000,000, to remain available until expended, for 
assistance to States and units of general local government (as such 
terms are defined in section 102 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5302)) for the redevelopment of 
abandoned and foreclosed homes.
    (b) Allocation of Appropriated Amounts.--
            (1) In general.--The amounts appropriated or otherwise made 
        available to States and units of general local government under 
        this section shall be allocated based on a funding formula 
        established by the Secretary of Housing and Urban Development.
            (2) Formula to be devised swiftly.--The funding formula 
        required under paragraph (1) shall be established not later 
        than 60 days after the date of enactment of this title.
            (3) Criteria.--The funding formula required under paragraph 
        (1) shall ensure that any amounts appropriated or otherwise 
        made available under this section are allocated to States and 
        units of general local government with the greatest need, as 
        such need is determined in the discretion of the Secretary 
        based on the following factors:
                    (A) The number and percentage of home foreclosures 
                in each State or unit of general local government.
                    (B) The number and percentage of homes financed by 
                a subprime mortgage related loan in each State or unit 
                of general local government.
                    (C) The number and percentage of homes in default 
                or delinquency in each State or unit of general local 
                government.
            (4) Distribution.--Amounts appropriated or otherwise made 
        available to States and units of general local government under 
        this section shall be distributed according to the funding 
        formula required under paragraph (1) not later than 30 days 
        after the establishment of such formula.
    (c) Use of Funds.--
            (1) In general.--Any State or unit of general local 
        government that receives amounts pursuant to this section 
        shall, not later than 18 months after the receipt of such 
        amounts, use such amounts to redevelop abandoned and foreclosed 
        homes.
            (2) Priority.--Any State or unit of general local 
        government that receives amounts pursuant to this section shall 
        in distributing such amounts give priority emphasis and 
        consideration to those metropolitan areas, metropolitan cities, 
        urban areas, rural areas, low- and moderate-income areas, and 
        other areas with the greatest need, including those--
                    (A) with the greatest percentage of home 
                foreclosures;
                    (B) with the highest percentage of homes financed 
                by a subprime mortgage related loan; or
                    (C) identified by the State or unit of general 
                local government as likely to face a significant rise 
                in the rate of home foreclosures.
            (3) Eligible uses.--
                    (A) In general.--Amounts made available under this 
                section may be used to--
                            (i) make grants, loans, and other financing 
                        mechanisms to community development financial 
                        institutions (as such term is defined under 
                        section 103(5) of the Community Development 
                        Banking and Financial Institutions Act of 1994 
                        (12 U.S.C. 4702(5))), national intermediaries, 
                        and nonprofit housing or community development 
                        organizations and others to purchase and 
                        rehabilitate homes that have been abandoned or 
                        foreclosed upon, in order to sell, rent, or 
                        redevelop such homes;
                            (ii) establish financing mechanisms for 
                        redevelopment of foreclosed upon homes, 
                        including such mechanisms as soft-seconds, loan 
                        loss reserves, and shared-equity loans for low- 
                        and moderate-income homebuyers;
                            (iii) purchase and rehabilitate homes that 
                        have been abandoned or foreclosed upon, in 
                        order to sell, rent, or redevelop such homes;
                            (iv) establish land banks for homes that 
                        have been foreclosed upon; and
                            (v) demolish blighted structures.
                    (B) Limitation.--Any funds used under this section 
                for the purchase of an abandoned or foreclosed upon 
                home shall be at a cost equal to or less than the 
                appraised value of the home based on the most up-to-
                date appraisal, as such appraisal is defined by the 
                Secretary.
    (d) Rule of Construction.--Amounts appropriated or otherwise made 
available to States and units of general local government under this 
section shall be treated as though such funds were community 
development block grant funds under title I of the Housing and 
Community Development Act of 1974.
    (e) Waiver Authority.--
            (1) In general.--In administering any amounts appropriated 
        or otherwise made available under this section, the Secretary 
        of Housing and Urban Development may waive, or specify 
        alternative requirements for, any provision of any statute or 
        regulation that the Secretary administers in connection with 
        the obligation by the Secretary or the use by the recipient of 
        such funds (except for requirements related to fair housing, 
        nondiscrimination, labor standards, and the environment), in 
        order to expedite or facilitate the use of such funds.
            (2) Low and moderate income requirement.--Notwithstanding 
        the authority of the Secretary under paragraph (1), all of the 
        funds appropriated or otherwise made available under this 
        section shall be used with respect to persons whose income does 
        not exceed 120 percent of area median income.
    (f) Emergency Designation.--The amounts appropriated under this 
title are designated as an emergency requirement and necessary to meet 
emergency needs pursuant to section 204 of S. Con. Res. 21 (110th 
Congress), the concurrent resolution on the budget for fiscal year 
2008.

                TITLE III--HOUSING COUNSELING RESOURCES

SEC. 301. HOUSING COUNSELING RESOURCES.

    There shall be appropriated out of any money in the Treasury not 
otherwise appropriated, for an additional amount for the ``Neighborhood 
Reinvestment Corporation--Payment to the Neighborhood Reinvestment 
Corporation'' $200,000,000,000, to remain available until September 30, 
2008, for foreclosure mitigation activities under the terms and 
conditions contained in the second paragraph under the heading 
``Neighborhood Reinvestment Corporation--Payment to the Neighborhood 
Reinvestment Corporation'' of Public Law 110-161.

      TITLE IV--HELPING FAMILIES SAVE THEIR HOME IN BANKRUPTCY ACT

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Helping Families Save Their Homes 
in Bankruptcy Act of 2008''.

                  Subtitle A--Minimizing Foreclosures

SEC. 411. SPECIAL RULES FOR MODIFICATION OF LOANS SECURED BY 
              RESIDENCES.

    (a) In General.--Section 1322(b) of title 11, United States Code, 
is amended--
            (1) in paragraph (10), by striking ``and'' at the end;
            (2) by redesignating paragraph (11) as paragraph (12); and
            (3) by inserting after paragraph (10) the following:
            ``(11) notwithstanding paragraph (2) and otherwise 
        applicable nonbankruptcy law--
                    ``(A) modify an allowed secured claim secured by 
                the debtor's principal residence, as described in 
                subparagraph (B), if, after deduction from the debtor's 
                current monthly income of the expenses permitted for 
                debtors described in section 1325(b)(3) of this title 
                (other than amounts contractually due to creditors 
                holding such allowed secured claims and additional 
                payments necessary to maintain possession of that 
                residence), the debtor has insufficient remaining 
                income to retain possession of the residence by curing 
                a default and maintaining payments while the case is 
                pending, as provided under paragraph (5); and
                    ``(B) provide for payment of such claim--
                            ``(i) for a period not to exceed 30 years 
                        (reduced by the period for which the loan has 
                        been outstanding) from the date of the order 
                        for relief under this chapter; and
                            ``(ii) at a rate of interest accruing after 
                        such date calculated at a fixed annual 
                        percentage rate, in an amount equal to the most 
                        recently published annual yield on conventional 
                        mortgages published by the Board of Governors 
                        of the Federal Reserve System, as of the 
                        applicable time set forth in the rules of the 
                        Board, plus a reasonable premium for risk; 
                        and''.
    (b) Conforming Amendment.--Section 1325(a)(5) of title 11, United 
States Code, is amended by inserting before ``with respect'' the 
following: ``except as otherwise provided in section 1322(b)(11) of 
this title,''.

SEC. 412. WAIVER OF COUNSELING REQUIREMENT WHEN HOMES ARE IN 
              FORECLOSURE.

    Section 109(h) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(5) Paragraph (1) shall not apply with respect to a debtor who 
files with the court a certification that a foreclosure sale of the 
debtor's principal residence has been scheduled.''.

             Subtitle B--Providing Other Debtor Protections

SEC. 421. COMBATING EXCESSIVE FEES.

    Section 1322(c) of title 11, the United States Code, is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) to the extent that an allowed secured claim is 
        secured by the debtor's principal residence, the value of which 
        is greater than the amount of such claim, fees, costs, or 
        charges arising during the pendency of the case may be added to 
        secured debt provided for by the plan only if--
                    ``(A) notice of such fees, costs or charges is 
                filed with the court before the expiration of the 
                earlier of--
                            ``(i) 1 year after the time at which they 
                        are incurred; or
                            ``(ii) 60 days before the conclusion of the 
                        case; and
                    ``(B) such fees, costs, or charges are lawful, 
                reasonable, and provided for in the underlying 
                contract;
            ``(4) the failure of a party to give notice described in 
        paragraph (3) shall be deemed a waiver of any claim for fees, 
        costs, or charges described in paragraph (3) for all purposes, 
        and any attempt to collect such fees, costs, or charges shall 
        constitute a violation of section 524(a)(2) of this title or, 
        if the violation occurs before the date of discharge, of 
        section 362(a) of this title; and
            ``(5) a plan may provide for the waiver of any prepayment 
        penalty on a claim secured by the principal residence of the 
        debtor.''.

SEC. 422. MAINTAINING DEBTORS' LEGAL CLAIMS.

    Section 554(e) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(e) In any action in State or Federal court with respect to a 
claim or defense asserted by an individual debtor in such action that 
was not scheduled under section 521(a)(1) of this title, the trustee 
shall be allowed a reasonable time to request joinder or substitution 
as the real party in interest. If the trustee does not request joinder 
or substitution in such action, the debtor may proceed as the real 
party in interest, and no such action shall be dismissed on the ground 
that it is not prosecuted in the name of the real party in interest or 
on the ground that the debtor's claims were not properly scheduled in a 
case under this title.''.

SEC. 423. RESOLVING DISPUTES.

    Section 1334 of title 28, United States Code, is amended by adding 
at the end the following: ``Notwithstanding any agreement for 
arbitration that is subject to chapter 1 of title 9, in any core 
proceeding under section 157(b) of this title involving an individual 
debtor whose debts are primarily consumer debts, the court may hear and 
determine the proceeding, and enter appropriate orders and judgments, 
in lieu of referral to arbitration.''.

SEC. 424. ENACTING A HOMESTEAD FLOOR FOR DEBTORS OVER 55 YEARS OF AGE.

    (a) In General.--Section 522(b)(3) of title 11, United States Code, 
is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end and inserting the following:
            ``(D) if the debtor, as of the date of the filing of the 
        petition, is 55 years old or older, the debtor's aggregate 
        interest, not to exceed $75,000 in value, in real property or 
        personal property that the debtor or a dependent of the debtor 
        uses as a principal residence, or in a cooperative that owns 
        property that the debtor or a dependent of the debtor uses as a 
        principal residence.''.
    (b) Exemption Authority.--Section 522(d)(1) of title 11, United 
States Code, is amended by inserting ``or, if the debtor is 55 years of 
age or older, $75,000 in value,'' before ``in real property''.

SEC. 425. DISALLOWING CLAIMS FROM VIOLATIONS OF CONSUMER PROTECTION 
              LAWS.

    Section 502(b) of title 11, United States Code, is amended--
            (1) in paragraph (8), by striking ``or'' at the end;
            (2) in paragraph (9), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(10) the claim is subject to any remedy for damages or 
        rescission due to failure to comply with any applicable 
        requirement under the Truth in Lending Act (15 U.S.C. 1601 et 
        seq.), or any other provision of applicable State or Federal 
        consumer protection law that was in force when the 
        noncompliance took place, notwithstanding the prior entry of a 
        foreclosure judgment.''.

              TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Mortgage Disclosure Improvement 
Act of 2008''.

SEC. 502. ENHANCED MORTGAGE LOAN DISCLOSURES.

    (a) Truth in Lending Act Disclosures.--Section 128(b)(2) of the 
Truth in Lending Act (15 U.S.C. 1638(b)(2)) is amended--
            (1) by inserting ``(A)'' before ``In the'';
            (2) by striking ``a residential mortgage transaction, as 
        defined in section 103(w)'' and inserting ``any extension of 
        credit that is secured by the dwelling of a consumer'';
            (3) by striking ``shall be made in accordance'' and all 
        that follows through ``extended, or''; and
            (4) by striking ``If the'' and all that follows through the 
        end of the paragraph and inserting the following:
            ``(B) In the case of an extension of credit that is secured 
        by the dwelling of a consumer, in addition to the other 
        disclosures required by subsection (a), the disclosures 
        provided under this paragraph shall--
                    ``(i) state in conspicuous type size and format, 
                the following: `You are not required to complete this 
                agreement merely because you have received these 
                disclosures or signed a loan application.'; and
                    ``(ii) be furnished to the borrower not later than 
                7 business days before the date of consummation of the 
                transaction, and at the time of consummation of the 
                transaction, subject to subparagraph (D).
            ``(C) In the case of an extension of credit that is secured 
        by the dwelling of a consumer, under which the annual rate of 
        interest is variable, or with respect to which the regular 
        payments may otherwise be variable, in addition to the other 
        disclosures required by subsection (a), the disclosures 
        provided under this paragraph shall--
                    ``(i) label the payment schedule as follows: 
                `Payment Schedule: Payments Will Vary Based on Interest 
                Rate Changes'; and
                    ``(ii) state the maximum amount of the regular 
                required payments on the loan, based on the maximum 
                interest rate allowed, introduced with the following 
                language in conspicuous type size and format: `Your 
                payment can go as high as ___', the blank to be filled 
                in with the maximum possible payment amount.
            ``(D) In any case in which the disclosure statement 
        provided 7 business days before the date of consummation of the 
        transaction contains an annual percentage rate of interest that 
        is no longer accurate, as determined under section 107(c), the 
        creditor shall furnish an additional, corrected statement to 
        the borrower, not later than 3 business days before the date of 
        consummation of the transaction.''.
    (b) Civil Liability.--Section 130(a) of the Truth in Lending Act 
(15 U.S.C. 1640(a)) is amended--
            (1) in paragraph (2)(A)(iii), by striking ``not less than 
        $200 or greater than $2,000'' and inserting ``$5,000, such 
        amount to be adjusted annually based on the consumer price 
        index, to maintain current value''; and
            (2) in the penultimate sentence of the undesignated matter 
        following paragraph (4)--
                    (A) by striking ``only for'' and inserting ``for'';
                    (B) by striking ``section 125 or'' and inserting 
                ``section 122, section 125,'';
                    (C) by inserting ``or section 128(b),''after 
                ``128(a),''; and
                    (D) by inserting ``or section 128(b)'' before the 
                period.

                   TITLE VI--INCENTIVES FOR BUSINESS

SEC. 601. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED FOR 5 
              YEARS; TEMPORARY SUSPENSION OF 90 PERCENT AMT LIMIT.

    (a) In General.--Subparagraph (H) of section 172(b)(1) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                    ``(H) 5-year carryback of certain losses.--
                            ``(i) Taxable years ending during 2001 and 
                        2002.--In the case of a net operating loss for 
                        any taxable year ending during 2001 or 2002, 
                        subparagraph (A)(i) shall be applied by 
                        substituting `5' for `2' and subparagraph (F) 
                        shall not apply.
                            ``(ii) Taxable years beginning or ending 
                        during 2006, 2007, and 2008.--In the case of a 
                        net operating loss with respect to any eligible 
                        taxpayer (within the meaning of section 
                        168(k)(1)(B)) for any taxable year beginning or 
                        ending during 2006, 2007, or 2008--
                                    ``(I) subparagraph (A)(i) shall be 
                                applied by substituting `5' for `2',
                                    ``(II) subparagraph (E)(ii) shall 
                                be applied by substituting `4' for `2', 
                                and
                                    ``(III) subparagraph (F) shall not 
                                apply.''.
    (b) Temporary Suspension of 90 Percent Limit on Certain NOL 
Carrybacks and Carryovers.--
            (1) In general.--Section 56(d) of the of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new paragraph:
            ``(3) Additional adjustments.--For purposes of paragraph 
        (1)(A), in the case of an eligible taxpayer (within the meaning 
        of section 168(k)(1)(B)), the amount described in clause (I) of 
        paragraph (1)(A)(ii) shall be increased by the amount of the 
        net operating loss deduction allowable for the taxable year 
        under section 172 attributable to the sum of--
                    ``(A) carrybacks of net operating losses from 
                taxable years beginning or ending during 2006, 2007, 
                and 2008, and
                    ``(B) carryovers of net operating losses to taxable 
                years beginning or ending during 2006, 2007, or 
                2008.''.
            (2) Conforming amendment.--Subclause (I) of section 
        56(d)(1)(A)(i) of such Code is amended by inserting ``amount of 
        such'' before ``deduction described in clause (ii)(I)''.
    (c) Anti-Abuse Rules.--The Secretary of Treasury or the Secretary's 
designee shall prescribes such rules as are necessary to prevent the 
abuse of the purposes of the amendments made by this section, including 
anti-stuffing rules, anti-churning rules (including rules relating to 
sale-leasebacks), and rules similar to the rules under section 1091 of 
the Internal Revenue Code of 1986 relating to losses from wash sales.
    (d) Effective Dates.--
            (1) Subsection (a).--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by subsection (a) shall apply 
                to net operating losses arising in taxable years 
                beginning or ending in 2006, 2007, or 2008.
                    (B) Election.--In the case of an eligible taxpayer 
                (within the meaning of section 168(k)(1)(B) of the 
                Internal Revenue Code of 1986) with a net operating 
                loss for a taxable year beginning or ending during 2006 
                or 2007--
                            (i) any election made under section 
                        172(b)(3) of the Internal Revenue Code of 1986 
                        may (notwithstanding such section) be revoked 
                        before November 1, 2008, and
                            (ii) any election made under section 172(j) 
                        of such Code shall (notwithstanding such 
                        section) be treated as timely made if made 
                        before November 1, 2008.
            (2) Subsection (b).--The amendments made by subsection (b) 
        shall apply to taxable years ending after December 31, 1995.
                                                       Calendar No. 577

110th CONGRESS

  2d Session

                                S. 2636

_______________________________________________________________________

                                 A BILL

                   To provide needed housing reform.

_______________________________________________________________________

                           February 14, 2008

            Read the second time and placed on the calendar