I 111th CONGRESS 1st Session H. R. 3811 IN THE HOUSE OF REPRESENTATIVES October 14, 2009 Ms. Kosmas introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to authorize the Secretary, for a period of 2 years, to allocate a new markets tax credit limitation to entities that serve or provide investment capital for distressed communities.

1.

Short title

This Act may be cited as the New Markets Tax Credit Expansion Act of 2009.

2.

Special allocations rules with respect to distressed communities

(a)

In general

Section 45D(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (6)

Distressed communities

(A)

In general

In case of allocations made under subsection (f)(2) for calendar years 2010 and 2011, a low-income community shall include a distressed community. (B)

Distressed community

For purposes of subparagraph (A)— (i)

In general

The term distressed community means a county that the Secretary designates as— (I)having, for any month during the applicable period— (aa)a residential mortgage foreclosure rate of 110 percent or more of the national average, (bb)a commercial mortgage foreclosure rate of 110 percent or more of the national average, (cc)a decline in the average fair market value of housing of at least 20 percent, or (dd)an unemployment rate of 110 percent or more of the national average, (II)being a county in which, for a calendar year during the applicable period, more than 50 percent of loans secured by housing had a loan-to-value ratio of greater than 80 percent, or (III)being in a disaster area (as defined in section 165(h)(3)(C)) as a result of a federally declared disaster that occurred during the applicable period. (ii)

Applicable period

The term applicable period means— (I)in the case of subclauses (I) and (II) of clause (i), the period beginning on January 1, 2008, and ending on the date which is 2 years after the date of the enactment of the New Markets Tax Credit Expansion Act of 2009, and (II)in the case of subclause (III) of clause (i), the 4-year period ending on the date which is 2 years after the date of the enactment of the New Markets Tax Credit Expansion Act of 2009. . (b)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.