[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4109 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4109

  To amend the Internal Revenue Code of 1986 to allow the low income 
   housing credit to be carried back 5 years, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 18, 2009

 Mr. Pascrell 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 allow the low income 
   housing credit to be carried back 5 years, and for other purposes.

    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 ``Low Income Housing Tax Credit Act of 
2009''.

SEC. 2. ALLOWING LOW INCOME HOUSING CREDITS TO OFFSET 100 PERCENT OF 
              FEDERAL INCOME TAX LIABILITY.

    (a) In General.--Subsection (c) of section 38 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(6) Allowing low income housing credit to offset 100 
        percent of federal income tax liability.--
                    ``(A) In general.--In the case of applicable low 
                income housing credits--
                            ``(i) this section shall be applied 
                        separately with respect to such credits,
                            ``(ii) in applying paragraph (1) to such 
                        credits--
                                    ``(I) the tentative minimum tax 
                                shall be treated as being zero, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be the net income tax (as 
                                defined in paragraph (1)) reduced by 
                                the credit allowed under subsection (a) 
                                for the taxable year (other than the 
                                applicable low income housing credits), 
                                and
                            ``(iii) the excess credit for such taxable 
                        year shall, solely for purposes of determining 
                        the amount of such excess credit which may be 
                        carried back to a preceding taxable year, be 
                        increased by the amount of business credit 
                        carryforwards which are carried to such taxable 
                        year, to which this subparagraph applies, and 
                        which are not allowed for such taxable year by 
                        reason of the limitation under paragraph (1) 
                        (as modified by clause (ii)).
                    ``(B) Increase in limitation for taxable years to 
                which excess applicable low income housing credits are 
                carried back.--
                            ``(i) In general.--Solely for purposes of 
                        determining the portion of any excess credit 
                        described in subparagraph (A)(iii) for which 
                        credit will be allowed under subsection (a)(3) 
                        for any preceding taxable year, the limitation 
                        under paragraph (1) for such preceding taxable 
                        year shall be determined under rules similar to 
                        the rules described in subparagraph (A).
                            ``(ii) Ordering rule.--If the excess credit 
                        described in subparagraph (A)(iii) includes 
                        business credit carryforwards from preceding 
                        taxable years, such excess credit shall be 
                        treated as allowed for any preceding taxable 
                        year on a first-in first-out basis.
                    ``(C) Applicable low income housing credits.--For 
                purposes of this subpart, the term `applicable low 
                income housing credits' means the credit determined 
                under section 42--
                            ``(i) to the extent attributable to 
                        buildings placed in service after the date of 
                        the enactment of this subparagraph, and
                            ``(ii) in the case of any other buildings, 
                        for taxable years beginning in 2008, 2009, and 
                        2010 (and to business credit carryforwards with 
                        respect to such buildings carried to such 
                        taxable years) to the extent provided in 
                        subparagraph (D).
                    ``(D) Previously placed in service buildings.--
                            ``(i) In general.--Subparagraph (C)(ii) 
                        shall apply to such credits for such a taxable 
                        year only--
                                    ``(I) if the taxpayer and the 
                                housing credit agency have entered into 
                                an agreement, not later than the 
                                applicable date, with respect to an 
                                investment in a future project (which 
                                is binding on such agency, the 
                                taxpayer, and all successors in 
                                interest) which specifies the dollar 
                                amount of such investment and the 
                                housing credit dollar amount to be 
                                allocated to such project, and
                                    ``(II) to the extent such credits 
                                do not exceed the dollar amount of such 
                                proposed investment.
                            ``(ii) Applicable date.--For purposes of 
                        this subparagraph, the applicable date is--
                                    ``(I) in the case of taxable years 
                                beginning in 2008 and 2009, September 
                                15, 2010, or
                                    ``(II) in the case of a taxable 
                                year beginning in 2010, the due date 
                                (including extensions of time) for 
                                filing the taxpayer's return for such 
                                taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007, and to carrybacks 
of credits from such taxable years.

SEC. 3. FIVE-YEAR CARRYBACK OF LOW INCOME HOUSING CREDIT.

    (a) In General.--Subsection (a) of section 39 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(4) 5-year carryback of low income housing credit.--
                    ``(A) In general.--In the case of an applicable low 
                income housing credit--
                            ``(i) this section shall be applied 
                        separately from the business credit (other than 
                        the low income housing credit), and
                            ``(ii) paragraph (1) shall be applied by 
                        substituting `each of the 5 taxable years' for 
                        `the taxable year' in subparagraph (A) 
                        thereof.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007, and to carrybacks 
of credits from such taxable years.
                                 <all>