[House Report 110-66]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     110-66

======================================================================
 
                 KATRINA HOUSING TAX RELIEF ACT OF 2007

                                _______
                                

 March 23, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Rangel, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 1562]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 1562) to amend the Internal Revenue Code of 1986 to 
extend and expand certain rules with respect to housing in the 
GO Zones, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Katrina Housing Tax Relief Act of 
2007''.

SEC. 2. EXTENSION AND EXPANSION OF LOW-INCOME HOUSING CREDIT RULES FOR 
                    BUILDINGS IN THE GO ZONES.

  (a) Time for Making Low-Income Housing Credit Allocations.--
Subsection (c) of section 1400N of the Internal Revenue Code of 1986 
(relating to low-income housing credit) is amended by redesignating 
paragraph (5) as paragraph (6) and by inserting after paragraph (4) the 
following new paragraph:
          ``(5) Time for making low-income housing credit 
        allocations.--Section 42(h)(1)(B) shall not apply to an 
        allocation of housing credit dollar amount to a building 
        located in the Gulf Opportunity Zone, the Rita GO Zone, or the 
        Wilma GO Zone, if such allocation is made in 2006, 2007, or 
        2008, and such building is placed in service before January 1, 
        2011.''.
  (b) Extension of Period for Treating GO Zones as Difficult 
Development Areas.--
          (1) In general.--Subparagraph (A) of section 1400N(c)(3) of 
        such Code is amended by striking ``2006, 2007, or 2008'' and 
        inserting ``the period beginning on January 1, 2006, and ending 
        on December 31, 2010''.
          (2) Conforming amendment.--Clause (ii) of section 
        1400N(c)(3)(B) of such Code is amended by striking ``such 
        period'' and inserting ``the period described in subparagraph 
        (A)''.
  (c) Community Development Block Grants Not Taken Into Account in 
Determining if Buildings Are Federally Subsidized.--Subsection (c) of 
section 1400N of such Code (relating to low-income housing credit), as 
amended by this Act, is amended by redesignating paragraph (6) as 
paragraph (7) and by inserting after paragraph (5) the following new 
paragraph:
          ``(6) Community development block grants not taken into 
        account in determining if buildings are federally subsidized.--
        For purpose of applying section 42(i)(2)(D) to any building 
        which is placed in service in the Gulf Opportunity Zone, the 
        Rita GO Zone, or the Wilma GO Zone during the period beginning 
        on January 1, 2006, and ending on December 31, 2010, a loan 
        shall not be treated as a below market Federal loan solely by 
        reason of any assistance provided under section 106, 107, or 
        108 of the Housing and Community Development Act of 1974 by 
        reason of section 122 of such Act or any provision of the 
        Department of Defense Appropriations Act, 2006, or the 
        Emergency Supplemental Appropriations Act for Defense, the 
        Global War on Terror, and Hurricane Recovery, 2006.''.

SEC. 3. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR REPAIRS AND 
                    RECONSTRUCTIONS OF RESIDENCES IN THE GO ZONES.

  Subsection (a) of section 1400N of the Internal Revenue Code of 1986 
(relating to tax-exempt bond financing) is amended by adding at the end 
the following new paragraph:
          ``(7) Special rule for repairs and reconstructions.--
                  ``(A) In general.--For purposes of section 143 and 
                this subsection, any qualified GO Zone repair or 
                reconstruction shall be treated as a qualified 
                rehabilitation.
                  ``(B) Qualified go zone repair or reconstruction.--
                For purposes of subparagraph (A), the term `qualified 
                GO Zone repair or reconstruction' means any repair of 
                damage caused by Hurricane Katrina, Hurricane Rita, or 
                Hurricane Wilma to a building located in the Gulf 
                Opportunity Zone, the Rita GO Zone, or the Wilma GO 
                Zone (or reconstruction of such building in the case of 
                damage constituting destruction) if the expenditures 
                for such repair or reconstruction are 25 percent or 
                more of the mortgagor's adjusted basis in the 
                residence. For purposes of the preceding sentence, the 
                mortgagor's adjusted basis shall be determined as of 
                the completion of the repair or reconstruction or, if 
                later, the date on which the mortgagor acquires the 
                residence.
                  ``(C) Termination.--This paragraph shall apply only 
                to owner-financing provided after the date of the 
                enactment of this paragraph and before January 1, 
                2011.''.

SEC. 4. GAO STUDY OF PRACTICES EMPLOYED BY STATE AND LOCAL GOVERNMENTS 
                    IN ALLOCATING AND UTILIZING TAX INCENTIVES PROVIDED 
                    PURSUANT TO THE GULF OPPORTUNITY ZONE ACT OF 2005.

  (a) In General.--The Comptroller General of the United States shall 
conduct a study of the practices employed by State and local 
governments, and subdivisions thereof, in allocating and utilizing tax 
incentives provided pursuant to the Gulf Opportunity Zone Act of 2005 
and this Act.
  (b) Submission of Report.--Not later than one year after the date of 
the enactment of this Act, the Comptroller General shall submit a 
report on the findings of the study conducted under subsection (a) and 
shall include therein recommendations (if any) relating to such 
findings. The report shall be submitted to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate.
  (c) Congressional Hearings.--In the case that the report submitted 
under this section includes findings of significant fraud, waste or 
abuse, each Committee specified in subsection (b) shall, within 60 days 
after the date the report is submitted under subsection (b), hold a 
public hearing to review such findings.

SEC. 5. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES FOR 
                    EMPLOYMENT TAX LIABILITIES.

  (a) In General.--Section 6330(f) of the Internal Revenue Code of 1986 
(relating to jeopardy and State refund collection) is amended--
          (1) by striking ``; or'' at the end of paragraph (1) and 
        inserting a comma,
          (2) by adding ``or'' at the end of paragraph (2), and
          (3) by inserting after paragraph (2) the following new 
        paragraph:
          ``(3) the Secretary has, on or before September 30, 2015, 
        served a levy in connection with the collection of taxes under 
        chapter 21, 22, 23, or 24,''.
  (b) Effective Date.--The amendments made by this section shall apply 
to levies served on or after the date that is 120 days after the date 
of the enactment of this Act.

SEC. 6. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

  Subparagraph (B) of section 401(1) of the Tax Increase Prevention and 
Reconciliation Act of 2005 is amended by striking ``106.25 percent'' 
and inserting ``106.45 percent''.
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