,i #aacth ,,congress #ast ,session ,h4 ,r4 #bjdb ,,in ,,the ,,house ,,of ,,representatives ,may #ag1 #bjac ,mr4 ,mc,kinley 7for himself1 ,mr4 ,ben ,ray ,lujn of ,new ,mexico1 ,mr4 ,carson of ,indiana1 and ,mr4 ,tonko7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to increase the rehabilitation credit for commercial buildings and to provide a rehabilitation credit for principal residences4 #a4 ,short title ,this ,act may be cited as the ,preserving ,america's ,downtowns and ,heritage ,act of #bjac4 #b4 ,increased rehabilitation credit for commercial buildings 7a7 ,buildings other than certified historic structures ,paragraph 7#a7 of section #dg7;a7 of the ,internal ,revenue ,code of #aihf 7relating to rehabilitation credit7 is amended by striking #aj percent and inserting #ab4e percent4 7b7 ,certified historic structures ,paragraph 7#b7 of such section is amended by striking #bj percent and inserting #be percent4 7c7 ,effective date ,the amendments made by this section shall apply with respect to rehabilitations the physical work on which begins after the date of enactment of this ,act4 #c4 ,rehabilitation credit for historic principal residences 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to nonrefundable personal credits7 is amended by inserting after section #be;,d the following new section3 #be;,e4 ,rehabilitation of historic principal residences 7a7 ,general rule ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to #bj percent of the qualified rehabilitation expenditures made by the taxpayer with respect to a qualified historic home4 7b7 ,qualified rehabilitation expenditure ,for purposes of this section-- 7#a7 ,in general ,the term qualified rehabilitation expenditure means any amount properly chargeable to capital account-- 7,a7 in connection with the certified rehabilitation of a qualified historic home1 and 7,b7 for property for which depreciation would be allowable under section #afh if the qualified historic home were used in a trade or business4 7#b7 ,certain expenditures not included ,rules similar to the rules of clauses 7ii7 and 7iii7 of section #dg7;c77#b77;,b7 shall apply4 7#c7 ,mixed use or multifamily building ,if only a portion of a building is used as the principal residence of the taxpayer1 only qualified rehabilitation expenditures which are properly allocable to such portion shall be taken into account under this section4 7c7 ,certified rehabilitation ,for purposes of this section-- 7#a7 ,in general ,the term certified rehabilitation has the meaning given such term by section #dg7;c77#b77;,c74 7#b7 ,approved ,state program ,the term certified rehabilitation includes a certification made by-- 7,a7 a ,state ,historic ,preservation ,officer who administers a ,state ,historic ,preservation ,program approved by the ,secretary of the ,interior pursuant to section #aja7;b77#a7 of the ,national ,historic ,preservation ,act1 or 7,b7 a local government1 certified pursuant to section #aja7;c77#a7 of the ,national ,historic ,preservation ,act and authorized by a ,state ,historic ,preservation ,officer1 or the ,secretary of the ,interior where there is no approved ,state program1 subject to such terms and conditions as may be specified by the ,secretary of the ,interior for the rehabilitation of buildings within the jurisdiction of such officer 7or local government7 for purposes of this section4 7d7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,qualified historic home ,the term qualified historic home means a certified historic structure-- 7,a7 which has been substantially rehabilitated1 and 7,b7 which 7or any portion of which7-- 7i7 is owned by the taxpayer1 and 7ii7 is used 7or will1 within a reasonable period1 be used7 by such taxpayer as his principal residence4 7#b7 ,substantially rehabilitated ,the term substantially rehabilitated has the meaning given such term by section #dg7;c77#a77;,c74 7#c7 ,principal residence ,the term principal residence has the same meaning as when used in section #aba4 7#d7 ,certified historic structure 7,a7 ,in general ,the term certified historic structure means any building 7and its structural components7 which-- 7i7 is listed in the ,national ,register1 or 7ii7 is located in a registered historic district 7as defined in section #dg7;c77#c77;,b77 and is certified by the ,secretary of the ,interior as being of historic significance to the district4 7#e7 ,rehabilitation not complete before certification ,a rehabilitation shall not be treated as complete before the date of the certification referred to in subsection 7c74 7#f7 ,tenant-stockholder in cooperative housing corporation ,if the taxpayer holds stock as a tenant-stockholder 7as defined in section #baf7 in a cooperative housing corporation 7as defined in such section71 such stockholder shall be treated as owning the house or apartment which the taxpayer is entitled to occupy as such stockholder4 7e7 ,carryforward of unused credit ,if the credit allowable under subsection 7a7 exceeds the limitation imposed by section #bf7;a7 for the taxable year reduced by the sum of the credits allowable under this subpart 7other than this section and sections #be;,d and #adjj;,c71 such excess shall be a carried to each of the #e succeeding taxable years and1 subject to rules similar to the rules of section #ci7;a77#b71 shall be added to the credit allowable by subsection 7a7 for such succeeding taxable year4 7f7 ,when expenditures taken into account ,qualified rehabilitation expenditures shall be treated for purposes of this section as made-- 7#a7 on the date the rehabilitation is completed1 or 7#b7 to the extent provided by the ,secretary by regulation1 when such expenditures are properly chargeable to capital account4 ,regulations under paragraph 7#b7 shall include a rule similar to the rule under section #ej7;a77#b7 7relating to recapture if property ceases to qualify for progress expenditures74 7g7 ,recapture 7#a7 ,in general ,if1 before the end of the #e-year period beginning on the date on which the rehabilitation of the building is completed-- 7,a7 the taxpayer disposes of such taxpayer's interest in such building1 or 7,b7 such building ceases to be used as the principal residence of the taxpayer or ceases to be a certified historic structure1 the taxpayer's tax imposed by this chapter for the taxable year in which such disposition or cessation occurs shall be increased by the recapture percentage of the credit allowed under this section for all prior taxable years with respect to such rehabilitation4 7#b7 ,recapture percentage ,for purposes of paragraph 7#a71 the recapture percentage shall be determined in accordance with the table under section #ej7;a77#a77;,b71 deeming such table to be amended-- 7,a7 by striking ,if the property ceases to be investment credit property within-- and inserting ,if the disposition or cessation occurs within--1 and 7,b7 in clause 7i7 by striking ,one full year after placed in service and inserting ,one full year after the taxpayer becomes entitled to the credit4 7#c7 ,transfer between spouses or incident to divorce ,in the case of any transfer described in subsection 7a7 of section #ajda 7relating to transfers between spouses or incident to divorce7-- 7,a7 the foregoing provisions of this subsection shall not apply1 and 7,b7 the same tax treatment under this subsection with respect to the transferred property shall apply to the transferee as would have applied to the transferor4 7h7 ,basis adjustments ,for purposes of this subtitle1 if a credit is allowed under this section for any expenditure with respect to any property1 the increase in the basis of such property which would 7but for this subsection7 result from such expenditure shall be reduced by the amount of the credit so allowed4 7i7 ,processing fees ,any ,state may impose a fee for the processing of applications for the certification of any rehabilitation under this section provided that the amount of such fee is used only to defray expenses associated with the processing of such applications4 7j7 ,denial of double benefit ,no credit shall be allowed under this section for any amount for which credit is allowed under section #dg4 7k7 ,regulations ,the ,secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section1 including regulations where less than all of a building is used as a principal residence and where more than #a taxpayer use the same dwelling unit as their principal residence4 4 7b7 ,conforming amendments 7#a7 ,subsection 7a7 of section #ajaf of such ,code is amended by striking and at the end of paragraph 7#cf71 by striking the period at the end of paragraph 7#cg7 and inserting 1 and1 and by adding at the end the following new item3 7#ch7 to the extent provided in section #be;,e7h74 4 7#b7 ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #be;,d the following new item3 ,sec4 #be;,e4 ,rehabilitation of historic principal residences44 7c7 ,effective date ,the amendments made by this section shall apply with respect to rehabilitations the physical work on which begins after the date of enactment of this ,act4