,i #aacth ,,congress #ast ,session ,h4 ,r4 #hgg ,,in ,,the ,,house ,,of ,,representatives ,february #bg1 #bjac ,mr4 ,turner 7for himself1 ,mr4 ,holt1 ,mr4 ,cicilline1 ,mr4 ,langevin1 ,mr4 ,higgins1 ,mr4 ,keating1 ,mr4 ,blumenauer1 and ,mr4 ,stivers7 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 expand the incentives for the rehabilitation of older buildings1 including owner-occupied residences4 #a4 ,short title ,this ,act may be cited as the ,historic ,homeownership ,revitalization ,act of #bjac4 #b4 ,historic home ownership rehabilitation credit 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 ,historic home ownership rehabilitation credit 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 ,dollar limitation ,the credit allowed by subsection 7a7 with respect to any residence of a taxpayer shall not exceed #fj1jjj 7#cj1jjj in the case of a married individual filing a separate return74 7c7 ,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 7,a7 ,exterior ,such term shall not include any expenditure in connection with the rehabilitation of a building unless at least #e percent of the total expenditures made in the rehabilitation process are allocable to the rehabilitation of the exterior of such building4 7,b7 ,other rules to apply ,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 7d7 ,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 7e7 ,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 ,the term certified historic structure means any building 7and its structural components7 which-- 7,a7 is listed in the ,national ,register1 or 7,b7 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 7d74 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 7#g7 ,allocation of expenditures relating to exterior of building containing cooperative or condominium units ,the percentage of the total expenditures made in the rehabilitation of a building containing cooperative or condominium residential units allocated to the rehabilitation of the exterior of the building shall be attributed proportionately to each cooperative or condominium residential unit in such building for which a credit under this section is claimed4 7#h7 ,carryback and carryforward of credit unused by reason of limitation based on tax liability 7,a7 ,in general ,if the credit allowable under subsection 7a7 for any taxable year exceeds the tax limit for such taxable year1 such excess shall be a carryback to the preceding taxable year and a carryforward to each of the #c succeeding taxable years and1 subject to the limitations of subparagraph 7,b71 shall be added to the credit allowable by subsection 7a7 for such preceding or succeeding taxable year1 as the case may be4 7,b7 ,amount carried to each year ,rules similar to the rules of section #ci7;a77#b7 shall apply for purposes of this paragraph4 7,c7 ,limitation ,the amount of the unused credit which may be taken into account under subparagraph 7,a7 for any taxable year shall not exceed the amount 7if any7 by which the tax limit for such taxable year exceeds the sum of-- 7i7 the credit allowable under subsection 7a7 for such taxable year determined without regard to this paragraph1 and 7ii7 the amounts which1 by reason of this paragraph1 are carried to such taxable year and are attributable to taxable years before the unused credit year4 7,d7 ,tax limit ,for purposes of this paragraph1 the term tax limit means 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 section74 7#i7 ,credit may be assigned ,the amount of qualified rehabilitation expenditures which would 7but for this paragraph7 be taken into account under subsection 7a7 for any taxable year by any person 7hereafter in this paragraph referred to as the initial taxpayer7-- 7,a7 may be taken into account by any other person to whom such expenditures are assigned by the initial taxpayer1 and 7,b7 shall not be taken to account by initial taxpayer4 ,any person to whom such expenditures are assigned under subparagraph 7,a7 shall be treated for purposes of this title as the taxpayer with respect to such expenditures4 7f7 ,when expenditures taken into account ,in the case of a building other than a building to which subsection 7g7 applies1 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 ,allowance of credit for purchase of rehabilitated historic home 7#a7 ,in general ,in the case of a qualified purchased historic home1 the taxpayer shall be treated as having made 7on the date of purchase7 the expenditures made by the seller of such home4 ,for purposes of the preceding sentence1 expenditures made by the seller shall be deemed to be qualified rehabilitation expenditures if such expenditures1 if made by the purchaser1 would be qualified rehabilitation expenditures4 7#b7 ,qualified purchased historic home ,for purposes of this subsection1 the term qualified purchased historic home means any substantially rehabilitated certified historic structure purchased by the taxpayer if-- 7,a7 the taxpayer is the first purchaser of such structure after the date rehabilitation is completed1 and the purchase occurs within #e years after such date1 7,b7 the structure 7or a portion thereof7 will1 within a reasonable period1 be the principal residence of the taxpayer1 7,c7 no credit was allowed to the seller under this section or section #dg with respect to such rehabilitation1 and 7,d7 the taxpayer is furnished with such information as the ,secretary determines is necessary to determine the credit under this subsection4 7h7 ,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 7or1 if subsection 7g7 applies1 the date of purchase of such building by the taxpayer7-- 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 7i7 ,basis adjustments ,for purposes of this subtitle1 if a credit is allowed under this section for any expenditure with respect to any property 7including any purchase under subsection 7g771 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 7j7 ,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 7k7 ,denial of double benefit ,no credit shall be allowed under this section for any amount for which credit is allowed under section #dg4 7l7 ,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 7,a7 ,subparagraph 7,c7 of section #be7;e77#a7 of such ,code is amended by inserting #be;,e1 after sections #be;,d14 7,b7 ,section #be;,d7c7 of such ,code is amended by inserting and section #be;,e after 7other than this section4 7,c7 ,section #adjj;,c7d7 of such ,code is amended by striking section #be;,d and inserting sections #be;,d and #be;,e4 7#b7 ,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;,e7i74 4 7c7 ,clerical amendment ,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 ,historic home ownership rehabilitation credit44 7d7 ,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 ,expansion of incentives for building rehabilitation 7a7 ,increase in rehabilitation credit for buildings in high cost areas ,paragraph 7#b7 of subsection #dg7;c7 of such ,code 7defining qualified rehabilitation expenditures7 is amended by adding at the end the following new subparagraph3 7,e7 ,increase in credit for buildings in high cost areas ,in the case of any qualified rehabilitated building which is residential rental property 7as defined in subparagraph 7,d77 located in a qualified census tract or difficult development area which is designated for purposes of section #db7;d77#e77;,c71 the qualified rehabilitation expenditures taken into account under this section shall be #acj percent of such expenditures determined without regard to this subparagraph4 4 7b7 ,rehabilitation credit may be transferred 7#a7 ,in general ,subsection 7b7 of section #dg of such ,code 7relating to when expenditures taken into account7 is amended by adding at the end the following new paragraph3 7#c7 ,credit may be assigned ,the amount of qualified rehabilitation expenditures with respect to property described in which would 7but for this paragraph7 be taken into account under subsection 7a7 for any taxable year by any person 7hereafter in this paragraph referred to as the initial taxpayer7-- 7,a7 may be taken into account by any other person to whom such expenditures are assigned by the initial taxpayer1 and 7,b7 shall not be taken to account by initial taxpayer4 ,any person to whom such expenditures are assigned under subparagraph 7,a7 shall be treated for purposes of this title as the taxpayer with respect to such expenditures4 4 7#b7 ,conforming amendment ,the heading for such subsection 7b7 is amended by inserting 2 eligibility for credit may be assigned after account4 7c7 ,applicability to buildings held for sale 7#a7 ,in general 7,a7 ,clause 7iv7 of section #dg7;c77#a77;,a7 of such ,code is amended to read as follows3 7iv7 depreciation 7or amortization in lieu of depreciation7-- 7,i7 is allowable with respect to such building1 or 7,,ii7 in the case of a residential property1 would be allowable with respect to such building but for the building being held for sale4 4 7,b7 ,paragraph 7#b7 of section #dg7;c7 of such ,code is amended by adding at the end the following new subparagraph3 7,e7 ,special rule for certain property held for sale ,for purposes of this paragraph1 in the case of a qualified rehabilitated building described in paragraph 7#a77;,a77iv77,,ii71 such building shall be treated as owned by the taxpayer as rental property with respect to which the straight line depreciation method is used over a recovery period determined under subsection 7c7 or 7g7 of section #afh4 4 7#b7 ,conforming amendment ,paragraph 7#d7 of section #ej7;a7 of such ,code is amended by striking or at the end of subparagraph 7,a71 but striking the period at the end of subparagraph 7,b7 and inserting 1 or1 and by inserting after subparagraph 7,b7 the following new subparagraph3 7,c7 property described in section #dg7;c77#a77;,a77iv77,,ii7 that has not otherwise ceased to be investment property4 4 7d7 ,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