,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #chdf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #bh1 #bjae    
,mr4 ,kelly ( ,p5nsylvania 7= himself1  
,mr4 ,blum5au]1 ,mr4 ,tib]i1 ,mr4 ,neal1
 ,mr4 ,b\/any1 ,mr4 ,l>son (            
,connecticut1 ,mr4 ,turn]1 ,mr4 ,k9d1   
,mr4 ,rangel1 & ,mr4 ,re$7 introduc$ !  
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to improve ! ,hi/oric             
,rehabilitation ,tax ,cr$it1 & = o!r    
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,hi/oric ,tax ,cr$it       
,improvem5t ,act ( #bjae4  #b4 ,increase
 9 ! rehabilitation cr$it = c]ta9 small 
projects  7a7 ,9 g5]al ,section #dg ( ! 
,int]nal ,rev5ue ,code ( #aihf 7relat+  
to rehabilitation cr$it7 is am5d$ by    
add+ at ! end ! foll[+ new subsection3  
7e7 ,special rule reg>d+ c]ta9 small]   
projects  7#a7 ,9 g5]al ,9 ! case ( any 
qualifi$ rehabilitat$ build+ or portion 
!re(-- 7,a7 :i* is plac$ 9 s]vice aft] !

 date ( ! enactm5t ( ?is subsection1 &  
7,b7 :i* is a small] project1           
subsection 7a77#b7 %all be appli$ by    
sub/itut+ #cj p]c5t = #bj p]c5t4  7#b7  
,maximum cr$it ,! cr$it det]m9$ "u ?is  
subsection ) respect to any small]      
project = all taxable ye>s %all n exce$ 
#gej1jjj4  7#c7 ,small] project def9$   
7,a7 ,9 g5]al ,= purposes ( ?is         
subsection1 ! t]m small] project means  
any qualifi$ rehabilitat$ build+ or     
portion !re( if-- 7i7 ! qualifi$        
rehabilitation exp5ditures tak5 into    
acc\nt = purposes ( ?is section 7or w\ld
 h be5 s tak5 into acc\nt if ?is        
subsection _h be5 9 effect = all prior  
p]iods7 ) respect to ! rehabilitation   
are n ov] #c1gej1jjj1 &  7ii7 no cr$it 0
 all[$ "u ?is section = ei!r ( ! #b     
prior taxable ye>s ) respect to su*     
build+4  7,b7 ,progress exp5ditures     
,cr$it all[able by reason ( subsection  
7d7 %all n be tak5 into acc\nt "u       
subp>agraph 7,a77ii74  4  7b7 ,effective
 date ,! am5dm5t made by ?is section    

%all apply to p]iods aft] ! date ( !    
enactm5t ( ?is ,act1 "u rules simil> to 
! rules ( section #dh7m7 ( ! ,int]nal   
,rev5ue ,code ( #aihf 7z 9 effect on !  
day be=e ! date ( ! enactm5t ( ! ,rev5ue
 ,reconciliation ,act ( #aiij74  #c4    
,all[ance = ! transf] ( cr$its = c]ta9  
small projects  7a7 ,9 g5]al ,section   
#dg7;e7 ( ! ,int]nal ,rev5ue ,code (    
#aihf1 z am5d$ by section #b1 is am5d$  
by add+ at ! end ! foll[+ new           
subsection3  7#d7 ,transf] ( small]     
project cr$it  7,a7 ,9 g5]al ,subject to
 subp>agraph 7,b7 & su* regulations or  
o!r guidance z ! ,secret>y may provide1 
! taxpay] may transf] all or a portion (
 ! cr$it all[able to ! taxpay] "u       
subsection 7a7 = a small] project4  7,b7
 ,c]tification  7i7 ,9 g5]al ,a transf] 
"u subp>agraph 7,a7 %all be accompani$  
by a c]tificate :i* includes-- 7,i7 !   
c]tification = ! c]tifi$ hi/oric        
/ructure ref]r$ to 9 subsection 7c77#c71
  7,,ii7 ! taxpay]'s "n1 address1 tax   
id5tification numb]1 date ( project     

completion1 & ! am\nt ( cr$it be+       
transf]r$1  7,,iii7 ! transf]ee's "n1   
address1 tax id5tification numb]1 & !   
am\nt ( cr$it be+ transf]r$1 &  7,,iv7  
su* o!r in=mation z may be requir$ by ! 
,secret>y4  7ii7 ,transf]ability (      
c]tificate ,a c]tificate issu$ "u ?is   
section to a taxpay] %all be transf]able
 to any o!r taxpay]1 except t a         
c]tificate may n be transf]r$ m ?an     
once4  7,c7 ,tax treatm5t relat+ to     
c]tificate  7i7 ,disall[ance ( d$uction 
,no d$uction %all be all[$ = ! am\nt (  
consid]ation paid or incurr$ by !       
transf]ee4  7ii7 ,all[ance ( cr$it ,!   
am\nt ( cr$it transf]r$ "u subp>agraph  
7,a7--  7,i7 %all n be all[$ to !       
transf]or = any taxable ye>1 &  7,,ii7  
%all be all[able to ! transf]ee z a     
cr$it "u ?is section = ! taxable ye> ( !
 transf]ee 9 :i* su* cr$it is transf]r$4
  7,d7 ,recapture & o!r special rules ,!
 taxpay] :o claims a cr$it "u ?is       
section by reason ( a transf] ( an am\nt
 ( cr$it "u subp>agraph 7,a7 ) respect  

to a small] project %all be treat$ z !  
taxpay] ) respect to ! small] project = 
purposes ( section #ej4  7,e7 ,in=mation
 report+ ,! transf]or & ! transf]ee %all
 ea* make su* reports reg>d+ ! transf] (
 an am\nt ( cr$it "u p>agraph 7,a7 &    
conta9+ su* in=mation z ! ,secret>y may 
require4 ,! reports requir$ by ?is      
subsection %all be fil$ at su* "t & 9   
su* mann] z may be requir$ by !         
,secret>y4  7,f7 ,regulations ,!        
,secret>y %all prescribe regulations or 
o!r guidance to c>ry out ?is p>agraph4  
4  7b7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to p]iods aft]
 ! date ( ! enactm5t ( ?is ,act4  #d4   
,increas+ ! type ( build+s eligible =   
rehabilitation  7a7 ,9 g5]al ,section   
#dg7;c77#a77;,c77i77,i7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 #ej p]c5t ( be=e ! adju/$ basis4  7b7  
,effective date ,! am5dm5t made by      
subsection 7a7 %all apply to taxable    
ye>s beg9n+ aft] ! date ( ! enactm5t (  
?is ,act4  #e4 ,r$uction ( basis        

adju/m5t = rehabilitation prop]ty  7a7  
,9 g5]al ,section #ej7;c7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+3  7#f7 ,special rule  
relat+ to ! rehabilitation cr$it ,9 !   
case ( any rehabilitation cr$it--  7,a7 
only #ej p]c5t ( su* cr$it %all be tak5 
into acc\nt "u p>agraph 7#a71 &  7,b7   
only #ej p]c5t ( any recapture am\nt    
attributable to su* cr$it %all be tak5  
into acc\nt "u p>agraph 7#b74  4  7b7   
,coord9ation ) basis adju/m5t ,section  
#ej ( su* ,code is am5d$ by add+ at !   
end ! foll[+3  7e7 ,coord9ation ) basis 
adju/m5t ,9 apply+ ! provisions ( =m]   
section #dh7;d77#e77;,b7 pursuant to    
subsection 7d77#e7 to a lease ( prop]ty 
eligible = ! rehabilitation tax cr$it1 !
 lessee ( su* prop]ty %all include      
ratably 9 gross income ov] ! %orte/     
recov]y p]iod t c\ld be applicable "u   
section #afh ) respect to su* prop]ty an
 am\nt equal to #ej p]c5t ( ! am\nt ( ! 
cr$it all[able "u section #ch to !      
lessee ) respect to su* prop]ty4  4  #f4

 ,special rules = dispositions ( /ate   
hi/oric tax cr$its  7a7 ,9 g5]al ,"p    
,,iii ( sub*apt] ,b ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf 7relat+  
to items specifically exclud$ f gross   
income7 is am5d$ by ins]t+ aft] section 
#aci;,e ! foll[+ new section3  #aci;,f4 
,dispositions ( /ate hi/oric tax cr$its 
7a7 ,exclusion f income2 basis r$uction 
7#a7 ,9 g5]al ,9 ! case ( a taxpay] :o  
receives a ,/ate hi/oric tax cr$it &    
transf]s su* cr$it by sale1 allocation1 
or o!rwise1 or receives a refund ( all  
or a portion ( su* cr$it--  7,a7 no     
portion ( ! net proce$s ( su*           
allocation1 disposition1 or refund ( su*
 cr$it %all con/itute income to su*     
taxpay] "u section #fa7;a71 &  7,b7 !   
taxpay]'s basis 9 ! prop]ty ) respect to
 :i* ! ,/ate hi/oric tax cr$it is all[$ 
%all be r$uc$ z det]m9$ "u p>agraph     
7#b74  7#b7 ,det]m9ation ( r$uction 9   
basis ,! r$uction 9 basis "u p>agraph   
7#a7 %all be appli$-- 7,a7 fir/1 aga9/ !
 basis 9 ! l&1  7,b7 second1 aga9/ s mu*

 ( ! basis ( any build+ or int]e/ !re9 z
 0 n treat$ z a qualifi$ rehabilitation 
exp5diture by reason ( clause 7ii7 or   
7iii7 ( section #dg7;c77#b77;,b71 &     
7,c7 ?ird1 aga9/ ! rema9+ basis 9 !     
prop]ty4  7,d7 ,adju/m5t 9 basis (      
int]e/ 9 p>tn]%ip or s corporation ,!   
adju/$ basis (--  7i7 a p>tn]'s int]e/ 9
 a p>tn]%ip1 or  7ii7 /ock 9 an ,s      
corporation 7z def9$ 9 section          
#acfa7;a77#a771 %all be appropriately   
adju/$ to take into acc\nt adju/m5ts    
made "u ?is subsection 9 ! basis (      
prop]ty held by ! p>tn]%ip or ,s        
corporation 7if any74  7b7 ,election ,to
 include 9 income  7#a7 ,9 g5]al ,9 !   
case ( a taxpay] :o elects to h ?is     
subsection apply-- 7,a7 ! net proce$s ( 
! allocation1 disposition1 or refund    
describ$ 9 subsection 7a7 receiv$ by su*
 taxpay] %all con/itute income to su*   
taxpay] "u section #fa7;a71 &  7,b7     
subsection 7a77#a77;,b7 %all n apply4   
7#b7 ,mak+ ( election ,an election "u   
?is subsection %all be made at su* "t & 

9 su* mann] z ! ,secret>y may by        
regulation prescribe4 ,su* election %all
 apply = ! taxable ye> = :i* x is made &
 = all subsequ5t taxable ye>s & may be  
revok$ only ) ! cons5t ( ! ,secret>y ( !
 ,treasury4  7c7 ,effect on qualifi$    
rehabilitation exp5ditures &            
rehabilitation cr$its ,= purposes (     
det]m9+ ! rehabilitation cr$it all[able 
to a taxpay] "u section #dg1 ! transf]  
or allocation ( ,/ate hi/oric tax cr$its
 ) respect to any prop]ty by a taxpay]  
%all n affect or r$uce ! am\nt (        
qualifi$ rehabilitation exp5ditures 7z  
def9$ 9 section #dg7;c77#b77 incurr$ 9  
connection ) su* prop]ty1 nor %all su*  
transf] or disposition1 nor any basis   
adju/m5ts "u subsection 7a71 be treat$ z
 an e>ly disposition ( inve/m5t cr$it   
prop]ty = purposes ( ! recapture        
provisions ( section #ej1 not)/&+ any   
r$uction 9 basis pursuant to p>agraph   
7a77#b77;,c74  7d7 ,/ate hi/oric tax    
cr$its def9$ ,= purposes ( ?is section1 
! t]m ,/ate hi/oric tax cr$it means any 

cr$it aga9/ ,/ate or local tax          
liabilities :i*-- 7#a7 is all[able "u ! 
laws ( any ,/ate or political           
subdivision !re( to a taxpay] ) respect 
to exp5ditures made = ! rehabilitation (
 prop]ty id5tifi$ by su* laws1 &  7#b7 c
 be allocat$1 dispos$1 or refund$ "u su*
 laws4  4  7b7 ,cl]ical am5dm5t ,! table
 ( sections = su* "p ,,iii is am5d$ by  
ins]t+ aft] ! item relat+ to section    
#aci;,e ! foll[+ new item3  ,sec4       
#aci;,f4 ,dispositions ( ,/ate hi/oric  
tax cr$its4  4  7c7 ,effective date ,?is
 section %all apply to transf]s or      
dispositions made1 or refunds receiv$1  
aft] ! date ( ! enactm5t ( ?is ,act4    
#g4 ,modifications reg>d+ c]ta9         
tax-exempt use prop]ty  7a7 ,9 g5]al    
,section #dg7;c77#b77;,b77v77,i7 ( !    
,int]nal ,rev5ue ,code ( #aihf 7relat+  
to tax-exempt use prop]ty7 is am5d$ by  
ins]t+ & subclauses 7,i71 7,,ii71 &     
7,,iii7 ( section #afh7;h77#a77;,b77ii7 
%all n apply aft] !re(4  7b7 ,effective 
date ,! am5dm5ts made by ?is section    

%all apply to prop]ty plac$ 9 s]vice    
aft] ! date ( ! enactm5t ( ?is ,act4    
#h4 ,elim9at+ functionally relat$       
prop]ties  7a7 ,9 g5]al ,section #dg ( !
 ,int]nal ,rev5ue ,code ( #aihf 7relat+ 
to rehabilitation cr$it71 z am5d$ by    
sections #b & #c1 is am5d$ by add+ at ! 
end ! foll[+ new subsection3  7g7       
,relat$ build+s ,build+s t are          
functionally relat$ 7 z def9$ 9 ,"p     
#fg4f7;b77#d7 ( title #cf1 ,code (      
,f$]al ,regulations7 %all be treat$ z   
sep>ate c]tifi$ hi/oric /ructures =     
purposes ( ! cr$it all[$ "u ?is section4
  4  7b7 ,effective date ,! am5dm5t made
 by subsection 7a7 %all apply to any    
application to ! ,national ,p>k ,s]vice 
receiv$ aft] ! date ( ! enactm5t ( ?is  
,act4