,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #ccaf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #ah1 #bjai,mr4  
,higg9s ( ,new ,york 7= himself & ,mr4  
,kelly ( ,p5nsylvania7 introduc$ !      
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to all[ a cr$it aga9/ tax =       
neighborhood revitalization1 & = o!r    
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,neighborhood ,homes       
,inve/m5t ,act4  #b4 ,neighborhood homes
 cr$it  7a7 ,9 g5]al ,subp>t ,d ( "p    
,,iv ( sub*apt] ,a ( *apt] #a ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #db ! foll[+ new 
section3  #db;,a4 ,neighborhood homes   
cr$it  7a7 ,all[ance ( cr$it ,= purposes
 ( section #ch1 ! am\nt ( ! neighborhood
 homes cr$it det]m9$ "u ?is section = a 
taxable ye> = a qualifi$ project %all   
be1 ) respect to ea* qualifi$ resid5ce t
 is "p ( su* qualifi$ project & t       
exp]i5ces a qualifi$ completion ev5t    

dur+ su* taxable ye>1 an am\nt equal    
to--  7#a7 9 ! case ( an af=dable sale1 
) respect to ! sell]1 ! excess (-- 7,a7 
! qualifi$ developm5t co/ incurr$ by su*
 sell] = su* resid5ce1 ov]  7,b7 ! sale 
price ( su* resid5ce1 or  7#b7 9 ! case 
( any o!r qualifi$ completion ev5t1 )   
respect to a taxpay] o!r ?an ! own] ( ! 
resid5ce 7or a relat$ p]son ) respect to
 su* own]71 ! excess (--  7,a7 !        
developm5t co/ incurr$ by su* taxpay] = 
su* resid5ce1 ov]  7,b7 ! am\nt receiv$ 
by su* taxpay] z paym5t = su*           
rehabilitation4  7b7 ,limitations  7#a7 
,am\nt ,! am\nt det]m9$ "u subsection   
7a7 ) respect to a resid5ce %all n exce$
 #ce p]c5t ( ! less] (--  7,a7 !        
qualifi$ developm5t co/1 or  7,b7 #hj   
p]c5t ( ! national m$ian sale price =   
new homes4  7#b7 ,allocations  7,a7 ,9  
g5]al ,! am\nt det]m9$ "u subsection 7a7
 ) respect to a resid5ce t is "p ( a    
qualifi$ project & t exp]i5ces a        
qualifi$ completion ev5t %all n exce$ ! 
excess (--  7i7 ! am\nt det]m9$ "u      

subp>agraph 7,b71 ov]  7ii7 ! am\nts    
previ\sly det]m9$ "u subsection 7a7 )   
respect to su* qualifi$ project4  7,b7  
,allocation am\nt ,! am\nt det]m9$ "u   
?is p>agraph ) respect to a resid5ce t  
is "p ( a qualifi$ project & t exp]i5ces
 a qualifi$ completion ev5t is ! lea/   
(--  7i7 ! am\nt allocat$ to su* project
 by ! neighborhood homes cr$it ag5cy "u 
?is section1  7ii7 ! am\nt su* ag5cy    
det]m9es at ! "t ( ! qualifi$ completion
 ev5t is necess>y to ensure ! f9ancial  
feasibility ( ! project giv5 ! s\rces & 
uses ( funds & ! total f9anc+ 7includ+  
local1 ,/ate1 & ,f$]al subsidies7 plann$
 = ! project1 or  7iii7 9 ! case ( a    
qualifi$ completion ev5t t occurs aft] !
 #e-ye> p]iod beg9n+ on ! date ( !      
allocation ref]r$ to 9 clause 7i71 #j4  
7c7 ,qualifi$ developm5t co/ ,= purposes
 ( ?is section-- 7#a7 ,9 g5]al ,! t]m   
qualifi$ developm5t co/ means1 ) respect
 to a resid5ce s mu* ( ! all[able       
developm5t co/ z ! neighborhood homes   
cr$it ag5cy c]tifies1 at ! "t ( !       

completion ev5t--  7,a7 meets ! /&>ds   
promulgat$ "u subsection 7h77#a77;,c71 &
  7,b7 does n repres5t unreasonable fees
 by ! taxpay] claim+ ! cr$it "u         
subsection 7a74  7#b7 ,all[able         
developm5t co/ ,! t]m all[able          
developm5t co/ means-- 7,a7 ! co/ (     
con/ruction1 sub/antial rehabilitation1 
demolition ( any /ructure1 &            
environm5tal rem$iation1 &  7,b7 9 !    
case ( an af=dable sale1 s mu* ( ! co/ (
 acquir+ build+s & l& z does n exce$ an 
am\nt equal to #ge p]c5t ( ! co/s       
describ$ 9 subp>agraph 7,a74  7#c7      
,prop]ties ) multiple resid5ces ,!      
all[able developm5t co/ ( any resid5ce  
%all include on a pro-rata basis !      
all[able developm5t co/ ) respect to    
common areas or o!r comp>able am5ities4 
7d7 ,qualifi$ project ,= purposes ( ?is 
section1 ! t]m qualifi$ project means a 
project t-- 7#a7 a neighborhood homes   
cr$it ag5cy c]tifies w build or         
sub/antially rehabilitate #a or m       
qualifi$ resid5ces locat$ 9 "o or m     

qualifi$ c5sus tracts1 &  7#b7 is       
designat$ by su* ag5cy z a qualifi$     
project "u ?is section & is allocat$    
7be=e su* build+ or sub/antial          
rehabilitation beg9s7 a portion ( !     
am\nt allocat$ to su* ag5cy "u          
subsection 7g74  7e7 ,qualifi$ c5sus    
tract ,= purposes ( ?is section-- 7#a7  
,9 g5]al ,! t]m qualifi$ c5sus tract    
means a c5sus tract--  7,a7 )-- 7i7 a   
m$ian gross income :i* does n exce$ #hj 
p]c5t ( ! applicable area m$ian gross   
income1  7ii7 a pov]ty rate t is n less 
?an #acj p]c5t ( ! applicable area      
pov]ty rate1 &  7iii7 a m$ian value =   
own]-occupi$ homes t does n exce$       
applicable area m$ian value =           
own]-occupi$ homes1 or  7,b7 t is-- 7i7 
9 a nonmetropolitan c\nty1  7ii7 ) a    
m$ian gross income :i* does n exce$ !   
applicable area m$ian gross income1 &   
7iii7 designat$ by a neighborhood homes 
cr$it ag5cy "u ?is clause4  7#b7        
,additional c5sus tracts = sub/antial   
rehabilitation ,9 ! case ( a resid5ce t 

is int5d$ = sub/antial rehabilitation   
describ$ 9 subsection 7f77#e77;,b71 !   
t]m qualifi$ c5sus tract includes a     
c5sus tract t meets ! requirem5ts (     
p>agraph 7#a77;,a71 )\t reg>d to clause 
7iii71 & t is designat$ by !            
neighborhood homes cr$it ag5cy "u ?is   
p>agraph4  7#c7 ,li/ ( qualifi$ c5sus   
tracts ,! ,secret>y ( ,h\s+ & ,urban    
,developm5t %all make publically        
available a li/ ( qualifi$ c5sus tracts 
"u p>agraph 7#a77;,a71 a li/ ( qualifi$ 
c5sus tracts "u p>agraph 7#a77;,b71 & a 
li/ ( qualifi$ c5sus tracts "u p>agraph 
7#b7 = ea* ye>4  7f7 ,o!r def9itions ,= 
purposes ( ?is section-- 7#a7 ,qualifi$ 
resid5ce ,! t]m qualifi$ resid5ce means 
a resid5ce t consi/s (--  7,a7 a        
s+le-family home conta9+ #d or few]     
resid5tial units1  7,b7 a condom9ium1 or
  7,c7 a h\se or an ap>tm5t own$ by a   
coop]ative h\s+ corporation 7z def9$ 9  
section #baf7;b774  7#b7 ,af=dable sale 
7,a7 ,9 g5]al  7i7 ,9 g5]al ,! t]m      
af=dable sale means a sale to a qualifi$

 home[n] ( a resid5ce t ! neighborhood  
homes cr$it ag5cy c]tifies z meet+ !    
/&>ds promulgat$ "u subsection          
7h77#a77;,d7 = a price t does n exce$-- 
7,i7 9 ! case ( any resid5ce n describ$ 
9 subclause 7,,ii71 7,,iii71 or 7,,iv71 
! am\nt equal to ! product ( #d         
multipli$ by ! applicable area m$ian    
gross income1  7,,ii7 9 ! case ( a      
s+le-family home conta9+ two resid5tial 
units1 #abe p]c5t ( ! am\nt describ$ 9  
subclause 7,i71  7,,iii7 9 ! case ( a   
s+le-family home conta9+ ?ree resid5tial
 units1 #aej p]c5t ( ! am\nt describ$ 9 
subclause 7,i71 or  7,,iv7 9 ! case ( a 
s+le-family home conta9+ f\r resid5tial 
units1 #age p]c5t ( ! am\nt describ$ 9  
subclause 7,i74  7ii7 ,relat$ p]sons    
7,i7 ,9 g5]al ,a sale betwe5 relat$     
p]sons %all n be treat$ z an af=dable   
sale4  7,,ii7 ,def9ition ,= purposes (  
?is section1 a p]son 79 ?is clause      
ref]r$ to z ! relat$ p]son7 is relat$ to
 any p]son if ! relat$ p]son be>s a     
relation%ip to su* p]son specifi$ 9     

section #bfg7;b7 or #gjg7;b77#a71 or !  
relat$ p]son & su* p]son are engag$ 9   
trades or bus9esses "u common control   
7)9 ! mean+ ( subsections 7a7 & 7b7 (   
section #eb74 ,= purposes ( ! prec$+    
s5t5ce1 9 apply+ section #bfg7;b7 or    
#gjg7;b77#a71 #aj p]c5t %all be         
sub/itut$ = #ej p]c5t4  7#c7 ,applicable
 area ,! t]m applicable area means--    
7,a7 9 ! case ( a metropolitan c5sus    
tract1 ! metropolitan area 9 :i* su*    
c5sus tract is locat$1 &  7,b7 9 ! case 
( a c5sus tract o!r ?an a c5sus tract   
describ$ 9 subp>agraph 7,a71 ! ,/ate4   
7#d7 ,sub/antial rehabilitation ,! t]m  
sub/antial rehabilitation means         
rehabilitation ef=ts involv+ qualifi$   
developm5t co/s t are n less ?an !      
great] (--  7,a7 #bj1jjj1 &  7,b7 #bj   
p]c5t ( ! co/ ( acquir+ build+s & l&4   
7#e7 ,qualifi$ completion ev5t ,! t]m   
qualifi$ completion ev5t means-- 7,a7 9 
! case ( a resid5ce t is built or       
sub/antially rehabilitat$ z "p ( a      
qualifi$ project & sold1 an af=dable    

sale1 or  7,b7 9 ! case ( a resid5ce t  
is sub/antially rehabilitat$ z "p ( a   
qualifi$ project & own$ by ! same       
qualifi$ home[n] ?r\gh\t su*            
rehabilitation1 ! completion ( su*      
rehabilitation 7z det]m9$ by !          
neighborhood homes cr$it ag5cy7 to !    
/&>ds promulgat$ "u subsection          
7h77#a77;,d74  7#f7 ,qualifi$ home[n]   
7,a7 ,9 g5]al ,! t]m qualifi$ home[n]   
means1 ) respect to a resid5ce1 an      
individual-- 7i7 :o owns & uses su*     
resid5ce z ! pr9cipal resid5ce ( su*    
individual1 &  7ii7 ^: income is #adj   
p]c5t or less ( ! applicable area m$ian 
gross income = ! location ( ! resid5ce4 
7,b7 ,own]%ip ,= purposes ( a coop]ative
 h\s+ corporation 7z su* t]m is def9$ 9 
section #baf7;b771 a t5ant-/ockhold]    
%all be treat$ z own+ ! h\se or ap>tm5t 
:i* su* p]son is entitl$ to occupy4     
7,c7 ,income ,= purposes ( ?is p>agraph1
 income %all be a det]m9$ 9 accordance )
 section #adc7;f77#b7 & #adc7;f77#d74   
7,d7 ,tim+ ,= purposes ( ?is p>agraph1 !

 income ( a taxpay] %all be det]m9$--   
7i7 9 ! case ( a resid5ce t is built or 
sub/antially rehabilitat$ z "p ( a      
qualifi$ project & sold1 at ! "t a b9d+ 
contract = pur*ase is made1 or  7ii7 9 !
 case ( a resid5ce t is occupi$ by a    
qualifi$ home[n] & int5d$ to be         
sub/antially rehabilitat$ z "p ( a      
qualifi$ project1 at ! "t a b9d+        
contract to und]take su* rehabilitation 
is made4  7#g7 ,neighborhood homes cr$it
 ag5cy ,! t]m neighborhood homes cr$it  
ag5cy means ! ag5cy designat$ by !      
gov]nor ( a ,/ate z ! neighborhood homes
 cr$it ag5cy ( ! ,/ate4  7g7 ,allocation
  7#a7 ,/ate neighborhood homes cr$it   
ceil+ ,! ,/ate neighborhood homes cr$it 
am\nt = a ,/ate = a cal5d> ye> is an    
am\nt equal to ! sum (--  7,a7 ! great] 
(-- 7i7 ! product ( #c1 multipli$ by !  
,/ate population 7det]m9$ 9 accordance )
 section #adf7;j771 or  7ii7 #d1jjj1jjj1
 plus  7,b7 ! conv]t$ private activity  
bond am\nt ) respect to ! ,/ate = !     
cal5d> ye>4  7#b7 ,unus$ am\nt ,! ,/ate 

neighborhood homes cr$it am\nt = a      
cal5d> ye> %all be increas$ by ! sum (--
 7,a7 any am\nt c]tifi$ by !            
neighborhood homes cr$it ag5cy ( ! ,/ate
 z hav+ be5 previ\sly allocat$ to a     
qualifi$ project & n us$ dur+ ! #e-ye>  
p]iod describ$ 9 subsection             
7b77#b77;iii71 plus  7,b7 sum ( ! am\nt 
by :i* ! am\nt det]m9$ "u p>agraph 7#a7 
7)\t application ( ?is p>agraph7 exce$$ 
! am\nt allocat$ to qualifi$ projects 9 
ea* ( ! ?ree imm$iately prec$+ cal5d>   
ye>s4  7#c7 ,conv]t$ private activity   
bond am\nt  7,a7 ,9 g5]al ,= purposes ( 
?is p>agraph1 ! conv]t$ private activity
 bond am\nt ) respect to any ,/ate = any
 cal5d> ye> %all be #fj p]c5t ( ! am\nt 
elect$ by--  7i7 ! ,/ate ag5cy t is an  
issu] ( qualifi$ mortgage bonds 7z def9$
 9 section #adc7 t is designat$ by !    
gov]nor ( ! ,/ate "u ?is subp>agraph =  
su* ye>1 or  7ii7 if no su* ag5cy exi/s1
 ! neighborhood homes cr$it ag5cy ( !   
,/ate4  7,b7 ,r$uction ( private        
activity bond ceil+ ,! ,/ate ceil+ "u   

section #adf7;d77#a7 %all be r$uc$ by ! 
am\nt elect$ "u subp>agraph 7,a74  7#d7 
,portion ( /ate cr$it ceil+ = c]ta9     
projects involv+ qualifi$ nonpr(it      
organizations ,rules simil> to ! rules (
 section #db7;h77#e7 %all apply4  7h7   
,responsibilities ( neighborhood homes  
cr$it ag5cies  7#a7 ,9 g5]al ,not)/&+   
subsection 7g71 ! ,/ate neighborhood    
homes cr$it doll> am\nt %all be z]o = a 
cal5d> ye> unless ! neighborhood homes  
cr$it ag5cy ( ! ,/ate--  7,a7 allocates 
su* am\nt pursuant to a qualifi$        
allocation plan ( ! neighborhood homes  
cr$it ag5cy1  7,b7 allocates n m ?an #bj
 p]c5t ( su* am\nt = ! previ\s ye> to   
projects ) respect to resid5ces 9 c5sus 
tracts "u subsection 7e77#a77;,b7 or    
7e77#b71  7,c7 promulgates /&>ds )      
respect to reasonable qualifi$          
developm5t co/s1  7,d7 promulgates /&>ds
 ) respect to con/ruction quality1 &    
7,e7 submits to ! ,secret>y 7at su* "t &
 9 su* mann] z ! ,secret>y may          
prescribe7 an annual report specify+--  

7i7 ! am\nt ( ! neighborhood homes      
cr$its allocat$ to ea* qualifi$ project 
= ! previ\s ye>1 &  7ii7 su* o!r        
in=mation z ! ,secret>y may require4    
7#b7 ,qualifi$ allocation plan ,=       
purposes ( ?is p>agraph1 ! t]m qualifi$ 
allocation plan means any plan :i*--    
7,a7 sets =? ! selection crit]ia to be  
us$ to prioritize qualifi$ projects =   
allocations ( ,/ate neighborhood homes  
cr$it doll> am\nts1 includ+--  7i7 ! ne$
 = new or sub/antially rehabilitat$     
own]-occupi$ homes 9 ! area address$ by 
! project1  7ii7 ! expect$ contribution 
( ! project to neighborhood /ability &  
revitalization1  7iii7 ! capability ( ! 
project sponsor1 &  7iv7 ! likelihood ! 
project w result 9 long-t]m home[n]%ip1 
&  7,b7 has be5 made available = public 
comm5t4  7i7 ,possessions treat$ z /ates
 ,= purposes ( ?is section1 ! t]m ,/ate 
includes ! ,di/rict ( ,columbia & a     
possession ( ! ,unit$ ,/ates4  7j7      
,repaym5t  7#a7 ,9 g5]al ,if a resid5ce 
is sold dur+ ! #e-ye> p]iod beg9n+ on ! 

date ( ! qualifi$ completion ev5t       
describ$ 9 subsection 7a7 ) respect to  
su* resid5ce1 ! sell] %all transf] an   
am\nt equal to ! repaym5t am\nt f !     
am\nt realiz$ on su* sale to ! relevant 
neighborhood homes cr$it ag5cy to be us$
 to /abilize or revitalize qualifi$     
c5sus tracts 7det]m9$ )\t reg>d to      
p>agraphs 7#a77;,b7 & 7#b7 ( subsection 
7e774  7#b7 ,repaym5t am\nt ,= purposes 
( p>agraph 7#a71 ! repaym5t am\nt is an 
am\nt equal to #ej p]c5t ( ! ga9 f su*  
resale1 r$uc$ by #bj p]c5t = ea* ye> ( !
 #e-ye> p]iod ref]r$ to 9 p>agraph 7#a7 
:i* ends be=e ! date ( ! sale ref]r$ to 
9 p>agraph 7#a74  7#c7 ,li5 = repaym5t  
am\nt ,a neighborhood homes cr$it ag5cy 
receiv+ an allocation "u ?is section    
%all place a li5 on ea* resid5ce t is   
built or rehabilitat$ z "p ( a qualifi$ 
project = ! greate/ am\nt t c\ld be     
requir$ to be paid "u ?is subsection to 
su* ag5cy4  7#d7 ,d5ial ( d$uctions if  
conv]t$ to r5tal h\s+ ,if1 dur+ ! #e-ye>
 p]iod beg9n+ on ! date ( ! qualifi$    

completion ev5t describ$ 9 subsection   
7a71 an individual :o owns a resid5ce   
fails to use su* resid5ce z su*         
individual's pr9cipal resid5ce = any    
p]iod ( "t1 no d$uction %all be all[$ = 
exp5ses paid or incurr$ by su*          
individual ) respect to r5t+1 dur+ su*  
p]iod ( "t1 su* resid5ce4  7#e7 ,waiv]  
,! neighborhood homes cr$it ag5cy may   
waive ! repaym5t requir$ "u p>agraph    
7#a7 9 ! case ( home[n] exp]i5c+ a      
h>d%ip4  7k7 ,inflation adju/m5t  7#a7  
,9 g5]al ,9 ! case ( a cal5d> ye> aft]  
#bjbj1 ! doll> am\nts 9 ?is section %all
 be increas$ by an am\nt equal to--     
7,a7 su* doll> am\nt1 multipli$ by  7,b7
 ! co/-(-liv+ adju/m5t det]m9$ "u       
section #a7;f77#c7 = su* cal5d> ye> by  
sub/itut+ cal5d> ye> #bjai = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7#b7
 ,r\nd+  7,a7 ,sub/antial rehabilitation
 ,9 ! case ( ! doll> am\nt 9 subsection 
7f77#d71 any increase "u ! prec$+ s5t5ce
 :i* is n a multiple ( #a1jjj %all be   
r\nd$ to ! ne>e/ multiple ( #a1jjj4     

7,b7 ,9 ! case ( ! doll> am\nt 9        
subsection 7g77#a77;,a77i71 any increase
 "u ! prec$+ s5t5ce :i* is n a multiple 
( #j4ja %all be r\nd$ to ! ne>e/        
multiple ( #j4ja4  7,c7 ,9 ! case ( !   
doll> am\nt 9 subsection                
7g77#a77;,a77ii71 any increase "u !     
prec$+ s5t5ce :i* is n a multiple (     
#ajj1jjj %all be r\nd$ to ! ne>e/       
multiple ( #ajj1jjj4  4  7b7 ,curr5t ye>
 bus9ess cr$it calculation ,section     
#ch7;b7 7( ! ,int]nal ,rev5ue ,code (   
#aihf7 is am5d$ by r$esignat+ p>agraphs 
7#f7 ?r\gh 7#cg7 z p>agraphs 7#g7 ?r\gh 
7#ch71 respectively1 & by ins]t+ aft]   
p>agraph 7#e7 ! foll[+ new p>agraph3    
7#f7 ! neighborhood homes cr$it det]m9$ 
"u section #db;,a7a71  4  7c7           
,limitation on c>ryback ,section #ci ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by add+ at ! end ! foll[+ new section3 
7e7 ,no c>ryback ( neighborhood homes   
cr$it be=e effective date ,no am\nt ( ! 
unus$ cr$it attributable to section     
#db;,a may be tak5 into acc\nt "u       

section #ch7;a77#c7 = any taxable ye>   
beg9n+ be=e ! date ( ! enactm5t ( ?is   
,act4  4  7d7 ,cancellation (           
indebt$ness ,section #ajh ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 /rik+ or at ! end ( subsection         
7a77#a77;,d71 by /rik+ ! p]iod at ! end 
( subsection 7a77#a77;,e77ii7 & ins]t+ 1
 or1 & add+ at ! end ( subsection       
7a77#a7 ! foll[+ new subp>agraph3  7,f7 
if ! dis*>ge is qualifi$ neighborhood   
homes cr$it indebt$ness4  1 &  7#b7 by  
add+ at ! end ( subsection 7b77#b7 !    
foll[+ new subp>agraph3  7,h7 ,special  
rules relat+ to qualifi$ neighborhood   
homes cr$it indebt$ness ,= purposes (   
?is section1 ! t]m qualifi$ neighborhood
 homes cr$it indebt$ness means          
indebt$ness aris+ 9 connection ) !      
developm5t ( a qualifi$ resid5ce "u     
section #db;,a4  4  7e7 ,con=m+ am5dm5ts
 ,subsections 7i77#c77;,d71             
7i77#f77;,b77i71 & 7k77#a7 ( section    
#dfi ( ! ,int]nal ,rev5ue ,code ( #aihf 
are ea* am5d$ by ins]t+ or #db;,a aft]  

section #db4  7f7 ,cl]ical am5dm5t ,!   
table ( sections = subp>t ,d ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] ! item relat+ to section #db !    
foll[+3  ,sec4 #db;,a4 ,neighborhood    
homes cr$it4  7g7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to cal5d> ye>s beg9n+ aft] ,decemb] #ca1
 #bjai4