,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #cdgh  ,,in ,,the ,,house ,,of  
,,representatives  ,june #be1 #bjai,mr4 
,neguse 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
 modify the low-income housing credit   
basis limitation rules in the case the  
acquisition of an existing building4    
#a4 ,short title ,this ,act may be cited
 as the ,affordable ,housing            
,opportunities for ,utilization1        
,sustainment1 and ,expansion ,act of    
#bjai or the ,affordable ,,house ,act4  
#b4 ,modification of previous ownership 
rules2 limitation on acquisition basis  
7a7 ,limitation on acquisition basis    
7#a7 ,in general ,section               
#db7;d77#b77;,b77ii7 of the ,internal   
,revenue ,code of #aihf is amended by   
inserting 1 or the taxpayer elects the  
application of subparagraph 7,c77ii7    
after service4  7#b7 ,limitation        
,section #db7;d77#b77;,c7 of such ,code 

is amended-- 7,a7 by striking for       
purposes of subparagraph 7,a71 the      
adjusted basis and inserting the        
following3  ,for purposes of            
subparagraph 7,a7-- 7i7 ,in general ,the
 adjusted basis  1 and  7,b7 by adding  
at the end the following new clauses3   
7ii7 ,buildings in service within       
previous #aj years ,if the period       
between the date of acquisition of the  
building by the taxpayer and the date   
the building was last placed in service 
is less than #aj years1 the taxpayer's  
basis attributable to the acquisition of
 the building which is taken into       
account in determining the adjusted     
basis shall not exceed the sum of--     
7,i7 the lowest amount paid for         
acquisition of the building by any      
person during the #aj years preceding   
the date of the acquisition of the      
building by the taxpayer1 adjusted as   
provided in clause 7iii71 and  7,,ii7   
the value of any capital improvements   
made by the person who sells the        

building to the taxpayer which are      
reflected in such seller's basis4  7iii7
 ,adjustment ,with respect to a basis   
determination made in any taxable year1 
the amount described in clause 7ii77,i7 
shall be increased by an amount equal   
to--  7,i7 such amount1 multiplied by   
7,,ii7 a cost-of-living adjustment1     
determined in the same manner as under  
section #a7;f77#c7 for the calendar year
 in which the taxable year begins by    
taking into account the acquisition year
 in lieu of calendar year #bjaf in      
subparagraph 7,a77ii7 thereof4  ,for    
purposes of the preceding sentence1 the 
acquisition year is the calendar year in
 which the lowest amount referenced in  
clause 7ii77,i7 was paid for the        
acquisition of the building4  4  7#c7   
,conforming amendments ,section         
#db7;d77#b77;,d77i7 of such ,code is    
amended-- 7,a7 by striking for          
subparagraph 7,b7 in the heading1 and   
7,b7 by striking subparagraph 7,b7 in   
the matter preceding subclause 7,i7 and 

inserting subparagraph 7,b77ii7 or      
7,c77ii74  7b7 ,modification of placed  
in service rule ,section                
#db7;d77#b77;,b77iii7 of such ,code is  
amended to read as follows3  7iii7 the  
building was not owned by the taxpayer  
or by any person related 7as of the date
 of acquisition by the taxpayer7 to the 
taxpayer at any time during the #e-year 
period ending on the date of acquisition
 by the taxpayer1 and  4  7c7 ,effective
 date ,the amendments made by this      
section shall apply to buildings placed 
in service after ,december #ca1 #bjah4