,i #aafth ,,congress #b;d ,session ,h4 ,r4 #fage ,,in ,,the ,,house ,,of ,,representatives ,march #aj1 #bjbj,mr4 ,blumenauer 7for himself1 ,mr4 ,kelly of ,pennsylvania1 ,mr4 ,kildee1 and ,mr4 ,la,hood7 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 rehabilitation credit4 #a4 ,short title ,this ,act may be cited as the ,revitalizing ,economies1 ,housing1 ,and ,businesses ,act of #bjbj or as the ,,rehab ,act of #bjbj4 #b4 ,modification of rehabilitation credit 7a7 ,reinstatement of credit for qualified rehabilitated buildings 7#a7 ,in general ,subsection 7a7 of section #dg of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7a7 ,determination of credit 7#a7 ,in general ,for purposes of section #df1 the rehabilitation credit for any taxable year is the sum of-- 7,a7 in the case of any qualified rehabilitated building other than a certified historic structure which is placed in service during such taxable year1 #aj percent of the qualified rehabilitation expenditures with respect to such building1 and 7,b7 in the case of any qualified rehabilitated building which is a certified historic structure which is placed in service during such taxable year or any of the #d immediately preceding taxable years1 the ratable share for such taxable year4 7#b7 ,ratable share ,for purposes of paragraph 7#a77;,b71 the ratable share for any taxable year is an amount equal to #bj percent of the qualified rehabilitation expenditures with respect to the certified historic structure1 as allocated ratably to each of the #e years to which paragraph 7#a77;,b7 applies4 4 7#b7 ,conforming amendments 7,a7 ,section #dg7;c7 of such ,code is amended-- 7i7 in paragraph 7#a7-- 7,i7 in subparagraph 7,a71 by amending clause 7iii7 to read as follows3 7iii7 in the case of any building other than a certified historic structure1 in the rehabilitation process-- 7,i7 #ej percent or more of the existing external walls of such building are retained in place as external walls1 7,,ii7 #ge percent or more of the existing external walls of such building are retained in place as internal or external walls1 and 7,,iii7 #ge percent or more of the existing internal structural framework of such building is retained in place1 and 1 and 7,,ii7 by redesignating subparagraphs 7,b7 and 7,c7 as subparagraphs 7,c7 and 7,d71 respectively1 and by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 ,building must be first placed in service before #aicf ,in the case of a building other than a certified historic structure1 a building shall not be a qualified rehabilitated building unless the building was first placed in service before #aicf4 1 and 7ii7 in paragraph 7#b77;,b71 by amending clause 7iv7 to read as follows3 7iv7 ,certified historic structure1 etc ,any expenditure attributable to the rehabilitation of a certified historic structure or a building in a registered historic district1 unless the rehabilitation is a certified rehabilitation 7within the meaning of subparagraph 7,c774 ,the preceding sentence shall not apply to a building in a registered historic district if-- 7,i7 such building was not a certified historic structure1 7,,ii7 the ,secretary of the ,interior certified to the ,secretary that such building is not of historic significance to the district1 and 7,,iii7 if the certification referred to in subclause 7,,ii7 occurs after the beginning of the rehabilitation of such building1 the taxpayer certifies to the ,secretary that1 at the beginning of such rehabilitation1 he in good faith was not aware of the requirements of subclause 7,,ii74 4 7,b7 ,paragraph 7#d7 of section #ade7;d7 of such ,code is amended-- 7i7 by striking of section #dg7;c77#a77;,b7 each place it appears and inserting of section #dg7;c77#a77;,c71 and 7ii7 by striking section #dg7;c77#a77;,b77i7 and inserting section #dg7;c77#a77;,c77i74 7b7 ,increase in credit rate for qualified rehabilitated buildings other than certified historic structures ,section #dg7;a77#a7 of such ,code1 as amended by subsection 7a71 is amended by striking #aj percent and inserting #ae percent4 7c7 ,modification of date before which buildings other than certified historic structures must be placed in service ,section #dg7;c77#a77;,b7 of such ,code1 as amended by subsection 7a71 is amended by striking #aicf and inserting the calendar year which is #ej years prior to the calendar year in which the building is placed in service 7within the meaning of subsection 7b77#a774 7d7 ,requirement that buildings other certified historic structures must be close to public transportation centers ,section #dg7;c77#a7 of such ,code1 as amended by subsection 7a71 is amended by redesignating subparagraphs 7,c7 and 7,d7 as subparagraphs 7,d7 and 7,e71 respectively1 and by inserting after subparagraph 7,b7 the following new subparagraph3 7,c7 ,building must be close to public transportation center 7i7 ,in general ,in the case of a building other than a certified historic structure1 a building shall not be a qualified rehabilitated building unless the building is not further than one-half mile from at least one of the following3 7,i7 ,a location which provides passenger boarding on a fixed guideway 7as defined in section #ecjb7g7 of title #di1 ,united ,states ,code71 commuter rail passenger transportation 7as defined in section #bdajb7c7 of title #di1 ,united ,states ,code71 or intercity rail passenger transportation 7as defined in section #bdajb7d7 of title #di1 ,united ,states ,code74 7,,ii7 ,a planned site for a location described in subclause 7,i7 if the ,secretary of ,transportation has issued a full funding grant agreement with respect to such location under section #ecji7k77#b7 of title #di1 ,united ,states ,code4 7ii7 ,identification of qualified areas ,the ,secretary1 in consultation with the ,secretary of ,transportation1 shall identify areas which are described in clause 7i74 4 7e7 ,elimination of certain lodging restrictions on buildings other than certified historic structures ,section #ej7;b77#b77;,c7 of such ,code is amended by striking certified historic structure and inserting qualified rehabilitated building4 7f7 ,requirement that buildings that are not certified historic structures and not in a registered historic district receive certification of status ,section #dg7;c77#a7 of such ,code1 as amended by subsections 7a7 and 7d71 is amended by redesignating subparagraphs 7,d7 and 7,e7 as subparagraphs 7,e7 and 7,f71 respectively1 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 ,buildings that are not certified historic structures and not in registered historic district must receive certification of status 7i7 ,in general ,in the case of a building which is neither a certified historic structure nor located in a registered historic district1 such building shall not be a qualified rehabilitated building unless the ,secretary of the ,interior certifies to the ,secretary that such building is-- 7,i7 not a certified historic structure1 and 7,,ii7 not in a registered historic district4 7ii7 ,determinations by ,national ,park ,service ,to the maximum extent practicable1 the ,secretary of the ,interior shall make certifications under clause 7i7 within #cj days of the receipt of an application for such certification4 4 7g7 ,credit for certain related expenditures 7#a7 ,credit for certain expenditures for public infrastructure ,section #dg7;c77#b7 of such ,code is amended by adding at the end the following new subparagraph3 7,e7 ,treatment of certain expenditures for public infrastructure 7i7 ,in general ,in the case of any qualified rehabilitated building1 expenditures for qualified public infrastructure 7or improvements thereto7 shall be treated for purposes of this section as qualified rehabilitation expenditures with respect to such building if providing such qualified public infrastructure is related to such building and is required by any ,state or local government4 7ii7 ,limitation ,the amount treated as qualified rehabilitation expenditures with respect to any building under clause 7i7 shall not exceed #be percent of the qualified rehabilitation expenditures with respect to such building 7determined after the application of clause 7i7 and subparagraph 7,f774 7iii7 ,bonus credit amount ,in the case of any amount treated as qualified rehabilitation expenditures under clause 7i71 subsection 7a77#a7 shall be applied by substituting #be percent for #ae percent4 7iv7 ,qualified public infrastructure ,for purposes of this subparagraph1 the term qualified public infrastructure means water and sewer lines1 electrical lines and equipment1 telecommunications lines and equipment1 and road and sidewalks1 which are located in the public right of way and are not owned by the taxpayer4 4 7#b7 ,credit for expansion and adjacent buildings with respect to qualified rehabilitated buildings other than certified historic structures ,section #dg7;c77#b7 of such ,code1 as amended by paragraph 7#a71 is amended by adding at the end the following new subparagraph3 7,f7 ,treatment of building expansions and certain adjacent buildings with respect to qualified rehabilitated buildings other than certified historic structures 7i7 ,in general ,in the case any qualified rehabilitated building other than a certified historic structure-- 7,i7 clause 7iii7 of subparagraph 7,b7 shall not apply1 and 7,,ii7 amounts described in subparagraph 7,a77i7 which are in connection with the rehabilitation or construction of a qualified adjacent building shall be treated as qualified rehabilitation expenditures with respect to such qualified rehabilitated building4 7ii7 ,limitation ,the amount treated as qualified rehabilitation expenditures with respect to any qualified rehabilitated building under clause 7i7 shall not exceed #ajj percent of the qualified rehabilitation expenditures with respect to such building 7determined without regard to clause 7i7 and subparagraph 7,e774 7iii7 ,qualified adjacent building ,for purposes of this subparagraph1 the term qualified adjacent building means1 with respect to any qualified rehabilitated building1 any building if such building and such qualified rehabilitated building are both on the same block4 4 7#c7 ,related expenditures disregarded in determining if rehabilitation is substantial ,section #dg7;c77#a77;,e71 as redesignated by subsections 7a71 7d71 and 7f71 is amended by adding at the end the following new clause3 7iv7 ,certain expenditures disregarded ,amounts which are otherwise treated as qualified rehabilitation expenditures by reason of subparagraph 7,e7 or 7,f7 of paragraph 7#b7 shall not be treated as qualified rehabilitation expenditures for purposes of this subparagraph4 4 7h7 ,bonus credit for rent-,restricted housing units ,section #dg of such ,code is amended by adding at the end the following new subsection3 7e7 ,bonus credit for rent-,restricted housing units 7#a7 ,in general ,subsection 7a77#a7 shall be applied by substituting #be percent for #ae percent with respect to so much of the qualified rehabilitation expenditures 7determined without regard to subsection 7c77#b77;,e77 with respect to any qualified rehabilitated building as are properly allocable to residential units which are-- 7,a7 rent-restricted 7within the meaning of section #db7;g77#b771 and 7,b7 occupied by individuals whose income is #ajj percent or less of area median gross income 7within the meaning of section #db7;g77#a774 7#b7 ,failure to maintain rent-restriction subject to recapture ,in the case of any failure to maintain any residential unit taken into account under paragraph 7#a7 as a residential unit described in such paragraph during the recapture period1 section #ej7;a7 shall apply as though the qualified rehabilitated building ceased to be investment credit property except that the recapture period and recapture percentage shall be determined under paragraph 7#c7 and in determining the increase in tax under such section in lieu of reducing the credit determined under this section to zero such credit shall be determined without regard to paragraph 7#a74 ,the application of section #ej7;a7 with respect to a building as described in this paragraph shall not prevent the reapplication of such section to such building if such building is disposed of or otherwise ceases to be investment credit property and the tax imposed under such section by reason of such reapplication shall be reduced by the tax previously imposed as described in this paragraph4 7#c7 ,recapture period2 recapture percentage ,for purposes of this subsection-- 7,a7 ,recapture period ,the term recapture period means the #aj-year period beginning on the date the building is placed in service4 7,b7 ,recapture percentage ,the term recapture percentage means-- 7i7 in the case of a failure described in paragraph 7#b7 that occurs during the first year of the recapture period1 #ajj percent1 and 7ii7 in the case of such a failure which occurs during any subsequent year of the recapture period1 the percentage which is #aj percentage points less than the percentage which applied for the previous year 7as determined under this subparagraph74 4 7i7 ,public reporting ,section #dg of such ,code1 as amended by subsection 7h71 is amended by adding at the end the following new subsection3 7f7 ,public reporting with respect to qualified rehabilitated buildings other than certified historic structures 7#a7 ,in general ,no credit shall be allowed under this section with respect to any qualified rehabilitated building other than a certified historic structure unless the taxpayer submits to the ,secretary a report 7at such time and in such manner as the ,secretary may provide7 which includes the information described in paragraph 7#b74 7#b7 ,information ,the report described in paragraph 7#a7 shall include the following3 7,a7 ,the name of the building and1 if applicable1 the name of the project of which such building is a part4 7,b7 ,each of the following with respect to the location of the building3 city1 ,state1 zip code1 #bjaj census tract 7and whether such tract is metropolitan statistical area74 7,c7 ,the total cost of the building and1 if applicable1 the total cost of the project of which such building is a part4 7,d7 ,the total amount of credit allowed under this section with respect to such building and1 if applicable1 with respect to the project of which such building is a part4 7,e7 ,the year the building is placed in service4 7,f7 ,the number of housing units in the building and number of such housing units which are rent-restricted 7within the meaning of section #db7;g77#b77 7,g7 ,the primary purpose of the building4 7#c7 ,reports made publicly available ,the ,secretary shall ensure that reports made under paragraph 7#a7 are made available to the public4 4 7j7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of the enactment of this ,act4