,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #aghe  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #bd1 #bjbc,mr4   
,la,hood 7= himself1 ,mr4 ,blum5au]1    
,mr4 ,kelly ( ,p5nsylvania1 ,ms4        
,sewell1 ,mr4 ,turn]1 & ,mr4 ,higg9s (  
,new ,york7 introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,ways &    
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to modify !       
rehabilitation cr$it = c]ta9 small      
projects1 to elim9ate ! requirem5t t !  
taxpay]'s basis 9 a build+ be r$uc$ by !
 am\nt ( ! rehabilitation cr$it det]m9$ 
) respect to su* build+1 & = o!r        
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,hi/oric ,tax ,cr$it ,gr[? 
& ,opportunity ,act ( #bjbc4  #b4       
,increase 9 rehabilitation cr$it  7a7 ,9
 g5]al ,section #dg7;a7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new p>agraph3  7#c7   
,increas$ p]c5tage = qualifi$           
rehabilitation exp5ditures be=e #bjbh   
7,a7 ,9 g5]al ,9 ! case ( any qualifi$  

rehabilitat$ build+ ) respect to :i* !re
 are qualifi$ rehabilitation exp5ditures
 paid or incurr$ 9 any taxable ye>      
beg9n+ aft] ,decemb] #ca1 #bjbj1 & be=e 
,janu>y #a1 #bjbh-- 7i7 p>agraph 7#b7   
%all be appli$ by sub/itut+ ! applicable
 p]c5tage = #bj p]c5t ) respect to su*  
exp5ditures1 &  7ii7 ! ratable %>e ( su*
 exp5ditures %all be det]m9$ sep>ately  
"u p>agraph 7#b7 by apply+ ! applicable 
p]c5tage = ea* su* taxable ye> to !     
exp5ditures = ea* su* taxable ye>4  7,b7
 ,applicable p]c5tage ,= purposes ( ?is 
p>agraph1 ! t]m applicable p]c5tage     
means ! p]c5tage det]m9$ 9 accordance ) 
! foll[+ table3 ,9 ! case ( a taxable   
ye> beg9n+ 93 ,! applicable p]c5tage    
is--#bjbj ?r\gh #bjbecjbjbfbfbjbgbcbjbh 
& !reaft]#bj  4  7b7 ,effective date ,! 
am5dm5ts made by ?is section %all apply 
to prop]ty plac$ 9 s]vice aft] ,decemb] 
#ca1 #bjbc4  #c4 ,increase 9 !          
rehabilitation cr$it = c]ta9 small      
projects  7a7 ,9 g5]al ,section #dg is  
am5d$ by add+ at ! end ! foll[+ new     

subsection3  7e7 ,special rule reg>d+   
c]ta9 small projects  7#a7 ,9 g5]al ,9 !
 case ( any small project-- 7,a7 !      
p]c5tage "u subsection 7a77#b7 %all be  
#cj p]c5t1 &  7,b7 ! qualifi$           
rehabilitation exp5ditures tak5 into    
acc\nt "u ?is section ) respect to su*  
project %all n exce$ #b1ejj1jjj4  7#b7  
,small project ,= purposes ( ?is        
subsection1 ! t]m small project means ! 
rehabilitation ( any qualifi$           
rehabilitat$ build+ if-- 7,a7 ! qualifi$
 rehabilitation exp5ditures tak5 into   
acc\nt "u ?is section 7or :i* w\ld be s 
tak5 into acc\nt b = p>agraph 7#a77;,b77
 ) respect to su* rehabilitation d n    
exce$ #c1gej1jjj1  7,b7 no cr$it 0 all[$
 "u ?is section ) respect to su* build+ 
to any taxpay] = ei!r ( ! #b taxable    
ye>s imm$iately prec$+ ! fir/ taxable   
ye> 9 :i* exp5ditures describ$ 9        
subp>agraph 7,a7 7 paid or incurr$1 &   
7,c7 ! taxpay] elects 7at su* "t & mann]
 z ! ,secret>y may provide7 to h ?is    
subsection apply ) respect to su*       

rehabilitation4  4  7b7 ,effective date 
,! am5dm5t made by ?is section %all     
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjbc4  #d4 ,modification 
( def9ition ( sub/antially rehabilitat$ 
7a7 ,9 g5]al ,section                   
#dg7;c77#a77;,b77i77,i7 is am5d$ by     
ins]t+ #ej p]c5t ( be=e ! adju/$ basis4 
7b7 ,effective date ,! am5dm5t made by  
subsection 7a7 %all apply to            
det]m9ations ) respect to #bd-mon?      
p]iods 7ref]r$ to 9 clause 7i7 ( section
 #dg7;c77#a77;,b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf7 & #fj-mon? p]iods 7ref]r$
 to 9 clause 7ii7 ( su* section7 :i*    
beg9 aft] ! date ( ! enactm5t ( ?is     
,act4  #e4 ,elim9ation ( rehabilitation 
cr$it basis adju/m5t  7a7 ,9 g5]al      
,section #ej7;c7 is am5d$ by add+ at !  
end ! foll[+ new p>agraph3  7#f7        
,exception = rehabilitation cr$it ,9 !  
case ( ! rehabilitation cr$it1 p>agraph 
7#a7 %all n apply4  4  7b7 ,treatm5t 9  
case ( cr$it all[$ to lessee ,section   
#ej7;d7 is am5d$ by add+ at ! end !     

foll[+3 ,9 ! case ( ! rehabilitation    
cr$it1 p>agraph 7#e77;,b7 ( ! section   
#dh7;d7 ref]r$ to 9 p>agraph 7#e7 ( ?is 
subsection %all n apply44  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to prop]ty plac$ 9   
s]vice aft] ! date ( ! enactm5t ( ?is   
,act4  #f4 ,modifications reg>d+ c]ta9  
tax-exempt use prop]ty  7a7 ,9 g5]al    
,section #dg7;c77#b77;,b77v7 is am5d$ by
 add+ at ! end ! foll[+ new subclause3  
7,,iii7 ,disqualifi$ lease rules to     
apply only 9 case ( gov]nm5t entity ,=  
purposes ( subclause 7,i71 except 9 !   
case ( a tax-exempt entity describ$ 9   
section #afh7;h77#b77;,a77i7 7det]m9$   
)\t reg>d to ! la/ s5t5ce ( section     
#afh7;h77#b77;,a771 ! det]m9ation ( :e!r
 prop]ty is tax-exempt use prop]ty %all 
be made "u section #afh7;h7 )\t reg>d to
 :e!r ! prop]ty is leas$ 9 a disqualifi$
 lease 7z def9$ 9 section               
#afh7;h77#a77;,b77ii774  4  7b7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to leases ent]$ into 

aft] ! date ( ! enactm5t ( ?is ,act4