,,ii  #aah? ,,congress  #b;d ,session   
,s4 #dfic  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #aa 7legislative 
day1 ,july #aj71 #bjbd,ms4 ,/ab5[ 7=    
h]self1 ,mr4 ,br[n1 ,mr4 ,pet]s1 & ,mr4 
,padilla7 introduc$ ! foll[+ bill2 :i* 0
 read twice & ref]r$ to ! ,committee on 
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide an     
inve/m5t cr$it = conv]t+ non-resid5tial 
build+s to af=dable h\s+4  #a4 ,%ort    
title ,?is ,act may be cit$ z !         
,revitaliz+ ,d[nt[ns & ,ma9 ,/reets     
,act4  #b4 ,inve/m5t cr$it = conv]sion (
 non-resid5tial build+ to af=dable h\s+ 
7a7 ,9 g5]al ,subp>t ,e ( "p ,,iv (     
sub*apt] ,a ( *apt] #a ( subtitle ,a ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by ins]t+ aft] section #dh;,e ! foll[+ 
new section3  #dh;,f4 ,af=dable h\s+    
conv]sion cr$it  7a7 ,all[ance ( cr$it  
,= purposes ( section #df1 ! af=dable   
h\s+ conv]sion cr$it = any taxable ye>  
is an am\nt equal to #bj p]c5t ( !      
qualifi$ conv]sion exp5ditures ( !      

taxpay] ) respect to a qualifi$ af=dable
 h\s+ build+ plac$ 9 s]vice by ! taxpay]
 dur+ ! taxable ye>4  7b7 ,qualifi$     
conv]sion exp5ditures ,= purposes ( ?is 
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
conv]sion exp5ditures means1 ) respect  
to any qualifi$ af=dable h\s+ build+1   
any am\nt prop]ly *>geable to capital   
acc\nt-- 7,a7 = prop]ty = :i*           
depreciation is all[able "u section     
#afh1 &  7,b7 9 connection ) ! qualifi$ 
conv]sion ( a qualifi$ af=dable h\s+    
build+4  7#b7 ,c]ta9 exp5ditures n      
includ$ ,! t]m qualifi$ conv]sion       
exp5ditures does n include-- 7,a7       
,limitation on p]iod ( conv]sion ,except
 z provid$ 9 subsection 7f71 any am\nt  
paid or incurr$ o!r ?an dur+ ! #b-ye>   
p]iod end+ on ! date on :i* ! taxpay]   
places ! qualifi$ af=dable h\s+ build+ 9
 s]vice4  7,b7 ,co/ ( acquisition ,! co/
 ( acquir+ any build+ or int]e/ !re94   
7#c7 ,special rule = br[nfields         
,p>agraph 7#a77;,a7 %all n apply )      
respect to any exp5diture = clean up (  

qualify+ br[nfield prop]ty 7z def9$ 9   
section #eab7;b77#ai774  7#d7           
,coord9ation ) rehabilitation cr$it ,9 !
 case ( any qualifi$ conv]sion          
exp5ditures :i* are tak5 into acc\nt =  
purposes ( det]m9+ ! rehabilitation     
cr$it "u section #dg1 ! am\nt ( su*     
exp5ditures tak5 into acc\nt "u ?is     
section 7det]m9$ )\t reg>d to ?is       
p>agraph7 %all be r$uc$ by #ej p]c5t4   
7c7 ,qualifi$ conv]sion ,= purposes (   
?is section-- 7#a7 ,9 g5]al ,! t]m      
qualifi$ conv]sion means ! conv]sion (  
an eligible comm]cial build+ into a     
qualifi$ af=dable h\s+ build+ if !      
qualifi$ conv]sion exp5ditures ( !      
taxpay] ) respect to su* conv]sion exce$
 ! great] (-- 7,a7 an am\nt equal to #ej
 p]c5t ( ! adju/$ basis ( su* build+    
7det]m9$ imm$iately prior to su*        
conv]sion71 or  7,b7 #ajj1jjj4  7#b7    
,eligible comm]cial build+ ,! t]m       
eligible comm]cial build+ means any     
build+ :i*1 ) respect to any conv]sion--
 7,a7 0 orig9ally plac$ 9 s]vice n less 

?an #bj ye>s be=e ! date on :i* su*     
conv]sion beg9s1 &  7,b7 imm$iately     
prior to su* conv]sion1 0 nonresid5tial 
real prop]ty 7z def9$ 9 section #afh74  
7d7 ,qualifi$ af=dable h\s+ build+ ,=   
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m qualifi$ af=dable h\s+ build+    
means any resid5tial build+ if dur+ !   
#cj-ye> p]iod beg9n+ on ! date on :i*   
su* build+ is plac$ 9 s]vice by !       
taxpay]1 n less ?an #bj p]c5t ( !       
resid5tial units 9 ! build+ are bo?     
r5t-re/rict$ & res]v$ = individuals ^:  
income is #hj p]c5t or less ( ! area    
m$ian income4  7#b7 ,r5t & income       
limitation ,= purposes ( ?is subsection1
 rules simil> to ! rules ( subsection   
7g7 ( section #db %all apply to det]m9e 
:e!r a unit is r5t-re/rict$1 treatm5t ( 
units occupi$ by individuals ^: incomes 
rise above ! limit1 & ! treatm5t ( units
 :]e ,f$]al r5tal assi/ance is r$uc$ z  
t5ant's income increases4  7e7          
,limitation on aggregate cr$it all[able 
7#a7 ,cr$it may n exce$ cr$it am\nt     

allocat$ to build+  7,a7 ,9 g5]al ,!    
am\nt ( ! cr$it det]m9$ "u ?is section )
 respect to any build+ %all n exce$ !   
qualifi$ conv]sion cr$it doll> am\nt    
allocat$ to su* build+ "u ?is subsection
 by ! h\s+ cr$it ag5cy ( ! ,/ate 9 :i*  
su* build+ is locat$4  7,b7 ,"t = mak+  
allocation ,except 9 ! case ( an        
allocation :i* meets ! requirem5ts (    
subp>agraph 7,c71 an allocation %all be 
tak5 into acc\nt "u subp>agraph 7,a7    
only if x is made n lat] ?an ! close ( !
 cal5d> ye> 9 :i* ! build+ is plac$ 9   
s]vice4  7,c7 ,exception :]e b9d+       
commitm5t ,an allocation meets !        
requirem5ts ( ?is subp>agraph if !re is 
a b9d+ commitm5t 7n lat] ?an ! close ( !
 cal5d> ye> 9 :i* ! build+ is plac$ 9   
s]vice7 by ! h\s+ cr$it ag5cy to        
allocate a specifi$ h\s+ cr$it doll>    
am\nt to su* build+ beg9n+ 9 a lat]     
taxable ye>4  7#b7 ,/ate limitation     
7,a7 ,9 g5]al ,! aggregate qualifi$     
conv]sion cr$it doll> am\nt :i* a h\s+  
cr$it ag5cy ( any ,/ate may allocate is 

! sum (-- 7i7 ! am\nt :i* be>s ! same   
ratio to ! national qualifi$ conv]sion  
cr$it limitation z-- 7,i7 ! population (
 su* ,/ate1 be>s to  7,,ii7 ! population
 ( all ,/ates1 plus  7ii7 ! sum ( any   
am\nts det]m9$ "u subp>agraph 7,c74     
7,b7 ,national qualifi$ conv]sion cr$it 
limitation ,! national qualifi$         
conv]sion cr$it limitation is           
#ab1jjj1jjj1jjj4  7,c7 ,additional      
am\nts provid$ = c]ta9 build+s 9        
economically di/ress$ areas  7i7 ,9     
g5]al ,= purposes ( subp>agraph         
7,a77ii71 9 any case 9 :i*-- 7,i7 ! h\s+
 cr$it ag5cy ( a ,/ate allocates an     
am\nt to a build+ :i* is locat$ 9 an    
economically di/ress$ area1 &  7,,ii7 ! 
,secret>y subsequ5tly designates su*    
am\nt = purposes ( ?is p>agraph1  !     
am\nt det]m9$ "u ?is p>agraph ) respect 
to su* build+ %all be ! am\nt orig9ally 
allocat$ by ! h\s+ cr$it ag5cy ( ! ,/ate
 "u clause 7i74  7ii7 ,limitation ,!    
aggregate am\nt :i* ! ,secret>y may     
designate "u clause 7i77,,ii7 %all n    

exce$ #c1jjj1jjj1jjj4  7iii7 ,mann] (   
designation ,n lat] ?an #abj days aft] !
 date ( ! enactm5t ( ?is section1 !     
,secret>y %all e/abli% a program =      
det]m9+ ! designation ( am\nts t may be 
designat$ "u ?is subp>agraph4  7,d7     
,reallocation ( c]ta9 am\nts  7i7 ,9    
g5]al ,not)/&+ subp>agraph 7,a7-- 7,i7  
no am\nt may be allocat$ "u p>agraph    
7#a7 by a h\s+ cr$it ag5cy ( an         
und]subscrib$ ,/ate aft] ,decemb] #ca1  
#bjbg1 &  7,,ii7 ! doll> am\nt det]m9$  
"u subp>agraph 7,a7 ) respect to any    
ov]subscrib$ ,/ate aft] su* date %all be
 increas$ by su* ,/ate's %>e ( !        
reallocation am\nt4  7ii7 ,/ate %>e ,=  
purposes ( clause 7i71 an ov]subscrib$  
,/ate's %>e ( ! reallocation am\nt is ! 
am\nt :i* be>s ! same ratio to !        
reallocation am\nt z-- 7,i7 ! population
 ( su* ,/ate1 be>s to  7,,ii7 !         
population ( all ov]subscrib$ ,/ates4   
7iii7 ,def9itions ,= purposes ( ?is     
subp>agraph-- 7,i7 ,und]subscrib$ ,/ate 
,! t]m und]subscrib$ ,/ate means any    

,/ate t is n an ov]subscrib$ ,/ate4     
7,,ii7 ,ov]subscrib$ ,/ate ,! t]m       
ov]subscrib$ ,/ate means any ,/ate !    
h\s+ cr$it ag5cy ( :i* has allocat$ all 
( ! qualifi$ conv]sion cr$it doll> am\nt
 :i* may be allocat$ by x be=e ! date   
describ$ 9 clause 7i77,i74  7,,iii7     
,reallocation am\nt ,! t]m reallocation 
am\nt means ! sum ( ! am\nts describ$ 9 
subp>agraph 7,a7 :i* h n be5 allocat$ by
 und]subscrib$ ,/ates be=e ! date       
describ$ 9 clause 7i77,i74  7#c7 ,mann] 
( allocation  7,a7 ,plan = allocation   
7i7 ,9 g5]al ,not)/&+ any o!r provision 
( ?is section1 ! qualifi$ conv]sion     
cr$it doll> am\nt ) respect to any      
build+ %all be z]o unless su* am\nt 0   
allocat$ pursuant to a conv]sion cr$it  
allocation plan ( ! h\s+ cr$it ag5cy :i*
 is approv$ by ! gov]nm5tal unit 79     
accordance ) rules simil> to ! rules (  
section #adg7;f77#b7 7o!r ?an           
subp>agraph 7,b77ii7 !re(77 ( :i* su*   
ag5cy is a "p4  7ii7 ,conv]sion cr$it   
allocation plan ,= purposes ( ?is       

subp>agraph1 ! t]m conv]sion cr$it      
allocation plan means a plan-- 7,i7 :i* 
sets selection crit]ia = allocations1   
tak+ into acc\nt-- 7aa7 :e!r ! cr$it is 
ne$$ to assure ! f9ancial feasibility ( 
! conv]sion1  7bb7 ! ext5t to :i* !     
conv]sion results 9 ! creation (        
af=dable h\s+1  7cc7 ! ext5t to :i* !   
conv]sion results 9 ! creation ( h\s+   
ne> transportation1 employm5t1 &        
comm]cial opportunities1  7dd7 ! ext5t  
to :i* ! conv]sion w support small      
bus9esses & economic revitalization 9 ! 
surr\nd+ area1  7ee7 ! degree ( local   
gov]nm5t support = ! conv]sion1 &  7ff7 
! read9ess ( ! build+ = a qualifi$      
conv]sion1 &  7,,ii7 :i* provides a     
proc$ure t ! ag5cy 7or an ag5t or o!r   
private contractor ( su* ag5cy7 w foll[ 
9 monitor+ = noncompliance ) !          
requirem5ts ( subsection 7d7 & 9 notify+
 ! ,int]nal ,rev5ue ,s]vice ( su*       
noncompliance4  7,b7 ,b9d+ allocation   
agreem5ts2 report+ ,9 mak+ allocations (
 qualifi$ conv]sion cr$it doll> am\nts1 

ea* h\s+ cr$it ag5cy %all-- 7i7 ent]    
into b9d+ agreem5ts ) taxpay]s = !      
allocation ( qualifi$ conv]sion cr$it   
doll> am\nts1 :i* agreem5ts %all specify
 ! am\nt ( qualifi$ conv]sion cr$it     
doll> am\nt allocat$ to ! build+ & !    
t]ms = any modifications or )drawal (   
su* allocation1 &  7ii7 report to !     
,secret>y1 at su* "t & 9 su* mann] z !  
,secret>y may require1 ! am\nt (        
allocations made ) respect to any       
build+4  7,c7 ,/ate ext5d$ use          
requirem5ts p]mitt$ pa/ #cj ye>s ,=     
purposes ( ?is p>agraph1 a h\s+ cr$it   
ag5cy's plan %all n fail to be treat$ z 
a conv]sion cr$it allocation plan m]ely 
because x includes1 & no?+ 9 ?is section
 %all be con/ru$ to limit a b9d+        
allocation agreem5t f includ+1          
af=dability or r5t re/riction           
requirem5ts ) respect to ! build+ t     
apply = a long] p]iod ?an ! #cj-ye>     
p]iod describ$ 9 subsections 7d7 &      
7g77#a77;,b74  7#d7 ,def9itions & o!r   
rules  7,a7 ,h\s+ cr$it ag5cy ,! t]m    

h\s+ cr$it ag5cy means1 ) respect to any
 ,/ate1 ! h\s+ cr$it ag5cy au?oriz$ "u  
section #db7;h77#h7 or su* o!r ag5cy z  
au?oriz$ by ! ,/ate = purposes ( ?is    
section4  7,b7 ,economically di/ress$   
area ,! t]m economically di/ress$ area  
means any area :i*-- 7i7 :i* has be5    
designat$ z a qualifi$ c5sus tract "u   
section #db7;d77#e77;,b77ii7 or z a     
difficult developm5t area "u section    
#db7;d77#e77;,b77iii71 or  7ii7 :i*     
meets ! requirem5t ( section            
#cja7;a77#c7 ( ! ,public ,works &       
,economic ,developm5t ,act ( #aife4     
7,c7 ,/ate ,! t]m ,/ate includes a      
possession ( ! ,unit$ ,/ates4  7,d7 ,o!r
 rules ,rules simil> to ! rules (       
subp>agraphs 7,a7 & 7,b7 ( section      
#db7;h77#g7 %all apply = purposes ( ?is 
section4  7f7 ,progress exp5ditures ,if 
! ,secret>y det]m9es1 on ! basis (      
ar*itectural plans & specifications t a 
qualifi$ conv]sion is reasonably expect$
 to exce$ #b ye>s1 rules simil> to !    
rules ( section #dg7;d7 %all apply )    

respect to su* conv]sion = purposes (   
?is section4  7g7 ,special rules = c]ta9
 areas  7#a7 ,qualifi$ c5sus tracts &   
difficult developm5t areas ,9 ! case ( a
 qualifi$ af=dable h\s+ build+-- 7,a7   
:i* is locat$ 9 any area :i* is         
designat$ z a qualifi$ c5sus tract "u   
section #db7;d77#e77;,b77ii7 or z a     
difficult developm5t area "u section    
#db7;d77#e77;,b77iii771 &  7,b7 )       
respect to :i* dur+ #cj-ye> p]iod beg9n+
 on ! date on :i* su* build+ is plac$ 9 
s]vice by ! taxpay]1 n less ?an #bj     
p]c5t ( ! resid5tial units 9 ! build+   
are bo? r5t-re/rict$ & res]v$ =         
individuals ^: income is #fj p]c5t or   
less ( ! area m$ian income1  subsection 
7a7 %all be appli$ by sub/itut+ #cj     
p]c5t = #bj p]c5t4  7#b7 ,hi/oric       
pres]vation 9 rural areas  7,a7 ,9 g5]al
 ,9 ! case ( a qualifi$ af=dable h\s+   
build+ :i* is 9 a rural area & is "p (  
an hi/oric pres]vation project1 !       
taxpay] may elect to sub/itute #ce p]c5t
 = #bj p]c5t "u subsection 7a7 ) respect

 to su* portion ( ! aggregate qualifi$  
conv]sion exp5ditures tak5 into acc\nt  
"u su* subsection z does n exce$        
#b1jjj1jjj4  7,b7 ,def9itions ,=        
purposes ( ?is p>agraph-- 7i7 ,rural    
area ,! t]m rural area %all h ! mean+   
giv5 su* t]m "u section #acic7;a77#b74  
7ii7 ,hi/oric pres]vation project ,! t]m
 hi/oric pres]vation project means a    
qualifi$ conv]sion :i* involves !       
c]tifi$ rehabilitation ( a c]tifi$      
hi/oric /ructure4 ,:e!r conv]sion ( a   
c]tifi$ hi/oric /ructure involves       
c]tifi$ rehabilitation %all be det]m9$  
"u rules simil> to ! rules ( section    
#dg7;c77#b77;,c74  7h7 ,regulations ,!  
,secret>y %all issue su* regulations or 
o!r guidance z may be necess>y or       
appropriate to c>ry out ! purposes ( ?is
 section1 includ+ regulations or o!r    
guidance-- 7#a7 provid+ = ! recapture ( 
! cr$it det]m9$ "u subsection 7a7 if !  
qualifi$ af=dable h\s+ build+ ceases to 
be a qualifi$ af=dable h\s+ build+ dur+ 
! #cj-ye> p]iod beg9n+ on ! date t su*  

build+ is plac$ 9 s]vice by ! taxpay]1  
7#b7 detail+ any c]tifications requir$ f
 ! taxpay] or any h\s+ cr$it ag5cy ( a  
,/ate1  7#c7 ) respect to ! application 
( subsection 7b77#d71  7#d7 ) respect to
 in=mation report+ on allocations (     
qualifi$ conv]sion cr$it doll> am\nts1  
7#e7 provid+ rules = mak+ a det]m9ation 
z to :e!r an area is describ$ 9         
subsection 7e77#d77;,b71 &  7#f7 :i*    
enc\rages h\s+ cr$it ag5cies to         
allocate1 to ! ext5t practicable1       
qualifi$ conv]sion cr$it doll> am\nts to
 non-metropolitan c\nties )9 ! ,/ate 9  
proportion to ! non-metropolitan        
population ( ! ,/ate1 b only to ! ext5t 
x is demon/rat$ )9 su* non-metropolitan 
c\nties t !re are suffici5t qualifi$    
conv]sion exp5ditures to w>rant su*     
allocations4  4  7b7 ,transf]ability (  
cr$it ,section #fdah7;f77#a77;,a7 ( su* 
,code is am5d$ by add+ at ! end ! foll[+
 new clause3  7xii7 ,! af=dable h\s+    
conv]sion cr$it det]m9$ "u section      
#dh;,f4  4  7c7 ,con=m+ am5dm5ts  7#a7  

,section #df ( su* ,code is am5d$ 9     
p>agraph 7#f7 by /rik+ & at ! end1 9    
p>agraph 7#g7 by /rik+ ! p]iod at ! end 
& ins]t+ 1 &1 & by add+ at ! end !      
foll[+ new p>agraph3  7#h7 ! af=dable   
h\s+ conv]sion cr$it4  4  7#b7 ,section 
#di7;a77#a77;,c7 ( su* ,code is am5d$ by
 /rik+ & at ! end ( clause 7vii71 by    
/rik+ ! p]iod at ! end ( clause 7viii71 
& by add+ at ! end ! foll[ new clause3  
7ix7 ! basis ( any prop]ty :i* is be+   
conv]t$ z "p ( a qualifi$ conv]sion "u  
section #dh;,f4  4  7#c7 ,section       
#ej7;a77#b77;,e7 ( su* ,code is am5d$ by
 /rik+ or #dh;,e7e7 & ins]t+ #dh;,e7e71 
or #dh;,f7f74  7#d7 ,! table ( sections 
= subp>t ,e ( "p ,,iv ( sub*apt] ,a (   
*apt] #a ( subtitle ,a ( su* ,code is   
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #dh;,f4 ,af=dable h\s+     
conv]sion cr$it4  4  7d7 ,effective date
 ,! am5dm5ts made by ?is section %all   
apply to qualifi$ af=dable h\s+ build+s 
7z def9$ 9 section #dh;,f ( ! ,int]nal  
,rev5ue ,code ( #aihf1 z add$ by ?is    

section7 plac$ 9 s]vice aft] ! date ( ! 
enactm5t ( ?is ,act4