,,ii #aahth ,,congress #b;d ,session ,s4 #eaif ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #be1 #bjbd,mr4 ,heinrich 7for himself1 ,mr4 ,wyden1 ,mr4 ,welch1 and ,mr4 ,van ,hollen7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to establish the ,new ,homes ,tax ,credit4 #a4 ,short title ,this ,act may be cited as the ,new ,homes ,tax ,credit ,act4 #b4 ,establishment of ,new ,homes ,tax ,credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #de;,,aa the following new section3 #de;,,bb4 ,new ,homes ,tax ,credit 7a7 ,allowance of credit 7#a7 ,in general ,for purposes of section #ch1 in the case of a taxpayer who holds a qualified equity investment on a credit allowance date of such investment which occurs during the taxable year1 the new homes tax credit determined under this section for such taxable year is an amount equal to the applicable percentage of the amount paid to the housing development entity for such investment at its original issue4 7#b7 ,applicable percentage ,for purposes of paragraph 7#a71 the applicable percentage is-- 7,a7 #g percent with respect to the first credit allowance date1 and 7,b7 #h percent with respect to the remainder of the credit allowance dates4 7#c7 ,credit allowance date ,for purposes of paragraph 7#a71 the term credit allowance date means1 with respect to any qualified equity investment-- 7,a7 the date on which such investment is initially made1 and 7,b7 each of the #d anniversary dates of such date thereafter4 7b7 ,qualified equity investment 7#a7 ,in general ,for purposes of this section1 the term qualified equity investment means any equity investment in a housing development entity if-- 7,a7 such investment is acquired by the taxpayer at its original issue 7directly or through an underwriter7 solely in exchange for cash1 7,b7 substantially all of such cash is used by the housing development entity to make qualified housing investments1 and 7,c7 such investment is designated for purposes of this section by the housing development entity4 ,such term shall not include any equity investment issued by a housing development entity more than #e years after the date that such entity receives an allocation under subsection 7e74 ,any allocation not used within such #e-year period may be reallocated by the ,secretary under subsection 7e74 7#b7 ,special rules ,rules similar to the rules under paragraphs 7#b7 through 7#f7 of section #de;,d7b7 shall apply for purposes of this section4 7c7 ,housing development entity ,for purposes of this section1 the term housing development entity means any domestic corporation or partnership if-- 7#a7 one of the missions of the entity is to provide funding for construction of housing for low- and moderate-income individuals1 and 7#b7 the entity is certified by the ,secretary for purposes of this section as being a housing development entity4 7d7 ,other definitions ,for purposes of this section-- 7#a7 ,qualified housing investment 7,a7 ,in general ,the term qualified housing investment means funding which is provided by a housing development entity to a qualified construction business-- 7i7 following completion of a qualified home project by such qualified construction business1 and 7ii7 7,i7 in the case of a home described in clause 7i7 of paragraph 7#c77;,a71 after the housing development entity has confirmed 7on or before the date on which ownership of the home is transferred to the buyer7 that-- 7aa7 the home is being sold to a qualified buyer1 and 7bb7 that such buyer has been provided notice with respect to the requirements under subsection 7g71 or 7,,ii7 in the case of a home described in clause 7ii7 of such paragraph1 after the housing development entity has confirmed 7on or before the date on which renovation of the home is completed by the qualified construction business7 that-- 7aa7 the home is owned by a qualified buyer1 and 7bb7 that such buyer has been provided notice with respect to the requirements under subsection 7g74 7,b7 ,transfer of funds at closing ,with respect to any funding described in subparagraph 7,a71 such funding shall be provided by the housing development entity to the qualified construction business-- 7i7 in the case of a home described in clause 7i7 of paragraph 7#c77;,a71 on the date on which ownership of the home is transferred to the qualified buyer1 or 7ii7 in the case of a home described in clause 7ii7 of such paragraph1 on the date on which renovation of the home is completed by the qualified construction business4 7,c7 ,limitation ,in the case of any home constructed or renovated as part of a qualified home project1 the amount of funding provided by a housing development entity to a qualified construction business with respect to such home shall not exceed an amount equal to #bj percent 7or1 in the case of a home renovated as part of a qualified home project1 #ae percent7 of the median purchase price for single-family housing in the area in which such home is located1 as determined by the ,secretary of ,housing and ,urban ,development for the purpose of section #ahjg4djb7;a77#b7 of title #ab1 ,code of ,federal ,regulations 7or any successor regulation74 7#b7 ,qualified construction business ,the term qualified construction business means an entity engaged in the trade or business of the construction or renovation of residential housing4 7#c7 ,qualified home projects 7,a7 ,in general ,the term qualified home project means-- 7i7 the construction of entry-level homes which are sold to qualified buyers1 or 7ii7 the renovation of ,single-family housing 7as such term is used in section #ahjg4djb of title #ab1 ,code of ,federal ,regulations7 which is owned by a qualified buyer4 7,b7 ,entry-level homes ,the term entry-level home means any residential building which-- 7i7 satisfies the requirement under section #ahjg4djb7;a77#a7 of title #ab1 ,code of ,federal ,regulations1 and 7ii7 is designed to be purchased by a first-time homebuyer 7as defined in section #ajd of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7#db ,u4,s4,c4 #abgjd774 7#d7 ,qualified buyer ,the term qualified buyer means an individual or family whose income is not greater than #abj percent of area median income4 7e7 ,national limitation on amount of investments designated 7#a7 ,in general ,for each of calendar years #bjbe through #bjca1 the new homes tax credit limitation for each calendar year shall be-- 7,a7 for #bjbe1 #a1jjj1jjj1jjj1 7,b7 for #bjbf and #bjbg1 #a1ejj1jjj1jjj1 7,c7 for #bjbh and #bjbi1 #b1jjj1jjj1jjj1 and 7,d7 for #bjcj and #bjca1 #c1ejj1jjj1jjj4 7#b7 ,allocation of limitation ,the limitation under paragraph 7#a7 shall be allocated by the ,secretary among housing development entities selected by the ,secretary4 ,in making allocations under the preceding sentence1 the ,secretary shall-- 7,a7 allocate not less than #ej percent of such limitation for any calendar year to housing development agencies that commit to make qualified housing investments to provide housing for individuals or families whose income is not greater than #hj percent of area median income1 7,b7 allocate not less than #e percent of such limitation for any calendar year to housing development agencies that commit to make qualified housing investments to provide housing that is exclusively available to members of an ,indian tribe 7as such term is defined in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #ecjd771 and 7,c7 give priority to-- 7i7 any community development financial institution 7as defined in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb77 which is certified as a community development financial institution under the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgja et seq471 7ii7 any community development credit union1 7iii7 any housing development entity with prior experience relating to other ,federal programs designed to create affordable housing for low- and moderate-income individuals1 such as-- 7,i7 the low-income housing credit under section #db1 and 7,,ii7 the ,,home ,investment ,partnerships program under subtitle ,a of title ,,ii of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7#db ,u4,s4,c4 #abgda et seq471 and 7iv7 any housing development entity which-- 7,i7 has previously worked within the community in which the proposed qualified home project is located1 and 7,,ii7 can demonstrate engagement with local officials and low-income individuals within such community4 7#c7 ,carryover of unused limitation ,if the new homes tax credit limitation for any calendar year exceeds the aggregate amount allocated under paragraph 7#b7 for such year1 such limitation for the succeeding calendar year shall be increased by the amount of such excess4 ,no amount may be carried under the preceding sentence to any calendar year after #bjcf4 7f7 ,basis reduction ,rules similar to the rules under subsection 7h7 of section #de;,d shall apply for purposes of this section4 7g7 ,limitation during initial #e-,year period 7#a7 ,in general 7,a7 ,principal residence requirement ,subject to subparagraph 7,c71 with respect to any qualified home project for which funding has been provided by a housing development entity to a qualified construction business pursuant to the provisions of this section1 the housing development entity shall ensure that1 during the limitation period1 the home with respect to which such funding has been provided remains the principal residence of the qualified buyer4 7,b7 ,liens ,with respect to the requirement under subparagraph 7,a71 the housing development entity shall enforce such requirement by means of the imposition of a lien on the home constructed or renovated as part of the qualified home project1 with such lien to be recorded with the relevant local official or agency designated to record liens4 7,c7 ,exception for members of the armed forces ,in the case of any home constructed or renovated as part of a qualified home project1 if there is a disposition of such home by the qualified buyer-- 7i7 during the limitation period1 and 7ii7 which is in connection with ,government orders received by such qualified buyer for qualified official extended duty service 7as defined in section #cf7;f77#d77;,e77ii771 subparagraph 7,a7 shall not apply4 7#b7 ,limitation period ,for purposes of this subsection1 the term limitation period means the #e-year period subsequent to-- 7,a7 in the case of a home described in clause 7i7 of subsection 7d77#c77;,a71 on the date on which ownership of the home is transferred to the qualified buyer1 or 7,b7 in the case of a home described in clause 7ii7 of such subsection1 on the date on which renovation of the home is completed by the qualified construction business4 7#c7 ,regulations and guidance ,the ,secretary shall issue such regulations or other guidance as the ,secretary determines necessary to carry out the purposes of this subsection4 7h7 ,reporting 7#a7 ,in general ,not later than ,january #a1 #bjbf1 and annually thereafter1 the ,secretary shall submit a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 the ,committee on ,financial ,services of the ,house of ,representatives1 the ,committee on ,ways and ,means of the ,house of ,representatives1 and the ,committee on ,finance of the ,senate1 containing information regarding-- 7,a7 the size and location of qualified home projects which have been financially supported by qualified equity investments for which a credit has been allowed under this section1 and 7,b7 the income of individuals and families residing in homes constructed or renovated as part of such qualified home projects4 7#b7 ,collection of information ,the ,secretary shall develop a method to collect and streamline relevant data for purposes of collecting the information described in paragraph 7#a74 7i7 ,regulations ,the ,secretary shall prescribe such regulations as may be appropriate to carry out this section4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the new homes tax credit determined under section #de;,,bb7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #de;,,aa the following new item3 ,sec4 #de;,,bb4 ,new ,homes ,tax ,credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to investments made after ,december #ca1 #bjbd4