,,ii  #aah? ,,congress  #b;d ,session   
,s4 #eaif  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #be1         
#bjbd,mr4 ,he9ri* 7= himself1 ,mr4      
,wyd51 ,mr4 ,wel*1 & ,mr4 ,van ,holl57  
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to e/abli% ! ,new 
,homes ,tax ,cr$it4  #a4 ,%ort title    
,?is ,act may be cit$ z ! ,new ,homes   
,tax ,cr$it ,act4  #b4 ,e/abli%m5t (    
,new ,homes ,tax ,cr$it  7a7 ,9 g5]al   
,subp>t ,d ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] section   
#de;,,aa ! foll[+ new section3          
#de;,,bb4 ,new ,homes ,tax ,cr$it  7a7  
,all[ance ( cr$it  7#a7 ,9 g5]al ,=     
purposes ( section #ch1 9 ! case ( a    
taxpay] :o holds a qualifi$ equity      
inve/m5t on a cr$it all[ance date ( su* 
inve/m5t :i* occurs dur+ ! taxable ye>1 
! new homes tax cr$it det]m9$ "u ?is    
section = su* taxable ye> is an am\nt   

equal to ! applicable p]c5tage ( ! am\nt
 paid to ! h\s+ developm5t entity = su* 
inve/m5t at its orig9al issue4  7#b7    
,applicable p]c5tage ,= purposes (      
p>agraph 7#a71 ! applicable p]c5tage    
is-- 7,a7 #g p]c5t ) respect to ! fir/  
cr$it all[ance date1 &  7,b7 #h p]c5t ) 
respect to ! rema9d] ( ! cr$it all[ance 
dates4  7#c7 ,cr$it all[ance date ,=    
purposes ( p>agraph 7#a71 ! t]m cr$it   
all[ance date means1 ) respect to any   
qualifi$ equity inve/m5t-- 7,a7 ! date  
on :i* su* inve/m5t is initially made1 &
  7,b7 ea* ( ! #d anniv]s>y dates ( su* 
date !reaft]4  7b7 ,qualifi$ equity     
inve/m5t  7#a7 ,9 g5]al ,= purposes (   
?is section1 ! t]m qualifi$ equity      
inve/m5t means any equity inve/m5t 9 a  
h\s+ developm5t entity if-- 7,a7 su*    
inve/m5t is acquir$ by ! taxpay] at its 
orig9al issue 7directly or ?r\gh an     
und]writ]7 solely 9 ex*ange = ca%1  7,b7
 sub/antially all ( su* ca% is us$ by ! 
h\s+ developm5t entity to make qualifi$ 
h\s+ inve/m5ts1 &  7,c7 su* inve/m5t is 

designat$ = purposes ( ?is section by ! 
h\s+ developm5t entity4  ,su* t]m %all n
 include any equity inve/m5t issu$ by a 
h\s+ developm5t entity m ?an #e ye>s    
aft] ! date t su* entity receives an    
allocation "u subsection 7e74 ,any      
allocation n us$ )9 su* #e-ye> p]iod may
 be reallocat$ by ! ,secret>y "u        
subsection 7e74  7#b7 ,special rules    
,rules simil> to ! rules "u p>agraphs   
7#b7 ?r\gh 7#f7 ( section #de;,d7b7 %all
 apply = purposes ( ?is section4  7c7   
,h\s+ developm5t entity ,= purposes (   
?is section1 ! t]m h\s+ developm5t      
entity means any dome/ic corporation or 
p>tn]%ip if-- 7#a7 "o ( ! missions ( !  
entity is to provide fund+ = con/ruction
 ( h\s+ = l[- & mod]ate-income          
individuals1 &  7#b7 ! entity is c]tifi$
 by ! ,secret>y = purposes ( ?is section
 z be+ a h\s+ developm5t entity4  7d7   
,o!r def9itions ,= purposes ( ?is       
section-- 7#a7 ,qualifi$ h\s+ inve/m5t  
7,a7 ,9 g5]al ,! t]m qualifi$ h\s+      
inve/m5t means fund+ :i* is provid$ by a

 h\s+ developm5t entity to a qualifi$   
con/ruction bus9ess-- 7i7 foll[+        
completion ( a qualifi$ home project by 
su* qualifi$ con/ruction bus9ess1 &     
7ii7 7,i7 9 ! case ( a home describ$ 9  
clause 7i7 ( p>agraph 7#c77;,a71 aft] ! 
h\s+ developm5t entity has confirm$ 7on 
or be=e ! date on :i* own]%ip ( ! home  
is transf]r$ to ! buy]7 t-- 7aa7 ! home 
is be+ sold to a qualifi$ buy]1 &  7bb7 
t su* buy] has be5 provid$ notice )     
respect to ! requirem5ts "u subsection  
7g71 or  7,,ii7 9 ! case ( a home       
describ$ 9 clause 7ii7 ( su* p>agraph1  
aft] ! h\s+ developm5t entity has       
confirm$ 7on or be=e ! date on :i*      
r5ovation ( ! home is complet$ by !     
qualifi$ con/ruction bus9ess7 t-- 7aa7 !
 home is own$ by a qualifi$ buy]1 &     
7bb7 t su* buy] has be5 provid$ notice )
 respect to ! requirem5ts "u subsection 
7g74  7,b7 ,transf] ( funds at clos+ ,) 
respect to any fund+ describ$ 9         
subp>agraph 7,a71 su* fund+ %all be     
provid$ by ! h\s+ developm5t entity to !

 qualifi$ con/ruction bus9ess-- 7i7 9 ! 
case ( a home describ$ 9 clause 7i7 (   
p>agraph 7#c77;,a71 on ! date on :i*    
own]%ip ( ! home is transf]r$ to !      
qualifi$ buy]1 or  7ii7 9 ! case ( a    
home describ$ 9 clause 7ii7 ( su*       
p>agraph1 on ! date on :i* r5ovation ( !
 home is complet$ by ! qualifi$         
con/ruction bus9ess4  7,c7 ,limitation  
,9 ! case ( any home con/ruct$ or       
r5ovat$ z "p ( a qualifi$ home project1 
! am\nt ( fund+ provid$ by a h\s+       
developm5t entity to a qualifi$         
con/ruction bus9ess ) respect to su*    
home %all n exce$ an am\nt equal to #bj 
p]c5t 7or1 9 ! case ( a home r5ovat$ z  
"p ( a qualifi$ home project1 #ae p]c5t7
 ( ! m$ian pur*ase price = s+le-family  
h\s+ 9 ! area 9 :i* su* home is locat$1 
z det]m9$ by ! ,secret>y ( ,h\s+ &      
,urban ,developm5t = ! purpose ( section
 #ahjg4djb7;a77#b7 ( title #ab1 ,code ( 
,f$]al ,regulations 7or any successor   
regulation74  7#b7 ,qualifi$ con/ruction
 bus9ess ,! t]m qualifi$ con/ruction    

bus9ess means an entity engag$ 9 ! trade
 or bus9ess ( ! con/ruction or r5ovation
 ( resid5tial h\s+4  7#c7 ,qualifi$ home
 projects  7,a7 ,9 g5]al ,! t]m qualifi$
 home project means-- 7i7 ! con/ruction 
( entry-level homes :i* are sold to     
qualifi$ buy]s1 or  7ii7 ! r5ovation (  
,s+le-family h\s+ 7z su* t]m is us$ 9   
section #ahjg4djb ( title #ab1 ,code (  
,f$]al ,regulations7 :i* is own$ by a   
qualifi$ buy]4  7,b7 ,entry-level homes 
,! t]m entry-level home means any       
resid5tial build+ :i*-- 7i7 satisfies ! 
requirem5t "u section #ahjg4djb7;a77#a7 
( title #ab1 ,code ( ,f$]al             
,regulations1 &  7ii7 is design$ to be  
pur*as$ by a fir/-"t homebuy] 7z def9$ 9
 section #ajd ( ! ,cran/on-,gonzalez    
,national ,af=dable ,h\s+ ,act 7#db     
,u4,s4,c4 #abgjd774  7#d7 ,qualifi$ buy]
 ,! t]m qualifi$ buy] means an          
individual or family ^: income is n     
great] ?an #abj p]c5t ( area m$ian      
income4  7e7 ,national limitation on    
am\nt ( inve/m5ts designat$  7#a7 ,9    

g5]al ,= ea* ( cal5d> ye>s #bjbe ?r\gh  
#bjca1 ! new homes tax cr$it limitation 
= ea* cal5d> ye> %all be-- 7,a7 = #bjbe1
 #a1jjj1jjj1jjj1  7,b7 = #bjbf & #bjbg1 
#a1ejj1jjj1jjj1  7,c7 = #bjbh & #bjbi1  
#b1jjj1jjj1jjj1 &  7,d7 = #bjcj & #bjca1
 #c1ejj1jjj1jjj4  7#b7 ,allocation (    
limitation ,! limitation "u p>agraph    
7#a7 %all be allocat$ by ! ,secret>y    
among h\s+ developm5t entities select$  
by ! ,secret>y4 ,9 mak+ allocations "u !
 prec$+ s5t5ce1 ! ,secret>y %all-- 7,a7 
allocate n less ?an #ej p]c5t ( su*     
limitation = any cal5d> ye> to h\s+     
developm5t ag5cies t commit to make     
qualifi$ h\s+ inve/m5ts to provide h\s+ 
= individuals or families ^: income is n
 great] ?an #hj p]c5t ( area m$ian      
income1  7,b7 allocate n less ?an #e    
p]c5t ( su* limitation = any cal5d> ye> 
to h\s+ developm5t ag5cies t commit to  
make qualifi$ h\s+ inve/m5ts to provide 
h\s+ t is exclusively available to      
memb]s ( an ,indian tribe 7z su* t]m is 
def9$ 9 section #d ( ! ,indian          

,self-,det]m9ation & ,education         
,assi/ance ,act 7#be ,u4,s4,c4 #ecjd771 
&  7,c7 give priority to-- 7i7 any      
community developm5t f9ancial in/itution
 7z def9$ 9 section #ajc ( ! ,community 
,developm5t ,bank+ & ,f9ancial          
,in/itutions ,act ( #aiid 7#ab ,u4,s4,c4
 #dgjb77 :i* is c]tifi$ z a community   
developm5t f9ancial in/itution "u !     
,community ,developm5t ,bank+ &         
,f9ancial ,in/itutions ,act ( #aiid 7#ab
 ,u4,s4,c4 #dgja et seq471  7ii7 any    
community developm5t cr$it union1  7iii7
 any h\s+ developm5t entity ) prior     
exp]i5ce relat+ to o!r ,f$]al programs  
design$ to create af=dable h\s+ = l[- & 
mod]ate-income individuals1 su* z-- 7,i7
 ! l[-income h\s+ cr$it "u section #db1 
&  7,,ii7 ! ,,home ,inve/m5t ,p>tn]%ips 
program "u subtitle ,a ( title ,,ii ( ! 
,cran/on-,gonzalez ,national ,af=dable  
,h\s+ ,act 7#db ,u4,s4,c4 #abgda et     
seq471 &  7iv7 any h\s+ developm5t      
entity :i*-- 7,i7 has previ\sly work$ )9
 ! community 9 :i* ! propos$ qualifi$   

home project is locat$1 &  7,,ii7 c     
demon/rate engagem5t ) local (ficials & 
l[-income individuals )9 su* community4 
7#c7 ,c>ryov] ( unus$ limitation ,if !  
new homes tax cr$it limitation = any    
cal5d> ye> exce$s ! aggregate am\nt     
allocat$ "u p>agraph 7#b7 = su* ye>1 su*
 limitation = ! succe$+ cal5d> ye> %all 
be increas$ by ! am\nt ( su* excess4 ,no
 am\nt may be c>ri$ "u ! prec$+ s5t5ce  
to any cal5d> ye> aft] #bjcf4  7f7      
,basis r$uction ,rules simil> to ! rules
 "u subsection 7h7 ( section #de;,d %all
 apply = purposes ( ?is section4  7g7   
,limitation dur+ initial #e-,ye> p]iod  
7#a7 ,9 g5]al  7,a7 ,pr9cipal resid5ce  
requirem5t ,subject to subp>agraph 7,c71
 ) respect to any qualifi$ home project 
= :i* fund+ has be5 provid$ by a h\s+   
developm5t entity to a qualifi$         
con/ruction bus9ess pursuant to !       
provisions ( ?is section1 ! h\s+        
developm5t entity %all ensure t1 dur+ ! 
limitation p]iod1 ! home ) respect to   
:i* su* fund+ has be5 provid$ rema9s !  

pr9cipal resid5ce ( ! qualifi$ buy]4    
7,b7 ,li5s ,) respect to ! requirem5t "u
 subp>agraph 7,a71 ! h\s+ developm5t    
entity %all en=ce su* requirem5t by     
means ( ! imposition ( a li5 on ! home  
con/ruct$ or r5ovat$ z "p ( ! qualifi$  
home project1 ) su* li5 to be record$ ) 
! relevant local (ficial or ag5cy       
designat$ to record li5s4  7,c7         
,exception = memb]s ( ! arm$ =ces ,9 !  
case ( any home con/ruct$ or r5ovat$ z  
"p ( a qualifi$ home project1 if !re is 
a disposition ( su* home by ! qualifi$  
buy]-- 7i7 dur+ ! limitation p]iod1 &   
7ii7 :i* is 9 connection ) ,gov]nm5t    
ord]s receiv$ by su* qualifi$ buy] =    
qualifi$ (ficial ext5d$ duty s]vice 7z  
def9$ 9 section #cf7;f77#d77;,e77ii771  
subp>agraph 7,a7 %all n apply4  7#b7    
,limitation p]iod ,= purposes ( ?is     
subsection1 ! t]m limitation p]iod means
 ! #e-ye> p]iod subsequ5t to-- 7,a7 9 ! 
case ( a home describ$ 9 clause 7i7 (   
subsection 7d77#c77;,a71 on ! date on   
:i* own]%ip ( ! home is transf]r$ to !  

qualifi$ buy]1 or  7,b7 9 ! case ( a    
home describ$ 9 clause 7ii7 ( su*       
subsection1 on ! date on :i* r5ovation (
 ! home is complet$ by ! qualifi$       
con/ruction bus9ess4  7#c7 ,regulations 
& guidance ,! ,secret>y %all issue su*  
regulations or o!r guidance z !         
,secret>y det]m9es necess>y to c>ry out 
! purposes ( ?is subsection4  7h7       
,report+  7#a7 ,9 g5]al ,n lat] ?an     
,janu>y #a1 #bjbf1 & annually !reaft]1 !
 ,secret>y %all submit a report to !    
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate1 ! ,committee on    
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives1 ! ,committee on ,ways &
 ,means ( ! ,h\se ( ,repres5tatives1 & !
 ,committee on ,f9ance ( ! ,s5ate1      
conta9+ in=mation reg>d+-- 7,a7 ! size &
 location ( qualifi$ home projects :i* h
 be5 f9ancially support$ by qualifi$    
equity inve/m5ts = :i* a cr$it has be5  
all[$ "u ?is section1 &  7,b7 ! income (
 individuals & families resid+ 9 homes  
con/ruct$ or r5ovat$ z "p ( su* qualifi$

 home projects4  7#b7 ,collection (     
in=mation ,! ,secret>y %all develop a   
me?od to collect & /reaml9e relevant    
data = purposes ( collect+ ! in=mation  
describ$ 9 p>agraph 7#a74  7i7          
,regulations ,! ,secret>y %all prescribe
 su* regulations z may be appropriate to
 c>ry out ?is section4  4  7b7 ,con=m+  
am5dm5ts  7#a7 ,section #ch7;b7 ( su*   
,code is am5d$ by /rik+ plus at ! end ( 
p>agraph 7#dj71 by /rik+ ! p]iod at !   
end ( p>agraph 7#da7 & ins]t+ 1 plus1 & 
by add+ at ! end ! foll[+ new p>agraph3 
7#db7 ! new homes tax cr$it det]m9$ "u  
section #de;,,bb7a74  4  7#b7 ,! table (
 sections = subp>t ,d ( "p ,,iv (       
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #de;,,aa ! foll[+ new item3     
,sec4 #de;,,bb4 ,new ,homes ,tax ,cr$it4
  4  7c7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to       
inve/m5ts made aft] ,decemb] #ca1 #bjbd4