,,ii #aahth ,,congress #ast ,session ,s4 #feg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #f1 #bjbc,mr4 ,cardin 7for himself1 ,mr4 ,young1 ,mr4 ,wyden1 ,mr4 ,moran1 and ,mr4 ,brown7 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 a tax credit for neighborhood revitalization1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,neighborhood ,homes ,investment ,act4 #b4 ,findings and sense of ,congress 7a7 ,findings ,congress finds the following3 7#a7 ,experts have determined that it could take nearly a decade to address the housing shortage in the ,united ,states1 in large part due to increasing housing prices and decreased housing inventory4 7#b7 ,the housing supply shortage disproportionately impacts low-income and distressed communities4 7#c7 ,homeownership is a primary source of household wealth and neighborhood stability4 ,many distressed communities have low rates of homeownership and lack quality1 affordable starter homes4 7#d7 ,housing revitalization in distressed communities is prevented by the value gap1 the difference between the price to rehabilitate a home and the sale value of the home4 7#e7 ,the ,neighborhood ,homes ,investment ,act can address the value gap to increase housing rehabilitation in distressed communities4 7#f7 ,the ,neighborhood ,homes ,investment ,act has the potential to generate #ejj1jjj homes over #aj years1 #abe1jjj1jjj1jjj of total development activity1 over #hjj1jjj jobs in construction and construction-related industries1 and over #ce1jjj1jjj1jjj in ,federal1 state1 and local tax revenues4 7b7 ,sense of ,congress ,it is the sense of ,congress that the neighborhood homes credit 7as added under section #c of this ,act7 should be an activity administered in a manner which-- 7#a7 is consistent with the ,fair ,housing ,act of #aifh 7#db ,u4,s4,c4 #cfja et seq472 7#b7 empowers residents in eligible communities2 and 7#c7 revitalizes distressed neighborhoods4 #c4 ,neighborhood homes 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 #db the following new section3 #db;,a4 ,neighborhood homes credit 7a7 ,allowance of credit ,for purposes of section #ch1 the neighborhood homes credit determined under this section for the taxable year is1 with respect to each qualified residence sold by the taxpayer during such taxable year in an affordable sale1 the lesser of-- 7#a7 an amount equal to-- 7,a7 the excess 7if any7 of-- 7i7 the reasonable development costs paid or incurred by the taxpayer with respect to such qualified residence1 over 7ii7 the sale price of such qualified residence 7reduced by any reasonable expenses paid or incurred by the taxpayer in connection with such sale71 or 7,b7 if the neighborhood homes credit agency determines it is necessary to ensure financial feasibility1 an amount not to exceed #abj percent of the amount under subparagraph 7,a71 7#b7 #ce percent of the eligible development costs paid or incurred by the taxpayer with respect to such qualified residence1 or 7#c7 #bh percent of the national median sale price for new homes 7as determined pursuant to the most recent census data available as of the date on which the neighborhood homes credit agency makes an allocation for the qualified project74 7b7 ,development costs ,for purposes of this section-- 7#a7 ,reasonable development costs 7,a7 ,in general ,the term reasonable development costs means amounts paid or incurred for the acquisition of buildings and land1 construction1 substantial rehabilitation1 demolition of structures1 or environmental remediation1 to the extent that the neighborhood homes credit agency determines that such amounts meet the standards specified pursuant to subsection 7f77#a77;,c7 7as of the date on which construction or substantial rehabilitation is substantially complete1 as determined by such agency7 and are necessary to ensure the financial feasibility of such qualified residence4 7,b7 ,considerations in making determination ,in making the determination under subparagraph 7,a71 the neighborhood homes credit agency shall consider-- 7i7 the sources and uses of funds and the total financing1 7ii7 any proceeds or receipts generated or expected to be generated by reason of tax benefits1 and 7iii7 the reasonableness of the developmental costs and fees4 7#b7 ,eligible development costs ,the term eligible development costs means the amount which would be reasonable development costs if the amounts taken into account as paid or incurred for the acquisition of buildings and land did not exceed #ge percent of such costs determined without regard to any amount paid or incurred for the acquisition of buildings and land4 7#c7 ,substantial rehabilitation ,the term substantial rehabilitation means amounts paid or incurred for rehabilitation of a qualified residence if such amounts exceed the greater of-- 7,a7 #bj1jjj1 or 7,b7 #bj percent of the amounts paid or incurred by the taxpayer for the acquisition of buildings and land with respect to such qualified residence4 7#d7 ,construction and rehabilitation only after allocation taken into account 7,a7 ,in general ,the terms reasonable development costs and eligible development costs shall not include any amount paid or incurred before the date on which an allocation is made to the taxpayer under subsection 7e7 with respect to the qualified project of which the qualified residence is part unless such amount is paid or incurred for the acquisition of buildings or land4 7,b7 ,land and building acquisition costs ,amounts paid or incurred for the acquisition of buildings or land shall be included under paragraph 7,a7 only if paid or incurred not more than #c years before the date on which the allocation referred to in subparagraph 7,a7 is made4 ,if the taxpayer acquired any building or land from an entity 7or any related party to such entity7 that holds an ownership interest in the taxpayer1 then such entity must also have acquired such property within such #c-year period1 and the acquisition cost included under subparagraph 7,a7 with respect to the taxpayer shall not exceed the amount such entity paid or incurred to acquire such property4 7c7 ,qualified residence ,for purposes of this section-- 7#a7 ,in general ,the term qualified residence means a residence that-- 7,a7 is real property affixed on a permanent foundation1 7,b7 is-- 7i7 a house which is comprised of #d or fewer residential units1 7ii7 a condominium unit1 or 7iii7 a house or an apartment owned by a cooperative housing corporation 7as defined in section #baf7;b771 7,c7 is part of a qualified project with respect to which the neighborhood homes credit agency has made an allocation under subsection 7e71 and 7,d7 is located in a qualified census tract 7determined as of the date of such allocation74 7#b7 ,qualified census tract 7,a7 ,in general ,the term qualified census tract means a census tract-- 7i7 which-- 7,i7 has a median family income which does not exceed #hj percent of the median family income for the applicable area1 7,,ii7 has a poverty rate that is not less than #acj percent of the poverty rate of the applicable area1 and 7,,iii7 has a median value for owner-occupied homes that does not exceed the median value for owner-occupied homes in the applicable area1 7ii7 which-- 7,i7 is located in a city which has a population of not less than #ej1jjj and such city has a poverty rate that is not less than #aej percent of the poverty rate of the applicable area1 7,,ii7 has a median family income which does not exceed the median family income for the applicable area1 and 7,,iii7 has a median value for owner-occupied homes that does not exceed #hj percent of the median value for owner-occupied homes in the applicable area1 7iii7 which-- 7,i7 is located in a nonmetropolitan county1 7,,ii7 has a median family income which does not exceed the median family income for the applicable area1 and 7,,iii7 has been designated by a neighborhood homes credit agency under this clause1 or 7iv7 which is not otherwise a qualified census tract and is located in a disaster area 7as defined in section #gejh;,a7d77#c771 but only with respect to credits allocated in any period during which the ,president of the ,united ,states has determined that such area warrants individual or individual and public assistance by the ,federal ,government under the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act4 7,b7 ,applicable area ,the term applicable area means-- 7i7 in the case of a metropolitan census tract1 the metropolitan area in which such census tract is located1 and 7ii7 in the case of a census tract other than a census tract described in clause 7i71 the ,state4 7d7 ,affordable sale ,for purposes of this section-- 7#a7 ,in general ,the term affordable sale means a sale to a qualified homeowner of a qualified residence that the neighborhood homes credit agency certifies as meeting the standards promulgated under subsection 7f77#a77;,d7 for a price that does not exceed-- 7,a7 in the case of any qualified residence not described in subparagraph 7,b71 7,c71 or 7,d71 the amount equal to the product of #d multiplied by the median family income for the applicable area 7as determined pursuant to the most recent census data available as of the date of the contract for such sale71 7,b7 in the case of a house comprised of #b residential units1 #abe percent of the amount described in subparagraph 7,a71 7,c7 in the case of a house comprised of #c residential units1 #aej percent of the amount described in subparagraph 7,a71 or 7,d7 in the case of a house comprised of #d residential units1 #age percent of the amount described in subparagraph 7,a74 7#b7 ,qualified homeowner ,the term qualified homeowner means1 with respect to a qualified residence1 an individual-- 7,a7 who owns and uses such qualified residence as the principal residence of such individual1 and 7,b7 whose family income 7determined as of the date that a binding contract for the affordable sale of such residence is entered into7 is #adj percent or less of the median family income for the applicable area in which the qualified residence is located4 7e7 ,credit ceiling and allocations 7#a7 ,credit limited based on allocations to qualified projects 7,a7 ,in general ,the credit allowed under subsection 7a7 to any taxpayer for any taxable year with respect to one or more qualified residences which are part of the same qualified project shall not exceed the excess 7if any7 of-- 7i7 the amount allocated by the neighborhood homes credit agency under this paragraph to such taxpayer with respect to such qualified project1 over 7ii7 the aggregate amount of credit allowed under subsection 7a7 to such taxpayer with respect to qualified residences which are a part of such qualified project for all prior taxable years4 7,b7 ,deadline for completion ,no credit shall be allowed under subsection 7a7 with respect to any qualified residence unless the affordable sale of such residence is during the #e-year period beginning on the date of the allocation to the qualified project of which such residence is a part 7or1 in the case of a qualified residence to which subsection 7i7 applies1 the rehabilitation of such residence is completed during such #e-year period74 7#b7 ,limitations on allocations to qualified projects 7,a7 ,allocations limited by ,state neighborhood homes credit ceiling ,the aggregate amount allocated to taxpayers with respect to qualified projects by the neighborhood homes credit agency of any ,state for any calendar year shall not exceed the ,state neighborhood homes credit amount of such ,state for such calendar year4 7,b7 ,set-aside for certain projects involving qualified nonprofit organizations ,rules similar to the rules of section #db7;h77#e7 shall apply for purposes of this section4 7#c7 ,determination of ,state neighborhood homes credit ceiling 7,a7 ,in general ,the ,state neighborhood homes credit amount for a ,state for a calendar year is an amount equal to the sum of-- 7i7 the greater of-- 7,i7 the product of #g1 multiplied by the ,state population 7determined in accordance with section #adf7;j771 or 7,,ii7 #i1jjj1jjj1 and 7ii7 any amount previously allocated to any taxpayer with respect to any qualified project by the neighborhood homes credit agency of such ,state which can no longer be allocated to any qualified residence because the #e-year period described in paragraph 7#a77;,b7 expires during calendar year4 7,b7 #c-year carryforward of unused limitation ,the ,state neighborhood homes credit amount for a ,state for a calendar year shall be increased by the excess 7if any7 of the ,state neighborhood homes credit amount for such ,state for the preceding calendar year over the aggregate amount allocated by the neighborhood homes credit agency of such ,state during such preceding calendar year4 ,any amount carried forward under the preceding sentence shall not be carried past the third calendar year after the calendar year in which such credit amount originally arose1 determined on a first-in1 first-out basis4 7f7 ,responsibilities of neighborhood homes credit agencies 7#a7 ,in general ,notwithstanding subsection 7e71 the ,state neighborhood homes credit dollar amount shall be zero for a calendar year unless the neighborhood homes credit agency of the ,state-- 7,a7 allocates such amount pursuant to a qualified allocation plan of the neighborhood homes credit agency1 7,b7 allocates not more than #bj percent of amounts allocated in the previous year 7or for allocations made in #bjbc1 not more than #bj percent of the neighborhood homes credit ceiling for such year7 to projects with respect to qualified residences which-- 7i7 are located in census tracts described in subsection 7c77#b77;,a77iii71 7c77#b77;,a77iv71 7i77#e71 or 7ii7 are not located in a qualified census tract but meet the requirements of subsection 7i77#h71 7,c7 promulgates standards with respect to reasonable qualified development costs and fees1 7,d7 promulgates standards with respect to construction quality1 7,e7 in the case of any neighborhood homes credit agency which makes an allocation to a qualified project which includes any qualified residence to which subsection 7i7 applies1 promulgates standards with respect to protecting the owners of such residences1 including the capacity of such owners to pay rehabilitation costs not covered by the credit provided by this section and providing for the disclosure to such owners of their rights and responsibilities with respect to the rehabilitation of such residences1 7,f7 submits to the ,secretary 7at such time and in such manner as the ,secretary may prescribe7 an annual report specifying-- 7i7 the amount of the neighborhood homes credits allocated to each qualified project for the previous year1 7ii7 with respect to each qualified residence completed in the preceding calendar year-- 7,i7 the census tract in which such qualified residence is located1 7,,ii7 with respect to the qualified project that includes such qualified residence1 the year in which such project received an allocation under this section1 7,,iii7 whether such qualified residence was new1 substantially rehabilitated and sold to a qualified homeowner1 or substantially rehabilitated pursuant to subsection 7i71 7,,iv7 the eligible development costs of such qualified residence1 7,v7 the amount of the neighborhood homes credit with respect to such qualified residence1 7,,vi7 the sales price of such qualified residence1 if applicable1 and 7,,vii7 the family income of the qualified homeowner 7expressed as a percentage of the applicable area median family income for the location of the qualified residence71 and 7iii7 such other information as the ,secretary may require1 and 7,g7 makes available to the general public a written explanation for any allocation of a neighborhood homes credit dollar amount which is not made in accordance with established priorities and selection criteria of the neighborhood homes credit agency4 ,subparagraph 7,b7 shall be applied by substituting #dj percent for #bj percent each place it appears in the case of any ,state in which at least #de percent of the ,state population resides outside metropolitan statistical areas 7within the meaning of section #adc7k77#b77;,b77 and less than #bj percent of the census tracts located in the ,state are described in subsection 7c77#b77;,a77i74 7#b7 ,qualified allocation plan ,for purposes of this subsection1 the term qualified allocation plan means any plan which-- 7,a7 sets forth the selection criteria to be used to prioritize qualified projects for allocations of ,state neighborhood homes credit dollar amounts1 including-- 7i7 the need for new or substantially rehabilitated owner-occupied homes in the area addressed by the project1 7ii7 the expected contribution of the project to neighborhood stability and revitalization1 including the impact on neighborhood residents1 7iii7 the capability and prior performance of the project sponsor1 and 7iv7 the likelihood the project will result in long-term homeownership1 7,b7 has been made available for public comment1 and 7,c7 provides a procedure that the neighborhood homes credit agency 7or any agent or contractor of such agency7 shall follow for purposes of-- 7i7 identifying noncompliance with any provisions of this section1 and 7ii7 notifying the ,internal ,revenue ,service of any such noncompliance of which the agency becomes aware4 7g7 ,repayment 7#a7 ,in general 7,a7 ,sold during #e-year period ,if a qualified residence is sold during the #e-year period beginning immediately after the affordable sale of such qualified residence referred to in subsection 7a71 the seller shall transfer an amount equal to the repayment amount to the relevant neighborhood homes credit agency4 7,b7 ,use of repayments ,a neighborhood homes credit agency shall use any amount received pursuant to subparagraph 7,a7 only for purposes of qualified projects4 7#b7 ,repayment amount ,for purposes of paragraph 7#a77;,a7-- 7,a7 ,in general ,the repayment amount is an amount equal to the applicable percentage of the gain from the sale to which the repayment relates4 7,b7 ,applicable percentage ,for purposes of subparagraph 7,a71 the applicable percentage is #ej percent1 reduced by #aj percentage points for each year of the #e-year period referred to in paragraph 7#a77;,a7 which ends before the date of such sale4 7#c7 ,lien for repayment amount ,a neighborhood homes credit agency receiving an allocation under this section shall place a lien on each qualified residence that is built or rehabilitated as part of a qualified project for an amount such agency deems necessary to ensure potential repayment pursuant to paragraph 7#a77;,a74 7#d7 ,waiver 7,a7 ,in general ,the neighborhood homes credit agency may waive the repayment required under paragraph 7#a77;,a7 if the agency determines that making a repayment would constitute a hardship to the seller4 7,b7 ,hardship ,for purposes of subparagraph 7,a71 with respect to the seller1 a hardship may include-- 7i7 divorce1 7ii7 disability1 7iii7 illness1 or 7iv7 any other hardship identified by the neighborhood homes credit agency for purposes of this paragraph4 7h7 ,other definitions and special rules ,for purposes of this section-- 7#a7 ,neighborhood homes credit agency ,the term neighborhood homes credit agency means the agency designated by the governor of a ,state as the neighborhood homes credit agency of the ,state4 7#b7 ,qualified project ,the term qualified project means a project that a neighborhood homes credit agency certifies will build or substantially rehabilitate one or more qualified residences4 7#c7 ,determinations of family income ,rules similar to the rules of section #adc7;f77#b7 shall apply for purposes of this section4 7#d7 ,possessions treated as states ,the term ,state includes the ,district of ,columbia and the possessions of the ,united ,states4 7#e7 ,special rules related to condominiums and cooperative housing corporations 7,a7 ,determination of development costs ,in the case of a qualified residence described in clause 7ii7 or 7iii7 of subsection 7c77#a77;,a71 the reasonable development costs and eligible development costs of such qualified residence shall be an amount equal to such costs1 respectively1 of the entire condominium or cooperative housing property in which such qualified residence is located1 multiplied by a fraction-- 7i7 the numerator of which is the total floor space of such qualified residence1 and 7ii7 the denominator of which is the total floor space of all residences within such property4 7,b7 ,tenant-stockholders of cooperative housing corporations treated as owners ,in the case of a cooperative housing corporation 7as such term is defined in section #baf7;b771 a tenant-stockholder shall be treated as owning the house or apartment which such person is entitled to occupy4 7#f7 ,related party sales not treated as affordable sales 7,a7 ,in general ,a sale between related persons shall not be treated as an affordable sale4 7,b7 ,related persons ,for purposes of this paragraph1 a person 7in this subparagraph referred to as the related person7 is related to any person if the related person bears a relationship to such person specified in section #bfg7;b7 or #gjg7;b77#a71 or the related person and such person are engaged in trades or businesses under common control 7within the meaning of subsections 7a7 and 7b7 of section #eb74 ,for purposes of the preceding sentence1 in applying section #bfg7;b7 or #gjg7;b77#a71 #aj percent shall be substituted for #ej percent4 7#g7 ,inflation adjustment 7,a7 ,in general ,in the case of a calendar year after #bjbc1 the dollar amounts in subsections 7b77#c77;,a71 7e77#c77;,a77i77,i71 7e77#c77;,a77i77,,ii71 and 7i77#b77;,c7 shall each be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year by substituting calendar year #bjbb for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding 7i7 ,in the case of the dollar amounts in subsections 7b77#c77;,a7 and 7i77#b77;,c71 any increase under paragraph 7#a7 which is not a multiple of #a1jjj shall be rounded to the nearest multiple of #a1jjj4 7ii7 ,in the case of the dollar amount in subsection 7e77#c77;,a77i77,i71 any increase under paragraph 7#a7 which is not a multiple of #j4ja shall be rounded to the nearest multiple of #j4ja4 7iii7 ,in the case of the dollar amount in subsection 7e77#c77;,a77i77,,ii71 any increase under paragraph 7#a7 which is not a multiple of #ajj1jjj shall be rounded to the nearest multiple of #ajj1jjj4 7#h7 ,report 7,a7 ,in general ,the ,secretary shall annually issue a report1 to be made available to the public1 which contains the information submitted pursuant to subsection 7f77#a77;,f74 7,b7 ,de-identification ,the ,secretary shall ensure that any information made public pursuant to subparagraph 7,a7 excludes any information that would allow for the identification of qualified homeowners4 7#i7 ,list of qualified census tracts ,the ,secretary of ,housing and ,urban ,development shall1 for each year1 make publicly available a list of qualified census tracts under-- 7,a7 on a combined basis1 clauses 7i7 and 7ii7 of subsection 7c77#b77;,a71 7,b7 clause 7iii7 of such subsection1 and 7,c7 subsection 7i77#e77;,a74 7#aj7 ,denial of deductions if converted to rental housing ,if1 during the #e-year period beginning immediately after the affordable sale of a qualified residence referred to in subsection 7a71 an individual who owns a qualified residence 7whether or not such individual was the purchaser in such affordable sale7 fails to use such qualified residence as such individual's principal residence for any period of time1 no deduction shall be allowed for expenses paid or incurred by such individual with respect to renting1 during such period of time1 such qualified residence4 7i7 ,application of credit with respect to owner-,occupied rehabilitations 7#a7 ,in general ,in the case of a qualified rehabilitation by the taxpayer of any qualified residence which is owned 7as of the date that the written binding contract referred to in paragraph 7#c7 is entered into7 by a specified homeowner1 the rules of paragraphs 7#b7 through 7#g7 shall apply4 7#b7 ,alternative credit determination ,in the case of any qualified residence described in paragraph 7#a71 the neighborhood homes credit determined under subsection 7a7 with respect to such residence shall 7in lieu of any credit otherwise determined under subsection 7a7 with respect to such residence7 be allowed in the taxable year during which the qualified rehabilitation is completed 7as determined by the neighborhood homes credit agency7 and shall be equal to the least of-- 7,a7 the excess 7if any7 of-- 7i7 the amounts paid or incurred by the taxpayer for the qualified rehabilitation of the qualified residence to the extent that such amounts are certified by the neighborhood homes credit agency 7at the time of the completion of such rehabilitation7 as meeting the standards specified pursuant to subsection 7f77#a77;,c71 over 7ii7 any amounts paid to such taxpayer for such rehabilitation1 7,b7 #ej percent of the amounts described in subparagraph 7,a77i71 or 7,c7 #ej1jjj4 7#c7 ,qualified rehabilitation 7,a7 ,in general ,for purposes of this subsection1 the term qualified rehabilitation means a rehabilitation or reconstruction performed pursuant to a written binding contract between the taxpayer and the specified homeowner if the amount paid or incurred by the taxpayer in the performance of such rehabilitation or reconstruction exceeds the dollar amount in effect under subsection 7b77#c77;,a74 7,b7 ,application of limitation to expenses paid or incurred after allocation ,a rule similar to the rule of section 7b77#d7 shall apply for purposes of this subsection4 7#d7 ,specified homeowner ,for purposes of this subsection1 the term qualified homeowner means1 with respect to a qualified residence1 an individual-- 7,a7 who owns and uses such qualified residence as the principal residence of such individual as of the date that the written binding contract referred to in paragraph 7#c7 is entered into1 and 7,b7 whose family income 7determined as of such date7 does not exceed the median family income for the applicable area 7with respect to the census tract in which the qualified residence is located74 7#e7 ,additional census tracts in which owner-occupied residences may be located ,in the case of any qualified residence described in paragraph 7#a71 the term qualified census tract includes any census tract which-- 7,a7 meets the requirements of subsection 7c77#b77;,a77i7 without regard to subclause 7,,iii7 thereof1 and 7,b7 is designated by the neighborhood homes credit agency for purposes of this paragraph4 7#f7 ,modification of repayment requirement ,in the case of any qualified residence described in paragraph 7#a71 subsection 7g7 shall be applied by beginning the #e-year period otherwise described therein on the date on which the qualified homeowner acquired such residence4 7#g7 ,related parties ,paragraph 7#a7 shall not apply if the taxpayer is the owner of the qualified residence described in paragraph 7#a7 or is related 7within the meaning of subsection 7h77#f77;,b77 to such owner4 7#h7 ,pyrrhotite remediation ,the requirement of subsection 7c77#a77;,c7 shall not apply to a qualified rehabilitation under this subsection of a qualified residence that is documented by an engineer's report and core testing to have a foundation that is adversely impacted by pyrrhotite or other iron sulfide minerals4 7j7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section1 including regulations that prevent avoidance of the rules1 and abuse of the purposes1 of this section4 4 7b7 ,credit allowed as part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#cg71 by striking the period at the end of paragraph 7#ch7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#ci7 the neighborhood homes credit determined under section #db;,a7a74 4 7c7 ,credit allowed against alternative minimum tax ,section #ch7;c77#d77;,b7 of the ,internal ,revenue ,code of #aihf is amended by redesignating clauses 7iv7 through 7xii7 as clauses 7v7 through 7xiii71 respectively1 and by inserting after clause 7iii7 the following new clause3 7iv7 the credit determined under section #db;,a1 4 7d7 ,basis adjustments 7#a7 ,energy efficient home improvement credit ,section #be;,c7g7 of the ,internal ,revenue ,code of #aihf is amended by adding after the first sentence the following new sentence3 ,this subsection shall not apply for purposes of determining the eligible development costs or adjusted basis of any building under section #db;,a44 7#b7 ,residential clean energy credit ,section #be;,d7f7 of such ,code is amended by adding after the first sentence the following new sentence3 ,this subsection shall not apply for purposes of determining the eligible development costs or adjusted basis of any building under section #db;,a44 7#c7 ,new energy efficient home credit ,section #de,l7e7 of such ,code is amended by inserting or for purposes of determining the eligible development costs or adjusted basis of any building under section #db;,a after section #db4 7e7 ,exclusion from gross income ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting before section #adj the following new section3 #aci;,j4 ,state energy subsidies for qualified residences 7a7 ,exclusion from gross income ,gross income shall not include the value of any subsidy provided to a taxpayer 7whether directly or indirectly7 by any ,state energy office 7as defined in section #abd7;a7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehba7;a777 for purposes of any energy improvements made to a qualified residence 7as defined in section #db;,a7c77#a774 4 7f7 ,conforming amendments 7#a7 ,subsections 7i77#c77;,c71 7i77#f77;,b77i71 and 7k77#a7 of section #dfi of the ,internal ,revenue ,code of #aihf are each amended by inserting or #db;,a after section #db 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 #db the following new item3 ,sec4 #db;,a4 ,neighborhood homes credit4 4 7#c7 ,the table of sections for part ,,iii of subchapter ,b of chapter #a of such ,code is amended by inserting before the item relating to section #adj the following new item3 ,sec4 #aci;,j4 ,state energy subsidies for qualified residences4 4 7g7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbc4