,,ii #aaith ,,congress #b;d ,session ,s4 #edgb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bc1 #bjbf ,mr4 ,welch 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 exclude from gross income grants and the proceeds of transferrable tax credits supporting the development of affordable housing1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,supporting ,small ,affordable ,housing ,developers ,act4 #b4 ,certain amounts supporting affordable housing excluded from gross income 7a7 ,in general ,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,m4 ,certain amounts supporting affordable housing 7a7 ,in general ,in the case of an eligible taxpayer1 gross income shall not include-- 7#a7 any affordable housing grant1 or 7#b7 any income received in cash from the sale of any transferrable affordable housing tax credit4 7b7 ,eligible taxpayer 7#a7 ,in general ,for purposes of this section1 the term eligible taxpayer means any taxpayer-- 7,a7 which meets the gross receipts test of section #ddh7;c7 7determined by substituting #cf1jjj1jjj for #be1jjj1jjjj in paragraph 7#a7 thereof71 and 7,b7 which conducts a trade or business to which any of the following ,north ,american ,industry ,classification ,codes applies3 7i7 #bcgbaj4 7ii7 #bchcjj4 7iii7 #ecaaaj4 7iv7 #bcfaa4 7#b7 ,inflation adjustment ,in the case of any taxable year beginning after ,december #ca1 #bjbg1 the #cf1jjj1jjj dollar amount in paragraph 7#a77;,b7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 by substituting calendar year #bjbf for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any amount as increased under the preceding sentence is not a multiple of #a1jjj1jjj1 such amount shall be rounded to the nearest multiple of #a1jjj1jjj4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,affordable housing grant ,the term affordable housing grant means any grant-- 7,a7 which is received from the ,united ,states1 from a ,state or a political subdivisions thereof1 a possession of the ,united ,states1 or any organization described in section #eja7;c77#c7 and exempt from tax under section #eja7;a71 and 7,b7 the purpose of which is to develop or rehabilitate affordable housing4 7#b7 ,transferrable affordable housing tax credit ,the term affordable housing tax credit means any credit against ,state or local taxes which-- 7,a7 is based on the development or rehabilitation of affordable housing1 and 7,b7 is transferrable to another taxpayer in return for cash4 7#c7 ,affordable housing ,the term affordable housing means housing that qualifies as affordable housing under section #bae of the ,cranston-,gonzalez ,national ,affordable ,housing ,act4 7d7 ,cross reference ,for treatment of the transferee taxpayer with respect to transferrable affordable housing tax credits1 see section #bhj;,i 4 7b7 ,treatment of ,indian tribal governments ,section #ghga7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#f71 by striking the period at the end of paragraph 7#g7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#h7 for purposes of section #aci,m 7relating to grants supporting affordable housing74 4 7c7 ,denial of deduction by transferee ,part ,,ix of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #bhj;,i4 ,transferable affordable housing tax credits ,no deduction shall be allowed with respect to any consideration paid by the transferee taxpayer for the transfer of a transferrable affordable housing tax credit 7as defined in section #aci,m7c77#b774 4 7d7 ,clerical amendments 7#a7 ,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,m4 ,grants supporting affordable housing4 4 7#b7 ,the table of sections for part ,,ix of subchapter ,b of chapter #a of such ,code is amended by inserting at the end the following new item3 ,sec4 #bhj;,i4 ,transferable affordable housing tax credits4 4 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #c4 ,discharge of indebtedness relating to affordable housing 7a7 ,in general ,section #ajh7;a77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,d71 by striking the period at the end of subparagraph 7,e7 and inserting 1 or1 and by adding at the end the following new subparagraph3 7,f7 in the case of an eligible taxpayer1 the indebtedness discharged is qualified affordable housing indebtedness4 4 7b7 ,reduction of tax attributes ,section #ajh7;b77#a7 of such ,code is amended by striking or 7,c7 and inserting 7,c71 or 7,f74 7c7 ,definitions ,section #ajh of such ,code is amended by adding at the end the following new subsection3 7j7 ,rules related to qualified affordable housing indebtedness ,for purposes of this section-- 7#a7 ,qualified affordable housing loan ,the term qualified affordable housing loan means indebtedness incurred pursuant to a loan-- 7,a7 which is made by the ,united ,states1 a ,state or any political subdivision thereof1 a possession of the ,united ,states1 or any organization described in section #eja7;c77#c7 and exempt from tax under section #eja7;a71 and 7,b7 the purpose of which is to finance the development or rehabilitation of affordable housing 7as defined in section #aci,m7c774 7#b7 ,eligible taxpayer ,the term eligible taxpayer has the meaning given to such term under section #aci,m4 4 7d7 ,treatment of ,indian tribal governments ,section #ghga7;a77#h7 of the ,internal ,revenue ,code of #aihf1 as added by section #b1 is amended by inserting and section #ajh7;j7 7relating to affordable housing loans7 and before section #aci,m4 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4