I 

111TH CONGRESS 

1ST SESSION H. R. 3811 

To amend the Internal Revenue Code of 1986 to authorize the Secretary, 

for a period of 2 years, to allocate a new markets tax credit limitation 

to entities that serve or provide investment capital for distressed communities. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 14, 2009 

Ms. KOSMAS introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to authorize 

the Secretary, for a period of 2 years, to allocate a 

new markets tax credit limitation to entities that serve 

or provide investment capital for distressed communities. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘New Markets Tax 

5 Credit Expansion Act of 2009’’. 


jbell on DSKDVH8Z91PROD with BILLS
2 

•HR 3811 IH

1 SEC. 2. SPECIAL ALLOCATIONS RULES WITH RESPECT TO 

2 DISTRESSED COMMUNITIES. 

3 (a) IN GENERAL.—Section 45D(e) of the Internal 

4 Revenue Code of 1986 is amended by adding at the end 

5 the following new paragraph: 

6 ‘‘(6) DISTRESSED COMMUNITIES.— 

7 ‘‘(A) IN GENERAL.—In case of allocations 

8 made under subsection (f)(2) for calendar years 

9 2010 and 2011, a low-income community shall 

10 include a distressed community. 

11 ‘‘(B) DISTRESSED COMMUNITY.—For pur12 poses of subparagraph (A)— 

13 ‘‘(i) IN GENERAL.—The term ‘dis14 tressed community’ means a county that 

15 the Secretary designates as— 

16 ‘‘(I) having, for any month dur17 ing the applicable period— 

18 ‘‘(aa) a residential mortgage 

19 foreclosure rate of 110 percent or 

20 more of the national average, 

21 ‘‘(bb) a commercial mort22 gage foreclosure rate of 110 per23 cent or more of the national aver24 age, 


jbell on DSKDVH8Z91PROD with BILLS
3 

•HR 3811 IH

1 ‘‘(cc) a decline in the aver2 age fair market value of housing 

3 of at least 20 percent, or 

4 ‘‘(dd) an unemployment rate 

5 of 110 percent or more of the na6 tional average, 

7 ‘‘(II) being a county in which, for 

8 a calendar year during the applicable 

9 period, more than 50 percent of loans 

10 secured by housing had a loan-to11 value ratio of greater than 80 percent, 

12 or 

13 ‘‘(III) being in a disaster area 

14 (as defined in section 165(h)(3)(C)) 

15 as a result of a federally declared dis16 aster that occurred during the appli17 cable period. 

18 ‘‘(ii) APPLICABLE PERIOD.—The term 

19 ‘applicable period’ means— 

20 ‘‘(I) in the case of subclauses (I) 

21 and (II) of clause (i), the period be22 ginning on January 1, 2008, and end23 ing on the date which is 2 years after 

24 the date of the enactment of the New 


jbell on DSKDVH8Z91PROD with BILLS
4 

•HR 3811 IH

1 Markets Tax Credit Expansion Act of 

2 2009, and 

3 ‘‘(II) in the case of subclause 

4 (III) of clause (i), the 4-year period 

5 ending on the date which is 2 years 

6 after the date of the enactment of the 

7 New Markets Tax Credit Expansion 

8 Act of 2009.’’. 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 the date of enactment of this Act. 

Æ 


jbell on DSKDVH8Z91PROD with BILLS