I 

111TH CONGRESS 

1ST SESSION H. R. 4109 

To amend the Internal Revenue Code of 1986 to allow the low income 

housing credit to be carried back 5 years, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 18, 2009 

Mr. PASCRELL 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 allow the 

low income housing credit to be carried back 5 years, 

and for other purposes. 

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 ‘‘Low Income Housing 

5 Tax Credit Act of 2009’’. 


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1 SEC. 2. ALLOWING LOW INCOME HOUSING CREDITS TO 

2 OFFSET 100 PERCENT OF FEDERAL INCOME 

3 TAX LIABILITY. 

4 (a) IN GENERAL.—Subsection (c) of section 38 of the 

5 Internal Revenue Code of 1986 is amended by adding at 

6 the end the following new paragraph: 

7 ‘‘(6) ALLOWING LOW INCOME HOUSING CREDIT

8 TO OFFSET 100 PERCENT OF FEDERAL INCOME TAX

9 LIABILITY.— 

10 ‘‘(A) IN GENERAL.—In the case of applica11 ble low income housing credits— 

12 ‘‘(i) this section shall be applied sepa13 rately with respect to such credits, 

14 ‘‘(ii) in applying paragraph (1) to 

15 such credits— 

16 ‘‘(I) the tentative minimum tax 

17 shall be treated as being zero, and 

18 ‘‘(II) the limitation under para19 graph (1) (as modified by subclause 

20 (I)) shall be the net income tax (as 

21 defined in paragraph (1)) reduced by 

22 the credit allowed under subsection 

23 (a) for the taxable year (other than 

24 the applicable low income housing 

25 credits), and 


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1 ‘‘(iii) the excess credit for such tax2 able year shall, solely for purposes of de3 termining the amount of such excess credit 

4 which may be carried back to a preceding 

5 taxable year, be increased by the amount 

6 of business credit carryforwards which are 

7 carried to such taxable year, to which this 

8 subparagraph applies, and which are not 

9 allowed for such taxable year by reason of 

10 the limitation under paragraph (1) (as 

11 modified by clause (ii)). 

12 ‘‘(B) INCREASE IN LIMITATION FOR TAX13 ABLE YEARS TO WHICH EXCESS APPLICABLE

14 LOW INCOME HOUSING CREDITS ARE CARRIED

15 BACK.— 

16 ‘‘(i) IN GENERAL.—Solely for pur17 poses of determining the portion of any ex18 cess credit described in subparagraph 

19 (A)(iii) for which credit will be allowed 

20 under subsection (a)(3) for any preceding 

21 taxable year, the limitation under para22 graph (1) for such preceding taxable year 

23 shall be determined under rules similar to 

24 the rules described in subparagraph (A). 


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1 ‘‘(ii) ORDERING RULE.—If the excess 

2 credit described in subparagraph (A)(iii) 

3 includes business credit carryforwards 

4 from preceding taxable years, such excess 

5 credit shall be treated as allowed for any 

6 preceding taxable year on a first-in first7 out basis. 

8 ‘‘(C) APPLICABLE LOW INCOME HOUSING

9 CREDITS.—For purposes of this subpart, the 

10 term ‘applicable low income housing credits’ 

11 means the credit determined under section 42— 

12 ‘‘(i) to the extent attributable to 

13 buildings placed in service after the date of 

14 the enactment of this subparagraph, and 

15 ‘‘(ii) in the case of any other build16 ings, for taxable years beginning in 2008, 

17 2009, and 2010 (and to business credit 

18 carryforwards with respect to such build19 ings carried to such taxable years) to the 

20 extent provided in subparagraph (D). 

21 ‘‘(D) PREVIOUSLY PLACED IN SERVICE

22 BUILDINGS.— 

23 ‘‘(i) IN GENERAL.—Subparagraph 

24 (C)(ii) shall apply to such credits for such 

25 a taxable year only— 


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1 ‘‘(I) if the taxpayer and the 

2 housing credit agency have entered 

3 into an agreement, not later than the 

4 applicable date, with respect to an in5 vestment in a future project (which is 

6 binding on such agency, the taxpayer, 

7 and all successors in interest) which 

8 specifies the dollar amount of such in9 vestment and the housing credit dollar 

10 amount to be allocated to such 

11 project, and 

12 ‘‘(II) to the extent such credits 

13 do not exceed the dollar amount of 

14 such proposed investment. 

15 ‘‘(ii) APPLICABLE DATE.—For pur16 poses of this subparagraph, the applicable 

17 date is— 

18 ‘‘(I) in the case of taxable years 

19 beginning in 2008 and 2009, Sep20 tember 15, 2010, or 

21 ‘‘(II) in the case of a taxable 

22 year beginning in 2010, the due date 

23 (including extensions of time) for fil24 ing the taxpayer’s return for such tax25 able year.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2007, and to carrybacks of credits from 

4 such taxable years. 

5 SEC. 3. FIVE-YEAR CARRYBACK OF LOW INCOME HOUSING 

6 CREDIT. 

7 (a) IN GENERAL.—Subsection (a) of section 39 of the 

8 Internal Revenue Code of 1986 is amended by adding at 

9 the end the following new paragraph: 

10 ‘‘(4) 5-YEAR CARRYBACK OF LOW INCOME

11 HOUSING CREDIT.— 

12 ‘‘(A) IN GENERAL.—In the case of an ap13 plicable low income housing credit— 

14 ‘‘(i) this section shall be applied sepa15 rately from the business credit (other than 

16 the low income housing credit), and 

17 ‘‘(ii) paragraph (1) shall be applied by 

18 substituting ‘each of the 5 taxable years’ 

19 for ‘the taxable year’ in subparagraph (A) 

20 thereof.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2007, and to carrybacks of credits from 

24 such taxable years. 

Æ 


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