I 

116TH CONGRESS 

2D SESSION H. R. 8969 

To amend the Internal Revenue Code of 1986 to modify the low-income 

housing credit to incentivize affordable and transit-oriented development, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 15, 2020 

Ms. GABBARD 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 modify 

the low-income housing credit to incentivize affordable 

and transit-oriented development, 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 ‘‘Transportation Ori5 ented Development Act of 2020’’. 


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1 SEC. 2. LOW-INCOME HOUSING CREDIT FOR TRANSIT-ORI2 ENTED DEVELOPMENT AREAS. 

3 (a) IN GENERAL.—Section 42(d)(5) of the Internal 

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

5 the following new subparagraph: 

6 ‘‘(C) INCREASE IN CREDIT FOR BUILDINGS

7 IN TRANSIT-ORIENTED DEVELOPMENT

8 AREAS.— 

9 ‘‘(i) IN GENERAL.—In the case of any 

10 building located in a transit-oriented devel11 opment area which is designated for pur12 poses of this subparagraph— 

13 ‘‘(I) in the case of a new build14 ing, the eligible basis of such building 

15 shall be 150 percent of such basis de16 termined without regard to this sub17 paragraph, and 

18 ‘‘(II) in the case of an existing 

19 building, the rehabilitation expendi20 tures taken into account under sub21 section (e) shall be 150 percent of 

22 such expenditures determined without 

23 regard to this subparagraph. 

24 ‘‘(ii) TRANSIT-ORIENTED DEVELOP25 MENT AREA.—For purposes of this sub26 paragraph, the term ‘transit-oriented deVerDate Sep 11 2014 00:45 Dec 31, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8969.IH H8969

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1 velopment area’ means an area designated 

2 by the Secretary of Housing and Urban 

3 Development and State housing credit 

agency as located in an area within 1 4 ⁄4 of 

5 a mile from a rail, bus, harbor, or water6 way station and as zoned for high-density. 

7 ‘‘(iii) LIMIT ON AREAS DES8 IGNATED.—The portions of metropolitan 

9 statistical areas which may be designated 

10 for purposes of this subparagraph shall not 

11 exceed an aggregate area having 20 per12 cent of the population of such metropolitan 

13 statistical areas. A comparable rule shall 

14 apply to nonmetropolitan statistical areas. 

15 ‘‘(iv) COORDINATION WITH HIGH COST

16 AREAS.—If the eligible basis of a new 

17 building, or the rehabilitation expenditures 

18 with respect to an existing building, are 

19 determined pursuant to subparagraph (B), 

20 such building shall not be treated as lo21 cated in a transit-oriented development 

22 area for purposes of this subparagraph.’’. 

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

24 this section shall apply to buildings placed in service after 

25 the date of the enactment of this Act. 


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1 SEC. 3. HUD STUDY REGARDING ADJUSTMENT OF TAX 

2 CREDIT ALLOCATIONS TO REFLECT GEO3 GRAPHIC COST-OF-LIVING DIFFERENCES. 

4 The Secretary of Housing and Urban Development 

5 shall conduct a study to identify cost-of-living differences 

6 throughout the United States based on geographic loca7 tion and proximity and accessibility to transit. Not later 

8 than the expiration of the 1-year period beginning on the 

9 date of the enactment of this Act, the Secretary shall sub10 mit a report to the Congress setting forth the results and 

11 conclusions of the study and recommending formulas for 

12 the adjustment of annual allocations to the States of low13 income housing tax credits under section 42 of the Inter14 nal Revenue Code of 1986 (26 U.S.C. 42) to reflect such 

15 cost-of-living differences. 

Æ 


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