II 

112TH CONGRESS 

2D SESSION S. 3243 

To amend the Internal Revenue Code of 1986 to increase the amount of 

the low-income housing credit that may be allocated in States damaged 

in 2011 by Hurricane Irene or Tropical Storm Lee. 

IN THE SENATE OF THE UNITED STATES 

MAY 24, 2012 

Mrs. GILLIBRAND (for herself, Mr. LEAHY, and Mr. SANDERS) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

the amount of the low-income housing credit that may 

be allocated in States damaged in 2011 by Hurricane 

Irene or Tropical Storm Lee. 

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 ‘‘Irene and Lee Tax 

5 Relief Storm Recovery Act’’. 


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•S 3243 IS

1 SEC. 2. ADDITIONAL LOW-INCOME HOUSING CREDIT MAY 

2 BE ALLOCATED IN STATES DAMAGED IN 2011 

3 BY HURRICANE IRENE OR TROPICAL STORM 

4 LEE. 

5 (a) IN GENERAL.—Paragraph (3) of section 42(h) of 

6 the Internal Revenue Code of 1986 (relating to limitation 

7 on aggregate credit allowable with respect to projects lo8 cated in a State) is amended by adding at the end the 

9 following new subparagraph: 

10 ‘‘(J) INCREASE IN STATE HOUSING CREDIT

11 FOR STATES DAMAGED IN 2011 BY HURRICANE

12 IRENE OR TROPICAL STORM LEE.— 

13 ‘‘(i) IN GENERAL.—In the case of cal14 endar years 2012, 2013, and 2014, the 

15 State housing credit ceiling of each State 

16 any portion of which includes any portion 

17 of the Irene-Lee disaster area shall be in18 creased by the lesser of— 

19 ‘‘(I) the aggregate housing credit 

20 dollar amount allocated by the State 

21 housing credit agency of such State 

22 for such calendar year to buildings lo23 cated in such disaster area, or 

24 ‘‘(II) the applicable limitation, 

25 reduced by the aggregate increase 


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•S 3243 IS

1 under this clause for all prior calendar 

2 years. 

3 ‘‘(ii) APPLICABLE LIMITATION.—For 

4 purposes of clause (i), the applicable limi5 tation is the lesser of— 

6 ‘‘(I) $2.15 multiplied by the pop7 ulation of the area described in clause 

8 (vii)(I), or 

9 ‘‘(II) 50 percent of the State 

10 housing credit ceiling (determined 

11 without regard to this subparagraph) 

12 for 2012. 

13 ‘‘(iii) ALLOCATIONS TREATED AS

14 MADE FIRST FROM ADDITIONAL ALLOCA15 TION AMOUNT FOR PURPOSES OF DETER16 MINING CARRYOVER.—For purposes of de17 termining the unused State housing credit 

18 ceiling under subparagraph (C) for any 

19 calendar year, any increase in the State 

20 housing credit ceiling under clause (i) shall 

21 be treated as an amount described in 

22 clause (ii) of such subparagraph. 

23 ‘‘(iv) DIFFICULT DEVELOPMENT

24 AREA.— 


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•S 3243 IS

1 ‘‘(I) IN GENERAL.—In the case 

2 of property placed in service during 

3 2012, 2013, or 2014, the Irene-Lee 

4 disaster area shall be treated as a dif5 ficult development area designated 

6 under subclause (I) of subsection 

7 (d)(5)(B)(iii), and shall not be taken 

8 into account for purposes of applying 

9 the limitation under subclause (II) of 

10 such subsection. 

11 ‘‘(II) APPLICATION OF

12 CLAUSE.—Clause (i) shall apply only 

13 to— 

14 ‘‘(aa) housing credit dollar 

15 amounts allocated during 2012, 

16 2013, or 2014, and 

17 ‘‘(bb) to the extent that 

18 paragraph (1) does not apply to 

19 any building by reason of para20 graph (4), only with respect to 

21 bonds issued after December 31, 

22 2011. 

23 ‘‘(v) SPECIAL RULE FOR APPLYING IN24 COME TESTS.—In the case of property 

25 placed in service after 2011 and before 


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•S 3243 IS

1 2019 in a nonmetropolitan area (as de2 fined in subsection (d)(5)(B)(iv)(IV)) with3 in the Irene-Lee disaster area, this section 

4 shall be applied by substituting ‘national 

5 nonmetropolitan median gross income (de6 termined under rules similar to the rules of 

7 section 142(d)(2)(B))’ for ‘area median 

8 gross income’ in subparagraphs (A) and 

9 (B) of subsection (g)(1). 

10 ‘‘(vi) TIME FOR MAKING LOW-INCOME

11 HOUSING CREDIT ALLOCATIONS.—Para12 graph (1)(B) shall not apply to an alloca13 tion of housing credit dollar amount to a 

14 building located in the Irene-Lee disaster 

15 area if such allocation is made in 2012, 

16 2013, or 2014, and such building is placed 

17 in service before January 1, 2018. 

18 ‘‘(vii) IRENE-LEE DISASTER AREA.— 

19 For purposes of this subparagraph, the 

20 term ‘Irene-Lee disaster area’ means— 

21 ‘‘(I) each county included in the 

22 geographical area covered by a quali23 fying natural disaster declaration, and 

24 ‘‘(II) each county contiguous to a 

25 county described in subclause (I). 


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•S 3243 IS

1 ‘‘(viii) QUALIFYING NATURAL DIS2 ASTER DECLARATION.—For purposes of 

3 clause (vii), the term ‘qualifying natural 

4 disaster declaration’ means— 

5 ‘‘(I) a natural disaster declared 

6 by the Secretary of Agriculture in 

7 2011 due to damaging weather and 

8 other conditions relating to Hurricane 

9 Irene or Tropical Storm Lee under 

10 section 321(a) of the Consolidated 

11 Farm and Rural Development Act (7 

12 U.S.C. 1961(a)), or 

13 ‘‘(II) a major disaster or emer14 gency designated by the President in 

15 2011 due to damaging weather and 

16 other conditions relating to Hurricane 

17 Irene or Tropical Storm Lee under 

18 the Robert T. Stafford Disaster Relief 

19 and Emergency Assistance Act (42 

20 U.S.C. 5121 et seq.).’’. 

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

22 this section shall take effect on the date of the enactment 

23 of this Act. 

Æ 


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