IB 

Union Calendar No. 37 

110TH CONGRESS 

1ST SESSION H. R. 1562 

[Report No. 110–66] 

To amend the Internal Revenue Code of 1986 to extend and expand certain 

rules with respect to housing in the GO Zones. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2007 

Mr. RANGEL (for himself, Mr. MCCRERY, and Mr. LEWIS of Georgia) introduced the following bill; which was referred to the Committee on Ways 

and Means 

MARCH 23, 2007 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 19, 2007] 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

and expand certain rules with respect to housing in the 

GO Zones. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Katrina Housing Tax 

3 Relief Act of 2007’’. 

4 SEC. 2. EXTENSION AND EXPANSION OF LOW-INCOME 

5 HOUSING CREDIT RULES FOR BUILDINGS IN 

6 THE GO ZONES. 

7 (a) TIME FOR MAKING LOW-INCOME HOUSING CREDIT

8 ALLOCATIONS.—Subsection (c) of section 1400N of the In9 ternal Revenue Code of 1986 (relating to low-income hous10 ing credit) is amended by redesignating paragraph (5) as 

11 paragraph (6) and by inserting after paragraph (4) the fol12 lowing new paragraph: 

13 ‘‘(5) TIME FOR MAKING LOW-INCOME HOUSING

14 CREDIT ALLOCATIONS.—Section 42(h)(1)(B) shall not 

15 apply to an allocation of housing credit dollar 

16 amount to a building located in the Gulf Opportunity 

17 Zone, the Rita GO Zone, or the Wilma GO Zone, if 

18 such allocation is made in 2006, 2007, or 2008, and 

19 such building is placed in service before January 1, 

20 2011.’’. 

21 (b) EXTENSION OF PERIOD FOR TREATING GO ZONES

22 AS DIFFICULT DEVELOPMENT AREAS.— 

23 (1) IN GENERAL.—Subparagraph (A) of section 

24 1400N(c)(3) of such Code is amended by striking 

25 ‘‘2006, 2007, or 2008’’ and inserting ‘‘the period beVerDate Aug 31 2005 01:29 Mar 24, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6203 E:\BILLS\H1562.RH H1562

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1 ginning on January 1, 2006, and ending on Decem2 ber 31, 2010’’. 

3 (2) CONFORMING AMENDMENT.—Clause (ii) of 

4 section 1400N(c)(3)(B) of such Code is amended by 

5 striking ‘‘such period’’ and inserting ‘‘the period de6 scribed in subparagraph (A)’’. 

7 (c) COMMUNITY DEVELOPMENT BLOCK GRANTS NOT

8 TAKEN INTO ACCOUNT IN DETERMINING IF BUILDINGS ARE

9 FEDERALLY SUBSIDIZED.—Subsection (c) of section 1400N 

10 of such Code (relating to low-income housing credit), as 

11 amended by this Act, is amended by redesignating para12 graph (6) as paragraph (7) and by inserting after para13 graph (5) the following new paragraph: 

14 ‘‘(6) COMMUNITY DEVELOPMENT BLOCK GRANTS

15 NOT TAKEN INTO ACCOUNT IN DETERMINING IF

16 BUILDINGS ARE FEDERALLY SUBSIDIZED.—For pur17 pose of applying section 42(i)(2)(D) to any building 

18 which is placed in service in the Gulf Opportunity 

19 Zone, the Rita GO Zone, or the Wilma GO Zone dur20 ing the period beginning on January 1, 2006, and 

21 ending on December 31, 2010, a loan shall not be 

22 treated as a below market Federal loan solely by rea23 son of any assistance provided under section 106, 

24 107, or 108 of the Housing and Community Develop25 ment Act of 1974 by reason of section 122 of such Act 


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1 or any provision of the Department of Defense Appro2 priations Act, 2006, or the Emergency Supplemental 

3 Appropriations Act for Defense, the Global War on 

4 Terror, and Hurricane Recovery, 2006.’’. 

5 SEC. 3. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR 

6 REPAIRS AND RECONSTRUCTIONS OF RESI7 DENCES IN THE GO ZONES. 

8 Subsection (a) of section 1400N of the Internal Rev9 enue Code of 1986 (relating to tax-exempt bond financing) 

10 is amended by adding at the end the following new para11 graph: 

12 ‘‘(7) SPECIAL RULE FOR REPAIRS AND RECON13 STRUCTIONS.— 

14 ‘‘(A) IN GENERAL.—For purposes of section 

15 143 and this subsection, any qualified GO Zone 

16 repair or reconstruction shall be treated as a 

17 qualified rehabilitation. 

18 ‘‘(B) QUALIFIED GO ZONE REPAIR OR RE19 CONSTRUCTION.—For purposes of subparagraph 

20 (A), the term ‘qualified GO Zone repair or re21 construction’ means any repair of damage 

22 caused by Hurricane Katrina, Hurricane Rita, 

23 or Hurricane Wilma to a building located in the 

24 Gulf Opportunity Zone, the Rita GO Zone, or 

25 the Wilma GO Zone (or reconstruction of such 


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1 building in the case of damage constituting de2 struction) if the expenditures for such repair or 

3 reconstruction are 25 percent or more of the 

4 mortgagor’s adjusted basis in the residence. For 

5 purposes of the preceding sentence, the mortga6 gor’s adjusted basis shall be determined as of the 

7 completion of the repair or reconstruction or, if 

8 later, the date on which the mortgagor acquires 

9 the residence. 

10 ‘‘(C) TERMINATION.—This paragraph shall 

11 apply only to owner-financing provided after the 

12 date of the enactment of this paragraph and be13 fore January 1, 2011.’’. 

14 SEC. 4. GAO STUDY OF PRACTICES EMPLOYED BY STATE 

15 AND LOCAL GOVERNMENTS IN ALLOCATING 

16 AND UTILIZING TAX INCENTIVES PROVIDED 

17 PURSUANT TO THE GULF OPPORTUNITY 

18 ZONE ACT OF 2005. 

19 (a) IN GENERAL.—The Comptroller General of the 

20 United States shall conduct a study of the practices em21 ployed by State and local governments, and subdivisions 

22 thereof, in allocating and utilizing tax incentives provided 

23 pursuant to the Gulf Opportunity Zone Act of 2005 and 

24 this Act. 


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1 (b) SUBMISSION OF REPORT.—Not later than one year 

2 after the date of the enactment of this Act, the Comptroller 

3 General shall submit a report on the findings of the study 

4 conducted under subsection (a) and shall include therein 

5 recommendations (if any) relating to such findings. The re6 port shall be submitted to the Committee on Ways and 

7 Means of the House of Representatives and the Committee 

8 on Finance of the Senate. 

9 (c) CONGRESSIONAL HEARINGS.—In the case that the 

10 report submitted under this section includes findings of sig11 nificant fraud, waste or abuse, each Committee specified in 

12 subsection (b) shall, within 60 days after the date the report 

13 is submitted under subsection (b), hold a public hearing to 

14 review such findings. 

15 SEC. 5. MODIFICATION OF COLLECTION DUE PROCESS PRO16 CEDURES FOR EMPLOYMENT TAX LIABIL17 ITIES. 

18 (a) IN GENERAL.—Section 6330(f) of the Internal Rev19 enue Code of 1986 (relating to jeopardy and State refund 

20 collection) is amended— 

21 (1) by striking ‘‘; or’’ at the end of paragraph 

22 (1) and inserting a comma, 

23 (2) by adding ‘‘or’’ at the end of paragraph (2), 

24 and 


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1 (3) by inserting after paragraph (2) the fol2 lowing new paragraph: 

3 ‘‘(3) the Secretary has, on or before September 

4 30, 2015, served a levy in connection with the collec5 tion of taxes under chapter 21, 22, 23, or 24,’’. 

6 (b) EFFECTIVE DATE.—The amendments made by this 

7 section shall apply to levies served on or after the date that 

8 is 120 days after the date of the enactment of this Act. 

9 SEC. 6. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

10 TAXES. 

11 Subparagraph (B) of section 401(1) of the Tax In12 crease Prevention and Reconciliation Act of 2005 is amend13 ed by striking ‘‘106.25 percent’’ and inserting ‘‘106.45 per14 cent’’. 


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Union Calendar No. 37 

110TH CONGRESS 

1ST SESSION H. R. 1562 

[Report No. 110

–66] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

housing in the GO Zones. extend and expand certain rules with respect to 

MARCH 23, 2007 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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