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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3141 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3141

To amend the Internal Revenue Code of 1986 to provide special rules for 
    treatment of low-income housing credits, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 18, 2010

 Mr. Bingaman (for himself, Mr. Menendez, Mr. Kerry, Ms. Cantwell, Ms. 
  Stabenow, and Mr. Schumer) 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 provide special rules for 
    treatment of low-income housing credits, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Low Income Housing Tax Credit 
Recovery Act of 2010''.

SEC. 2. FIVE-YEAR CARRYBACK OF LOW-INCOME HOUSING CREDIT.

    (a) In General.--Subsection (a) of section 39 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(4) 5-year carryback of low-income housing credit.--
                    ``(A) In general.--In the case of an applicable 
                low-income housing credit (within the meaning of 
                section 38(c)(6)(C))--
                            ``(i) this section shall be applied 
                        separately from the business credit (other than 
                        the low-income housing credit), and
                            ``(ii) paragraph (1) shall be applied by 
                        substituting `each of the 5 taxable years' for 
                        `the taxable year' in subparagraph (A) 
                        thereof.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007, and to carrybacks 
of credits from such taxable years.

SEC. 3. CARRYBACK OF NEW INVESTMENTS.

    (a) In General.--Section 42(f) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(6) Special rule for certain investments in 2010 and 
        2011.--
                    ``(A) In general.--In the case of a taxpayer who 
                enters into an agreement described in section 
                38(c)(6)(D)(i)(I) (without regard to the applicable 
                date), which satisfies the requirement of section 
                38(c)(6)(D)(i)(II), after December 31, 2009, and before 
                January 1, 2012, then solely for purposes of 
                determining the taxable year in which the low-income 
                housing credit under this section may be taken into 
                account for purposes of section 38, and the amount of 
                the credit so taken into account--
                            ``(i) the preceding paragraphs of this 
                        subsection shall not apply,
                            ``(ii) the credit period with respect to 
                        the housing credit dollar amount to be 
                        allocated under such agreement shall be the 1 
                        taxable year in which the taxpayer enters into 
                        such agreement,
                            ``(iii) subsections (b) and (c)(1) shall 
                        not apply, and
                            ``(iv) the amount of the credit under this 
                        section which is taken into account in the 
                        taxable year described in clause (ii) shall be 
                        the housing credit dollar amount to be 
                        allocated under such agreement.
                    ``(B) Requirements of section unaffected.--Except 
                as provided in subparagraph (A), the provisions of this 
                section shall apply to any building to which an 
                agreement described in subparagraph (A) applies as if 
                such subparagraph had not been enacted.
                    ``(C) Recapture of excess credit.--If, at the end 
                of the credit period with respect to any building 
                (without regard to subparagraph (A)), the amount of the 
                credit taken into account under subparagraph (A)(iv) 
                with respect to such building exceeds the total amount 
                of the credit which would have been allowed under this 
                section with respect to such building during such 
                credit period but for the application of subparagraph 
                (A), then the amount of such excess shall be recaptured 
                as if it were included in the credit recapture amount 
                under subsection (j).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 4. ALLOWING LOW-INCOME HOUSING CREDITS TO OFFSET 100 PERCENT OF 
              FEDERAL INCOME TAX LIABILITY.

    (a) In General.--Subsection (c) of section 38 is amended by adding 
at the end the following new paragraph:
            ``(6) Allowing low-income housing credit to offset 100 
        percent of federal income tax liability.--
                    ``(A) In general.--In the case of applicable low-
                income housing credits--
                            ``(i) this section shall be applied 
                        separately with respect to such credits,
                            ``(ii) in applying paragraph (1) to such 
                        credits--
                                    ``(I) the tentative minimum tax 
                                shall be treated as being zero, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be the net income tax (as 
                                defined in paragraph (1)) reduced by 
                                the credit allowed under subsection (a) 
                                for the taxable year (other than the 
                                applicable low-income housing credits), 
                                and
                            ``(iii) the excess credit for such taxable 
                        year shall, solely for purposes of determining 
                        the amount of such excess credit which may be 
                        carried back to a preceding taxable year, be 
                        increased by the amount of business credit 
                        carryforwards which are carried to such taxable 
                        year, to which this subparagraph applies, and 
                        which are not allowed for such taxable year by 
                        reason of the limitation under paragraph (1) 
                        (as modified by clause (ii)).
                    ``(B) Increase in limitation for taxable years to 
                which excess applicable low-income housing credits are 
                carried back.--
                            ``(i) In general.--Solely for purposes of 
                        determining the portion of any excess credit 
                        described in subparagraph (A)(iii) for which 
                        credit will be allowed under subsection (a)(3) 
                        for any preceding taxable year, except as 
                        provided in clause (ii), the limitation under 
                        paragraph (1) for such preceding taxable year 
                        shall be determined under rules similar to the 
                        rules described in subparagraph (A).
                            ``(ii) Ordering rule.--If the excess credit 
                        described in subparagraph (A)(iii) includes 
                        business credit carryforwards from preceding 
                        taxable years, such excess credit shall be 
                        treated as allowed for any preceding taxable 
                        year on a first-in first-out basis.
                    ``(C) Applicable low-income housing credits.--For 
                purposes of this subpart, the term `applicable low-
                income housing credits' means the credit determined 
                under section 42--
                            ``(i) to the extent attributable to 
                        buildings placed in service after the date of 
                        the enactment of this subparagraph, and
                            ``(ii) in the case of any other buildings, 
                        for taxable years beginning in 2008, 2009, and 
                        2010 (and to business credit carryforwards with 
                        respect to such buildings carried to such 
                        taxable years) to the extent provided in 
                        subparagraph (D).
                    ``(D) Previously placed in service buildings.--
                            ``(i) In general.--Subparagraph (C)(ii) 
                        shall apply to such credits for such a taxable 
                        year only--
                                    ``(I) if the taxpayer has entered 
                                into a binding commitment to invest 
                                equity not later than the applicable 
                                date, with respect to an investment in 
                                a future project (which is binding on 
                                the taxpayer and all successors in 
                                interest) which specifies the dollar 
                                amount of such investment, and
                                    ``(II) to the extent such credits 
                                do not exceed the dollar amount of such 
                                proposed investment.
                            ``(ii) Applicable date.--For purposes of 
                        this subparagraph, the applicable date is--
                                    ``(I) in the case of taxable years 
                                beginning in 2008 and 2009, September 
                                15, 2010, or
                                    ``(II) in the case of a taxable 
                                year beginning in 2010, the due date 
                                (including extensions of time) for 
                                filing the taxpayer's return for such 
                                taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007, and to carrybacks 
of credits from such taxable years.
                                 <all>
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