I

103D CONGRESS

1ST SESSION H. R. 1837

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

housing shall not be ineligible for the larger low-income housing credit

by reason of assistance provided under the HOME Investment Partnerships Act, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 22, 1993

Mr. RANGEL 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 provide

that low-income housing shall not be ineligible for the

larger low-income housing credit by reason of assistance

provided under the HOME Investment Partnerships Act,

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,
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1 SECTION 1. LOW-INCOME HOUSING NOT TREATED AS FED2 ERALLY SUBSIDIZED BY REASON OF ASSIST3 ANCE UNDER HOME INVESTMENT PARTNER4 SHIPS ACT.

5 (a) IN GENERAL.—Subparagraph (D) of section

6 42(i)(2) of the Internal Revenue Code of 1986 (relating

7 to determination of whether building is federally sub8 sidized) is amended by inserting before the period ‘‘or as9 sistance provided under the HOME Investment Partner10 ships Act’’.

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

12 subsection (a) shall apply to—

13 (1) determinations under section 42 of the In14 ternal Revenue Code of 1986 with respect to housing

15 credit dollar amounts allocated from State housing

16 credit ceilings for years after 1992, or

17 (2) buildings placed in service after December

18 31, 1992, to the extent paragraph (1) of section

19 42(h) of such Code does not apply to any building

20 by reason of paragraph (4) thereof, but only with re21 spect to bonds issued after such date.

22 SEC. 2. TREATMENT OF PARTNERSHIP INVESTMENT EX23 PENSES UNDER MINIMUM TAX.

24 (a) GENERAL RULE.—Subparagraph (A) of section

25 56(b)(1) of the Internal Revenue Code of 1986 (relating

26 to limitation on deductions) is amended to read as follows:
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1 ‘‘(A) DISALLOWANCE OF CERTAIN DEDUC2 TIONS.—

3 ‘‘(i) IN GENERAL.—No deduction shall

4 be allowed—

5 ‘‘(I) for any miscellaneous item6 ized deduction (as defined in section

7 67(b)), or

8 ‘‘(II) for any taxes described in

9 paragraph (1), (2), or (3) of section

10 164(a).

11 ‘‘(ii) TREATMENT OF PARTNERSHIP

12 INVESTMENT EXPENSES.—Subclause (I) of

13 clause (i) shall not apply to the taxpayer’s

14 distributive share of the expenses described

15 in section 212 of any partnership; except

16 that the aggregate amount allowed as a de17 duction by reason of this sentence shall not

18 exceed the lesser of (I) the aggregate ad19 justed investment income of the taxpayer

20 from partnerships, or (II) the excess of the

21 aggregate of the taxpayer’s distributive

22 shares of such expenses over 2 percent of

23 adjusted gross income. For purposes of the

24 preceding sentence, the term ‘adjusted in25 vestment income’ means investment income
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1 (as defined in section 163(d)(4)(B)) re2 duced by investment interest (as defined in

3 section 163(d)(3)).

4 ‘‘(iii) TREATMENT OF CERTAIN

5 TAXES.—Subclause (II) of clause (i) shall

6 not apply to any amount allowable in com7 puting adjusted gross income.’’

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

9 subsection (a) shall apply to taxable years beginning after

10 December 31, 1993.

11 SEC. 3. SPECIAL RULES FOR RENTAL USE OF DWELLING

12 FOR LESS THAN 15 DAYS PER YEAR.

13 (a) IN GENERAL.—Section 280A of the Internal Rev14 enue Code of 1986 is amended by striking subsection (g)

15 and inserting:

16 ‘‘(g) SPECIAL RULE FOR CERTAIN RENTAL USE.—

17 Notwithstanding any other provision of this section or sec18 tion 183, if the principal residence of the taxpayer is actu19 ally rented for less than 15 days during the taxable year

20 for the purpose of providing accommodations to visitors

21 to an event for which commercial rental accommodations

22 in the community holding the event are not sufficient to

23 reasonably provide more than one-half of the accommoda24 tions necessary (and the rental income received by the tax25 payer for any visitor is not greater than a reasonable rent-
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1 al rate charged per individual guest by commercial rental

2 accommodations), then—

3 ‘‘(1) no deduction otherwise allowable under

4 this chapter because of the rental use of such dwell5 ing unit shall be allowed, and

6 ‘‘(2) the income derived from such use for the

7 taxable year shall not be included in the gross in8 come of such taxpayer under section 61.

9 ‘‘(h) REGULATIONS.—The Secretary shall prescribe

10 such regulations as may be appropriate to carry out the

11 purposes of this section, including regulations providing

12 such de minimis rules as the Secretary may deem appro13 priate.’’

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

15 subsection (a) shall apply to taxable years beginning after

16 the date of the enactment of this Act.

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