I 
111TH CONGRESS 
1ST SESSION H. R. 3811 
To amend the Internal Revenue Code of 1986 to authorize the Secretary, 
for a period of 2 years, to allocate a new markets tax credit limitation 
to entities that serve or provide investment capital for distressed commu-
nities. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 14, 2009 
Ms. KOSMAS 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 authorize 
the Secretary, for a period of 2 years, to allocate a 
new markets tax credit limitation to entities that serve 
or provide investment capital for distressed communities. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘New Markets Tax 
Credit Expansion Act of 2009’’. 
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SEC. 2. SPECIAL ALLOCATIONS RULES WITH RESPECT TO 
DISTRESSED COMMUNITIES. 
(a) IN GENERAL.—Section 45D(e) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(6) DISTRESSED COMMUNITIES.— 
‘‘(A) IN GENERAL.—In case of allocations 
made under subsection (f)(2) for calendar years 
2010 and 2011, a low-income community shall 
include a distressed community. 
‘‘(B) DISTRESSED COMMUNITY.—For pur-
poses of subparagraph (A)— 
‘‘(i) IN
GENERAL.—The term ‘dis-
tressed community’ means a county that 
the Secretary designates as— 
‘‘(I) having, for any month dur-
ing the applicable period— 
‘‘(aa) a residential mortgage 
foreclosure rate of 110 percent or 
more of the national average, 
‘‘(bb) a commercial mort-
gage foreclosure rate of 110 per-
cent or more of the national aver-
age, 
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‘‘(cc) a decline in the aver-
age fair market value of housing 
of at least 20 percent, or 
‘‘(dd) an unemployment rate 
of 110 percent or more of the na-
tional average, 
‘‘(II) being a county in which, for 
a calendar year during the applicable 
period, more than 50 percent of loans 
secured by housing had a loan-to- 
value ratio of greater than 80 percent, 
or 
‘‘(III) being in a disaster area 
(as defined in section 165(h)(3)(C)) 
as a result of a federally declared dis-
aster that occurred during the appli-
cable period. 
‘‘(ii) APPLICABLE PERIOD.—The term 
‘applicable period’ means— 
‘‘(I) in the case of subclauses (I) 
and (II) of clause (i), the period be-
ginning on January 1, 2008, and end-
ing on the date which is 2 years after 
the date of the enactment of the New 
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Markets Tax Credit Expansion Act of 
2009, and 
‘‘(II) in the case of subclause 
(III) of clause (i), the 4-year period 
ending on the date which is 2 years 
after the date of the enactment of the 
New Markets Tax Credit Expansion 
Act of 2009.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of enactment of this Act. 
Æ 
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