I
106TH CONGRESS
1ST SESSION
H. R. 3451
To amend the Internal Revenue Code of 1986 to allow the unused portion
of the low-income housing credit for buildings financed with tax exempt
State bonds to be used for the construction of military housing in
the State.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 18, 1999
Mr. ABERCROMBIE 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 allow the
unused portion of the low-income housing credit for
buildings financed with tax exempt State bonds to be
used for the construction of military housing in the
State.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. UNUSED PORTION OF LOW-INCOME HOUSING
CREDIT FINANCED WITH TAX EXEMPT BONDS
USED FOR CONSTRUCTION OF MILITARY
HOUSING.
(a) IN GENERAL.—Section 42 of the Internal Rev-
enue Code of 1986 (relating to low-income housing credit)
is amended by redesignating subsection (n) as subsection
(o) and by inserting after subsection (m) the following new
subsection:
‘‘(n) QUALIFIED MILITARY HOUSING BUILDING.—
For purposes of this section—
‘‘(1) IN GENERAL.—A qualified military hous-
ing building shall be treated as a new qualified low-
income housing building.
‘‘(2) APPLICABLE PERCENTAGE AND QUALIFIED
BASIS.—The applicable percentage for the qualified
military housing building shall be determined under
subsection (b)(2) in a manner to yield the credit
amount described in subsection (b)(2)(B)(ii). The
qualified basis of such building shall be the basis de-
termined under subsection (d)(1).
‘‘(3) QUALIFIED
MILITARY
HOUSING
BUILD-
ING.—The term ‘qualified military housing building’
means military family housing or military unaccom-
panied housing located in the United States which is
constructed and used exclusively as military housing
(within the meaning of chapter 169 of title 10,
United States Code) at all times during the compli-
ance period.
‘‘(4) MILITARY FAMILY HOUSING AND MILITARY
UNACCOMPANIED
HOUSING.—The terms ‘military
family housing’ and ‘military unaccompanied hous-
ing’ have the same meanings as when used in sub-
chapter IV of chapter 169 of title 10, United States
Code.’’.
(b) USE OF TAX EXEMPT BONDS FOR MILITARY
HOUSING PROJECTS.—
(1) IN
GENERAL.—Subsection (d) of section
142 of such Code (relating to exempt facility bonds)
is amended by redesignating paragraph (7) as para-
graph (8) and by inserting after paragraph (6) the
following new paragraph:
‘‘(7) SPECIAL RULE FOR QUALIFIED MILITARY
HOUSING
PROJECTS.—For purposes of paragraph
(1)—
‘‘(A) IN
GENERAL.—A qualified military
housing project shall be treated as a qualified
residential rental project.
‘‘(B) 
QUALIFIED
MILITARY
HOUSING
PROJECT DEFINED.—The term ‘qualified mili-
tary housing project’ means a project for mili-
tary family housing or military unaccompanied
housing located in the United States which is
constructed and used exclusively as military
housing (within the meaning of chapter 169 of
title 10, United States Code) at all times dur-
ing the qualified project period.’’.
(2) PRIORITY
AMONG
RESIDENTIAL
RENTAL
HOUSING PROJECTS.—Section 146 of such Code (re-
lating to the volume cap) is amended by adding at
the end the following new subsection:
‘‘(n) PRIORITY AMONG RESIDENTIAL RENTAL HOUS-
ING PROJECTS.—An issuer shall not allocate an amount
for a qualified military housing project (within the mean-
ing of section 142(d)(7)) for a year unless the issuer cer-
tifies that such amount is not needed for residential rental
projects that are not qualified military housing projects
for that year.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to buildings placed in service and
bonds issued after December 31, 1999.
Æ