I 
109TH CONGRESS 
2D SESSION 
H. R. 6205 
To amend the Internal Revenue Code of 1986 to provide an ex-offender 
low-income housing credit to encourage the provision of housing, job 
training, and other essential services to ex-offenders through a structured 
living environment designed to assist the ex-offenders in becoming self- 
sufficient. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 27, 2006 
Mr. DAVIS of Illinois 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 
an ex-offender low-income housing credit to encourage 
the provision of housing, job training, and other essential 
services to ex-offenders through a structured living envi-
ronment designed to assist the ex-offenders in becoming 
self-sufficient. 
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 ‘‘Public Safety Ex-Of-
fender Self-Sufficiency Act of 2006’’. 
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SEC. 2. TEMPORARY EX-OFFENDER LOW-INCOME HOUSING 
CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45N. EX-OFFENDER LOW-INCOME HOUSING CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
amount of the ex-offender low-income housing credit de-
termined under this section for any taxable year in the 
credit period shall be an amount equal to— 
‘‘(1) the applicable percentage of 
‘‘(2) the qualified basis of each qualified ex-of-
fender residential building. 
‘‘(b) APPLICABLE PERCENTAGE.—In the case of any 
qualified ex-offender residential building, the term ‘appli-
cable percentage’ has the meaning given such term in sec-
tion 42(b)(2) with respect to qualified low-income build-
ings, except that, for the purposes of this subsection, the 
percentages prescribed by the Secretary under section 
42(b)(2)(B) shall yield amounts of credit which have a 
present value equal to 70 percent of the qualified basis 
of any qualified ex-offender residential building. 
‘‘(c) QUALIFIED BASIS.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a) and except as otherwise provided in this sub-
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section, the term ‘qualified basis’ means the ad-
justed basis of a qualified ex-offender residential 
building as of the close of the 1st taxable year of the 
credit period. 
‘‘(2) QUALIFIED BASIS TO INCLUDE PORTION 
OF BUILDING USED TO PROVIDE EX-OFFENDER SUP-
PORT SERVICES.—The qualified basis of any quali-
fied ex-offender residential building for any taxable 
year shall be increased by the lesser of— 
‘‘(A) so much of the qualified basis of such 
building as is used throughout the year to pro-
vide ex-offender support services, or 
‘‘(B) 20 percent of the qualified basis of 
such building (determined without regard to 
this paragraph). 
‘‘(3) SPECIAL
RULES.—Rules similar to the 
rules of paragraphs (4), (5) (other than subpara-
graph (A) thereof), and (7) of section 42(d) shall 
apply in determining the adjusted basis of any quali-
fied ex-offender residential building. 
‘‘(d) REHABILITATION EXPENDITURES.—Rules simi-
lar to the rules of section 42(e) shall apply in determining 
the treatment of rehabilitation expenditures paid or in-
curred by the taxpayer with respect to a qualified ex-of-
fender residential building. 
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‘‘(e) CREDIT PERIOD.—For purposes of this section, 
rules similar to the rules of section 42(f) shall apply in 
determining the credit period with respect to any qualified 
ex-offender residential building. 
‘‘(f) 
QUALIFIED
EX-OFFENDER
RESIDENTIAL 
BUILDING.—For purposes of this section, the term ‘quali-
fied ex-offender residential building’ means any building 
which, at all times during the compliance period, meets 
the following requirements: 
‘‘(1) EX-OFFENDER RESIDENTIAL UNITS.— 
‘‘(A) IN GENERAL.—Each residential unit 
in such building shall be made available for oc-
cupancy to not more than 1 ex-offender. 
‘‘(B) RESIDENCY
REQUIREMENTS.—Such 
ex-offender must— 
‘‘(i) meet the residency requirements 
under subsection (g); 
‘‘(ii) have failed to meet such require-
ments for fewer than 14 days; or 
‘‘(iii) be in the process of being evict-
ed from such building for failing to meet 
such requirements. 
‘‘(C) FLEXIBILITY.—A building shall not 
be determined to fail to satisfy the require-
ments of this paragraph solely because— 
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‘‘(i) some or all of the residential 
units in such building are single room oc-
cupancy (as defined in section (8)(n) of the 
United States Housing Act of 1937 (42 
U.S.C. 1437f(n))), or 
‘‘(ii) any unit made available to an ex- 
offender is also made available to one or 
more members of the ex-offender’s family 
(as determined by the taxpayer). 
‘‘(2) SELF-SUFFICIENCY CENTERS FOR EX-OF-
FENDERS.—The building shall include a self-suffi-
ciency center for ex-offenders that— 
‘‘(A) is specifically designed to accommo-
date, and reserved for, the provision of ex-of-
fender support services to residents of the facil-
ity and other ex-offenders; 
‘‘(B) is made available for rental by pro-
viders of such services at a rate determined by 
the owner of the facility; and 
‘‘(C) provides an array of such services 
sufficient to meet a significant portion of the 
needs of ex-offenders for ex-offender support 
services. 
‘‘(3) RENT LIMITATIONS.—The portion of the 
monthly rent payable by the occupant of each unit 
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in the building may not exceed 30 percent of the ad-
justed monthly income (as such term is defined in 
section 3(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(b)) of the occupant. 
‘‘(g) RESIDENCY REQUIREMENTS.— 
‘‘(1) IN GENERAL.—An ex-offender meets the 
residency requirements for a qualified ex-offender 
residential building if such ex-offender— 
‘‘(A) has a low income; 
‘‘(B) is participating in an ex-offender sup-
port services program as described in paragraph 
(3)(B); 
‘‘(C) has not been prohibited from resi-
dency under paragraph (4); and 
‘‘(D) commences occupancy of a unit in a 
qualified ex-offender residential building on a 
date that is not later than— 
‘‘(i) in the case of an ex-offender who 
has been discharged from prison, jail, a 
half-way house, or any other correctional 
facility, 12 months after such discharge; or 
‘‘(ii) in the case of any ex-offender 
whose sentence did not include confine-
ment to a correctional facility, 12 months 
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