IIB 
110TH CONGRESS 
1ST SESSION H. R. 1562 
IN THE SENATE OF THE UNITED STATES 
MARCH 28, 2007 
Received; read twice and referred to the Committee on Finance 
AN ACT 
To amend the Internal Revenue Code of 1986 to extend 
and expand certain rules with respect to housing in the 
GO Zones. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Katrina Housing Tax 
Relief Act of 2007’’. 
SEC. 2. EXTENSION AND EXPANSION OF LOW-INCOME 
HOUSING CREDIT RULES FOR BUILDINGS IN 
THE GO ZONES. 
(a) TIME
FOR
MAKING
LOW-INCOME
HOUSING 
CREDIT ALLOCATIONS.—Subsection (c) of section 1400N 
of the Internal Revenue Code of 1986 (relating to low- 
income housing credit) is amended by redesignating para-
graph (5) as paragraph (6) and by inserting after para-
graph (4) the following new paragraph: 
‘‘(5) TIME FOR MAKING LOW-INCOME HOUSING 
CREDIT
ALLOCATIONS.—Section 42(h)(1)(B) shall 
not apply to an allocation of housing credit dollar 
amount to a building located in the Gulf Oppor-
tunity Zone, the Rita GO Zone, or the Wilma GO 
Zone, if such allocation is made in 2006, 2007, or 
2008, and such building is placed in service before 
January 1, 2011.’’. 
(b) EXTENSION
OF PERIOD
FOR TREATING GO 
ZONES AS DIFFICULT DEVELOPMENT AREAS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
1400N(c)(3) of such Code is amended by striking 
‘‘2006, 2007, or 2008’’ and inserting ‘‘the period be-
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ginning on January 1, 2006, and ending on Decem-
ber 31, 2010’’. 
(2) CONFORMING AMENDMENT.—Clause (ii) of 
section 1400N(c)(3)(B) of such Code is amended by 
striking ‘‘such period’’ and inserting ‘‘the period de-
scribed in subparagraph (A)’’. 
(c) COMMUNITY DEVELOPMENT BLOCK GRANTS NOT 
TAKEN INTO ACCOUNT IN DETERMINING IF BUILDINGS 
ARE FEDERALLY SUBSIDIZED.—Subsection (c) of section 
1400N of such Code (relating to low-income housing cred-
it), as amended by this Act, is amended by redesignating 
paragraph (6) as paragraph (7) and by inserting after 
paragraph (5) the following new paragraph: 
‘‘(6) 
COMMUNITY
DEVELOPMENT
BLOCK 
GRANTS
NOT
TAKEN
INTO
ACCOUNT
IN
DETER-
MINING
IF
BUILDINGS
ARE
FEDERALLY
SUB-
SIDIZED.—For 
purpose 
of 
applying 
section 
42(i)(2)(D) to any building which is placed in serv-
ice in the Gulf Opportunity Zone, the Rita GO Zone, 
or the Wilma GO Zone during the period beginning 
on January 1, 2006, and ending on December 31, 
2010, a loan shall not be treated as a below market 
Federal loan solely by reason of any assistance pro-
vided under section 106, 107, or 108 of the Housing 
and Community Development Act of 1974 by reason 
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of section 122 of such Act or any provision of the 
Department of Defense Appropriations Act, 2006, or 
the Emergency Supplemental Appropriations Act for 
Defense, the Global War on Terror, and Hurricane 
Recovery, 2006.’’. 
SEC. 3. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR 
REPAIRS AND RECONSTRUCTIONS OF RESI-
DENCES IN THE GO ZONES. 
Subsection (a) of section 1400N of the Internal Rev-
enue Code of 1986 (relating to tax-exempt bond financing) 
is amended by adding at the end the following new para-
graph: 
‘‘(7) SPECIAL RULE FOR REPAIRS AND RECON-
STRUCTIONS.— 
‘‘(A) IN GENERAL.—For purposes of sec-
tion 143 and this subsection, any qualified GO 
Zone repair or reconstruction shall be treated 
as a qualified rehabilitation. 
‘‘(B) QUALIFIED GO ZONE REPAIR OR RE-
CONSTRUCTION.—For purposes of subpara-
graph (A), the term ‘qualified GO Zone repair 
or reconstruction’ means any repair of damage 
caused by Hurricane Katrina, Hurricane Rita, 
or Hurricane Wilma to a building located in the 
Gulf Opportunity Zone, the Rita GO Zone, or 
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the Wilma GO Zone (or reconstruction of such 
building in the case of damage constituting de-
struction) if the expenditures for such repair or 
reconstruction are 25 percent or more of the 
mortgagor’s adjusted basis in the residence. 
For purposes of the preceding sentence, the 
mortgagor’s adjusted basis shall be determined 
as of the completion of the repair or reconstruc-
tion or, if later, the date on which the mort-
gagor acquires the residence. 
‘‘(C) TERMINATION.—This paragraph shall 
apply only to owner-financing provided after the 
date of the enactment of this paragraph and be-
fore January 1, 2011.’’. 
SEC. 4. GAO STUDY OF PRACTICES EMPLOYED BY STATE 
AND LOCAL GOVERNMENTS IN ALLOCATING 
AND UTILIZING TAX INCENTIVES PROVIDED 
PURSUANT 
TO 
THE 
GULF 
OPPORTUNITY 
ZONE ACT OF 2005. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study of the practices em-
ployed by State and local governments, and subdivisions 
thereof, in allocating and utilizing tax incentives provided 
pursuant to the Gulf Opportunity Zone Act of 2005 and 
this Act. 
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(b) SUBMISSION OF REPORT.—Not later than one 
year after the date of the enactment of this Act, the Comp-
troller General shall submit a report on the findings of 
the study conducted under subsection (a) and shall include 
therein recommendations (if any) relating to such find-
ings. The report shall be submitted to the Committee on 
Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate. 
(c) CONGRESSIONAL HEARINGS.—In the case that 
the report submitted under this section includes findings 
of significant fraud, waste or abuse, each Committee spec-
ified in subsection (b) shall, within 60 days after the date 
the report is submitted under subsection (b), hold a public 
hearing to review such findings. 
SEC. 5. MODIFICATION OF COLLECTION DUE PROCESS 
PROCEDURES FOR EMPLOYMENT TAX LI-
ABILITIES. 
(a) IN GENERAL.—Section 6330(f) of the Internal 
Revenue Code of 1986 (relating to jeopardy and State re-
fund collection) is amended— 
(1) by striking ‘‘; or’’ at the end of paragraph 
(1) and inserting a comma, 
(2) by adding ‘‘or’’ at the end of paragraph (2), 
and 
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(3) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) the Secretary has served a disqualified em-
ployment tax levy,’’. 
(b) DISQUALIFIED EMPLOYMENT TAX LEVY.—Sec-
tion 6330 of such Code (relating to notice and opportunity 
for hearing before levy) is amended by adding at the end 
the following new subsection: 
‘‘(h) DISQUALIFIED EMPLOYMENT TAX LEVY.—For 
purposes of subsection (f), a disqualified employment tax 
levy is any levy in connection with the collection of employ-
ment taxes for any taxable period if— 
‘‘(1) the person subject to the levy (or any 
predecessor thereof) requested a hearing under this 
section with respect to unpaid employment taxes 
arising in the most recent 2-year period before the 
beginning of the taxable period with respect to which 
the levy is served, and 
‘‘(2) such levy is served before February 29, 
2016. 
For purposes of the preceding sentence, the term ‘employ-
ment taxes’ means any taxes under chapter 21, 22, 23, 
or 24.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to levies served on or after the date 
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that is 120 days after the date of the enactment of this 
Act. 
SEC. 6. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
Subparagraph (B) of section 401(1) of the Tax In-
crease Prevention and Reconciliation Act of 2005 is 
amended by striking ‘‘106.25 percent’’ and inserting 
‘‘106.45 percent’’. 
Passed the House of Representatives March 27, 
2007. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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