shall be treated as chargeable to capital account 
and taken into account as rehabilitation ex-
penditures.’’. 
(B) EFFECTIVE
DATE.—The amendment 
made by this paragraph shall apply to expendi-
tures paid or incurred after December 31, 
2022. 
(C) NO
INFERENCE.—Nothing in the 
amendment made by this paragraph shall be 
construed to create any inference with respect 
to the treatment of relocation costs paid or in-
curred before December 31, 2022. 
(4) REPEAL OF QUALIFIED CENSUS TRACT POP-
ULATION CAP.— 
(A) IN GENERAL.—Clause (ii) of section 
42(d)(5)(B) of the Internal Revenue Code of 
1986 is amended— 
(i) by striking subclauses (II) and 
(III), and 
(ii) by striking ‘‘QUALIFIED CENSUS 
TRACT.— 
‘‘(I) IN GENERAL.—The term’’, 
and 
inserting 
‘‘QUALIFIED
CENSUS 
TRACT.—The term’’. 
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(B) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to designa-
tions of qualified census tracts under section 
42(d)(5)(B)(ii) of the Internal Revenue Code of 
1986 after December 31, 2023. 
(5) DETERMINATION OF COMMUNITY REVITAL-
IZATION PLAN TO BE MADE BY HOUSING CREDIT 
AGENCY.— 
(A) IN GENERAL.—Subclause (III) of sec-
tion 42(m)(1)(B)(ii) of the Internal Revenue 
Code of 1986 is amended by inserting ‘‘, as de-
termined by the housing credit agency accord-
ing to criteria established by such agency,’’ 
after ‘‘(d)(5)(B)(ii)) and’’. 
(B) CRITERIA.—Paragraph (1) of section 
42(m) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following 
new subparagraph: 
‘‘(E) CRITERIA FOR DETERMINATION RE-
LATING TO CONCERTED COMMUNITY REVITAL-
IZATION PLAN.—For purposes of subparagraph 
(B)(ii)(III), the criteria which shall be estab-
lished by a housing credit agency for deter-
mining whether the development of a project 
contributes to a concerted community develop-
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ment plan shall take into account any factors 
the agency deems appropriate, including the ex-
tent to which the proposed plan— 
‘‘(i) is geographically specific, 
‘‘(ii) outlines a clear plan for imple-
mentation and goals for outcomes, 
‘‘(iii) includes a strategy for applying 
for or obtaining commitments of public or 
private investment (or both) in nonhousing 
infrastructure, amenities, or services, and 
‘‘(iv) demonstrates the need for com-
munity revitalization.’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to alloca-
tions of housing credit dollar amounts made 
under qualified allocation plans (as defined in 
section 42(m)(1)(B) of the Internal Revenue 
Code of 1986) adopted after December 31, 
2023. 
(6) PROHIBITION
OF
LOCAL
APPROVAL
AND 
CONTRIBUTION REQUIREMENTS.— 
(A) IN GENERAL.—Paragraph (1) of sec-
tion 42(m) of the Internal Revenue Code of 
1986, as amended by paragraph (5) of this sub-
section, is further amended— 
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(i) by striking clause (ii) of subpara-
graph (A) and by redesignating clauses 
(iii) and (iv) thereof as clauses (ii) and 
(iii), and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(F) LOCAL APPROVAL OR CONTRIBUTION 
NOT TAKEN INTO ACCOUNT.—The selection cri-
teria under a qualified allocation plan shall not 
include consideration of— 
‘‘(i) any support or opposition with re-
spect to the project from local or elected 
officials, or 
‘‘(ii) any local government contribu-
tion to the project, except to the extent 
such contribution is taken into account as 
part of a broader consideration of the 
project’s ability to leverage outside funding 
sources, and is not prioritized over any 
other source of outside funding.’’. 
(B) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to alloca-
tions of housing credit dollar amounts made 
under qualified allocation plans (as defined in 
section 42(m)(1)(B) of the Internal Revenue 
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Code of 1986) adopted after December 31, 
2023. 
(7) 
INCREASE
IN
CREDIT
FOR
CERTAIN 
PROJECTS DESIGNATED TO SERVE EXTREMELY LOW- 
INCOME HOUSEHOLDS.— 
(A) IN GENERAL.—Paragraph (5) of sec-
tion 42(d) of the Internal Revenue Code of 
1986 is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) INCREASE IN CREDIT FOR PROJECTS 
DESIGNATED
TO
SERVE
EXTREMELY
LOW-IN-
COME HOUSEHOLDS.—In the case of any build-
ing— 
‘‘(i) 20 percent or more of the resi-
dential units (determined as if the imputed 
income limitation applicable to such units 
were 30 percent of area median gross in-
come) in which are designated by the tax-
payer for occupancy by households the ag-
gregate household income of which does 
not exceed the greater of— 
‘‘(I) 30 percent of area median 
gross income, or 
‘‘(II) 100 percent of an amount 
equal to the Federal poverty line 
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(within 
the 
meaning 
of 
section 
36B(d)(3)), and 
‘‘(ii) which is designated by the hous-
ing credit agency as requiring the increase 
in credit under this subparagraph in order 
for such building to be financially feasible 
as part of a qualified low-income housing 
project, 
subparagraph (B) shall not apply to the portion 
of such building which is comprised of such 
units (determined in a manner similar to the 
unit fraction under subsection (c)(1)(C)), and 
the eligible basis of such portion of the building 
shall be 150 percent of such basis determined 
without regard to this subparagraph.’’. 
(B) EFFECTIVE
DATE.—The amendment 
made by this paragraph shall apply to buildings 
which receive allocations of housing credit dol-
lar amount after the date of enactment of this 
Act, or in the case of buildings that are de-
scribed in section 42(h)(4)(B) of the Internal 
Revenue Code of 1986, for obligations that are 
part of an issue the issue date of which is after 
December 31, 2023. 
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(8) INCREASE IN CREDIT FOR BOND-FINANCED 
PROJECTS DESIGNATED BY STATE AGENCY.— 
(A) IN GENERAL.—Clause (v) of section 
42(d)(5)(B) of the Internal Revenue Code of 
1986 is amended by striking the second sen-
tence. 
(B) TECHNICAL AMENDMENT.—Clause (v) 
of section 42(d)(5)(B) of the Internal Revenue 
Code of 1986, as amended by subparagraph 
(A), is further amended— 
(i) by striking ‘‘STATE’’ in the head-
ing, and 
(ii) by striking ‘‘State housing credit 
agency’’ and inserting ‘‘housing credit 
agency’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to buildings 
that are described in section 42(h)(4)(B) of the 
Internal Revenue Code of 1986, taking into ac-
count only obligations that are part of an issue 
the issue date of which is after December 31, 
2023. 
(9) ELIMINATION
OF
BASIS
REDUCTION
FOR 
LOW-INCOME HOUSING PROPERTIES ENERGY EFFI-
CIENT COMMERCIAL BUILDING DEDUCTION.— 
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(A) 
ENERGY
EFFICIENT
COMMERCIAL 
BUILDINGS DEDUCTION.—Subsection (e) of sec-
tion 179D of the Internal Revenue Code of 
1986 is amended— 
(i) by striking ‘‘REDUCTION.—For 
purposes’’ and inserting ‘‘REDUCTION.— 
‘‘(1) IN GENERAL.—For purposes’’, and 
(ii) by adding at the end the following 
new paragraph: 
‘‘(2) EXCEPTION
FOR
AFFORDABLE
HOUSING 
PROPERTIES.—Paragraph (1) shall not apply for 
purposes of determining eligible basis under section 
42.’’. 
(B) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to buildings 
which receive allocations of housing credit dol-
lar amount after the date of the enactment of 
this Act and to buildings that are described in 
section 42(h)(4)(B) of the Internal Revenue 
Code of 1986 taking into account only obliga-
tions that are part of an issue the issue date of 
which is after December 31, 2023. 
(10) 
RESTRICTION
OF
PLANNED
FORE-
CLOSURES.— 
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(A) IN GENERAL.—Subclause (I) of section 
42(h)(6)(E)(i) of the Internal Revenue Code of 
1986 is amended to read as follows: 
‘‘(I) on the 61st day after the 
taxpayer (or a successor in interest) 
provides notice to the Secretary and 
the housing credit agency that the 
building has been acquired by fore-
closure (or instrument in lieu of fore-
closure) and that the taxpayer intends 
the termination of such period, unless, 
before such date, the Secretary or the 
housing credit agency determines that 
such acquisition is part of an arrange-
ment with the taxpayer a purpose of 
which is to terminate such period, 
or’’. 
(B) CONFORMING AMENDMENT.—The sec-
ond 
sentence 
of 
clause 
(i) 
of 
section 
42(h)(6)(E) of the Internal Revenue Code of 
1986 is amended by striking ‘‘Subclause (II)’’ 
and inserting ‘‘Subclauses (I) and (II)’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to acquisi-
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tions by foreclosure (or instrument in lieu of 
foreclosure) after December 31, 2022. 
(11) INCREASE OF POPULATION CAP FOR DIF-
FICULT DEVELOPMENT AREAS.— 
(A) IN GENERAL.—Subclause (II) of sec-
tion 42(d)(5)(B)(iii) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘20 per-
cent’’ and inserting ‘‘30 percent’’. 
(B) EFFECTIVE
DATE.—The amendment 
made by this paragraph shall apply to designa-
tions made under section 42(d)(5)(B)(iii) of the 
Internal Revenue Code of 1986 after December 
31, 2023. 
(12) INCREASED
COST
OVERSIGHT
AND
AC-
COUNTABILITY.— 
(A) IN
GENERAL.—Subparagraph (C) of 
section 42(m)(1) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘and’’ at the 
end of clause (ix), by striking the period at the 
end of clause (x) and inserting ‘‘, and’’, and by 
adding at the end the following new clause: 
‘‘(xi) the reasonableness of the devel-
opment costs of the project.’’. 
(B) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to alloca-
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tions of credits under section 42 of the Internal 
Revenue Code of 1986 made after December 
31, 2023. 
(13) TAX-EXEMPT BOND FINANCING REQUIRE-
MENT.— 
(A) IN GENERAL.—Subparagraph (B) of 
section 42(h)(4) of the Internal Revenue Code 
of 1986 is amended by adding at the end the 
following new sentence: ‘‘In the case of build-
ings financed by an obligation first taken into 
account under section 146 in calendar years be-
ginning after the date of the enactment of this 
sentence, the preceding sentence shall be ap-
plied by substituting ‘25 percent’ for ‘50 per-
cent’.’’. 
(B) EFFECTIVE
DATE.—The amendment 
made by this paragraph shall apply to any 
building some portion of which, or of the land 
on which the building is located, is financed by 
an obligation which is described in section 
42(h)(4)(A) of the Internal Revenue Code of 
1986 and which is part of an issue the issue 
date of which is after December 31, 2023. 
(d) REFORMS RELATING TO NATIVE AMERICAN AS-
SISTANCE.— 
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(1) SELECTION
CRITERIA
UNDER
QUALIFIED 
ALLOCATION PLANS.— 
(A) IN
GENERAL.—Subparagraph (C) of 
section 42(m)(1) of the Internal Revenue Code 
of 1986, as amended by subsection (c)(2), is 
further amended by striking ‘‘and’’ at the end 
of clause (x), by striking the period at the end 
of clause (xi) and inserting ‘‘, and’’, and by 
adding at the end the following new clause: 
‘‘(xii) the affordable housing needs of 
individuals in the State who are— 
‘‘(I) enrolled members of a tribe 
with respect to an Indian tribal gov-
ernment (including any agencies or in-
strumentalities of an Indian tribal 
government and any Alaska Native re-
gional or village corporation, as de-
fined in, or established pursuant to, 
the Alaska Native Claims Settlement 
Act (43 U.S.C. 1601 et seq.), or 
‘‘(II) described in section 801(9) 
of the Native American Housing As-
sistance and Self-Determination Act 
of 1996 (25 U.S.C. 4221(9)).’’. 
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