I 
111TH CONGRESS 
1ST SESSION H. R. 3715 
To amend the Internal Revenue Code of 1986 to expand the rehabilitation 
credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 1, 2009 
Ms. SCHWARTZ (for herself, Mr. TIBERI, Mr. CARNAHAN, Mr. GORDON of 
Tennessee, Ms. BERKLEY, Mr. WELCH, Mr. LARSON of Connecticut, Mr. 
HIGGINS, Mr. NEAL of Massachusetts, Mr. PASCRELL, Mr. DAVIS of Illi-
nois, Mr. YARMUTH, Mr. LEWIS
of Georgia, Mr. FATTAH, Mr. 
BLUMENAUER, Mr. LANGEVIN, Mr. CONNOLLY of Virginia, Mr. HOLT, 
Mr. DOYLE, Mr. TURNER, Mr. ALTMIRE, Mr. COURTNEY, Mr. PRICE of 
North Carolina, Mr. TONKO, Mr. ARCURI, Ms. KAPTUR, Ms. SHEA-POR-
TER, Ms. SUTTON, Mr. MCGOVERN, Mr. ETHERIDGE, Ms. DELAURO, Ms. 
SCHAKOWSKY, Mr. MICHAUD, Mr. COSTELLO, Mr. ABERCROMBIE, Mr. 
TIERNEY, Ms. TSONGAS, Mr. ANDREWS, Mr. BRADY of Pennsylvania, Mr. 
SERRANO, and Mr. SESTAK) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
the rehabilitation credit, and for other purposes. 
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 ‘‘Community Restora-
tion and Revitalization Act of 2009’’. 
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SEC. 2. INCREASE IN THE REHABILITATION CREDIT FOR 
CERTAIN SMALLER PROJECTS. 
(a) IN GENERAL.—Section 47 of the Internal Rev-
enue Code of 1986 (relating to rehabilitation credit) is 
amended by adding at the end the following new sub-
section: 
‘‘(e) SPECIAL RULE REGARDING CERTAIN SMALLER 
PROJECTS.— 
‘‘(1) IN GENERAL.—In the case of any qualified 
rehabilitated building or portion thereof— 
‘‘(A) which is placed in service after the 
date of the enactment of this subsection, and 
‘‘(B) which is a smaller project, 
subsection (a)(2) shall be applied by substituting ‘30 
percent’ for ‘20 percent’. 
‘‘(2) MAXIMUM
CREDIT.—The credit deter-
mined under this subsection with respect to any 
smaller project for all taxable years shall not exceed 
$1,500,000. 
‘‘(3) SMALLER PROJECT DEFINED.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘smaller project’ means 
any qualified rehabilitated building or portion 
thereof if— 
‘‘(i) the qualified rehabilitation ex-
penditures taken into account for purposes 
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of this section (or would have been so 
taken into account if this subsection had 
been in effect for all prior periods) with re-
spect to the rehabilitation are not over 
$7,500,000, and 
‘‘(ii) no credit was allowed under this 
section for either of the 2 prior taxable 
years with respect to such building. 
‘‘(B) SPECIAL RULES.— 
‘‘(i) ENERGY
EFFICIENCY
EXPENDI-
TURES
NOT
TAKEN
INTO
ACCOUNT.— 
Amounts that are qualified rehabilitation 
expenditures solely by reason of subsection 
(c)(2)(E) shall not be taken into account 
under subparagraph (A)(i). 
‘‘(ii) 
PROGRESS
EXPENDITURES.— 
Credit allowable by reason of subsection 
(d) shall not be taken into account under 
subparagraph (A)(ii).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
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SEC. 3. USE FOR LODGING NOT TO DISQUALIFY FOR REHA-
BILITATION CREDIT PROPERTY WHICH IS 
NOT A CERTIFIED HISTORIC STRUCTURE. 
(a) IN GENERAL.—Subparagraph (C) of section 
50(b)(2) of the Internal Revenue Code of 1986 (relating 
to property eligible for the investment credit) is amended 
by striking ‘‘certified historic structure’’ and inserting 
‘‘qualified rehabilitated building’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 4. DATE BY WHICH BUILDING MUST BE FIRST PLACED 
IN SERVICE. 
(a) IN GENERAL.—Subparagraph (B) of section 
47(c)(1) of the Internal Revenue Code of 1986 (relating 
to the date by which building must be first placed in serv-
ice) is amended— 
(1) by striking ‘‘BUILDING
MUST
BE
FIRST 
PLACED
IN
SERVICE
BEFORE
1936’’ and inserting 
‘‘DATE
BY
WHICH
BUILDING
MUST
FIRST
BE 
PLACED IN SERVICE’’, and 
(2) by striking ‘‘before 1936’’ at the end of the 
subparagraph and inserting ‘‘no less than 50 years 
prior to the year in which qualified rehabilitation ex-
penditures are taken into account under subsection 
(b)(1)’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 5. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT 
USE PROPERTY. 
(a) 
IN
GENERAL.—Clause 
(I) 
of 
section 
47(c)(2)(B)(v) of the Internal Revenue Code of 1986 (re-
lating to tax-exempt use property) is amended by inserting 
‘‘and 
subclauses 
(I), 
(II), 
and 
(III) 
of 
section 
168(h)(1)(B)(ii) shall not apply’’ after ‘‘thereof’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 6. REHABILITATION CREDIT MAY BE TRANSFERRED. 
(a) IN GENERAL.—Subsection (b) of section 47 of the 
Internal Revenue Code of 1986 (relating to when expendi-
tures taken into account) is amended by adding at the 
end the following new paragraph: 
‘‘(3) CREDIT MAY BE ASSIGNED.—The amount 
of qualified rehabilitation expenditures, not to exceed 
$5,000,000, which would (but for this paragraph) be 
taken into account under subsection (a) for any tax-
able year by any person (hereafter in this paragraph 
referred to as the ‘initial taxpayer’)— 
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‘‘(A) may be taken into account by any 
other person to whom such expenditures are as-
signed by the initial taxpayer, and 
‘‘(B) shall not be taken to account by the 
initial taxpayer. 
Any person to whom such expenditures are assigned 
under subparagraph (A) shall be treated for pur-
poses of this title as the taxpayer with respect to 
such expenditures.’’. 
(b) CONFORMING AMENDMENT.—The heading for 
such subsection (b) is amended by inserting ‘‘; ELIGI-
BILITY
FOR CREDIT MAY BE ASSIGNED’’ after ‘‘AC-
COUNT’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to rehabilitations the 
physical work on which begins after the date of the enact-
ment of this Act. 
SEC. 7. CREDIT FOR MODERATE REHABILITATIONS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
47(c)(1)(C)(i) of the Internal Revenue Code of 1986 (de-
fining substantially rehabilitated) is amended by inserting 
‘‘50 percent of’’ before ‘‘the adjusted basis’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to rehabilitations the 
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physical work on which begins after the date of the enact-
ment of this Act. 
SEC. 8. ADDITION OF ENERGY EFFICIENCY SUPPLEMENT 
TO REHABILITATION CREDIT. 
(a) IN GENERAL.—Subsection (a) of section 47 of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of paragraph (1), by striking the period 
at the end of paragraph (2) and inserting ‘‘, and’’, and 
by adding at the end the following new paragraph: 
‘‘(3) in the case of a qualified rehabilitated 
building designed to achieve at least a 30 percent 
qualified energy use reduction as a result of being 
substantially rehabilitated (determined under sub-
section (e)), the energy efficiency supplement with 
respect to such building.’’. 
(b) ENERGY EFFICIENCY SUPPLEMENT.—Section 47 
of such Code is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) ENERGY EFFICIENCY SUPPLEMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a)(3), the energy efficiency supplement shall be de-
termined in accordance with the following table. 
The energy 
efficiency 
supplement 
‘‘If the achieved qualified 
per square foot 
energy use reduction is— 
of the building is— 
At least 30 percent but not over 35 percent ....................
$2.00
Over 35 percent but not over 40 percent .........................
$2.67
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scribed by the Secretary, but a qualified 
energy use reduction of at least 25 percent 
is so substantiated. 
‘‘(C) MAXIMUM
PARTIAL
ALLOWANCE.— 
The energy efficiency supplement allowable by 
reason of this paragraph shall not exceed the 
product of— 
‘‘(i) $2.00, and 
‘‘(ii) a fraction— 
‘‘(I) the numerator of which is 
the number of percentage points of 
the achieved qualified energy use re-
duction, and 
‘‘(II) the denominator of which is 
30. 
‘‘(4) QUALIFIED
ENERGY
USE
REDUCTION.— 
For purposes of this subsection, the term ‘qualified 
energy use reduction’ means, for buildings or aggre-
gation of buildings, improvement in energy perform-
ance with reference to the energy consumption dur-
ing the previous year of the building or aggregation 
of buildings being rehabilitated, while adjusting for 
other relevant factors including prior vacancy, intro-
duction of modern technologies and systems, and 
changes in use and occupancy loads. 
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‘‘(5) REGULATIONS.—The Secretary, after con-
sultation with the Administrator of the Environ-
mental Protection Agency and the Secretary of the 
Interior, shall promulgate such regulations as may 
be necessary or appropriate to carry out the pur-
poses of the energy efficiency supplement, including 
prescribing the manner and method for calculating, 
verifying, and certifying qualified energy use reduc-
tions. Such regulations shall provide that a qualified 
energy use reduction shall be determined by using 
an established energy benchmarking tool which shall, 
to the maximum extent feasible, take into account 
the requirements necessary to become a certified re-
habilitation and shall include an approach that de-
termines success in energy efficiency based on actual 
measured savings after a retrofit is complete. 
‘‘(6) COORDINATION.—The Secretary shall des-
ignate processes for tracking the numbers and loca-
tions of buildings claiming the energy efficiency sup-
plement, with information on projected and actual 
savings of energy and its value over time in coordi-
nation with the Department of Energy.’’. 
(c) SUBSTANTIAL REHABILITATION REQUIREMENT 
NOT TO APPLY TO ENERGY EFFICIENCY SUPPLEMENT.— 
Subparagraph (A) of section 47(c)(1) (defining qualified 
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rehabilitated building) is amended by adding at the end 
the following new flush sentence: 
‘‘Clause (i) shall not apply to so much of the 
rehabilitation credit as is attributable to the en-
ergy efficiency supplement under subsection 
(a)(3).’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to property placed in service after the 
date of the enactment of this Act. 
(2) WAIVER OF SUBSTANTIAL REHABILITATION 
REQUIREMENT.—The amendment made by sub-
section (c) shall apply with respect to rehabilitations 
the physical work on which begins after the date of 
the enactment of this Act. 
SEC. 9. MODIFICATION TO DEFINITION OF QUALIFIED RE-
HABILITATION EXPENDITURE. 
(a) IN GENERAL.—Clause (i) of section 47(c)(2)(A) 
of the Internal Revenue Code of 1986 (relating to the defi-
nition of qualified rehabilitation expenditures) is amended 
by striking ‘‘or’’ at the end of subclause (III), by striking 
subclause (IV), and by inserting after subclause (III) the 
following new subclauses: 
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‘‘(IV) rehabilitated building en-
ergy efficiency property, or 
‘‘(V) an addition or improvement 
to property described in subclause (I), 
(II), (III), or (IV), and’’. 
(b) REHABILITATED BUILDING ENERGY EFFICIENCY 
PROPERTY.—Section 47(c)(2) of such Code is amended by 
adding at the end the following new subparagraph: 
‘‘(E) REHABILITATED BUILDING ENERGY 
EFFICIENCY PROPERTY.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the term ‘rehabilitated 
building energy efficiency property’ means 
property which is certified as being— 
‘‘(I) affixed to, adjacent to, or in-
tegral to the provision of renewable 
energy to a qualified rehabilitated 
building, or 
‘‘(II) installed as part of a plan 
designed to achieve any qualified en-
ergy use reduction (as defined in sub-
section (e)(4)) or a reduction in water 
use. 
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Subparagraph (B)(i) shall not apply to re-
habilitated building energy efficiency prop-
erty. 
‘‘(ii) CERTIFICATION.—The Secretary 
shall prescribe the manner and method for 
the making of certifications under clause 
(i).’’. 
(c) 
ENLARGEMENTS.—Clause 
(iii) 
of 
section 
47(c)(2)(B) of such Code is amended by adding at the 
end the following new sentence: ‘‘The preceding sentence 
shall not apply to any rehabilitated building energy effi-
ciency property which is an addition or improvement to 
a building.’’ 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to qualified rehabilitated buildings 
placed in service after the date of the enactment of this 
Act. 
SEC. 10. COORDINATION OF ENERGY CREDIT WITH REHA-
BILITATION CREDIT. 
(a) IN GENERAL.—Paragraph (2) of section 48(a) of 
the Internal Revenue Code of 1986 is amended by striking 
subparagraph (B). 
(b) BASIS REDUCTION.—Paragraph (3) of section 
50(c) of such Code is amended by adding at the end the 
following new flush sentence: 
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