I
103D CONGRESS
1ST SESSION
H. R. 1837
To amend the Internal Revenue Code of 1986 to provide that low-income
housing shall not be ineligible for the larger low-income housing credit
by reason of assistance provided under the HOME Investment Partner-
ships Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 22, 1993
Mr. RANGEL 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
that low-income housing shall not be ineligible for the
larger low-income housing credit by reason of assistance
provided under the HOME Investment Partnerships Act,
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. LOW-INCOME HOUSING NOT TREATED AS FED-
ERALLY SUBSIDIZED BY REASON OF ASSIST-
ANCE UNDER HOME INVESTMENT PARTNER-
SHIPS ACT.
(a) IN GENERAL.—Subparagraph (D) of section
42(i)(2) of the Internal Revenue Code of 1986 (relating
to determination of whether building is federally sub-
sidized) is amended by inserting before the period ‘‘or as-
sistance provided under the HOME Investment Partner-
ships Act’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to—
(1) determinations under section 42 of the In-
ternal Revenue Code of 1986 with respect to housing
credit dollar amounts allocated from State housing
credit ceilings for years after 1992, or
(2) buildings placed in service after December
31, 1992, to the extent paragraph (1) of section
42(h) of such Code does not apply to any building
by reason of paragraph (4) thereof, but only with re-
spect to bonds issued after such date.
SEC. 2. TREATMENT OF PARTNERSHIP INVESTMENT EX-
PENSES UNDER MINIMUM TAX.
(a) GENERAL RULE.—Subparagraph (A) of section
56(b)(1) of the Internal Revenue Code of 1986 (relating
to limitation on deductions) is amended to read as follows:
‘‘(A) DISALLOWANCE OF CERTAIN DEDUC-
TIONS.—
‘‘(i) IN GENERAL.—No deduction shall
be allowed—
‘‘(I) for any miscellaneous item-
ized deduction (as defined in section
67(b)), or
‘‘(II) for any taxes described in
paragraph (1), (2), or (3) of section
164(a).
‘‘(ii) TREATMENT
OF
PARTNERSHIP
INVESTMENT EXPENSES.—Subclause (I) of
clause (i) shall not apply to the taxpayer’s
distributive share of the expenses described
in section 212 of any partnership; except
that the aggregate amount allowed as a de-
duction by reason of this sentence shall not
exceed the lesser of (I) the aggregate ad-
justed investment income of the taxpayer
from partnerships, or (II) the excess of the
aggregate of the taxpayer’s distributive
shares of such expenses over 2 percent of
adjusted gross income. For purposes of the
preceding sentence, the term ‘adjusted in-
vestment income’ means investment income
(as defined in section 163(d)(4)(B)) re-
duced by investment interest (as defined in
section 163(d)(3)).
‘‘(iii) 
TREATMENT
OF
CERTAIN
TAXES.—Subclause (II) of clause (i) shall
not apply to any amount allowable in com-
puting adjusted gross income.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 1993.
SEC. 3. SPECIAL RULES FOR RENTAL USE OF DWELLING
FOR LESS THAN 15 DAYS PER YEAR.
(a) IN GENERAL.—Section 280A of the Internal Rev-
enue Code of 1986 is amended by striking subsection (g)
and inserting:
‘‘(g) SPECIAL RULE FOR CERTAIN RENTAL USE.—
Notwithstanding any other provision of this section or sec-
tion 183, if the principal residence of the taxpayer is actu-
ally rented for less than 15 days during the taxable year
for the purpose of providing accommodations to visitors
to an event for which commercial rental accommodations
in the community holding the event are not sufficient to
reasonably provide more than one-half of the accommoda-
tions necessary (and the rental income received by the tax-
payer for any visitor is not greater than a reasonable rent-
al rate charged per individual guest by commercial rental
accommodations), then—
‘‘(1) no deduction otherwise allowable under
this chapter because of the rental use of such dwell-
ing unit shall be allowed, and
‘‘(2) the income derived from such use for the
taxable year shall not be included in the gross in-
come of such taxpayer under section 61.
‘‘(h) REGULATIONS.—The Secretary shall prescribe
such regulations as may be appropriate to carry out the
purposes of this section, including regulations providing
such de minimis rules as the Secretary may deem appro-
priate.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
the date of the enactment of this Act.
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