I 
110TH CONGRESS 
1ST SESSION H. R. 1043 
To amend the Internal Revenue Code of 1986 to modify the rehabilitation 
credit and the low-income housing credit. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 14, 2007 
Mrs. JONES of Ohio (for herself, Mr. ENGLISH of Pennsylvania, Mr. NEAL 
of Massachusetts, Mr. EMANUEL, Mr. BLUMENAUER, Mr. PASCRELL, Ms. 
BERKLEY, Mr. DAVIS of Alabama, Mr. TURNER, Mr. HOLT, Mr. MILLER 
of Florida, Mr. MARSHALL, Mr. PAUL, Mr. EHLERS, Mr. LANGEVIN, Mr. 
SCHIFF, Mr. MILLER of North Carolina, Ms. MCCOLLUM of Minnesota, 
Ms. SCHAKOWSKY, Mr. KENNEDY, Mr. ROSS, Ms. EDDIE BERNICE 
JOHNSON of Texas, Ms. HERSETH, Ms. CARSON, and Mr. FILNER) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the rehabilitation credit and the low-income housing credit. 
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 2007’’. 
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SEC. 2. MODIFICATIONS TO RULES FOR DETERMINING THE 
APPLICABLE 
PERCENTAGE 
FOR 
CERTAIN 
BUILDINGS 
ELIGIBLE 
FOR 
LOW-INCOME 
HOUSING CREDIT. 
(a) IN GENERAL.—Subparagraph (B) of section 
42(b)(2) of the Internal Revenue Code of 1986 (relating 
to the method of prescribing the applicable percentage) is 
amended by striking ‘‘and’’ at the end of clause (i), by 
striking the period at the end of clause (ii) and inserting 
a comma, and by adding at the end the following new 
clauses: 
‘‘(iii) 87.5 percent of the qualified 
basis of a building described in paragraph 
(1)(A), if the basis of the building is sub-
ject to the basis adjustment for rehabilita-
tion credit property required under section 
50(c), and 
‘‘(iv) 37.5 percent of the qualified 
basis of a building described in paragraph 
(1)(B), if the basis of the building is sub-
ject to the basis adjustment for rehabilita-
tion credit property required under section 
50(c).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to— 
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(1) housing credit dollar amounts allocated 
after December 31, 2006, and 
(2) buildings placed in service after such date 
to the extent paragraph (1) of section 42(h) of the 
Internal Revenue Code of 1986 does not apply to 
any building by reason of paragraph (4) thereof, but 
only with respect to bonds issued after such date. 
SEC. 3. MODIFICATION TO BASIS ADJUSTMENT RULE. 
(a) IN GENERAL.—Paragraph (3) of subsection 50(c) 
of the Internal Revenue Code of 1986 (relating to special 
rules for determining basis) is amended by inserting ‘‘or 
rehabilitation credit’’ after ‘‘energy credit’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 4. 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— 
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