I 
111TH CONGRESS 
1ST SESSION H. R. 4109 
To amend the Internal Revenue Code of 1986 to allow the low income 
housing credit to be carried back 5 years, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 18, 2009 
Mr. PASCRELL 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 allow the 
low income housing credit to be carried back 5 years, 
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 ‘‘Low Income Housing 
Tax Credit Act of 2009’’. 
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SEC. 2. ALLOWING LOW INCOME HOUSING CREDITS TO 
OFFSET 100 PERCENT OF FEDERAL INCOME 
TAX LIABILITY. 
(a) IN GENERAL.—Subsection (c) of section 38 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(6) ALLOWING LOW INCOME HOUSING CREDIT 
TO OFFSET 100 PERCENT OF FEDERAL INCOME TAX 
LIABILITY.— 
‘‘(A) IN GENERAL.—In the case of applica-
ble low income housing credits— 
‘‘(i) this section shall be applied sepa-
rately with respect to such credits, 
‘‘(ii) in applying paragraph (1) to 
such credits— 
‘‘(I) the tentative minimum tax 
shall be treated as being zero, and 
‘‘(II) the limitation under para-
graph (1) (as modified by subclause 
(I)) shall be the net income tax (as 
defined in paragraph (1)) reduced by 
the credit allowed under subsection 
(a) for the taxable year (other than 
the applicable low income housing 
credits), and 
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‘‘(iii) the excess credit for such tax-
able year shall, solely for purposes of de-
termining the amount of such excess credit 
which may be carried back to a preceding 
taxable year, be increased by the amount 
of business credit carryforwards which are 
carried to such taxable year, to which this 
subparagraph applies, and which are not 
allowed for such taxable year by reason of 
the limitation under paragraph (1) (as 
modified by clause (ii)). 
‘‘(B) INCREASE IN LIMITATION FOR TAX-
ABLE
YEARS
TO
WHICH
EXCESS
APPLICABLE 
LOW INCOME HOUSING CREDITS ARE CARRIED 
BACK.— 
‘‘(i) IN
GENERAL.—Solely for pur-
poses of determining the portion of any ex-
cess credit described in subparagraph 
(A)(iii) for which credit will be allowed 
under subsection (a)(3) for any preceding 
taxable year, the limitation under para-
graph (1) for such preceding taxable year 
shall be determined under rules similar to 
the rules described in subparagraph (A). 
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‘‘(ii) ORDERING RULE.—If the excess 
credit described in subparagraph (A)(iii) 
includes 
business 
credit 
carryforwards 
from preceding taxable years, such excess 
credit shall be treated as allowed for any 
preceding taxable year on a first-in first- 
out basis. 
‘‘(C) APPLICABLE LOW INCOME HOUSING 
CREDITS.—For purposes of this subpart, the 
term ‘applicable low income housing credits’ 
means the credit determined under section 42— 
‘‘(i) to the extent attributable to 
buildings placed in service after the date of 
the enactment of this subparagraph, and 
‘‘(ii) in the case of any other build-
ings, for taxable years beginning in 2008, 
2009, and 2010 (and to business credit 
carryforwards with respect to such build-
ings carried to such taxable years) to the 
extent provided in subparagraph (D). 
‘‘(D) PREVIOUSLY
PLACED
IN
SERVICE 
BUILDINGS.— 
‘‘(i) 
IN
GENERAL.—Subparagraph 
(C)(ii) shall apply to such credits for such 
a taxable year only— 
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‘‘(I) if the taxpayer and the 
housing credit agency have entered 
into an agreement, not later than the 
applicable date, with respect to an in-
vestment in a future project (which is 
binding on such agency, the taxpayer, 
and all successors in interest) which 
specifies the dollar amount of such in-
vestment and the housing credit dollar 
amount to be allocated to such 
project, and 
‘‘(II) to the extent such credits 
do not exceed the dollar amount of 
such proposed investment. 
‘‘(ii) APPLICABLE
DATE.—For pur-
poses of this subparagraph, the applicable 
date is— 
‘‘(I) in the case of taxable years 
beginning in 2008 and 2009, Sep-
tember 15, 2010, or 
‘‘(II) in the case of a taxable 
year beginning in 2010, the due date 
(including extensions of time) for fil-
ing the taxpayer’s return for such tax-
able year.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2007, and to carrybacks of credits from 
such taxable years. 
SEC. 3. FIVE-YEAR CARRYBACK OF LOW INCOME HOUSING 
CREDIT. 
(a) IN GENERAL.—Subsection (a) of section 39 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(4) 5-YEAR
CARRYBACK
OF
LOW
INCOME 
HOUSING CREDIT.— 
‘‘(A) IN GENERAL.—In the case of an ap-
plicable low income housing credit— 
‘‘(i) this section shall be applied sepa-
rately from the business credit (other than 
the low income housing credit), and 
‘‘(ii) paragraph (1) shall be applied by 
substituting ‘each of the 5 taxable years’ 
for ‘the taxable year’ in subparagraph (A) 
thereof.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2007, and to carrybacks of credits from 
such taxable years. 
Æ 
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