SEC. 2. NO-INCOME HOUSING CREDITS FOR AREA WAR-
RANTING ASSISTANCE DUE TO INCIDENT OF 
NATIONAL SIGNIFICANCE. 
(a) IN GENERAL.—Subchapter Y of chapter 1 of the 
Internal Revenue Code of 1986 (relating to short-term re-
gional benefits) is amended by adding at the end the fol-
lowing new section: 
‘‘PART III—TAX BENEFITS FOR AREAS WAR-
RANTING ASSISTANCE DUE TO INCIDENT OF 
NATIONAL SIGNIFICANCE 
‘‘Sec. 1400U. No-income housing credits for area warranting assistance due to 
incident of national significance. 
‘‘SEC. 1400U. NO-INCOME HOUSING CREDITS FOR AREA 
WARRANTING ASSISTANCE DUE TO INCIDENT 
OF NATIONAL SIGNIFICANCE. 
‘‘(a) IN GENERAL.—In the case of a building— 
‘‘(1) located within an area determined by the 
President to warrant public assistance as a result of 
an incident of national significance, and 
‘‘(2) placed in service during the 5-year period 
beginning on the date of such determination, 
section 42 shall be applied with the modifications set forth 
in subsection (b). 
‘‘(b) MODIFICATIONS.—For purposes of subsection 
(a), section 42 shall be applied as follows: 
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‘‘(1) HOMELESS SHELTERS TREATED AS QUALI-
FIED LOW-INCOME BUILDING.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
low-income housing project’ shall include any 
project, if elected by the taxpayer, for a shelter 
which is used to provide temporary living ac-
commodations for homeless individuals (within 
the meaning of section 103 of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 
11302)). 
‘‘(B) ELECTION IRREVOCABLE.—Any elec-
tion under this paragraph, once made, shall be 
irrevocable. For purposes of this paragraph, 
any property shall not be treated as failing to 
be such a shelter merely because part of the 
building in which such property is located is 
used for purposes other than as such a shelter. 
‘‘(2) QUALIFIED BASIS.—In the case of a quali-
fied low-income building with respect to which an 
election has been made under paragraph (1)— 
‘‘(A) the qualified basis of such building 
for any taxable year shall be increased by so 
much of the eligible basis of such building as is 
used throughout the year as such a shelter, and 
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‘‘(B) subparagraph (E) of section 42(c)(1) 
(relating to qualified basis to include portion of 
building used to provide supportive services for 
homeless) shall not apply. 
‘‘(3) TREATED AS RESIDENTIAL RENTAL PROP-
ERTY IN DETERMINING ADJUSTED BASIS.—A quali-
fied low income building described in paragraph (2) 
shall be treated as residential rental property for 
purposes of section 42(d)(4)(A). 
‘‘(c) INCIDENT OF NATIONAL SIGNIFICANCE.—For 
purposes of subsection (a), the term ‘incident of national 
significance’ means a domestic incident which the Presi-
dent determines requires the coordination of the Federal 
Government’s resources utilized in response to or recovery 
from a terrorist attack, major disaster, or other emergency 
if and when any two of the following four conditions apply: 
‘‘(1) A Federal department or agency acting 
under its own authority has requested the assistance 
of the Secretary of Homeland Security with respect 
to the incident. 
‘‘(2) The resources of State and local authori-
ties are overwhelmed with respect to the incident 
and Federal assistance has been requested by the 
appropriate State and local authorities. 
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‘‘(3) More than one Federal department or 
agency has become substantially involved in respond-
ing to the incident. 
‘‘(4) The Secretary of Homeland Security has 
been directed to assume responsibility for managing 
the incident by the President.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter Y of chapter 1 of such Code is amended by 
inserting after the item relating to part II the following 
new item: 
‘‘PART III—TAX BENEFITS FOR AREAS WARRANTING ASSISTANCE DUE TO 
INCIDENT OF NATIONAL SIGNIFICANCE’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
the date of the enactment of this Act. 
Æ 
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