TITLE V—REFORMS RELATING 
TO RURAL ASSISTANCE 
SEC. 501. INCLUSION OF RURAL AREAS AS DIFFICULT DE-
VELOPMENT AREAS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986, as 
amended by section 402, is amended by inserting ‘‘, any 
rural area’’ after ‘‘median gross income’’. 
(b) 
RURAL
AREA.—Clause 
(iii) 
of 
section 
42(d)(5)(B) of the Internal Revenue Code of 1986, as 
amended by section 402, is further amended by redesig-
nating subclause (III) as subclause (IV) and by inserting 
after subclause (II) the following new subclause: 
‘‘(III) RURAL
AREA.—For pur-
poses of subclause (I), the term ‘rural 
area’ means any non-metropolitan 
area, or any rural area as defined by 
section 520 of the Housing Act of 
1949, which is identified by the quali-
fied allocation plan under subsection 
(m)(1)(B).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
December 31, 2019. 
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SEC. 502. UNIFORM INCOME ELIGIBILITY FOR RURAL 
PROJECTS. 
(a) IN GENERAL.—Paragraph (8) of section 42(i) of 
the Internal Revenue Code of 1986 is amended by striking 
the second sentence. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2018. 
TITLE VI—EXEMPT FACILITY 
BONDS 
SEC. 601. REVISION AND CLARIFICATION OF THE TREAT-
MENT OF REFUNDING ISSUES. 
(a) IN GENERAL.—Subparagraph (A) of section 
146(i)(6) of the Internal Revenue Code of 1986 is amend-
ed to read as follows: 
‘‘(A) IN GENERAL.—During the 12-month 
period beginning on the date of a repayment of 
a loan financed by an issue 95 percent or more 
of the net proceeds of which are used to provide 
projects described in section 142(d), if such re-
payment is used to provide a new loan for any 
project described in section 142(a)(7) or for 
any purpose described in subsection (a)(2)(A) 
or (b) of section 143, any bond which is issued 
to refinance such issue shall be treated as a re-
funding issue. Any issue treated as a refunding 
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issue by reason of the preceding sentence shall 
be so treated only to the extent the principal 
amount of such refunding issue does not exceed 
the principal amount of the bonds refunded.’’. 
(b) REMOVAL
OF ONE-REFUNDING LIMIT.—Sub-
paragraph (B) of section 146(i)(6) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘4 years’’ in clause (i) and in-
serting ‘‘10 years’’, 
(2) by striking ‘‘was issued’’ in clause (ii) and 
inserting ‘‘is issued’’, 
(3) by redesignating clauses (i) (as so amend-
ed), (ii) (as so amended), and (iii) as subclauses (I), 
(II), and (III), respectively, and by moving such sub-
clauses 2 ems to the right, 
(4) by striking ‘‘LIMITATIONS.—Subparagraph 
(A) shall apply to only one refunding of the original 
issue and’’ and inserting ‘‘LIMITATIONS.— 
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall apply to a bond’’, and 
(5) by adding at the end the following new 
clause: 
‘‘(ii) 
SOURCE
OF
LOAN
REPAY-
MENT.—Subparagraph (A) shall not apply 
to any repayment of a loan which is— 
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‘‘(I) made by a repayment of an-
other loan, or 
‘‘(II) financed by an issue treated 
as a refunding issue under subpara-
graph (A).’’. 
(c) CONFORMING AMENDMENT.—The heading of 
paragraph (6) of section 146(i) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘RESIDENTIAL 
RENTAL PROJECT BONDS AS REFUNDING BONDS IRRE-
SPECTIVE OF OBLIGOR’’ and inserting ‘‘BONDS AS RE-
FUNDING BONDS’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by 
subsections (a) and (c) shall apply to obligations 
issued on or after the date of the enactment of this 
Act. 
(2) REMOVAL OF ONE-REFUNDING LIMIT.—The 
amendments made by subsection (b) shall apply to 
repayments of loans received after July 30, 2008. 
TITLE VII—AFFORDABLE 
HOUSING TAX CREDIT 
SEC. 701. AFFORDABLE HOUSING TAX CREDIT. 
(a) IN GENERAL.—The heading of section 42 of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 
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(b) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 42 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘low- 
income’’ and inserting ‘‘affordable’’. 
(2) Paragraph (5) of section 38(b) of such Code 
is amended by striking ‘‘low-income’’ and inserting 
‘‘affordable’’. 
(3) The heading of subparagraph (D) of section 
469(i)(3) of such Code is amended by striking 
‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 
(4) The heading of subparagraph (B) of section 
469(i)(6) of such Code is amended by striking 
‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 
(5) Paragraph (7) of section 772(a) of such 
Code is amended by striking ‘‘low-income’’ and in-
serting ‘‘affordable’’. 
(6) Paragraph (5) of section 772(d) of such 
Code is amended by striking ‘‘low-income’’ and in-
serting ‘‘affordable’’. 
(c) CLERICAL AMENDMENT.—The item relating to 
section 42 in the table of sections for subpart D of part 
IV of subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘Sec. 42. Affordable housing credit.’’. 
Æ 
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