(1) by striking ‘‘(A) or (B)’’ and inserting ‘‘(A), 
(B), or (C)’’, and 
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) AVERAGE INCOME TEST.—A project 
meets the requirements of this subparagraph if 
it meets the minimum requirements of section 
42(g)(1)(C).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to elections made under section 
142(d)(1) of the Internal Revenue Code of 1986 after 
March 23, 2018. 
SEC. 202. CODIFICATION OF RULES RELATING TO IN-
CREASED TENANT INCOME. 
(a) IN GENERAL.—Clause (i) of section 42(g)(2)(D) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘clauses (ii), (iii), and (iv)’’ and all that follows and 
inserting ‘‘clauses (ii), (iii), (iv), and (vi), notwithstanding 
an increase in the income of the occupants above the in-
come limitation applicable under paragraph (1)— 
‘‘(I) a low-income unit shall con-
tinue to be treated as a low-income 
unit if the income of such occupants 
initially was 60 percent or less of area 
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median gross income and such unit 
continues to be rent-restricted, and 
‘‘(II) a unit to which, at the time 
of initial occupancy by such occu-
pants, any Federal, State, or local 
government income restriction ap-
plied, and which subsequently becomes 
part of a building with respect to 
which rehabilitation expenditures are 
taken into account under subsection 
(e), shall be treated as a low-income 
unit if the income of such occupants 
initially was 60 percent or less of area 
median gross income and does not ex-
ceed 120 percent of area median gross 
income as of the date of acquisition of 
the property by the taxpayer.’’. 
(b) EXCEPTION.—Subparagraph (D) of section 
42(g)(2) of the Internal Revenue Code of 1986, as amend-
ed by this Act, is amended by adding at the end the fol-
lowing new clause: 
‘‘(vi) EXCEPTION TO RULE RELATING 
TO INCREASED TENANT INCOME.—In the 
case of an occupant of a low-income unit 
who initially qualified to occupy such unit 
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by reason of paragraph (1)(C) with an in-
come in excess of 60 percent of area me-
dian gross income but not in excess of 80 
percent of area median gross income, 
clause (i) shall be applied for substituting 
‘80 percent’ for ‘60 percent’ each place it 
appears.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2018. 
SEC. 203. MODIFICATION OF STUDENT OCCUPANCY RULES. 
(a) IN GENERAL.—Subparagraph (D) of section 
42(i)(3) of the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘(D) RULES RELATING TO STUDENTS.— 
‘‘(i) IN
GENERAL.—A unit occupied 
solely by individuals who— 
‘‘(I) have not attained age 24, 
and 
‘‘(II) are enrolled in a full-time 
course of study at an institution of 
higher education (as defined in section 
3304(f)), 
shall not be treated as a low-income unit. 
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‘‘(ii) EXCEPTION FOR CERTAIN FED-
ERAL PROGRAMS.—In the case of a feder-
ally-assisted building (as defined in sub-
section (d)(6)(C)(i)), clause (i) shall not 
apply to a unit all of the occupants of 
which meet all applicable requirements 
under the housing program described in 
such subsection through which the building 
is assisted, financed, or operated. 
‘‘(iii) OTHER EXCEPTIONS.—An indi-
vidual shall not be treated as described in 
clause (i) if the individual— 
‘‘(I) is married, 
‘‘(II) is a person with disabilities 
(as defined in section 3(b)(3)(E) of 
the United States Housing Act of 
1937), 
‘‘(III) is a veteran (as defined in 
section 101(2) of title 38, United 
States Code), 
‘‘(IV) has 1 or more qualifying 
children 
(as 
defined 
in 
section 
152(c)), 
‘‘(V) is or has been a victim or 
threatened victim of domestic violence, 
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dating violence, sexual assault, or 
stalking (as defined in section 40002 
of the Violence Against Women Act of 
1994), or 
‘‘(VI) meets the income limita-
tion 
applicable 
under 
subsection 
(g)(1) to the project of which the 
building is a part and is, or was im-
mediately prior to attaining the age of 
majority— 
‘‘(aa) an emancipated minor 
or in legal guardianship as deter-
mined by a court of competent 
jurisdiction in the individual’s 
State of legal residence, 
‘‘(bb) under the care and 
placement responsibility of the 
State agency responsible for ad-
ministering a plan under part B 
or part E of title IV of the Social 
Security Act, or 
‘‘(cc) 
an 
unaccompanied 
youth (within the meaning of sec-
tion 725(6) of the McKinney- 
Vento Homeless Assistance Act 
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(42 U.S.C. 11434a(6))) or a 
homeless child or youth (within 
the meaning of section 725(2) of 
such 
Act 
(42 
U.S.C. 
11434a(2))).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 204. TENANT VOUCHER PAYMENTS TAKEN INTO AC-
COUNT AS RENT FOR CERTAIN PURPOSES. 
(a) IN GENERAL.—Subparagraph (B) of section 
42(g)(2) of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new sentence: ‘‘In the 
case of a project with respect to which the taxpayer elects 
the requirements of subparagraph (C) of paragraph (1), 
or the portion of a project to which subsection (d)(5)(C) 
applies, clause (i) shall not apply with respect to any ten-
ant-based assistance (as defined in section 8(f)(7) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(f)(7))).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to rent paid in taxable years begin-
ning after December 31, 2019. 
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SEC. 205. REQUIREMENT THAT LOW-INCOME HOUSING 
CREDIT-SUPPORTED HOUSING PROTECT VIC-
TIMS OF DOMESTIC ABUSE. 
(a) IN GENERAL.—Subparagraph (B) of section 
42(h)(6) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘and’’ at the end of clause (v), by striking the 
period at the end of clause (vi) and inserting ‘‘, and’’, and 
by adding at the end the following new clause: 
‘‘(vii) which— 
‘‘(I) prohibits the refusal to lease 
to, or termination of a lease by, a per-
son solely on the basis of criminal ac-
tivity directly relating to domestic vio-
lence, dating violence, sexual assault, 
or stalking that is engaged in by a 
member of the household of the ten-
ant or any guest or other person 
under the control of the tenant, if the 
tenant or an affiliated individual of 
the tenant is the victim or threatened 
victim of such domestic violence, dat-
ing violence, sexual assault, or stalk-
ing, and 
‘‘(II) allows prospective, present, 
or former occupants of the building 
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the right to enforce in any State court 
the prohibition of subclause (I).’’. 
(b) BIFURCATION.— 
(1) IN GENERAL.—Subparagraph (B) of section 
42(h)(6) of the Internal Revenue Code of 1986, as 
amended by subsection (a), is amended by adding at 
the end the following new flush sentence: 
‘‘For purposes of clause (vii)(I), rules similar to 
the rules of section 41411(b)(3)(B) of the Vio-
lence Against Women Act of 1994 shall apply 
with respect to the owner or manager of a 
building.’’. 
(2) EFFECT OF BIFURCATION.—Paragraph (2) 
of section 42(g) of such Code is amended by adding 
at the end the following new subparagraph: 
‘‘(F) TREATMENT
OF
BIFURCATION
IN 
CASES OF DOMESTIC VIOLENCE.—In any case 
in which— 
‘‘(i) an occupant is evicted or removed 
from a low-income unit because such occu-
pant has engaged in criminal activity di-
rectly relating to domestic violence, dating 
violence, sexual assault, or stalking against 
an affiliated individual or other individual 
on the basis of criminal activity directly re-
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lating to domestic violence, dating violence, 
sexual assault, or stalking, and 
‘‘(ii) the lease on such unit is bifur-
cated as provided in the last sentence of 
subsection (h)(6)(B), 
then the remaining occupants of such low-in-
come unit shall not be treated as a new tenant 
for purposes of this section.’’. 
(c) CLARIFICATION OF GENERAL PUBLIC USE RE-
QUIREMENT.—Paragraph (9) of section 42(g) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘or’’ 
at the end of subparagraph (B), by striking the period 
at the end of subparagraph (C) and inserting ‘‘, or’’, and 
by adding at the end the following new subparagraph: 
‘‘(D) who are victims or threatened victims 
of criminal activity directly relating to domestic 
violence, dating violence, sexual assault, or 
stalking.’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to agreements executed or modified on or 
after the date that is 30 days after the date of the 
enactment of this Act. 
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(2) PUBLIC USE REQUIREMENT.—The amend-
ments made by subsection (c) shall apply to build-
ings placed in service before, on, or after the date 
of the enactment of this Act. 
SEC. 206. CLARIFICATION OF GENERAL PUBLIC USE RE-
QUIREMENT RELATING TO VETERANS, ETC. 
(a) IN GENERAL.—Paragraph (9) of section 42(g) of 
the Internal Revenue Code of 1986, as amended by section 
205, is further amended by adding at the end the following 
flush language: 
‘‘Any veteran of the Armed Forces shall be treated 
as a member of a specified group under a Federal 
program for purposes of subparagraph (B).’’. 
(b) QUALIFIED RESIDENTIAL RENTAL PROJECTS.— 
Paragraph (2) of section 142(d) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(F) CLARIFICATION OF GENERAL PUBLIC 
USE REQUIREMENT.—A unit shall not fail to 
meet the general public use requirement solely 
because of occupancy restrictions or pref-
erences, if such restrictions or preferences meet 
the general public use requirement of section 
42.’’. 
(c) EFFECTIVE DATES.— 
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(1) IN
GENERAL.—The amendment made by 
subsection (a) shall apply to buildings placed in serv-
ice before, on, or after the date of the enactment of 
this Act. 
(2) 
QUALIFIED
RESIDENTIAL
RENTAL 
PROJECTS.—The amendment made by subsection (b) 
shall apply to bonds issued before, on, or after the 
date of the enactment of this Act. 
TITLE III—CREDIT RATE AND 
OTHER RULES RELATING TO 
CREDIT ELIGIBILITY AND DE-
TERMINATION 
SEC. 301. MINIMUM CREDIT RATE. 
(a) IN GENERAL.—Subsection (b) of section 42 of the 
Internal Revenue Code of 1986 is amended— 
(1) by redesignating paragraph (3) as para-
graph (4), and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) MINIMUM CREDIT RATE.—In the case of 
any new or existing building to which paragraph (2) 
does not apply and which is placed in service by the 
taxpayer after December 31, 2018, the applicable 
percentage shall not be less than 4 percent.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings which receive alloca-
tions of housing credit dollar amount or, in the case of 
projects financed by tax-exempt bonds as described in sec-
tion 42(h)(4) of the Internal Revenue Code of 1986, which 
receive a determination of housing credit dollar amount, 
after the date of the enactment of this Act. 
SEC. 302. RECONSTRUCTION OR REPLACEMENT PERIOD 
AFTER CASUALTY LOSS. 
(a) IN GENERAL.—Subparagraph (E) of section 
42(j)(4) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘a reasonable period established by the Sec-
retary’’ and inserting ‘‘a reasonable period established by 
the applicable housing credit agency (not to exceed 25 
months from the date on which the casualty loss arises). 
The determination under paragraph (1) shall not be made 
with respect to a property the basis of which is affected 
by a casualty loss until the period described in the pre-
ceding sentence with respect to such property has ex-
pired.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to casualty losses arising after the 
date of the enactment of this Act. 
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mined under the first sentence of this subpara-
graph.’’. 
(2) PROPERTY INCLUDES ASSETS RELATING TO 
THE BUILDING.—Paragraph (7) of section 42(i) of 
the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subparagraph: 
‘‘(C) PROPERTY.—For purposes of sub-
paragraph (A), the term ‘property’ may include 
all or any of the assets held for the develop-
ment, operation, or maintenance of a build-
ing.’’. 
(3) EXERCISE OF RIGHT OF FIRST REFUSAL 
AND
PURCHASE
OPTIONS.—Subparagraph (A) of 
section 42(i)(7) of the Internal Revenue Code of 
1986, as amended by subsection (a) and paragraph 
(1)(A), is amended by adding at the end the fol-
lowing: ‘‘For purposes of determining whether an 
option, including a right of first refusal, to purchase 
property is described in the preceding sentence— 
‘‘(i) such option or right of first re-
fusal may be exercised with or without the 
approval of the taxpayer, and 
‘‘(ii) a right of first refusal may be ex-
ercised in response to any offer to pur-
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chase the property, including an offer by a 
related party.’’. 
(c) EFFECTIVE DATES.— 
(1) MODIFICATION
OF
RIGHT
OF
FIRST
RE-
FUSAL.—The amendment made by subsection (a) 
shall apply to agreements entered into after the date 
of the enactment of this Act. 
(2) CLARIFICATION.—The amendments made 
by subsection (b) shall apply to agreements among 
the owners of the project (including partners, mem-
bers, their affiliated organizations, and designated 
entities described in subparagraph (A)) entered into 
before, on, or after the date of the enactment of this 
Act. 
(3) NO EFFECT ON AGREEMENTS.—No provi-
sion of this amendment shall supercede the agree-
ment among the parties as to the manner of execu-
tion or terms of a right of first refusal or option per-
mitted by section 42(i)(7). 
SEC. 304. MODIFICATION OF PREVIOUS OWNERSHIP RULES; 
LIMITATION ON ACQUISITION BASIS. 
(a) IN GENERAL.—Clause (ii) of section 42(d)(2)(B) 
of the Internal Revenue Code of 1986 is amended by in-
serting ‘‘, or the taxpayer elects the application of sub-
paragraph (C)(ii)’’ after ‘‘service’’. 
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(b) LIMITATION ON ACQUISITION BASIS.—Subpara-
graph (C) of section 42(d)(2) of the Internal Revenue 
Code of 1986 is amended— 
(1) by striking ‘‘For purposes of subparagraph 
(A), the adjusted basis’’ and inserting ‘‘For pur-
poses of subparagraph (A)— 
‘‘(i) 
IN
GENERAL.—The 
adjusted 
basis’’, and 
(2) by adding at the end the following new 
clauses: 
‘‘(ii) BUILDINGS IN SERVICE WITHIN 
PREVIOUS
YEARS.—If the period be-
tween the date of acquisition of the build-
ing by the taxpayer and the date the build-
ing was last placed in service is less than 
10 years, the taxpayer’s basis attributable 
to the acquisition of the building which is 
taken into account in determining the ad-
justed basis shall not exceed the sum of— 
‘‘(I) the lowest amount paid for 
acquisition of the building by any per-
son during the 10 years preceding the 
date of the acquisition of the building 
by the taxpayer, adjusted as provided 
in clause (iii), and 
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‘‘(II) the value of any capital im-
provements made by the person who 
sells the building to the taxpayer 
which are reflected in such seller’s 
basis. 
‘‘(iii) ADJUSTMENT.—With respect to 
a basis determination made in any taxable 
year, the amount described in clause (ii)(I) 
shall be increased by an amount equal to— 
‘‘(I) such amount, multiplied by 
‘‘(II) a cost-of-living adjustment, 
determined in the same manner as 
under section 1(f)(3) for the calendar 
year in which the taxable year begins 
by taking into account the acquisition 
year in lieu of calendar year 1992. 
For purposes of the preceding sentence, 
the acquisition year is the calendar year in 
which the lowest amount referenced in 
clause (ii)(I) was paid for the acquisition 
of the building.’’. 
(c) CONFORMING AMENDMENTS.—Clause (i) of sec-
tion 42(d)(2)(D) of the Internal Revenue Code of 1986 
is amended— 
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(1) by striking ‘‘FOR SUBPARAGRAPH (B)’’ in 
the heading, and 
(2) by striking ‘‘subparagraph (B)(ii)’’ in the 
matter preceding subclause (I) and inserting ‘‘sub-
paragraph (B)(ii) or (C)(ii)’’. 
(d) MODIFICATION OF PLACED IN SERVICE RULE.— 
Clause (iii) of section 42(d)(2)(B) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(iii) the building was not owned by 
the taxpayer or by any person related (as 
of the date of acquisition by the taxpayer) 
to the taxpayer at any time during the 5- 
year period ending on the date of acquisi-
tion by the taxpayer, and’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
December 31, 2018. 
SEC. 305. CERTAIN RELOCATION COSTS TAKEN INTO AC-
COUNT AS REHABILITATION EXPENDITURES. 
(a) IN GENERAL.—Paragraph (2) of section 42(e) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(C) CERTAIN
RELOCATION
COSTS.—In 
the case of a rehabilitation of a building to 
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which section 280B does not apply, costs relat-
ing to the relocation of occupants, including— 
‘‘(i) amounts paid to occupants, 
‘‘(ii) amounts paid to third parties for 
services relating to such relocation, and 
‘‘(iii) amounts paid for temporary 
housing for occupants, 
shall be treated as chargeable to capital account 
and taken into account as rehabilitation ex-
penditures.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to expenditures paid or incurred 
after December 31, 2018. 
(c) NO INFERENCE.—Nothing in the amendment 
made by this section shall be construed to create any infer-
ence with respect to the treatment of relocation costs paid 
or incurred before December 31, 2018. 
SEC. 306. REPEAL OF QUALIFIED CENSUS TRACT POPU-
LATION CAP. 
(a) IN GENERAL.—Clause (ii) of section 42(d)(5)(B) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking subclauses (II) and (III), and 
(2) by striking ‘‘QUALIFIED CENSUS TRACT.— 
‘‘(I) IN GENERAL.—The term’’, 
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and inserting ‘‘QUALIFIED
CENSUS
TRACT.—The 
term’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to designations of qualified census 
tracts under section 42(d)(5)(B)(ii) of the Internal Rev-
enue Code of 1986 after December 31, 2019. 
SEC. 307. DETERMINATION OF COMMUNITY REVITALIZA-
TION PLAN TO BE MADE BY HOUSING CREDIT 
AGENCY. 
(a) IN
GENERAL.—Subclause (III) of section 
42(m)(1)(B)(ii) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘, as determined by the housing 
credit agency according to criteria established by such 
agency,’’ after ‘‘(d)(5)(B)(ii)) and’’. 
(b) CRITERIA.—Paragraph (1) of section 42(m) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(E) CRITERIA FOR DETERMINATION RE-
LATING TO CONCERTED COMMUNITY REVITAL-
IZATION PLAN.—For purposes of subparagraph 
(B)(ii)(III), the criteria which shall be estab-
lished by a housing credit agency for deter-
mining whether the development of a project 
contributes to a concerted community develop-
ment plan shall take into account any factors 
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the agency deems appropriate, including the ex-
tent to which the proposed plan— 
‘‘(i) is geographically specific, 
‘‘(ii) outlines a clear plan for imple-
mentation and goals for outcomes, 
‘‘(iii) includes a strategy for applying 
for or obtaining commitments of public or 
private investment (or both) in nonhousing 
infrastructure, amenities, or services, and 
‘‘(iv) demonstrates the need for com-
munity revitalization.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations of housing credit dol-
lar amounts made under qualified allocation plans (as de-
fined in section 42(m)(1)(B) of the Internal Revenue Code 
of 1986) adopted after December 31, 2019. 
SEC. 308. PROHIBITION OF LOCAL APPROVAL AND CON-
TRIBUTION REQUIREMENTS. 
(a) IN GENERAL.—Paragraph (1) of section 42(m) 
of the Internal Revenue Code of 1986, as amended by sec-
tion 307, is further amended— 
(1) by striking clause (ii) of subparagraph (A) 
and by redesignating clauses (iii) and (iv) thereof as 
clauses (ii) and (iii), and 
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(2) by adding at the end the following new sub-
paragraph: 
‘‘(F) LOCAL APPROVAL OR CONTRIBUTION 
NOT TAKEN INTO ACCOUNT.—The selection cri-
teria under a qualified allocation plan shall not 
include consideration of— 
‘‘(i) any support or opposition with re-
spect to the project from local or elected 
officials, or 
‘‘(ii) any local government contribu-
tion to the project, except to the extent 
such contribution is taken into account as 
part of a broader consideration of the 
project’s ability to leverage outside funding 
sources, and is not prioritized over any 
other source of outside funding.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations of housing credit dol-
lar amounts made after December 31, 2019. 
SEC. 309. INCREASE IN CREDIT FOR CERTAIN PROJECTS 
DESIGNATED TO SERVE EXTREMELY LOW-IN-
COME HOUSEHOLDS. 
(a) IN GENERAL.—Paragraph (5) of section 42(d) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
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‘‘(C) INCREASE IN CREDIT FOR PROJECTS 
DESIGNATED
TO
SERVE
EXTREMELY
LOW-IN-
COME HOUSEHOLDS.—In the case of any build-
ing— 
‘‘(i) 20 percent or more of the resi-
dential units in which are designated by 
the taxpayer for occupancy by households 
the aggregate household income of which 
does not exceed the greater of— 
‘‘(I) 30 percent of area median 
gross income, or 
‘‘(II) 100 percent of an amount 
equal to the Federal poverty line 
(within 
the 
meaning 
of 
section 
36B(d)(3)), and 
‘‘(ii) which is designated by the hous-
ing credit agency as requiring the increase 
in credit under this subparagraph in order 
for such building to be financially feasible 
as part of a qualified low-income housing 
project, 
subparagraph (B) shall not apply to the portion 
of such building which is comprised of such 
units, and the eligible basis of such portion of 
the building shall be 150 percent of such basis 
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determined without regard to this subpara-
graph.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to buildings which receive alloca-
tions of housing credit dollar amount or, in the case of 
projects financed by tax-exempt bonds as described in sec-
tion 42(h)(4) of the Internal Revenue Code of 1986, which 
receive a determination of housing credit dollar amount, 
after the date of the enactment of this Act. 
SEC. 310. INCREASE IN CREDIT FOR BOND-FINANCED 
PROJECTS DESIGNATED BY STATE AGENCY. 
(a) IN GENERAL.—Clause (v) of section 42(d)(5)(B) 
of the Internal Revenue Code of 1986 is amended by strik-
ing the second sentence. 
(b) TECHNICAL AMENDMENT.—Clause (v) of section 
42(d)(5)(B) of the Internal Revenue Code of 1986, as 
amended by subsection (a), is further amended— 
(1) by striking ‘‘STATE’’ in the heading, and 
(2) by striking ‘‘State housing credit agency’’ 
and inserting ‘‘housing credit agency’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings which receive a deter-
mination of housing credit dollar amount after the date 
of the enactment of this Act. 
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SEC. 311. ELIMINATION OF BASIS REDUCTION FOR LOW-IN-
COME 
HOUSING 
PROPERTIES 
RECEIVING 
CERTAIN ENERGY BENEFITS. 
(a) NEW ENERGY EFFICIENT HOME CREDIT.—Sub-
section (e) of section 45L of the Internal Revenue Code 
of 1986 is amended— 
(1) by striking ‘‘ADJUSTMENT.—For purposes’’ 
and inserting ‘‘ADJUSTMENT.— 
‘‘(1) IN GENERAL.—For purposes’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) EXCEPTION
FOR
AFFORDABLE
HOUSING 
PROPERTIES.—Paragraph (1) shall not apply for 
purposes of determining eligible basis under section 
42.’’. 
(b) ENERGY EFFICIENT COMMERCIAL BUILDINGS 
DEDUCTION.—Subsection (e) of section 179D of the In-
ternal Revenue Code of 1986 is amended— 
(1) by striking ‘‘REDUCTION.—For purposes’’ 
and inserting ‘‘REDUCTION.— 
‘‘(1) IN GENERAL.—For purposes’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) EXCEPTION
FOR
AFFORDABLE
HOUSING 
PROPERTIES.—Paragraph (1) shall not apply for 
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purposes of determining eligible basis under section 
42.’’. 
(c) ENERGY CREDIT.—Paragraph (3) of section 
50(c) of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (A), 
(2) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘, and’’, and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) paragraph (1) shall not apply for pur-
poses of determining eligible basis under section 
42.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings which receive alloca-
tions of housing credit dollar amount or, in the case of 
projects financed by tax-exempt bonds as described in sec-
tion 42(h)(4) of the Internal Revenue Code of 1986, which 
receive a determination of housing credit dollar amount, 
after the date of the enactment of this Act. 
SEC. 312. RESTRICTION OF PLANNED FORECLOSURES. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(h)(6)(E)(i) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
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‘‘(I) on the 61st day after the 
taxpayer (or a successor in interest) 
provides notice to the Secretary and 
the housing credit agency that the 
building has been acquired by fore-
closure (or instrument in lieu of fore-
closure) and that the taxpayer intends 
the termination of such period, unless, 
before such date, the Secretary or the 
housing credit agency determines that 
such acquisition is part of an arrange-
ment with the taxpayer a purpose of 
which is to terminate such period, 
or’’. 
(b) CONFORMING AMENDMENT.—The second sen-
tence of clause (i) of section 42(h)(6)(E) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘Subclause 
(II)’’ and inserting ‘‘Subclauses (I) and (II)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to acquisitions by foreclosure (or 
instrument in lieu of foreclosure) after December 31, 
2018. 
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SEC. 313. INCREASE OF POPULATION CAP FOR DIFFICULT 
DEVELOPMENT AREAS. 
(a) 
IN
GENERAL.—Subclause 
(II) 
of 
section 
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘20 percent’’ and inserting ‘‘30 per-
cent’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to designations made under section 
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 
after December 31, 2019. 
SEC. 314. INCREASED COST OVERSIGHT AND ACCOUNT-
ABILITY. 
(a) IN GENERAL.—Subparagraph (C) of section 
42(m)(1) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘and’’ at the end of clause (ix), by striking 
the period at the end of clause (x) and inserting ‘‘, and’’, 
and by adding at the end the following new clause: 
‘‘(xi) the reasonableness of the devel-
opment costs of the project.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations of credits under sec-
tion 42 of the Internal Revenue Code of 1986 made after 
December 31, 2019. 
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TITLE IV—REFORMS RELATING 
TO 
NATIVE 
AMERICAN 
AS-
SISTANCE 
SEC. 401. SELECTION CRITERIA UNDER QUALIFIED ALLO-
CATION PLANS. 
(a) IN GENERAL.—Subparagraph (C) of section 
42(m)(1) of the Internal Revenue Code of 1986, as 
amended by section 314, is amended— 
(1) by striking ‘‘and’’ at the end of clause (x), 
by striking the period at the end of clause (xi) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(xii) the affordable housing needs of 
individuals in the State who are enrolled 
members of a tribe with respect to an In-
dian tribal government.’’, and 
(2) by adding at the end the following flush 
sentence: 
‘‘For purposes of clause (xii), the term ‘Indian 
tribal government’ includes any agencies or in-
strumentalities of an Indian tribal government 
and any Alaska Native regional or village cor-
poration, as defined in, or established pursuant 
to, the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.).’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations of credits under sec-
tion 42 of the Internal Revenue Code of 1986 made after 
December 31, 2019. 
SEC. 402. INCLUSION OF INDIAN AREAS AS DIFFICULT DE-
VELOPMENT AREAS FOR PURPOSES OF CER-
TAIN BUILDINGS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 
amended by inserting before the period the following: ‘‘, 
and any Indian area’’. 
(b) 
INDIAN
AREA.—Clause 
(iii) 
of 
section 
42(d)(5)(B) of the Internal Revenue Code of 1986 is 
amended by redesignating subclause (II) as subclause 
(III) and by inserting after subclause (I) the following new 
subclause: 
‘‘(II) INDIAN
AREA.—For pur-
poses of subclause (I), the term ‘In-
dian area’ means any Indian area (as 
defined in section 4(11) of the Native 
American Housing Assistance and 
Self Determination Act of 1996 (25 
U.S.C. 4103(11))).’’. 
(c) ELIGIBLE BUILDINGS.—Clause (iii) of section 
42(d)(5)(B) of the Internal Revenue Code of 1986, as 
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amended by subsection (b), is amended by adding at the 
end the following new subclause: 
‘‘(IV) SPECIAL RULE FOR BUILD-
INGS IN INDIAN AREAS.—In the case 
of an area which is a difficult develop-
ment area solely because it is an In-
dian area, a building shall not be 
treated as located in such area unless 
such building is assisted or financed 
under the Native American Housing 
Assistance and Self Determination 
Act of 1996 (25 U.S.C. 4101 et seq.) 
or the project sponsor is an Indian 
tribe 
(as 
defined 
in 
section 
45A(c)(6)), a tribally designated hous-
ing entity (as defined in section 4(22) 
of such Act (25 U.S.C. 4103(22))), or 
wholly owned or controlled by such an 
Indian tribe or tribally designated 
housing entity.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
December 31, 2019. 
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