by subsections (a) and (d), is amended by redesignating 
subparagraphs (D) and (E) as subparagraphs (E) and 
(F), respectively, and by inserting after subparagraph (C) 
the following new subparagraph: 
‘‘(D) BUILDINGS
THAT
ARE
NOT
CER-
TIFIED
HISTORIC
STRUCTURES
AND
NOT
IN 
REGISTERED
HISTORIC
DISTRICT
MUST
RE-
CEIVE CERTIFICATION OF STATUS.— 
‘‘(i) IN GENERAL.—In the case of a 
building which is neither a certified his-
toric structure nor located in a registered 
historic district, such building shall not be 
a qualified rehabilitated building unless the 
Secretary of the Interior certifies to the 
Secretary that such building is— 
‘‘(I) not a certified historic struc-
ture, and 
‘‘(II) not in a registered historic 
district. 
‘‘(ii) DETERMINATIONS BY NATIONAL 
PARK SERVICE.—To the maximum extent 
practicable, the Secretary of the Interior 
shall make certifications under clause (i) 
within 30 days of the receipt of an applica-
tion for such certification.’’. 
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(g) CREDIT
FOR
CERTAIN
RELATED
EXPENDI-
TURES.— 
(1) CREDIT FOR CERTAIN EXPENDITURES FOR 
PUBLIC
INFRASTRUCTURE.—Section 47(c)(2) of 
such Code is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(E) TREATMENT OF CERTAIN EXPENDI-
TURES FOR PUBLIC INFRASTRUCTURE.— 
‘‘(i) IN GENERAL.—In the case of any 
qualified rehabilitated building, expendi-
tures for qualified public infrastructure (or 
improvements thereto) shall be treated for 
purposes of this section as qualified reha-
bilitation expenditures with respect to such 
building if providing such qualified public 
infrastructure is related to such building 
and is required by any State or local gov-
ernment. 
‘‘(ii) LIMITATION.—The amount treat-
ed as qualified rehabilitation expenditures 
with respect to any building under clause 
(i) shall not exceed 25 percent of the quali-
fied rehabilitation expenditures with re-
spect to such building (determined after 
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the application of clause (i) and subpara-
graph (F)). 
‘‘(iii) BONUS
CREDIT
AMOUNT.—In 
the case of any amount treated as qualified 
rehabilitation expenditures under clause 
(i), subsection (a)(1) shall be applied by 
substituting ‘25 percent’ for ‘15 percent’. 
‘‘(iv) 
QUALIFIED
PUBLIC
INFRA-
STRUCTURE.—For purposes of this sub-
paragraph, the term ‘qualified public infra-
structure’ means water and sewer lines, 
electrical 
lines 
and 
equipment, 
tele-
communications lines and equipment, and 
road and sidewalks, which are located in 
the public right of way and are not owned 
by the taxpayer.’’. 
(2) CREDIT
FOR
EXPANSION
AND
ADJACENT 
BUILDINGS WITH RESPECT TO QUALIFIED REHABILI-
TATED
BUILDINGS
OTHER
THAN
CERTIFIED
HIS-
TORIC
STRUCTURES.—Section 47(c)(2) of such 
Code, as amended by paragraph (1), is amended by 
adding at the end the following new subparagraph: 
‘‘(F) TREATMENT
OF
BUILDING
EXPAN-
SIONS
AND
CERTAIN
ADJACENT
BUILDINGS 
WITH RESPECT TO QUALIFIED REHABILITATED 
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BUILDINGS OTHER THAN CERTIFIED HISTORIC 
STRUCTURES.— 
‘‘(i) IN GENERAL.—In the case any 
qualified rehabilitated building other than 
a certified historic structure— 
‘‘(I) clause (iii) of subparagraph 
(B) shall not apply, and 
‘‘(II) amounts described in sub-
paragraph (A)(i) which are in connec-
tion with the rehabilitation or con-
struction of a qualified adjacent build-
ing shall be treated as qualified reha-
bilitation expenditures with respect to 
such qualified rehabilitated building. 
‘‘(ii) LIMITATION.—The amount treat-
ed as qualified rehabilitation expenditures 
with respect to any qualified rehabilitated 
building under clause (i) shall not exceed 
100 percent of the qualified rehabilitation 
expenditures with respect to such building 
(determined without regard to clause (i) 
and subparagraph (E)). 
‘‘(iii) QUALIFIED
ADJACENT
BUILD-
ING.—For purposes of this subparagraph, 
the term ‘qualified adjacent building’ 
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means, with respect to any qualified reha-
bilitated building, any building if such 
building and such qualified rehabilitated 
building are both on the same block.’’. 
(3) RELATED EXPENDITURES DISREGARDED IN 
DETERMINING
IF
REHABILITATION
IS
SUBSTAN-
TIAL.—Section 47(c)(1)(E), as redesignated by sub-
sections (a), (d), and (f), is amended by adding at 
the end the following new clause: 
‘‘(iv) CERTAIN
EXPENDITURES
DIS-
REGARDED.—Amounts which are otherwise 
treated as qualified rehabilitation expendi-
tures by reason of subparagraph (E) or 
(F) of paragraph (2) shall not be treated 
as qualified rehabilitation expenditures for 
purposes of this subparagraph.’’. 
(h) BONUS CREDIT FOR RENT-RESTRICTED HOUS-
ING UNITS.—Section 47 of such Code is amended by add-
ing at the end the following new subsection: 
‘‘(e) BONUS CREDIT FOR RENT-RESTRICTED HOUS-
ING UNITS.— 
‘‘(1) IN GENERAL.—Subsection (a)(1) shall be 
applied by substituting ‘25 percent’ for ‘15 percent’ 
with respect to so much of the qualified rehabilita-
tion expenditures (determined without regard to sub-
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section (c)(2)(E)) with respect to any qualified reha-
bilitated building as are properly allocable to resi-
dential units which are— 
‘‘(A) rent-restricted (within the meaning of 
section 42(g)(2)), and 
‘‘(B) occupied by individuals whose income 
is 100 percent or less of area median gross in-
come (within the meaning of section 42(g)(1)). 
‘‘(2) FAILURE TO MAINTAIN RENT-RESTRICTION 
SUBJECT TO RECAPTURE.—In the case of any fail-
ure to maintain any residential unit taken into ac-
count under paragraph (1) as a residential unit de-
scribed in such paragraph during the recapture pe-
riod, section 50(a) shall apply as though the quali-
fied rehabilitated building ceased to be investment 
credit property except that the recapture period and 
recapture percentage shall be determined under 
paragraph (3) and in determining the increase in tax 
under such section in lieu of reducing the credit de-
termined under this section to zero such credit shall 
be determined without regard to paragraph (1). The 
application of section 50(a) with respect to a build-
ing as described in this paragraph shall not prevent 
the reapplication of such section to such building if 
such building is disposed of or otherwise ceases to 
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