I 
116TH CONGRESS 
1ST SESSION H. R. 3478 
To amend the Internal Revenue Code of 1986 to modify the low-income 
housing credit basis limitation rules in the case the acquisition of an 
existing building. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2019 
Mr. NEGUSE 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 modify 
the low-income housing credit basis limitation rules in 
the case the acquisition of an existing building. 
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 ‘‘Affordable Housing 
Opportunities for Utilization, Sustainment, and Expan-
sion Act of 2019’’ or the ‘‘Affordable HOUSE Act’’. 
SEC. 2. MODIFICATION OF PREVIOUS OWNERSHIP RULES; 
LIMITATION ON ACQUISITION BASIS. 
(a) LIMITATION ON ACQUISITION BASIS.— 
VerDate Sep 11 2014 
02:32 Jul 03, 2019
Jkt 034408
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3478.IH
H3478
pbinns on DSK79D2C42PROD with BILLS
(1) IN
GENERAL.—Section 42(d)(2)(B)(ii) of 
the Internal Revenue Code of 1986 is amended by 
inserting ‘‘, or the taxpayer elects the application of 
subparagraph (C)(ii)’’ after ‘‘service’’. 
(2) LIMITATION.—Section 42(d)(2)(C) of such 
Code is amended— 
(A) by striking ‘‘for purposes of subpara-
graph (A), the adjusted basis’’ and inserting 
the following: ‘‘For purposes of subparagraph 
(A)— 
‘‘(i) 
IN
GENERAL.—The 
adjusted 
basis’’, and 
(B) 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-
VerDate Sep 11 2014 
02:32 Jul 03, 2019
Jkt 034408
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3478.IH
H3478
pbinns on DSK79D2C42PROD with BILLS
son during the 10 years preceding the 
date of the acquisition of the building 
by the taxpayer, adjusted as provided 
in clause (iii), and 
‘‘(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 2016 in 
subparagraph (A)(ii) thereof. 
For purposes of the preceding sentence, 
the acquisition year is the calendar year in 
which the lowest amount referenced in 
VerDate Sep 11 2014 
02:32 Jul 03, 2019
Jkt 034408
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3478.IH
H3478
pbinns on DSK79D2C42PROD with BILLS
clause (ii)(I) was paid for the acquisition 
of the building.’’. 
(3) 
CONFORMING
AMENDMENTS.—Section 
42(d)(2)(D)(i) of such Code is amended— 
(A) by striking ‘‘FOR SUBPARAGRAPH (B)’’ 
in the heading, and 
(B) by striking ‘‘subparagraph (B)’’ in the 
matter preceding subclause (I) and inserting 
‘‘subparagraph (B)(ii) or (C)(ii)’’. 
(b) MODIFICATION OF PLACED IN SERVICE RULE.— 
Section 42(d)(2)(B)(iii) of such Code 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’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
December 31, 2018. 
Æ 
VerDate Sep 11 2014 
02:32 Jul 03, 2019
Jkt 034408
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H3478.IH
H3478
pbinns on DSK79D2C42PROD with BILLS