I 
109TH CONGRESS 
1ST SESSION H. R. 4464 
To amend the Internal Revenue Code of 1986 to provide a tax credit for 
property owners who remove lead-based paint hazards. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 7, 2005 
Mr. LAHOOD (for himself and Mr. RANGEL) 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 provide 
a tax credit for property owners who remove lead-based 
paint hazards. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; FINDINGS; PURPOSE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Home Lead Safety Tax Credit Act of 2005’’. 
(b) FINDINGS.—Congress finds that: 
(1) Of the 98,000,000 housing units in the 
United States, 38,000,000 have lead-based paint. 
(2) Of the 38,000,000 housing units with lead- 
based paint, 25,000,000 pose a hazard, as defined
by Environmental Protection Agency and Depart-
ment of Housing and Urban Development standards, 
due to conditions such as peeling paint and settled 
dust on floors and windowsills that contain lead at 
levels above Federal safety standards. 
(3) Though the number of children in the 
United States ages 1 through 5 with blood levels 
higher than the Centers for Disease Control action 
level of 10 micrograms per deciliter has declined to 
300,000, lead poisoning remains a serious, entirely 
preventable threat to a child’s intelligence, behavior, 
and learning. 
(4) The Secretary of Health and Human Serv-
ices has established a national goal of ending child-
hood lead poisoning by 2010. 
(5) Current Federal lead abatement programs, 
such as the Lead Hazard Control Grant Program of 
the Department of Housing and Urban Develop-
ment, only have resources sufficient to make ap-
proximately 7,000 homes lead-safe each year. In 
many cases, when State and local public health de-
partments identify a lead-poisoned child, resources 
are insufficient to reduce or eliminate the hazards. 
(6) Old windows typically pose significant risks 
because wood trim is more likely to be painted with
lead-based paint, moisture causes paint to deterio-
rate, and friction generates lead dust. The replace-
ment of old windows that contain lead based paint 
significantly reduces lead poisoning hazards in addi-
tion to producing significant energy savings. 
(7) Childhood lead poisoning can be dramati-
cally reduced by the abatement or complete removal 
of all lead-based paint. Empirical studies also have 
shown substantial reductions in lead poisoning when 
the affected properties have undergone so-called ‘‘in-
terim control measures’’ that are far less costly than 
abatement. 
(c) PURPOSE.—The purpose of this section is to en-
courage the safe removal of lead hazards from homes and 
thereby decrease the number of children who suffer re-
duced intelligence, learning difficulties, behavioral prob-
lems, and other health consequences due to lead-poisoning. 
SEC. 2. HOME LEAD HAZARD REDUCTION ACTIVITY TAX 
CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to foreign tax credit, etc.) is amended by 
adding at the end the following new section:
‘‘SEC. 30D. HOME LEAD HAZARD REDUCTION ACTIVITY. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 50 percent of the 
lead hazard reduction activity cost paid or incurred by the 
taxpayer during the taxable year for each eligible dwelling 
unit. 
‘‘(b) LIMITATION.—The amount of the credit allowed 
under subsection (a) for any eligible dwelling unit for any 
taxable year shall not exceed— 
‘‘(1) either— 
‘‘(A) $3,000 in the case of lead hazard re-
duction activity cost including lead abatement 
measures described in clauses (i), (ii), (iv) and 
(v) of subsection (c)(1)(A), or 
‘‘(B) $1,000 in the case of lead hazard re-
duction activity cost including interim lead con-
trol measures described in clauses (i), (iii), (iv), 
and (v) of subsection (c)(1)(A), reduced by 
‘‘(2) the aggregate lead hazard reduction activ-
ity cost taken into account under subsection (a) with 
respect to such unit for all preceding taxable years. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section: 
‘‘(1) LEAD
HAZARD
REDUCTION
ACTIVITY 
COST.—
‘‘(A) IN GENERAL.—The term ‘lead hazard 
reduction activity cost’ means, with respect to 
any eligible dwelling unit— 
‘‘(i) the cost for a certified risk asses-
sor to conduct an assessment to determine 
the presence of a lead-based paint hazard, 
‘‘(ii) the cost for performing lead 
abatement measures by a certified lead 
abatement supervisor, including the re-
moval of paint and dust, the permanent 
enclosure or encapsulation of lead-based 
paint, the replacement of painted surfaces, 
windows, or fixtures, or the removal or 
permanent covering of soil when lead-based 
paint hazards are present in such paint, 
dust, or soil, 
‘‘(iii) the cost for performing interim 
lead control measures to reduce exposure 
or likely exposure to lead-based paint haz-
ards, including specialized cleaning, re-
pairs, maintenance, painting, temporary 
containment, ongoing monitoring of lead- 
based paint hazards, and the establishment 
and operation of management and resident 
education programs, but only if such meas-
ures are evaluated and completed by a cer-
tified lead abatement supervisor using ac-
cepted methods, are conducted by a quali-
fied contractor, and have an expected use-
ful life of more than 10 years, 
‘‘(iv) the cost for a certified lead 
abatement supervisor, those working under 
the supervision of such supervisor, or a 
qualified contractor to perform all prepara-
tion, cleanup, disposal, and clearance test-
ing activities associated with the lead 
abatement measures or interim lead con-
trol measures, and 
‘‘(v) costs incurred by or on behalf of 
any occupant of such dwelling unit for any 
relocation which is necessary to achieve oc-
cupant protection (as defined under section 
35.1345 of title 24, Code of Federal Regu-
lations). 
‘‘(B) LIMITATION.—The term ‘lead hazard 
reduction activity cost’ does not include any 
cost to the extent such cost is funded by any 
grant, contract, or otherwise by another person 
(or any governmental agency). 
‘‘(2) ELIGIBLE DWELLING UNIT.—
‘‘(A) IN
GENERAL.—The term ‘eligible 
dwelling unit’ means, with respect to any tax-
able year, any dwelling unit— 
‘‘(i) placed in service before 1960, 
‘‘(ii) located in the United States, 
‘‘(iii) in which resides, for a total pe-
riod of not less than 50 percent of the tax-
able year, at least 1 child who has not at-
tained the age of 6 years or 1 woman of 
child-bearing age, and 
‘‘(iv) each of the residents of which 
during such taxable year has an adjusted 
gross income of less than 185 percent of 
the poverty line (as determined for such 
taxable year in accordance with criteria es-
tablished by the Director of the Office of 
Management and Budget). 
‘‘(B) DWELLING UNIT.—The term ‘dwell-
ing unit’ has the meaning given such term by 
section 280A(f)(1). 
‘‘(3) LEAD-BASED PAINT HAZARD.—The term 
‘lead-based paint hazard’ has the meaning given 
such term by section 745.61 of title 40, Code of 
Federal Regulations.
‘‘(4) CERTIFIED
LEAD
ABATEMENT
SUPER-
VISOR.—The term ‘certified lead abatement super-
visor’ means an individual certified by the Environ-
mental Protection Agency pursuant to section 
745.226 of title 40, Code of Federal Regulations, or 
an appropriate State agency pursuant to section 
745.325 of title 40, Code of Federal Regulations. 
‘‘(5) CERTIFIED
INSPECTOR.—The term ‘cer-
tified inspector’ means an inspector certified by the 
Environmental Protection Agency pursuant to sec-
tion 745.226 of title 40, Code of Federal Regula-
tions, or an appropriate State agency pursuant to 
section 745.325 of title 40, Code of Federal Regula-
tions. 
‘‘(6) CERTIFIED
RISK
ASSESSOR.—The term 
‘certified risk assessor’ means a risk assessor cer-
tified by the Environmental Protection Agency pur-
suant to section 745.226 of title 40, Code of Federal 
Regulations, or an appropriate State agency pursu-
ant to section 745.325 of title 40, Code of Federal 
Regulations. 
‘‘(7) 
QUALIFIED
CONTRACTOR.—The 
term 
‘qualified contractor’ means any contractor who has 
successfully completed a training course on lead safe 
work practices which has been approved by the De-
partment of Housing and Urban Development and 
the Environmental Protection Agency. 
‘‘(8) DOCUMENTATION REQUIRED FOR CREDIT 
ALLOWANCE.—No credit shall be allowed under sub-
section (a) with respect to any eligible dwelling unit 
for any taxable year unless— 
‘‘(A) after lead hazard reduction activity is 
complete, a certified inspector or certified risk 
assessor provides written documentation to the 
taxpayer that includes— 
‘‘(i) evidence that— 
‘‘(I) the eligible dwelling unit 
passes the clearance examinations re-
quired by the Department of Housing 
and Urban Development under part 
35 of title 40, Code of Federal Regu-
lations, 
‘‘(II) the eligible dwelling unit 
does not contain lead dust hazards (as 
defined by section 745.227(e)(8)(viii) 
of such title 40), or 
‘‘(III) the eligible dwelling unit 
meets lead hazard evaluation criteria 
established under an authorized State 
or local program, and
‘‘(ii) documentation showing that the 
lead hazard reduction activity meets the 
requirements of this section, and 
‘‘(B) the taxpayer files with the appro-
priate State agency and attaches to the tax re-
turn for the taxable year— 
‘‘(i) the documentation described in 
subparagraph (A), 
‘‘(ii) documentation of the lead hazard 
reduction activity costs paid or incurred 
during the taxable year with respect to the 
eligible dwelling unit, and 
‘‘(iii) a statement certifying that the 
dwelling unit qualifies as an eligible dwell-
ing unit for such taxable year. 
‘‘(9) BASIS
REDUCTION.—The basis of any 
property for which a credit is allowable under sub-
section (a) shall be reduced by the amount of such 
credit (determined without regard to subsection (d)). 
‘‘(10) NO
DOUBLE
BENEFIT.—Any deduction 
allowable for costs taken into account in computing 
the amount of the credit for lead-based paint abate-
ment shall be reduced by the amount of such credit 
attributable to such costs.
‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.—The 
credit allowed under subsection (a) for the taxable year 
shall not exceed the excess of— 
‘‘(1) the sum of the regular tax liability (as de-
fined in section 26(b)) plus the tax imposed by sec-
tion 55, over 
‘‘(2) the sum of the credits allowable under sub-
part A and sections 27, 29, 30, 30A, 30B, and 30C 
for the taxable year. 
‘‘(e) CARRYFORWARD ALLOWED.— 
‘‘(1) IN GENERAL.—If the credit amount allow-
able under subsection (a) for a taxable year exceeds 
the amount of the limitation under subsection (d) 
for such taxable year (referred to as the ‘unused 
credit year’ in this subsection), such excess shall be 
allowed as a credit carryforward for each of the 20 
taxable years following the unused credit year. 
‘‘(2) RULES.—Rules similar to the rules of sec-
tion 39 shall apply with respect to the credit 
carryforward under paragraph (1).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1016(a) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and’’ in para-
graph (36), by striking the period and inserting ‘‘,
and’’ in paragraph (37), and by inserting at the end 
the following new paragraph: 
‘‘(38) in the case of an eligible dwelling unit 
with respect to which a credit for any lead hazard 
reduction activity cost was allowed under section 
30D, to the extent provided in section 30D(c)(9).’’. 
(2) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 30C the following new item: 
‘‘Sec. 30D. Home lead hazard reduction activity.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to lead hazard reduction activity 
costs incurred after December 31, 2005, in taxable years 
ending after that date. 
Æ