marily without remuneration to care for 
the home and family, and 
‘‘(iii) is unemployed or underemployed 
and is experiencing difficulty in obtaining 
or upgrading employment. 
‘‘(B) SINGLE PARENT.—The term ‘single 
parent’ means an individual who— 
‘‘(i) is not a married individual, and 
‘‘(ii) who has one or more dependents 
(within the meaning of section 152).’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to bonds originally issued after the 
date of the enactment of this Act. 
SEC. 5. REPEAL OF RECAPTURE BOND RULE. 
(a) IN GENERAL.—Paragraph (6) of section 42(j) of 
the Internal Revenue Code of 1986 (relating to recapture 
of credit) is amended to read as follows: 
‘‘(6) NO
RECAPTURE
ON
DISPOSITION
OF 
BUILDING
(OR
INTEREST
THEREIN)
REASONABLY 
EXPECTED TO CONTINUE AS A QUALIFIED LOW-IN-
COME BUILDING.— 
‘‘(A) IN GENERAL.—In the case of a dis-
position of a building or an interest therein, the 
taxpayer shall be discharged from liability for 
any additional tax under this subsection by rea-
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son of such disposition if it is reasonably ex-
pected that such building will continue to be op-
erated as a qualified low-income building for 
the remaining compliance period with respect to 
such building. 
‘‘(B) STATUTE OF LIMITATIONS.— 
‘‘(i) EXTENSION OF PERIOD.—The pe-
riod for assessing a deficiency attributable 
to the application of subparagraph (A) 
with respect to a building (or interest 
therein) during the compliance period with 
respect to such building shall not expire 
before the expiration of 3 years after the 
end of such compliance period. 
‘‘(ii) ASSESSMENT.—Such deficiency 
may be assessed before the expiration of 
the 3-year period referred to in clause (i) 
notwithstanding the provisions of any 
other law or rule of law which would other-
wise prevent such assessment.’’. 
(b) INFORMATION REPORTING.— 
(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61 of such Code (relating 
to information concerning transactions with other 
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persons) is amended by inserting after section 
6050T the following new section: 
‘‘SEC. 6050U. RETURNS RELATING TO PAYMENT OF LOW-IN-
COME 
HOUSING 
CREDIT 
REPAYMENT 
AMOUNT. 
‘‘(a) REQUIREMENT OF REPORTING.—Every person 
who, at any time during the taxable year, is an owner of 
a building (or an interest therein)— 
‘‘(1) which is in the compliance period at any 
time during such year, and 
‘‘(2) with respect to which recapture is required 
by section 42(j), 
shall, at such time as the Secretary may prescribe, make 
the return described in subsection (b). 
‘‘(b) FORM AND MANNER OF RETURNS.—A return 
is described in this subsection if such return— 
‘‘(1) is in such form as the Secretary may pre-
scribe, and 
‘‘(2) contains— 
‘‘(A) the name, address, and TIN of each 
person who, with respect to such building or in-
terest, was formerly an investor in such owner 
at any time during the compliance period, 
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‘‘(B) the amount (if any) of any credit re-
capture amount required under section 42(j), 
and 
‘‘(C) such other information as the Sec-
retary may prescribe. 
‘‘(c) STATEMENTS TO BE FURNISHED TO PERSONS 
WITH RESPECT TO WHOM INFORMATION IS REQUIRED.— 
Every person required to make a return under subsection 
(a) shall furnish to each person whose name is required 
to be set forth in such return a written statement show-
ing— 
‘‘(1) the name and address of the person re-
quired to make such return and the phone number 
of the information contact for such person, and 
‘‘(2) the information required to be shown on 
the return with respect to such person. 
The written statement required under the preceding sen-
tence shall be furnished on or before March 31 of the year 
following the calendar year for which the return under 
subsection (a) is required to be made. 
‘‘(d) COMPLIANCE PERIOD.—For purposes of this 
section, the term ‘compliance period’ has the meaning 
given such term by section 42(i).’’. 
(2) ASSESSABLE PENALTIES.— 
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(A) 
Subparagraph 
(B) 
of 
section 
6724(d)(1) of such Code (relating to defini-
tions) is amended by redesignating clauses (xiii) 
through (xviii) as clauses (xiv) through (xix), 
respectively, and by inserting after clause (xii) 
the following new clause: 
‘‘(xiii) section 6050U (relating to re-
turns relating to payment of low-income 
housing credit repayment amount),’’. 
(B) Paragraph (2) of section 6724(d) of 
such Code is amended by striking ‘‘or’’ at the 
end of subparagraph (AA), by striking the pe-
riod at the end of subparagraph (BB) and in-
serting ‘‘, or’’, and by adding after subpara-
graph (BB) the following new subparagraph: 
‘‘(CC) section 6050U (relating to returns 
relating to payment of low-income housing cred-
it repayment amount).’’. 
(C) CLERICAL AMENDMENT.—The table of 
sections for subpart B of part III of subchapter 
A of chapter 61 of such Code is amended by in-
serting after the item relating to section 6050S 
the following new item: 
‘‘Sec. 6050U. Returns relating to payment of low-income housing credit repay-
ment amount.’’. 
(c) EFFECTIVE DATE.— 
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(1) IN GENERAL.—The amendments made by 
this section shall apply with respect to any liability 
for the credit recapture amount under section 42(j) 
of the Internal Revenue Code of 1986 that arises 
after the date of the enactment of this Act. 
(2) SPECIAL RULE FOR LOW-INCOME HOUSING 
BUILDINGS SOLD BEFORE DATE OF ENACTMENT OF 
THIS ACT.—In the case of a building disposed of be-
fore the date of the enactment of this Act with re-
spect to which the taxpayer posted a bond (or alter-
native form of security) under section 42(j) of the 
Internal Revenue Code of 1986 (as in effect before 
the enactment of this Act), the taxpayer may elect 
(by notifying the Secretary of the Treasury in writ-
ing)— 
(A) to cease to be subject to the bond re-
quirements under section 42(j)(6) of such Code, 
as in effect before the enactment of this Act, 
and 
(B) to be subject to the requirements of 
section 42(j) of such Code, as amended by this 
Act. 
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SEC. 6. AFFORDABLE HOUSING CREDIT ALLOWED AGAINST 
ALTERNATIVE MINIMUM TAX. 
(a) IN GENERAL.—Subsection (c) of section 38 of the 
Internal Revenue Code of 1986 (relating to limitation 
based on amount of tax) is amended by redesignating 
paragraph (5) as paragraph (6) and by inserting after 
paragraph (4) the following new paragraph: 
‘‘(5) SPECIAL RULES FOR AFFORDABLE HOUS-
ING CREDIT.— 
‘‘(A) IN GENERAL.—In the case of the af-
fordable housing credit— 
‘‘(i) this section and section 39 shall 
be applied separately with respect to such 
credit, and 
‘‘(ii) in applying paragraph (1) to 
such credit— 
‘‘(I) the tentative minimum tax 
shall be treated as being zero, and 
‘‘(II) the limitation under para-
graph (1) (as modified by subclause 
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the 
taxable year (other than the afford-
able housing credit). 
‘‘(B) AFFORDABLE
HOUSING
CREDIT.— 
For purposes of this subsection, the term ‘af-
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fordable housing credit’ means the portion of 
the credit under subsection (a) which is attrib-
utable to the credit determined under section 
42 (relating to affordable housing credit). ’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subclause (II) of section 38(c)(2)(A)(ii) of 
such Code is amended by striking ‘‘and the specified 
credits’’ and inserting ‘‘the specified credits, and the 
affordable housing credit’’. 
(2) Subclause (II) of section 38(c)(3)(A)(ii) of 
such Code is amended by striking ‘‘and the specified 
credits’’ and inserting ‘‘, the specified credits, and 
the affordable housing credit’’. 
(3) Subclause (II) of section 38(c)(4)(A)(ii) of 
such Code is amended by inserting ‘‘and the afford-
able housing credit’’ after ‘‘the specified credits’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
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SEC. 7. INTEREST ON QUALIFIED MORTGAGE BONDS, 
QUALIFIED VETERANS’ MORTGAGE BONDS, 
AND 
QUALIFIED 
RESIDENTIAL 
RENTAL 
PROJECT EXEMPT FACILITY BONDS EXEMPT 
FROM ALTERNATIVE MINIMUM TAX. 
(a) IN GENERAL.—Clause (ii) of section 57(a)(5)(C) 
of the Internal Revenue Code of 1986 (relating to excep-
tion for qualified 501(c)(3) bonds) is amended to read as 
follows: 
‘‘(ii) 
EXCEPTION
FOR
CERTAIN 
BONDS.—For purposes of clause (i), the 
term ‘private activity bond’ shall not in-
clude— 
‘‘(I) any qualified 501(c)(3) bond 
(as defined in section 145), 
‘‘(II) any qualified mortgage 
bond (as defined in section 143(a)), 
‘‘(III) any qualified veterans’ 
mortgage bond (as defined in section 
143(b)), and 
‘‘(IV) any exempt facility bond 
(as defined in section 142(a)) issued 
as part of an issue 95 percent or more 
of the net proceeds of which are to be 
used to provide qualified residential 
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rental projects (as defined in section 
142(d)).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to bonds originally issued after the 
date of the enactment of this Act. 
Æ 
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