A bill to amend the Internal Revenue Code of 1986 to modify the low-income housing credit and to reauthorize and reform the Generalized System of Preferences, and for other purposes.

Bill: 118-s-4915
Sponsor: full_name: Sen. Cantwell, Maria [D-WA]
Introduced: 2024-07-31
Policy area: Taxation
Latest action: action_date: 2024-07-31
text: Read twice and referred to the Committee on Finance.

Summaries:

tv_txt: II 118th CONGRESS 2d Session S. 4915 IN THE SENATE OF THE UNITED STATES July 31, 2024 Ms. Cantwell introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to modify the low-income housing credit and to reauthorize and reform the Generalized System of Preferences, and for other purposes.

1. Table of contents The table of contents for this Act is as follows: Sec. 1. Table of contents. TITLE I—Affordable housing Sec. 101. State housing credit ceiling increase for low-income housing credit. Sec. 102. Tax-exempt bond financing requirement. TITLE II—Reauthorization and Reform of Generalized System of Preferences Sec. 201. Modification of eligibility criteria for beneficiary developing countries. Sec. 202. Supplemental reviews and reporting. Sec. 203. Extension of Generalized System of Preferences. I Affordable housing 101. State housing credit ceiling increase for low-income housing credit (a) In general Section 42(h)(3)(I) of the Internal Revenue Code of 1986 is amended— (1) by striking and 2021, and inserting 2021, 2023, 2024, and 2025, , and (2) by striking 2018, 2019, 2020, and 2021 in the heading and inserting certain calendar years . (b) Effective date The amendments made by this section shall apply to calendar years after 2022. 102. Tax-exempt bond financing requirement (a) In general Section 42(h)(4) of the Internal Revenue Code of 1986 is amended by striking subparagraph (B) and inserting the following: (B) Special rule where minimum percent of buildings is financed with tax-exempt bonds subject to volume cap For purposes of subparagraph (A), paragraph (1) shall not apply to any portion of the credit allowable under subsection (a) with respect to a building if— (i) 50 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), or (ii) (I) 30 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more qualified obligations, and (II) 1 or more of such qualified obligations— (aa) are part of an issue the issue date of which is after December 31, 2023, and (bb) provide the financing for not less than 5 percent of the aggregate basis of such building and the land on which the building is located. (C) Qualified obligation For purposes of subparagraph (B)(ii), the term qualified obligation means an obligation which is described in subparagraph (A) and which is part of an issue the issue date of which is before January 1, 2026. . (b) Effective date (1) In general The amendment made by this section shall apply to buildings placed in service in taxable years beginning after December 31, 2023. (2) Rehabilitation expenditures treated as separate new building In the case of any building with respect to which any expenditures are treated as a separate new building under section 42(e) of the Internal Revenue Code of 1986, for purposes of paragraph (1), both the existing building and the separate new building shall be treated as having been placed in service on the date such expenditures are treated as placed in service under section 42(e)(4) of such Code. II Reauthorization and Reform of Generalized System of Preferences 201. Modification of eligibility criteria for beneficiary developing countries (a) In general Section 502 of the Trade Act of 1974 ( 19 U.S.C. 2462 ) is amended— (1) in subsection (b)(2)— (A) by inserting after subparagraph (H) the following: (I) Such country has failed, in a manner affecting trade or investment— (i) to effectively enforce its environmental laws or regulations through a sustained or recurring course of action or inaction; or (ii) to adopt and maintain measures implementing its obligations under common multilateral environmental agreements. (J) Such country engages in gross violations of internationally recognized human rights in that country (including any designated zone in that country). ; and (B) in the text following subparagraph (J) (as inserted by subparagraph (A)), by striking and (H) (to the extent described in section 507(6)(D)) and inserting (H) (to the extent described in section 507(6)(D)), (I), and (J) ; and (2) in subsection (c)— (A) in paragraph (6)(B), by striking ; and and inserting a semicolon; (B) in paragraph (7)— (i) by striking whether and all that follows through afford and inserting the extent to which such country is affording ; and (ii) by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (8) the extent to which such country is effectively enforcing its environmental laws and regulations and adopting and maintaining measures implementing its obligations under common multilateral environmental agreements; (9) the extent to which such country is achieving the goals described in section 3(b) of the Women’s Entrepreneurship and Economic Empowerment Act of 2018 ( 22 U.S.C. 2151–2(b) ); (10) the extent to which such country has established, or is making continual progress toward establishing— (A) the rule of law, political pluralism, and the right to due process, a fair trial, and equal protection under the law; (B) economic policies to reduce poverty, increase the availability of health care and educational opportunities, expand physical infrastructure, promote the development of private enterprise, and encourage the formation of capital markets through micro-credit or other programs; and (C) a system to combat corruption and bribery, such as signing and implementing the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, done at Paris December 17, 1997, and entered into force February 15, 1999 (TIAS 99–215); and (11) the extent to which such country— (A) has refrained from imposing, or has eliminated, digital trade barriers, including unnecessary or discriminatory data localization or data transfer restrictions; and (B) has taken steps in the digital environment to support consumer protections, the privacy of personal information, and open digital ecosystems. . (b) Modification of withdrawal, suspension, or limitation requirements Section 502 of the Trade Act of 1974 ( 19 U.S.C. 2462 ) is amended— (1) in subsection (d)(1), in the second sentence— (A) by striking shall consider and inserting the following: “shall— (A) consider ; (B) by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (B) hold a public hearing or provide for a period of not less than 30 days for submission of comments by the public. ; and (2) in subsection (f)(2)— (A) in the paragraph heading, by inserting or suspension after termination ; (B) by inserting or suspend after terminate each place it appears; and (C) by inserting or suspension after termination . (c) Publication of determinations relating to petitions for review Section 502 of the Trade Act of 1974 ( 19 U.S.C. 2462 ) is amended by adding at the end the following: (g) Publication of determinations relating to petitions for review The United States Trade Representative shall publish in the Federal Register a notice of, and the rationale for, any determination of the Trade Representative with respect to a petition for review of the eligibility of a country for designation as a beneficiary developing country, including a determination— (1) to accept or deny such a petition; (2) to continue to review the eligibility of the country; or (3) to withdraw, suspend, or limit the application of duty-free treatment under this title with respect to the country. . (d) Definitions Section 507 of the Trade Act of 1974 ( 19 U.S.C. 2467 ) is amended— (1) in paragraph (4)— (A) in subparagraph (D), by striking ; and and inserting a semicolon; (B) in subparagraph (E), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (F) the elimination of all forms of discrimination with respect to occupation and employment. ; and (2) by adding at the end the following: (7) Common multilateral environmental agreement (A) In general The term common multilateral environmental agreement , for purposes of determining the eligibility of a country for designation as a beneficiary developing country under this title, means any agreement specified in subparagraph (B) to which both the United States and that country are full parties, including any current or future mutually agreed upon protocols, amendments, annexes, or adjustments to such an agreement. (B) Agreements specified The agreements specified in this subparagraph are the following: (i) The Convention on International Trade in Endangered Species of Wild Fauna and Flora, done at Washington March 3, 1973 (27 UST 1087; TIAS 8249). (ii) The Montreal Protocol on Substances that Deplete the Ozone Layer, done at Montreal September 16, 1987. (iii) The Protocol of 1978 Relating to the International Convention for the Prevention of Pollution from Ships, 1973, done at London February 17, 1978. (iv) The Convention on Wetlands of International Importance, Especially as Waterfowl Habitat, done at Ramsar February 2, 1971 (TIAS 11084). (v) The Convention on the Conservation of Antarctic Marine Living Resources, done at Canberra May 20, 1980 (33 UST 3476). (vi) The International Convention for the Regulation of Whaling, done at Washington December 2, 1946 (62 Stat. 1716). (vii) The Convention for the Establishment of an Inter-American Tropical Tuna Commission, done at Washington May 31, 1949 (1 UST 230). . 202. Supplemental reviews and reporting (a) Assessment and report on compliance with eligibility requirements Section 502 of the Trade Act of 1974, as amended by section 201, is further amended by adding at the end the following: (h) Assessment and report on compliance with eligibility requirements (1) In general The President shall— (A) on an annual basis— (i) conduct assessments of the compliance of an appropriate number of countries designated as beneficiary developing countries for purposes of this title in meeting or continuing to meet the eligibility requirements under this title; and (ii) make determinations with respect to whether to initiate full reviews of the practices of those countries to assess the continued eligibility of those countries for designation as beneficiary developing countries under this title; and (B) submit to Congress a report consisting of the results of such assessments and determinations. (2) Frequency The President shall conduct an assessment described in clause (i) of paragraph (1)(A) and make a determination described in clause (ii) of that paragraph with respect to each country designated as a beneficiary developing country for purposes of this title not less frequently than once every 3 years. . (b) Assessment of effectiveness of Generalized System of Preferences in strengthening and maintaining internationally recognized worker rights and women’s entrepreneurship and economic empowerment (1) Policy of the United States It is the policy of the United States to support gender equality and worker rights by promoting legal reforms that address legal, structural, and social barriers that constrain the full and free economic participation of all workers in the global economy. (2) Amendment to Trade Act of 1974 (A) In general Title V of the Trade Act of 1974 ( 19 U.S.C. 2461 et seq. ) is amended by inserting after section 504 the following: 504A. Assessment of effectiveness in strengthening and maintaining internationally recognized worker rights and women’s entrepreneurship and economic empowerment (a) In general Not later than 15 months after the date of the enactment of this section, and every 2 years thereafter, the United States Trade Representative and the Deputy Undersecretary of Labor for International Affairs, in consultation with the policy advisory committee on labor established under section 135(c)(1), shall jointly submit to Congress an assessment of the effectiveness of the administration of this title in maintaining or strengthening the efforts of beneficiary developing countries relating to the factors described in paragraphs (7) and (9) of section 502(c). (b) Methodology and sources The assessment required by subsection (a) shall include— (1) an explanation of the methodology and sources used to prepare the assessment; and (2) where relevant, citations to data, information, studies, and assessments that were used to prepare the assessment and were gathered, compiled, or developed by the United States Government, foreign governments, multilateral institutions, nongovernmental organizations, or educational institutions. (c) Measurement of women's economic empowerment To support the measurement of women’s economic empowerment, the Trade Representative shall encourage and support the reporting by beneficiary developing countries of sex-disaggregated economic and business data, including the gathering of information consistent with the United Nations Sustainable Development Goals, particularly the goals relating to gender equality and decent work. . (B) Clerical amendment The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 504 the following: Sec. 504A. Assessment of effectiveness in strengthening and maintaining internationally recognized worker rights and women’s entrepreneurship and economic empowerment. . (c) United States International Trade Commission study Not later than July 1, 2026, the United States International Trade Commission shall submit to Congress a report that contains a study on rules of origin, utilization rates, and eligibility requirements for articles under the Generalized System of Preferences program under title V of the Trade Act of 1974 ( 19 U.S.C. 2461 et seq. ), including an assessment of— (1) the rate of utilization of the program by countries designated as least-developed beneficiary developing countries under section 502(a)(2) of that Act ( 19 U.S.C. 2462(a)(2) ); (2) the effectiveness of the rules of origin of the program in— (A) promoting trade benefits to least-developed beneficiary developing countries under the program; and (B) preventing the transshipment of articles from countries that are not designated as beneficiary developing countries under section 502(a)(1) of that Act ( 19 U.S.C. 2462(a)(1) ); and (3) the requirements and procedures for designating articles as eligible articles under section 503 of that Act ( 19 U.S.C. 2463 ), including— (A) the competitive need limitation under subsection (c)(2) of that section; and (B) the process for waiving that limitation under subsection (d) of that section. 203. Extension of Generalized System of Preferences (a) In general Section 505 of the Trade Act of 1974 ( 19 U.S.C. 2465 ) is amended by striking December 31, 2020 and inserting December 31, 2029 . (b) Effective date (1) In general The amendment made by subsection (a) shall apply to articles entered on or after the 30th day after the date of the enactment of this Act. (2) Retroactive application for certain liquidations and reliquidations (A) In general Notwithstanding section 514 of the Tariff Act of 1930 ( 19 U.S.C. 1514 ) or any other provision of law and subject to subparagraph (B), any entry of a covered article to which duty-free treatment or other preferential treatment under title V of the Trade Act of 1974 ( 19 U.S.C. 2461 et seq. ) would have applied if the entry had been made on December 31, 2020, that was made— (i) after December 31, 2020, and (ii) before the effective date specified in paragraph (1), shall be liquidated or reliquidated as though such entry occurred on the effective date specified in paragraph (1). (B) Requests A liquidation or reliquidation may be made under subparagraph (A) with respect to an entry only if a request therefor is filed with U.S. Customs and Border Protection not later than 180 days after the date of the enactment of this Act that contains sufficient information to enable U.S. Customs and Border Protection— (i) to locate the entry; or (ii) to reconstruct the entry if it cannot be located. (C) Payment of amounts owed Any amounts owed by the United States pursuant to the liquidation or reliquidation of an entry of a covered article under subparagraph (A) shall be paid, without interest, not later than 90 days after the date of the liquidation or reliquidation (as the case may be). (3) Definitions In this subsection: (A) Covered article The term covered article means an article from a country that is a beneficiary developing country under title V of the Trade Act of 1974 ( 19 U.S.C. 2461 et seq. ) as of the effective date specified in paragraph (1). (B) Enter; entry The terms enter and entry include a withdrawal from warehouse for consumption.