Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. PERMANENT EXTENSION AND MODIFICATION OF LOW-INCOME HOUSING
TAX CREDIT.

(a) Permanent Extension.--
(1) In general.--Section 42 of the Internal Revenue Code of
1986 (relating to low-income housing credit) is amended by
striking subsection (o).
(2) Effective date.--The amendment made by paragraph (1)
shall apply to periods after June 30, 1992.
(b) Modifications.--
(1) Carryforward rules.--
(A) In general.--Clause (ii) of section 42(h)(3)(D)
(relating to unused housing credit carryovers allocated
among certain States) is amended by striking ''the
excess'' and all that follows and inserting ''the
excess (if any) of the unused State housing credit
ceiling for the year preceding such year over the
aggregate housing credit dollar amount allocated for
such year.''
(B) Conforming amendment.--The second sentence of
section 42(h)(3)(C) (relating to State housing credit
ceiling) is amended by striking ''clauses (i) and
(iii)'' and inserting ''clauses (i) through (iv)''.
(C) De minimis exception for qualification rule.--
Section 42(h)(3)(D)(iv) (defining qualified State) is
amended by adding at the end the following new flush
sentence:
''For purposes of subclause (I), unallocated amounts
from a State's housing credit ceiling for the preceding
calendar year which do not exceed 1 percent of such
ceiling shall be disregarded.''
(2) 10-year anti-churning rule waiver expanded.--Clause
(ii) of section 42(d)(6)(B) (defining federally assisted
building) is amended by inserting '', 221(d)(4),'' after
''221(d)(3)''.
(3) Housing credit agency determination of reasonableness
of project costs.--Subparagraph (B) of section 42 (m)(2)
(relating to credit allocated to building not to exceed amount
necessary to assure project feasibility) is amended--
(A) by striking ''and'' at the end of clause (ii),
(B) by striking the period at the end of clause
(iii) and inserting '', and'', and
(C) by inserting after clause (iii) the following
new clause:
''(iv) the reasonableness of the
developmental and operational costs of the
project.''
(4) Units with certain full-time students not
disqualified.--Subparagraph (D) of section 42(i)(3) (defining
low-income unit) is amended to read as follows:
''(D) Certain students not to disqualify unit.--A
unit shall not fail to be treated as a low-income unit
merely because it is occupied--
''(i) by an individual who is--
''(I) a student and receiving
assistance under title IV of the Social
Security Act, or
''(II) enrolled in a job training
program receiving assistance under the
Job Training Partnership Act or under
other similar Federal, State, or local
laws, or
''(ii) entirely by full-time students if
such students are--
''(I) single parents and their
children and such parents and children
are not dependents (as defined in
section 152) of another individual, or
''(II) married and file a joint
return.''
(5) Treasury waivers of certain de minimis errors and
recertifications.--Subsection (g) of section 42 (relating to
qualified low-income housing projects) is amended by adding at
the end thereof the following new paragraph:
''(8) Waiver of certain de minimis errors and
recertifications.--On application by the taxpayer, the
Secretary may waive--
''(A) any recapture under subsection (j) in the
case of any de minimis error in complying with
paragraph (1), or
''(B) any annual recertification of tenant income
for purposes of this subsection, if the entire building
is occupied by low-income tenants.''
(6) Basis of community service areas included in adjusted
basis.--Paragraph (4) of section 42(d) (relating to special
rules relating to determination of adjusted basis) is amended--
(A) by striking ''subparagraph (B)'' in
subparagraph (A) and inserting ''subparagraphs (B) and
(C)'',
(B) by redesignating subparagraph (C) as
subparagraph (D), and
(C) by inserting after subparagraph (B) the
following new subparagraph:
''(C) Basis of property in community service areas
included.--The adjusted basis of any building located
in a qualified census tract shall be determined by
taking into account the adjusted basis of property (of
a character subject to the allowance for depreciation)
used in functionally related and subordinate community
activity facilities if--
''(i) such facilities are designed to serve
individuals meeting the income requirements of
subsection (g)(1)(B) and employees of the
qualified low-income housing project of which
the building is a part, and
''(ii) not more than 20 percent of the
aggregate eligible basis of all buildings in
such project is attributable to the aggregate
basis of such facilities.
Such facilities the aggregate basis of which is more
than 20 percent of such aggregate eligible basis shall
not be disqualified under clause (ii), if not more than
20 percent of such aggregate eligible basis claimed by
the taxpayer is attributable to such facilities.''
(7) Application of at-risk rules.--
(A) Certified historic structures included.--
Paragraph (1) of section 42(k) (relating to application
of at-risk rules) is amended by inserting ''(and, for
purposes of computing the credit under section
47(a)(2), the basis of any building subject to such
credit which is part of a qualified low-income housing
project)'' after ''building''.
(B) Qualified nonprofit lenders excluded.--
Subparagraph (A) of section 42(k)(2) (relating to
special rules for determining qualified person) is
amended by inserting ''which is not a qualified person
(as defined in section 49(a)(1)(D)(iv))'' after
''subsection (h)(5))''.
(8) Discrimination against tenants prohibited.--Section
42(h)(6)(B) (defining extended low-income housing commitment)
is amended by redesignating clauses (iv) and (v) as clauses (v)
and (vi) and by inserting after clause (iii) the following new
clause:
''(iv) which prohibits the refusal to lease
to a holder of a voucher or certificate of
eligibility under section 8 of the United
States Housing Act of 1937 because of the
status of the prospective tenant as such a
holder,''.
(9) Effective dates.--
(A) In general.--Except as provided in
subparagraphs (B) and (C), the amendments made by this
subsection shall apply to--
(i) determinations under section 42 of the
Internal Revenue Code of 1986 with respect to
housing credit dollar amounts allocated from
State housing credit ceilings after June 30,
1992, or
(ii) buildings placed in service after June
30, 1992, to the extent paragraph (1) of
section 42(h) of such Code does not apply to
any building by reason of paragraph (4)
thereof, but only with respect to bonds issued
after such date.
(B) Carryforward rules.--The amendments made by
paragraph (1) shall apply to calendar years beginning
after December 31, 1992.
(C) Waiver authority and prohibited
discrimination.--The amendments made by paragraphs (2),
(5), and (8) shall take effect on the date of the
enactment of this Act.
(c) Election To Determine Rent Limitation Based on Number of
Bedrooms.--In the case of a building to which the amendments made by
section 7108(e)(1) of the Revenue Reconciliation Act of 1989 did not
apply, the taxpayer may elect to have such amendments apply to such
building but only with respect to tenants first occupying any unit in
the building after the date of the election, and if the taxpayer has
met the requirements of the procedures described in section
42(m)(1)(B)(iii) of the Internal Revenue Code of 1986. Such an election
may be made only during the 180 day period beginning on the date of the
enactment of this Act. Once made, the election shall be irrevocable.
Student:
Amends the Internal Revenue Code to make the low-income housing credit permanent.
Modifies provisions concerning unused housing credit carryovers by States to allow States to carry over more unused credits from year to year.
Provides that a unit shall not fail to be treated as low-income because it is occupied by students or persons enrolled in job training programs under the Job Training Partnership Act.
Authorizes the Secretary of the Treasury to waive: (1) any recapture of credit (required to be included in tax) in the case of any de minimis error in complying with tests for qualified low-income housing projects; or (2) any annual recertification of tenant income if the entire building is occupied by low-income tenants.
Determines the adjusted basis of any building (for purposes of the low-income housing credit) by taking into account the adjusted basis of the property used in community activity facilities if: (1) such facilities are designed to serve individuals meeting income requirements for the housing project; and (2) not more than 20 percent of the aggregate eligible basis of all buildings in the project is attributable to the aggregate basis of such facilities.
Applies at-risk rules to low-income housing credit property that also qualifies for the historic site rehabilitation credit and to qualified lenders.
Adds conditions prohibiting discrimination against Section 8 tenants for purposes of meeting extended low-income housing commitments required to receive credits.