A bill to amend the Internal Revenue Code of 1986 to clarify the eligibility of certain expenses for the low-income housing credit.

Amends the Internal Revenue Code to include associated development costs in the basis of any building which is part of a low-income housing project when calculating the low-income housing credit.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2006 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2006

 To amend the Internal Revenue Code of 1986 to clarify the eligibility 
         of certain expenses for the low-income housing credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 12, 2002

  Mr. Graham (for himself, Mr. Hatch, Mr. Jeffords, Mr. Kerry and Mr. 
  Torricelli) 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 clarify the eligibility 
         of certain expenses for the low-income housing credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ELIGIBILITY OF CERTAIN EXPENSES FOR LOW-INCOME HOUSING 
              CREDIT.

    (a) In General.--Subsection (d) of section 42 of the Internal 
Revenue Code of 1986 (relating to low-income housing credit) is amended 
by adding at the end the following new paragraph:
            ``(8) Associated development costs included in basis.--
                    ``(A) In general.--Solely for purposes of this 
                section, associated development costs shall be taken 
                into account in determining the basis of any building 
                which is part of a low-income housing project to the 
                extent not otherwise so taken into account.
                    ``(B) Associated development costs.--For purposes 
                of subparagraph (A), the term `associated development 
                costs' means, with respect to any building, such 
                building's allocable share of--
                            ``(i) any cost incurred in preparing the 
                        site which is reasonably related to the 
                        development of the qualified low-income housing 
                        project of which the building is a part,
                            ``(ii) any fee imposed by a State or local 
                        government as a condition to development of 
                        such project,
                            ``(iii) any reasonable fee paid to any 
                        developer of such project,
                            ``(iv) any professional fee relating to any 
                        item includible in the basis of the building 
                        pursuant to this paragraph, and
                            ``(v) any cost of financing attributable to 
                        construction of the building (without regard to 
                        the source of such financing) which is required 
                        to be capitalized.''
    (b) Effective Date.--The amendments made by this section shall 
apply to--
            (1) housing credit dollar amounts allocated after December 
        31, 2001, and
            (2) buildings placed in service after such date to the 
        extent paragraph (1) of section 42(h) of the Internal Revenue 
        Code of 1986 does not apply to any building by reason of 
        paragraph (4) thereof, but only with respect to bonds issued 
        after such date.
                                 <all>