Rental Construction Incentive Tax Act of 1980

Rental Construction Incentive Tax Act of 1980 - Amends the Internal Revenue Code to exempt low-income housing and qualified rental housing construction from the amortization requirements applicable to real property construction period interest and taxes. Defines "qualified rental housing" as housing which is subject to a 30 year covenant binding its owners to maintain such property as residential rental property and which is located in an area having an average vacancy rate for rental housing of less than five percent in the year prior to such rental housing construction. Requires qualified rental housing which contains more than three dwelling units to provide for at least 30 percent occupancy by families of low or moderate income and to limit to 30 percent the number of childless individuals occupying such rental housing.

Reduces the required amortization period for construction period interest and taxes with respect to qualified residential rental property (property in areas with a less than five percent vacancy rate) from ten to three years.

Permits straight line depreciation, based on a ten-year period, for residential rental property.

Qualifies low and moderate income rental housing for preferential tax treatment of recaptured depreciation.