[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2962 Introduced in Senate (IS)]
<DOC>
114th CONGRESS
2d Session
S. 2962
To amend the Internal Revenue Code of 1986 to reform the low-income
housing credit, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 19, 2016
Ms. Cantwell (for herself, Mr. Hatch, Mr. Schumer, and Mr. Wyden)
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 reform the low-income
housing credit, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Affordable Housing Credit
Improvement Act of 2016''.
SEC. 2. INCREASES IN STATE ALLOCATIONS.
(a) Phase-In of Increases.--
(1) In general.--Clause (ii) of section 42(h)(3)(C) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``$1.75'' in subclause (I) and
inserting ``the per capita dollar amount'', and
(B) by striking ``$2,000,000'' in subclause (II)
and inserting ``the minimum ceiling amount''.
(2) Per capita dollar amount; minimum ceiling amount.--
Subparagraph (I) of section 42(h)(3) of such Code is amended to
read as follows:
``(I) Per capita dollar amount; minimum ceiling
amount.--For purposes of this paragraph--
``(i) Per capita dollar amount.--The per
capita dollar amount is--
``(I) for calendar year 2016,
$2.35,
``(II) for calendar year 2017,
$2.59,
``(III) for calendar year 2018,
$2.82,
``(IV) for calendar year 2019,
$3.06,
``(V) for calendar year 2020,
$3.29, and
``(VI) $3.53 thereafter.
``(ii) Minimum ceiling amount.--The minimum
ceiling amount is--
``(I) for calendar year 2016,
$2,690,000,
``(II) for calendar year 2017,
$2,959,000,
``(III) for calendar year 2018,
$3,228,000,
``(IV) for calendar year 2019,
$3,497,000,
``(V) for calendar year 2020,
$3,766,000, and
``(VI) $4,035,000 thereafter.''.
(3) Modification of cost-of-living adjustment.--
Subparagraph (H) of section 42(h)(3) of such Code is amended--
(A) by striking ``2002'' in clause (i) and
inserting ``2016'',
(B) by striking ``the $2,000,000 and $1.75 amounts
in subparagraph (C)'' in clause (i) and inserting ``the
dollar amounts applicable to such calendar year under
clauses (i) and (ii) of subparagraph (I)'',
(C) by striking ``2001'' in clause (i)(II) and
inserting ``2015'',
(D) by striking ``$2,000,000'' in clause (ii)(I)
and inserting ``minimum ceiling'', and
(E) by striking ``$1.75'' in clause (ii)(II) and
inserting ``per capita dollar''.
(4) Effective date.--The amendments made by this subsection
shall apply to calendar years beginning after December 31,
2016.
(b) Permanent Increases.--
(1) In general.--Clause (ii) of section 42(h)(3)(C) of the
Internal Revenue Code of 1986, as amended by subsection (a)(1),
is amended--
(A) by striking ``the per capita dollar amount'' in
subclause (I) and inserting ``$3.53'', and
(B) by striking ``the minimum ceiling amount'' in
subclause (II) and inserting ``$4,035,000''.
(2) Conforming amendment.--Paragraph (3) of section 42(h)
of such Code is amended by striking subparagraph (I), as
amended by subsection (a)(2).
(3) Cost-of-living adjustment.--Subparagraph (H) of section
42(h)(3) of such Code, as amended by subsection (a)(3), is
amended--
(A) by striking ``the dollar amounts applicable to
such calendar year under clauses (i) and (ii) of
subparagraph (I)'' in clause (i) and inserting ``the
$4,035,000 and $3.53 amounts in subparagraph (C)'',
(B) by striking ``minimum ceiling'' in clause
(ii)(I) and inserting ``$4,035,000'', and
(C) by striking ``per capita dollar'' in clause
(ii)(II) and inserting ``$3.53''.
(4) Effective date.--The amendments made by this subsection
shall apply to calendar years beginning after December 31,
2021.
SEC. 3. AVERAGE INCOME TEST.
(a) In General.--Paragraph (1) of section 42(g) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``subparagraph (A) or (B)'' and inserting
``subparagraph (A), (B), or (C)'', and
(2) by inserting after subparagraph (B) the following new
subparagraph:
``(C) Average income test.--
``(i) In general.--The project meets the
minimum requirements of this subparagraph if 40
percent or more (25 percent or more in the case
of a project described in section 142(d)(6)) of
the residential units in such project are both
rent-restricted and occupied by individuals
whose income does not exceed the imputed income
limitation designated by the taxpayer with
respect to the respective unit.
``(ii) Special rules relating to income
limitation.--For purposes of clause (i)--
``(I) Designation.--The taxpayer
shall designate the imputed income
limitation of each unit taken into
account under such clause.
``(II) Average test.--The average
of the imputed income limitations
designated under subclause (I) shall
not exceed 60 percent of area median
gross income.
``(III) 10-percent increments.--The
designated imputed income limitation of
any unit under subclause (I) shall be
20 percent, 30 percent, 40 percent, 50
percent, 60 percent, 70 percent, or 80
percent of area median gross income.''.
(b) Conforming Amendments.--Subparagraph (C) of section 42(g)(2) of
the Internal Revenue Code of 1986 is amended--
(1) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively, and by moving such subclauses 2 ems to
the right,
(2) by moving the flush language 2 ems to the right,
(3) by striking ``For purposes of this paragraph, the'' and
inserting ``For purposes of this paragraph--
``(i) General rule.--Except as provided in
clause (ii), the'', and
(4) by adding at the end the following new clause:
``(ii) Special rule for average income
test.--In the case of a project with respect to
which the taxpayer elects the requirements of
subparagraph (C) of paragraph (1), the imputed
income limitation applicable to a unit is the
imputed income limitation designated with
respect to such unit under paragraph
(1)(C)(ii)(I).''.
(c) Effective Date.--The amendments made by this section shall
apply to elections made under section 42(g)(1) of the Internal Revenue
Code of 1986 after the date of the enactment of this Act.
SEC. 4. MINIMUM CREDIT RATE.
(a) In General.--Subsection (b) of section 42 of the Internal
Revenue Code of 1986 is amended--
(1) by redesignating paragraph (3) as paragraph (4), and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) Minimum credit rate.--In the case of any new or
existing building to which paragraph (2) does not apply and
which is placed in service by the taxpayer after December 31,
2015, the applicable percentage shall not be less than 4
percent.''.
(b) Effective Date.--The amendments made by this section shall
apply to buildings placed in service after December 31, 2015.
<all>