Sec. 504. Use of mortgage interest savings to increase low-income housing tax credit

336 words·~2 min read·/bill/115/hr/4074/ih/section-504

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Subclause

(I)of section 42(h)(3)(C)(ii) of the Internal Revenue Code of 1986 is amended by striking $1.75 and inserting $2.70 . Subparagraph

(H)of section 42(h)(3) of such Code is amended to read as follows: In the case of a calendar year after 2016, the $2,000,000 amount in subparagraph

(C)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2001 for calendar year 1992 in subparagraph

(B)thereof. In the case of a calendar year after 2017, the $2.70 amount in subparagraph

(B)thereof. In the case of the $2,000,000 amount, any increase under clause

(i)which is not a multiple of $5,000 shall be rounded to the next lowest multiple of $5,000. In the case of the $2.70 amount, any increase under clause

(ii)which is not a multiple of 5 cents shall be rounded to the next lowest multiple of 5 cents. . Clause

(i)of section 42(d)(5)(B) of such Code is amended by striking and at the end of subclause (I), by striking the period at the end of subclause

(II)and inserting , and , and by adding at the end the following: in the case of a building containing units which are designated to serve extremely low-income households by the State housing credit agency and require the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project, the eligible basis of such building determined by the portion of such units shall be 150 percent of such basis determined without regard to this subparagraph. . The amendments made by this section shall apply to allocations made in calendar years beginning after December 31, 2016.