Sec. 203. Buildings designated to serve extremely low-income households
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/bill/118/s/680/is/section-203·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 42(h) of the Internal Revenue Code of 1986 is amended— by redesignating paragraphs (6), (7), and
(8)as paragraphs (7), (8), and (9), respectively, and by inserting after paragraph
(5)the following new paragraph: Not more than 92 percent of the portion of the State housing credit ceiling amount described in paragraph (3)(C)(ii) for any State for any calendar year shall be allocated to buildings other than buildings described in subparagraph (B). A building is described in this subparagraph if 20 percent or more of the residential units in such building are rent-restricted (determined as if the imputed income limitation applicable to such units were 30 percent of area median gross income) and are designated by the taxpayer for occupancy by households the aggregate household income of which does not exceed the greater of— 30 percent of area median gross income, or 100 percent of an amount equal to the Federal poverty line (within the meaning of section 36B(d)(3)). A building shall not be treated as described in subparagraph
(B)if such building is a part of a qualified low-income housing project with respect to which the taxpayer elects the requirements of subsection (g)(1)(C). . Section 42(b)(4)(C) of such Code is amended by striking (h)(7) and inserting (h)(8) . Paragraph
(5)of section 42(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: In the case of any building— which is described in subsection (h)(6)(B), and which is designated by the housing credit agency as requiring 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, subparagraph
(B)shall not apply to the portion of such building which is comprised of residential units described in subsection (h)(6)(B) (determined in a manner similar to the unit fraction under subsection (c)(1)(C)), and the eligible basis of such portion of the building shall be 150 percent of such basis determined without regard to this subparagraph.
(i)applies For any calendar year, no more than 13 percent of the portion of the State housing credit ceiling described in subsection (h)(3)(C)(ii) shall be allocated to buildings to which clause
(i)applies. In the case of any building which is financed by an obligation described in subsection (h)(4), clause
(i)shall not apply unless— the State in which the issuing authority issuing such obligation is located designates such obligation as an obligation to which this subparagraph applies, and the aggregate face amount of obligations designated under item
(aa)by such State in the calendar year during which such obligation is issued does not exceed 8 percent of the State ceiling of such State under section 146(d)(1) for such year. . The amendments made by this section shall apply to allocations of housing credit dollar amount after December 31, 2023, and to buildings that are described in section 42(h)(4)(B) taking into account only obligations that are part of an issue the issue date of which is after December 31, 2023.