Sec. 70422. Permanent enhancement of low-income housing tax credit
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Section 42(h)(3)(I) is amended— by striking 2018, 2019, 2020, and 2021, and inserting beginning after December 31, 2025, , by striking 1.125 and inserting 1.12 , and by striking in the heading and inserting 2018, 2019, 2020, and 2021 . calendar years after 2025 The amendments made by this subsection shall apply to calendar years beginning after December 31, 2025. Section 42(h)(4) is amended by striking subparagraph
(B)and inserting the following: For purposes of subparagraph (A), paragraph
(1)shall not apply to any portion of the credit allowable under subsection
(a)with respect to a building if— 50 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), or 25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), and 1 or more of such obligations— are part of an issue the issue date of which is after December 31, 2025, and provide the financing for not less than 5 percent of the aggregate basis of such building and the land on which the building is located. . The amendment made by this subsection shall apply to buildings placed in service in taxable years beginning after December 31, 2025. In the case of any building with respect to which any expenditures are treated as a separate new building under section 42(e) of the Internal Revenue Code of 1986, for purposes of subparagraph (A), both the existing building and the separate new building shall be treated as having been placed in service on the date such expenditures are treated as placed in service under section 42(e)(4) of such Code.