Federal Legislation 2007-2008

Enacted Legislation

Disaster Relief

H.R. 1424 Emergency Economic Stabilization Act of 2008
Introduced March 9, 2008 by Rep. Patrick Kennedy
Provides authority for the federal government to purchase and insure certain types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers. Also provides a patch for the alternative minimum tax and extends the production tax credit (PTC) for wind energy for one year, the investment tax credit (ITC) for solar energy projects for eight years and the new markets tax credit (NMTC) for one year. Allows states to allocate an additional $8 per capita in low-income housing tax credit (LIHTC) amounts in 2008, 2009 and 2010 in the Midwestern Disaster Area. Also allows Texas and Louisiana to allocate $16 per capita in additional LIHTC amounts in 2008, 2009 and 2010 based on the populations of Brazoria, Chambers, Galveston, Jefferson and Orange counties in Texas and Calcasieu and Cameron parishes in Louisiana.

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Senate Finance Committee Staff Summary of Energy, Extenders, AMT and Disaster Tax Provisions in the Emergency Economic Stabilization Act of 2008 (October 1, 2008)

Notice 2008-109: Midwestern and Hurricane Ike Disaster Areas and Population Estimates

Joint Committee on Taxation Technical Explanation of the Tax Provisions of H.R. 1424 (October 1, 2008)

Statement of Administration Policy Regarding H.R. 1424— Emergency Economic Stabilization Act of 2008, Energy Improvement and Extension Act of 2008, and Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (October 3, 2008)

H.R. 3221 Foreclosure Prevention Act of 2008 (Public Law No: 110-289)
To provide needed housing reform and for other purposes.

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Joint Committee on Taxation Estimated Budget Effects Of The Tax Provisions Contained In H.R. 3221, The "Housing And Economic Recovery Act Of 2008," Scheduled For Consideration By The House Of Representatives On July 23, 2008

Joint Committee on Taxation Technical Explanation Of Division C Of H.R. 3221, The "Housing Assistance Tax Act Of 2008" As Scheduled For Consideration By The House Of Representatives On July 23, 2008

Baucus-Grassley Tax Provisions

H.R. 5140 Economic Stimulus of 2008
Introduced January 28, 2008 by Rep. Nancy Pelosi
Signed by President Bush on February 13, 2008
Among other things, allows owners of LIHTC property placed in service in 2008 to deduct up to 50 percent of the cost of personal property and land improvements, and a portion of the cost land improvements placed in service in 2009 may also be eligible for the 50 percent deduction.

Novogradac & Company LLP Analysis: Availability of the 50% depreciation provision to LIHTC property owners

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GO Zone

H.R. 2206 U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (Public Law No: 110-28)
Introduced May 8, 2007 By Rep. David Obey
Signed into law May 25, 2007
Supplemental appropriations for the fiscal year ending September 30, 2007, and includes several GO Zone LIHTC provisions. (GO Zone Tax Incentives provisions in Subpart B, beginning on page 83 of text.)

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HUD

H.R. 1675 Preservation Approval Process Improvement Act of 2007 (Public Law No: 110-35)
Introduced March 26, 2007 by Rep. Melissa Bean
Signed into law June 15, 2007
Addresses concerns with the filing process for HUD Form 2530, Previous Participation Certification.

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H.J. Res. 20 Revised Continuing Appropriations Resolution, 2007 (Public Law No: 110-5)
Introduced January 31, 2007 Rep. David Obey
Signed into law February 15, 2007
Continuing appropriations for the fiscal year 2007.

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Section 470 Technical Correction

H.R. 4839, Tax Technical Corrections Act of 2007
Introduced December 19, 2007 by Rep. Charles Rangel
Signed by President December 29, 2007
Makes corrections to inadvertent mistakes as well as some changes regarding clarifications or interpretations of law. Amends Section 470(a)(2); Section 470 does not apply if taxpayers have tax-exempt use property solely because a partnership has a tax-exempt partner.

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Student Eligibility Rules

H.R. 3648, Mortgage Forgiveness Debt Relief Act of 2007 (Public Law No: 110-142)
Introduced September 25, 2007 by Rep. Charles Rangel
Signed by President December 20, 2007
Among other things, amends Section 42 to allow certain full-time students who are single parents and their children to live in housing units eligible for the low-income housing tax credit provided that their children are not dependents of another individual (other than a parent of such children).

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Introduced Legislation

H.R. 6049, Renewable Energy and Job Creation Act of 2008 (As Passed by House on May 21, 2008)
Introduced May 14, 2008 by Rep. Charles Rangel
The bill extends for one year (through 2009) the new markets tax credit, permitting a $3.5 billion maximum annual amount of qualified equity investments. This proposal is estimated to cost $1.315 billion over 10 years. Would also provide almost $20 billion of tax incentives for investment in renewable energy, carbon capture and sequestration demonstration projects, energy efficiency and conservation. Senate amendment, passed on Sept. 24, includes Midwestern Disaster Relief language, which provides $8 per capita in additional LIHTC cap for certain Midwestern states.

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Press Release and Summary: Senate Passes Baucus-Grassley Clean Energy Incentives, Extensions of Expiring Tax Cuts, Disaster Relief and Protection from Alternative Minimum Tax (September 23, 2008)

S. 3322 Midwestern Tax Relief Act of 2008
Introduced by Rep. Charles Grassley on July 23, 2008
To provides tax relief for victims of the Midwestern disaster in Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska and Wisconsin. The proposals are applicable to floods, severe storms, and tornadoes that are declared by FEMA on or after May 20, 2008, and before August 1, 2008. Disasters that occur prior to this period qualify for tax relief if the FEMA disaster declaration occurs during this period.

Summary of Provisions

Committee on Finance Estimated Revenue Effects

Green Housing

H.R. 6078, Green Resources for Energy Efficient Neighborhoods Act of 2008
Introduced by Rep. Ed Perlmutter on May 15, 2008
To encourage energy efficiency and conservation and development of renewable energy sources for housing, commercial structures, and other buildings, and to create sustainable communities

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Materials from House Financial Services Committee Hearing on Green Resources for Energy Efficient Neighborhoods Act

Housing Stimulus

H.R. 5818 Neighborhood Stabilization Act of 2008
Introduced April 16, 2008 by Rep. Maxine Waters
Would establish a $15 billion, HUD-administered loan and grant program for the purchase and rehabilitation of owner-vacated, foreclosed homes.

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House Financial Services Summary

LIHTC Coordination

Draft Housing Tax Credit Coordination Act of 2008
may be introduced as an amendment to LIHTC modernization bill
Includes several provisions intended to better coordinate federal housing programs with the Low-Income Housing Tax Credit program.

Summary of provisions (as of March 13, 2008)

LIHTC Modernization

H.R. 5270 Housing Assistance Tax Act of 2008
Introduced April 8, 2008 by Rep. Charles Rangel
To provide tax credits to first-time homebuyers, improve access to low-income housing and allow families to deduct property taxes, as well as other provisions to modify the low-income housing tax credit (LIHTC). The bill provides a temporary increase in LIHTC authority and includes a number of provisions to simplify the credit. The bill would increase the current limit of the credit from $2 per capita by an additional 20 cents. The legislation would also temporarily increase mortgage revenue bond authority to allow for the issuance of an additional $10 billion of tax-exempt bonds to refinance subprime loans, provide loans to first-time homebuyers and to finance the construction of low-income rental housing.

Affordable Housing Tax Credit Coalition Response in Support of Housing Assistance Tax Act of 2008 (April 22, 2008)

White House Letter to House Speaker Nancy Pelosi advocating against the Housing Assistance Tax Act of 2008 (April 9, 2008)

Summary of the Housing Assistance Tax Act of 2008 (April 9, 2008) 

Description of the Chairman's Amendement to H.R. 5720 (April 9, 2008)

Estimated Revenue Effects (April 24, 2008)

JCT Description of the Housing Assistance Tax Act (April 9, 2008)

Webcast of Ways and Means Committee Hearing on April 9, 2008

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S. 2666 To Amend the Internal Revenue Code of 1986 to Encourage Investment in Affordable Housing
Introduced February 25, 2008 by Sen. Maria Cantwell
LIHTC Modernization package that would, among other things, change the name of the program from “Low-Income Housing Tax Credit” to the “Affordable Housing Tax Credit;” change the standard for setting LIHTC credit percentages; create a single 9 percent tax credit for all projects except those financed by tax-exempt bonds; provide state allocating agencies the authority to award a 30 percent basis boost for properties that meet state-specific geographic or income targeting; and revise the housing credit scattered site rule to allow for mixed-income development, thereby allowing separate ownership of housing credit and market-rate units.

Cantwell's Introductory Statement and Text of Bill (as entered into the Congressional Record)

Explanation of Provisions

Template of Letter Supporting S. 2666

Section 8 Reform

S. 2684 Section 8 Voucher Reform Act of 2008
Introduced March 3, 2008 by Sen. Chris Dodd
Would improve housing voucher assistance by ensuring more effective and efficient administration, helping to attract landlords by stabilizing funding, encouraging employment for renters, and ensuring the safety and adequacy of the housing, among other provisions.

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Ceiling Increase

H.R. 3920 Trade and Globalization Assistance Act of 2007
Introduced October 22, 2007 By Rep. Charles Rangel
The draft bill would expand TAA coverage to more workers, including service workers, and substantially improve the program’s training opportunities and associated health care benefits. The bill also creates new benefits and tax incentives for industries and communities that have been hit hard by trade, including a small increase in the state LIHTC ceiling of states with manufacturing redevelopment zones. Finally, the legislation would promote long-needed reforms to the unemployment insurance system, recognizing that all unemployed workers, and not just those who lose their jobs because of trade, deserve our support in getting back on their feet.

Summary of Tax Provisions

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Economic Substance

H.R. 2345 Abusive Tax Shelter Shutdown and Taxpayer Accountability Act of 2007
Introduced May 16, 2007 by Rep. Lloyd Doggett
Amends the Internal Revenue Code to revise or add provisions relating to tax shelter activity, including a provision to define "economic substance" for purposes of evaluating tax shelter transactions.

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Exit Tax Relief

S. 1318 Affordable Housing Preservation Act of 2007
Introduced May 7, 2007 by Sen. Charles Schumer
Amends the Internal Revenue Code to exclude from gross income gain from the sale or exchange of certain multifamily housing property to a housing agency or related organization (preservation entity) that agrees to maintain certain affordability and use restrictions for such property. Limits the excludable amount of such gain to the depreciation adjustments for such property.

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H.R. 1491 Affordable Housing Preservation Tax Relief Act of 2007
Introduced March 13, 2007 by Rep. Artur Davis
Amends the Internal Revenue Code to exclude from gross income gain from the sale or exchange of certain multifamily housing property to a housing credit agency or related organization (preservation entity) that agrees to maintain certain affordability and use restrictions for such property. Limits the excludable amount of such gain to the depreciation adjustments for such property.

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GO Zone

S. 1180 Workforce Housing Construction for the GO Zone Act of 2007
Introduced April 20, 2007 by Sen. Mary Landrieu
Among other provisions, amends the Internal Revenue Code to extend through 2010 the placed-in-service date requirement for buildings in the Gulf Opportunity Zone (GO Zone) for purposes of the low-income housing tax credit and provide a basis adjustment for low-income housing projects in the GO Zones.

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H.R. 1591 U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act
Introduced March 20, 2007 by Rep. David Obey
Supplemental appropriations for fiscal year 2007, which includes a $4.8 billion small business tax package that includes an extension until December 31, 2010 of the placed-in-service deadline for low-income housing tax credits (LIHTCs) in the Gulf Opportunity (GO) Zone.

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H.R. 1562 Katrina Housing Tax Relief Act of 2007
Introduced March 19, 2007 by Rep. Charles Rangel
Among other provisions, amends the Internal Revenue Code to: qualify certain buildings in the Gulf Opportunity Zone, the Rita Go Zone, and the Wilma GO Zone (GO Zones) placed in service before 2011 for the housing tax credit without regard to certain otherwise applicable restrictions if such buildings receive (or received) a state or local housing credit allocation in 2006, 2007, or 2008.

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Chairman's Mark of H.R. 1562 (March 21, 2007)

Hulshof Amendment to H.R. 1562
Requires the Government Accountability Office (GAO) to issue a report examining how the tax incentives are being utilized by state and local governments within one year of the bill’s enactment.

Joint Committee on Taxation Description of the Katrina Housing Tax Relief Act of 2007 (JCX-12-07)

Joint Committee on Taxation Estimated Revenue Effects of the Katrina Housing Tax Relief Act of 2007 (JCX-13-07)

H.R. 1227 Gulf Coast Hurricane Housing Recovery Act of 2007
Introduced February 28, 2007 by Rep. Maxine Waters
Assists in the provision of affordable housing to low-income families affected by Hurricane Katrina.

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H.R. 730 To Provide Funds to Pay for Utility Costs for Temporary Housing for Hurricane Evacuees
Introduced January 30, 2007 by Rep. Bobby Jindal
Provides funds to certain state and local governments to pay for utility costs resulting from the provision of temporary housing units to evacuees from Hurricane Katrina and other hurricanes of the 2005 season.

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GSE Reform

H.R. 1427 Federal Housing Finance Reform Act of 2007
Introduced March 9, 2007 by Rep. Barney Frank
Reforms the regulation of the housing-related government-sponsored enterprises. Creates an Affordable Housing Fund estimated by the Congressional Budget Office to be valued at $600 million a year.

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Historic Tax Credits

H.R. 1043 Community Restoration and Rehabilitation Act of 2007
Introduced February 14, 2007 by Rep. Stephanie Tubbs-Jones
Makes changes to the historic rehabilitation tax credit program to allow it to be used more effectively with the LIHTC.

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S. 584 Community Restoration and Revitalization Act of 2007
Introduced February 14, 2007 by Sen. Blanche L. Lincoln
Makes changes to the historic rehabilitation tax credit program to allow it to be used more effectively with the LIHTC.

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H.R. 610 Preserve Historic America Act of 2007
Introduced January 22, 2007 by Rep. Russ Carnahan
Expands the incentives for the rehabilitation of older buildings, including owner-occupied residences by, among other things, increasing from 20 to 25% the tax credit rate for certified historic structure rehabilitation expenditures.

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HUD, Section 8, HOPE VI

H.R. 3126 HOPE VI Improvement and Reauthorization Act of 2007
Introduced July 23, 2007 by Rep. Maxine Waters
Reauthorizes the HOPE VI program for revitalization of severely distressed public housing.

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H.R. 1982 Rural Housing and Economic Development Improvement Act of 2007
Introduced April 20, 2007 by Rep. Ruben Hinojosa
Authorizes the Secretary of HUD, through the Office of Rural Housing and Economic Development, to implement an assistance program to support innovative housing and economic development activities in rural areas.

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H.R. 1980 Housing Assistance Council Authorization Act of 2007
Introduced April 20, 2007 by Rep. Ruben Hinojosa
Authorizes the Secretary of HUD to provide financial assistance to the Housing Assistance Council to develop the capacity of community-based housing development organizations to undertake community development and affordable housing projects and programs in rural areas.

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S. 1084 Homes for Heroes Act of 2007
Introduced April 10, 2007 by Sen. Barack Obama
Establishes in the Department of Housing and Urban Development (HUD) a Special Assistant for Veterans Affairs to ensure veteran access to HUD housing and homeless assistance programs and provide housing assistance for very low-income veterans.

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H.R. 1851 Section 8 Voucher Reform Act of 2007
Introduced March 29, 2007 by Rep. Maxine Waters
Makes a number of changes to the Section 8 voucher and project-based and public housing programs to expand rental assistance opportunities, improve program efficiencies, and encourage family self-sufficiency.

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H.R. 202 Housing Authority Funding Fairness Act of 2007
Introduced January 4, 2007 by Rep. Steven Rothman
Authorizes the renewal of tenant-based rental assistance vouchers under Section 8.

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H.R. 127 FHA Multifamily Loan Limit Adjustment Act of 2007
Introduced January 4, 2007 by Rep. Barney Frank
Increases the mortgage amount limits applicable to FHA mortgage insurance for multifamily housing located in high-cost areas.

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S. 131 Mark-to-Market Extension Act of 2007
Introduced January 4, 2007 by Sen. Wayne Allard
Extends Mark-to-Market Program for 5 years (through 2011).

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LIHTC Program

H.R. 3260 LIHTC Modernization
Introduced July 31, 2007 by Rep.
Modifies regulations to prevent rental, operating assistance and interest rate reductions designed to reduce LIHTC property cash flows needs from reducing basis.

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S. 1241 Clarifying Student Definition for LIHTC Eligibility
Introduced April 26, 2007 by Sen. Chuck Grassley
Amends the Internal Revenue Code to allow certain full-time students who are single parents and their children to live in housing units eligible for the low-income housing tax credit provided that their children are not dependents of another individual (other than a parent of such children).

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H.R. 1481 Military Access to Housing Act of 2007
Introduced March 12, 2007 by Rep. Jerry Moran
Amends the Internal Revenue Code to exclude military basic housing allowances from income for purposes of establishing eligibility for housing in qualified residential rental projects.

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S. 839 Military Access to Housing Act of 2007
Introduced March 12, 2007 by Sen. Pat Roberts
Amends the Internal Revenue Code to exclude military basic housing allowances from income for purposes of establishing eligibility for housing in qualified residential rental projects.

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Miscellaneous

H.R. 2895 National Affordable Housing Trust Fund Act of 2007
Introduced June 28, 2007 by Rep. Barney Frank
Establishes a National Affordable Housing Trust Fund to provide for the construction, rehabilitation, and preservation of decent, safe, and affordable housing for low-income families.

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H.R. 2834 Carried Interest Taxation
Introduced June 22, 2007 by Rep. Sander Levin
Amends the Internal Revenue Code to treat income received by partners for performing investment management services as ordinary income received for the performance of services.

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H.R. 1259 High Performance Buildings Act of 2007
Introduced March 1, 2007 by Rep. Adam Smith
Among other things, requires that state and local housing strategies include a description of the jurisdiction's strategies to encourage sustainable development for affordable housing.

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H.J. Res 32 Amending to the Constitution of the United States respecting the right to decent, safe, sanitary and affordable housing
Introduced February 13, 2007 by Rep. Jesse L. Jackson, Jr.
Proposes an amendment to the Constitution of the United States that states States that all U.S. citizens shall have a right to decent, safe, sanitary and affordable housing.

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H.R. 655 Pathway to Preservation Act of 2007
Introduced January 24, 2007 by Rep. Nydia Velazquez
Provides for more accurate valuation of multifamily housing properties, and loans for such properties, that are sold at a discount by HUD to facilitate acquisition of such properties that maintains the properties as affordable housing.

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Tax Patents

S. 2369 To Amend Title 35 of the United States Code to provide that certain tax planning inventions are not patentable, and for other purposes
Introduced November 15, 2007 by Sen. Max Baucus
Prohibits patenting of tax planning inventions.

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Press Release: Senators Seek to Prohibit Patenting of Tax Strategies

H.R. 1908 Patent Reform Act of 2007
Introduced April 18, 2007 by Rep. Howard Berman
Amends title 35, United States Code, to provide for patent reform.

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Tax Shelters

H.R. 2136 Stop Tax Haven Abuse Act 
Introduced May 3, 2007 by Rep. Lloyd Doggett
Restricts the use of offshore tax havens and abusive tax shelters.

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