[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6175 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6175
To amend the Internal Revenue Code of 1986 to modify the rehabilitation
credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 10, 2020
Mr. Blumenauer (for himself, Mr. Kelly of Pennsylvania, Mr. Kildee, and
Mr. LaHood) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the rehabilitation
credit.
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 ``Revitalizing Economies, Housing, And
Businesses Act of 2020'' or as the ``REHAB Act of 2020''.
SEC. 2. MODIFICATION OF REHABILITATION CREDIT.
(a) Reinstatement of Credit for Qualified Rehabilitated
Buildings.--
(1) In general.--Subsection (a) of section 47 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) Determination of Credit.--
``(1) In general.--For purposes of section 46, the
rehabilitation credit for any taxable year is the sum of--
``(A) in the case of any qualified rehabilitated
building other than a certified historic structure
which is placed in service during such taxable year, 10
percent of the qualified rehabilitation expenditures
with respect to such building, and
``(B) in the case of any qualified rehabilitated
building which is a certified historic structure which
is placed in service during such taxable year or any of
the 4 immediately preceding taxable years, the ratable
share for such taxable year.
``(2) Ratable share.--For purposes of paragraph (1)(B), the
ratable share for any taxable year is an amount equal to 20
percent of the qualified rehabilitation expenditures with
respect to the certified historic structure, as allocated
ratably to each of the 5 years to which paragraph (1)(B)
applies.''.
(2) Conforming amendments.--
(A) Section 47(c) of such Code is amended--
(i) in paragraph (1)--
(I) in subparagraph (A), by
amending clause (iii) to read as
follows:
``(iii) in the case of any building other
than a certified historic structure, in the
rehabilitation process--
``(I) 50 percent or more of the
existing external walls of such
building are retained in place as
external walls,
``(II) 75 percent or more of the
existing external walls of such
building are retained in place as
internal or external walls, and
``(III) 75 percent or more of the
existing internal structural framework
of such building is retained in place,
and'', and
(II) by redesignating subparagraphs
(B) and (C) as subparagraphs (C) and
(D), respectively, and by inserting
after subparagraph (A) the following
new subparagraph:
``(B) Building must be first placed in service
before 1936.--In the case of a building other than a
certified historic structure, a building shall not be a
qualified rehabilitated building unless the building
was first placed in service before 1936.'', and
(ii) in paragraph (2)(B), by amending
clause (iv) to read as follows:
``(iv) Certified historic structure, etc.--
Any expenditure attributable to the
rehabilitation of a certified historic
structure or a building in a registered
historic district, unless the rehabilitation is
a certified rehabilitation (within the meaning
of subparagraph (C)). The preceding sentence
shall not apply to a building in a registered
historic district if--
``(I) such building was not a
certified historic structure,
``(II) the Secretary of the
Interior certified to the Secretary
that such building is not of historic
significance to the district, and
``(III) if the certification
referred to in subclause (II) occurs
after the beginning of the
rehabilitation of such building, the
taxpayer certifies to the Secretary
that, at the beginning of such
rehabilitation, he in good faith was
not aware of the requirements of
subclause (II).''.
(B) Paragraph (4) of section 145(d) of such Code is
amended--
(i) by striking ``of section 47(c)(1)(B)''
each place it appears and inserting ``of
section 47(c)(1)(C)'', and
(ii) by striking ``section 47(c)(1)(B)(i)''
and inserting ``section 47(c)(1)(C)(i)''.
(b) Increase in Credit Rate for Qualified Rehabilitated Buildings
Other Than Certified Historic Structures.--Section 47(a)(1) of such
Code, as amended by subsection (a), is amended by striking ``10
percent'' and inserting ``15 percent''.
(c) Modification of Date Before Which Buildings Other Than
Certified Historic Structures Must Be Placed in Service.--Section
47(c)(1)(B) of such Code, as amended by subsection (a), is amended by
striking ``1936'' and inserting ``the calendar year which is 50 years
prior to the calendar year in which the building is placed in service
(within the meaning of subsection (b)(1))''.
(d) Requirement That Buildings Other Certified Historic Structures
Must Be Close to Public Transportation Centers.--Section 47(c)(1) of
such Code, as amended by subsection (a), is amended by redesignating
subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively,
and by inserting after subparagraph (B) the following new subparagraph:
``(C) Building must be close to public
transportation center.--
``(i) In general.--In the case of a
building other than a certified historic
structure, a building shall not be a qualified
rehabilitated building unless the building is
not further than one-half mile from at least
one of the following:
``(I) A location which provides
passenger boarding on a fixed guideway
(as defined in section 5302(7) of title
49, United States Code), commuter rail
passenger transportation (as defined in
section 24102(3) of title 49, United
States Code), or intercity rail
passenger transportation (as defined in
section 24102(4) of title 49, United
States Code).
``(II) A planned site for a
location described in subclause (I) if
the Secretary of Transportation has
issued a full funding grant agreement
with respect to such location under
section 5309(k)(2) of title 49, United
States Code.
``(ii) Identification of qualified areas.--
The Secretary, in consultation with the
Secretary of Transportation, shall identify
areas which are described in clause (i).''.
(e) Elimination of Certain Lodging Restrictions on Buildings Other
Than Certified Historic Structures.--Section 50(b)(2)(C) of such Code
is amended by striking ``certified historic structure'' and inserting
``qualified rehabilitated building''.
(f) Requirement That Buildings That Are Not Certified Historic
Structures and Not in a Registered Historic District Receive
Certification of Status.--Section 47(c)(1) of such Code, as amended by
subsections (a) and (d), is amended by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respectively, and by inserting
after subparagraph (C) the following new subparagraph:
``(D) Buildings that are not certified historic
structures and not in registered historic district must
receive certification of status.--
``(i) In general.--In the case of a
building which is neither a certified historic
structure nor located in a registered historic
district, such building shall not be a
qualified rehabilitated building unless the
Secretary of the Interior certifies to the
Secretary that such building is--
``(I) not a certified historic
structure, and
``(II) not in a registered historic
district.
``(ii) Determinations by national park
service.--To the maximum extent practicable,
the Secretary of the Interior shall make
certifications under clause (i) within 30 days
of the receipt of an application for such
certification.''.
(g) Credit for Certain Related Expenditures.--
(1) Credit for certain expenditures for public
infrastructure.--Section 47(c)(2) of such Code is amended by
adding at the end the following new subparagraph:
``(E) Treatment of certain expenditures for public
infrastructure.--
``(i) In general.--In the case of any
qualified rehabilitated building, expenditures
for qualified public infrastructure (or
improvements thereto) shall be treated for
purposes of this section as qualified
rehabilitation expenditures with respect to
such building if providing such qualified
public infrastructure is related to such
building and is required by any State or local
government.
``(ii) Limitation.--The amount treated as
qualified rehabilitation expenditures with
respect to any building under clause (i) shall
not exceed 25 percent of the qualified
rehabilitation expenditures with respect to
such building (determined after the application
of clause (i) and subparagraph (F)).
``(iii) Bonus credit amount.--In the case
of any amount treated as qualified
rehabilitation expenditures under clause (i),
subsection (a)(1) shall be applied by
substituting `25 percent' for `15 percent'.
``(iv) Qualified public infrastructure.--
For purposes of this subparagraph, the term
`qualified public infrastructure' means water
and sewer lines, electrical lines and
equipment, telecommunications lines and
equipment, and road and sidewalks, which are
located in the public right of way and are not
owned by the taxpayer.''.
(2) Credit for expansion and adjacent buildings with
respect to qualified rehabilitated buildings other than
certified historic structures.--Section 47(c)(2) of such Code,
as amended by paragraph (1), is amended by adding at the end
the following new subparagraph:
``(F) Treatment of building expansions and certain
adjacent buildings with respect to qualified
rehabilitated buildings other than certified historic
structures.--
``(i) In general.--In the case any
qualified rehabilitated building other than a
certified historic structure--
``(I) clause (iii) of subparagraph
(B) shall not apply, and
``(II) amounts described in
subparagraph (A)(i) which are in
connection with the rehabilitation or
construction of a qualified adjacent
building shall be treated as qualified
rehabilitation expenditures with
respect to such qualified rehabilitated
building.
``(ii) Limitation.--The amount treated as
qualified rehabilitation expenditures with
respect to any qualified rehabilitated building
under clause (i) shall not exceed 100 percent
of the qualified rehabilitation expenditures
with respect to such building (determined
without regard to clause (i) and subparagraph
(E)).
``(iii) Qualified adjacent building.--For
purposes of this subparagraph, the term
`qualified adjacent building' means, with
respect to any qualified rehabilitated
building, any building if such building and
such qualified rehabilitated building are both
on the same block.''.
(3) Related expenditures disregarded in determining if
rehabilitation is substantial.--Section 47(c)(1)(E), as
redesignated by subsections (a), (d), and (f), is amended by
adding at the end the following new clause:
``(iv) Certain expenditures disregarded.--
Amounts which are otherwise treated as
qualified rehabilitation expenditures by reason
of subparagraph (E) or (F) of paragraph (2)
shall not be treated as qualified
rehabilitation expenditures for purposes of
this subparagraph.''.
(h) Bonus Credit for Rent-Restricted Housing Units.--Section 47 of
such Code is amended by adding at the end the following new subsection:
``(e) Bonus Credit for Rent-Restricted Housing Units.--
``(1) In general.--Subsection (a)(1) shall be applied by
substituting `25 percent' for `15 percent' with respect to so
much of the qualified rehabilitation expenditures (determined
without regard to subsection (c)(2)(E)) with respect to any
qualified rehabilitated building as are properly allocable to
residential units which are--
``(A) rent-restricted (within the meaning of
section 42(g)(2)), and
``(B) occupied by individuals whose income is 100
percent or less of area median gross income (within the
meaning of section 42(g)(1)).
``(2) Failure to maintain rent-restriction subject to
recapture.--In the case of any failure to maintain any
residential unit taken into account under paragraph (1) as a
residential unit described in such paragraph during the
recapture period, section 50(a) shall apply as though the
qualified rehabilitated building ceased to be investment credit
property except that the recapture period and recapture
percentage shall be determined under paragraph (3) and in
determining the increase in tax under such section in lieu of
reducing the credit determined under this section to zero such
credit shall be determined without regard to paragraph (1). The
application of section 50(a) with respect to a building as
described in this paragraph shall not prevent the reapplication
of such section to such building if such building is disposed
of or otherwise ceases to be investment credit property and the
tax imposed under such section by reason of such reapplication
shall be reduced by the tax previously imposed as described in
this paragraph.
``(3) Recapture period; recapture percentage.--For purposes
of this subsection--
``(A) Recapture period.--The term `recapture
period' means the 10-year period beginning on the date
the building is placed in service.
``(B) Recapture percentage.--The term `recapture
percentage' means--
``(i) in the case of a failure described in
paragraph (2) that occurs during the first year
of the recapture period, 100 percent, and
``(ii) in the case of such a failure which
occurs during any subsequent year of the
recapture period, the percentage which is 10
percentage points less than the percentage
which applied for the previous year (as
determined under this subparagraph).''.
(i) Public Reporting.--Section 47 of such Code, as amended by
subsection (h), is amended by adding at the end the following new
subsection:
``(f) Public Reporting With Respect to Qualified Rehabilitated
Buildings Other Than Certified Historic Structures.--
``(1) In general.--No credit shall be allowed under this
section with respect to any qualified rehabilitated building
other than a certified historic structure unless the taxpayer
submits to the Secretary a report (at such time and in such
manner as the Secretary may provide) which includes the
information described in paragraph (2).
``(2) Information.--The report described in paragraph (1)
shall include the following:
``(A) The name of the building and, if applicable,
the name of the project of which such building is a
part.
``(B) Each of the following with respect to the
location of the building: city, State, zip code, 2010
census tract (and whether such tract is metropolitan
statistical area).
``(C) The total cost of the building and, if
applicable, the total cost of the project of which such
building is a part.
``(D) The total amount of credit allowed under this
section with respect to such building and, if
applicable, with respect to the project of which such
building is a part.
``(E) The year the building is placed in service.
``(F) The number of housing units in the building
and number of such housing units which are rent-
restricted (within the meaning of section 42(g)(2))
``(G) The primary purpose of the building.
``(3) Reports made publicly available.--The Secretary shall
ensure that reports made under paragraph (1) are made available
to the public.''.
(j) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
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