Community Revitalization Tax Act of 1988

Community Revitalization Tax Act of 1988 - Amends Internal Revenue Code income tax accounting rules limiting passive activity losses and credits to eliminate the disallowance of credits in this context.

Revises the limitation on the general business credit to allow a maximum annual credit equal to the first $20,000 of an individual taxpayer's income tax liability plus 20 percent of any excess liability.

Amends provisions that reduce the investment credit base by nonqualified nonrecourse financing amounts to apply them to certain qualified rehabilitation property as if the property were subject to the at-risk rules associated with the low-income housing credit.

Permits a tax-exempt organization to offset the amount of any general business credit against its unrelated business income tax liability.

Revises the definition of "qualifying distribution" for purposes of the tax on a private foundation's failure to distribute income. Includes as qualifying any amount of interest foregone on a below-market loan made to a tax-exempt organization to operate a qualified low-income building.

Includes as a qualified rehabilitation expenditure for tax credit purposes any expenditure in connection with the rehabilitation of a low-income building leased to a tax-exempt entity.

Permits a pooled income fund having substantially all of its assets invested exclusively in qualified low-income buildings to have one or more corporations as income beneficiaries, each with a 20-year life.