To amend the Internal Revenue Code of 1986 to provide an exemption from the recapture provisions of the low-income housing credit for certain recipients of Federal multi-family housing loans.

Amends the Internal Revenue Code to provide an exemption from the recapture provisions of the low-income housing credit when the disposition of a building is made by a taxpayer who received a federal multi-family housing loan and the disposition is to a tax-exempt organization which will continue to operate the building as a qualified low-income building.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4712 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4712

To amend the Internal Revenue Code of 1986 to provide an exemption from 
 the recapture provisions of the low-income housing credit for certain 
           recipients of Federal multi-family housing loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 9, 2002

   Mr. Watkins of Oklahoma 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 provide an exemption from 
 the recapture provisions of the low-income housing credit for certain 
           recipients of Federal multi-family housing loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXEMPTION FROM LOW-INCOME HOUSING CREDIT RECAPTURE 
              PROVISIONS FOR CERTAIN RECIPIENTS OF FEDERAL MULTI-FAMILY 
              HOUSING LOANS.

    (a) In General.--Section 42(j)(4) of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
                    ``(G) No recapture on certain dispositions.--In the 
                case of a disposition of a building or an interest 
                therein the taxpayer shall be discharged from liability 
                for any additional tax under this subsection by reason 
                of such disposition if--
                            ``(i) the taxpayer received a loan which 
                        was made under section 515 of the Housing Act 
                        of 1949 with respect to such building,
                            ``(ii) such disposition is to an 
                        organization described in section 501(c)(3) and 
                        exempt from tax under section 501(a), and
                            ``(iii) it is reasonably expected that such 
                        building will continue to be operated as a 
                        qualified low-income building for the remaining 
                        compliance period with respect to such 
                        building.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions made after the date of the enactment of this Act.
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