Amends the Internal Revenue Code to: (1) allow proceeds of qualified mortgage bonds to be used to refinance certain residential subprime loans issued between 2002 and 2008; (2) increase in 2008 limitations on issuance amounts for qualified mortgage bonds; and (3) exempt tax-exempt interest on qualified mortgage or veterans' mortgage bonds issued before 2011 from the alternative minimum tax.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5239 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5239
To amend the Internal Revenue Code of 1986 to provide that the proceeds
of qualified mortgage bonds may be used to provide refinancing for
subprime loans, to provide a temporary increase in the volume cap for
qualified mortgage bonds used to provide that refinancing, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2008
Mr. Porter (for himself and Ms. Schwartz) 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 that the proceeds
of qualified mortgage bonds may be used to provide refinancing for
subprime loans, to provide a temporary increase in the volume cap for
qualified mortgage bonds used to provide that refinancing, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. MODIFICATIONS AND INCREASED VOLUME CAP WITH RESPECT TO
QUALIFIED MORTGAGE BONDS USED TO REFINANCE SUBPRIME
LOANS.
(a) Use of Qualified Mortgage Bonds Proceeds for Subprime
Refinancing Loans.--Section 143(k) of the Internal Revenue Code of 1986
(relating to other definitions and special rules) is amended by adding
at the end the following new paragraph:
``(12) Special rules for subprime refinancings.--
``(A) In general.--In the case of a residence which
was originally financed by the mortgagor through a
qualified subprime loan, this section shall be applied
with the following modifications:
``(i) Subsection (i)(1) (relating to
mortgages must be new mortgages) shall not
apply.
``(ii) Subsection (a)(2)(D)(i) shall be
applied by substituting `12-month period' for
`42-month period' each place it appears.
``(iii) Subsection (d) (relating to 3-year
requirement) shall not apply.
``(iv) Subsection (e) (relating to purchase
price requirement) shall be applied by using
the market value of the residence at the time
of refinancing in lieu of the acquisition cost.
``(B) Qualified subprime loan.--The term `qualified
subprime loan' means an adjustable rate single-family
residential mortgage loan originated after December 31,
2001, and before January 1, 2008, that the bond issuer
determines would likely cause financial hardship to the
borrower if not refinanced.
``(C) Termination.--This paragraph shall not apply
to any bonds issued after December 31, 2010.''.
(b) Increase in Volume Cap for Qualified Mortgage Bonds Used to
Refinance Subprime Loans.--
(1) In general.--Subsection (d) of section 146 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(5) Increase for 2008 and set aside for qualified
mortgage bonds used to refinance qualified subprime loans.--
``(A) In general.--The State ceiling for each State
for calendar year 2008 (determined without regard to
this paragraph) shall be increased by an amount which
bears the same ratio to $15,000,000,000 as--
``(i) the State ceiling for such State for
such year (as so determined) bears to
``(ii) the aggregate of the State ceilings
for all States (as so determined) for such
year.
``(B) Set aside.--
``(i) In general.--Not less than an amount
equal to each State's increase in the State
ceiling under subparagraph (A) shall be
allocated solely for the purpose of qualified
mortgage issues which meets the requirement of
clause (ii).
``(ii) Requirement.--A qualified mortgage
issue meets the requirement of this clause if
all the financing provided by the issue is used
to refinance qualified subprime loans (as
defined in section 143(k)(12)(B)) to which
section 143(k)(12) applies.''.
(2) Carryforward of unused limitations.--Subsection (f) of
section 146 of such Code is amended by adding at the end the
following new paragraph:
``(6) Special rules for increased volume cap under
subsection (d)(5).--
``(A) In general.--No amount which is attributable
to the increase under subsection (d)(5) may be used--
``(i) for a carryforward purpose other than
issuing qualified mortgage bonds which meet the
requirement of subsection (d)(5)(B)(ii), and
``(ii) to issue any bond after December 31,
2010.
``(B) Ordering rules.--For purposes of subparagraph
(A), any carryforward of an issuing authority's volume
cap for calendar year 2008 shall be treated as
attributable to such increase to the extent of such
increase.''.
(c) Alternative Minimum Tax.--
(1) In general.--Clause (ii) of section 57(a)(5)(C) of the
Internal Revenue Code of 1986 is amended by striking ``shall
not include'' and all that follows and inserting ``shall not
include--
``(I) any qualified 501(c)(3) bond
(as defined in section 145), or
``(II) any qualified mortgage bond
(as defined in section 143(a)) or
qualified veterans' mortgage bond (as
defined in section 143(b)) issued after
December 31, 2007, and before January
1, 2011.''.
(2) Conforming amendment.--The heading for section
57(a)(5)(C)(ii) of such Code is amended by striking ``qualified
501(c)(3) bonds'' and inserting ``certain bonds''.
(d) Effective Date.--The amendments made by this section shall
apply to bonds issued after December 31, 2007.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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