New Markets Tax Credit Expansion Act of 2009

New Markets Tax Credit Expansion Act of 2009 - Amends the Internal Revenue Code to require the Secretary of the Treasury to allocate in 2010 and 2011 new markets tax credit amounts to community development entities that provide investment capital or technical assistance for a distressed community. Defines "distressed community" as a county designated by the Secretary of the Treasury as: (1) having, during a specified period, a residential or commercial mortgage foreclosure rate of 110% or more of the national average, a decline in the average fair market value of housing of at least 20%, or an unemployment rate of 110% or more of the national average; (2) having more than 50% of its housing loans with a loan-to-value ratio of greater than 80%; or (3) being in a disaster area.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3811 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3811

To amend the Internal Revenue Code of 1986 to authorize the Secretary, 
     for a period of 2 years, to allocate a new markets tax credit 
  limitation to entities that serve or provide investment capital for 
                        distressed communities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 14, 2009

  Ms. Kosmas 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 authorize the Secretary, 
     for a period of 2 years, to allocate a new markets tax credit 
  limitation to entities that serve or provide investment capital for 
                        distressed communities.

    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 ``New Markets Tax Credit Expansion Act 
of 2009''.

SEC. 2. SPECIAL ALLOCATIONS RULES WITH RESPECT TO DISTRESSED 
              COMMUNITIES.

    (a) In General.--Section 45D(e) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(6) Distressed communities.--
                    ``(A) In general.--In case of allocations made 
                under subsection (f)(2) for calendar years 2010 and 
                2011, a low-income community shall include a distressed 
                community.
                    ``(B) Distressed community.--For purposes of 
                subparagraph (A)--
                            ``(i) In general.--The term `distressed 
                        community' means a county that the Secretary 
                        designates as--
                                    ``(I) having, for any month during 
                                the applicable period--
                                            ``(aa) a residential 
                                        mortgage foreclosure rate of 
                                        110 percent or more of the 
                                        national average,
                                            ``(bb) a commercial 
                                        mortgage foreclosure rate of 
                                        110 percent or more of the 
                                        national average,
                                            ``(cc) a decline in the 
                                        average fair market value of 
                                        housing of at least 20 percent, 
                                        or
                                            ``(dd) an unemployment rate 
                                        of 110 percent or more of the 
                                        national average,
                                    ``(II) being a county in which, for 
                                a calendar year during the applicable 
                                period, more than 50 percent of loans 
                                secured by housing had a loan-to-value 
                                ratio of greater than 80 percent, or
                                    ``(III) being in a disaster area 
                                (as defined in section 165(h)(3)(C)) as 
                                a result of a federally declared 
                                disaster that occurred during the 
                                applicable period.
                            ``(ii) Applicable period.--The term 
                        `applicable period' means--
                                    ``(I) in the case of subclauses (I) 
                                and (II) of clause (i), the period 
                                beginning on January 1, 2008, and 
                                ending on the date which is 2 years 
                                after the date of the enactment of the 
                                New Markets Tax Credit Expansion Act of 
                                2009, and
                                    ``(II) in the case of subclause 
                                (III) of clause (i), the 4-year period 
                                ending on the date which is 2 years 
                                after the date of the enactment of the 
                                New Markets Tax Credit Expansion Act of 
                                2009.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.
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