Housing Assistance Tax Act of 2008

To amend the Internal Revenue Code of 1986 to provide assistance for housing.

4/24/2008--Reported to House amended. Housing Assistance Tax Act of 2008 - Title I: Housing Tax Incentives - Subtitle A: Multi-Family Housing - Part 1: Low-Income Housing Tax Credit - Amends Internal Revenue Code provisions relating to the low-income housing tax credit and tax-exempt bond rules for financing low-income housing projects.

(Sec. 101) Increases in 2008 and 2009 the per capita amount of the low-income housing tax credit allocable by each state.

(Sec. 102) Modifies rules for the low-income housing tax credit to:
(1) eliminate the distinction between new and existing buildings for purposes of such credit;
(2) establish a minimum credit rate for non-federally subsidized buildings;
(3) set forth criteria for designating a building as federally subsidized and for considering federal assistance in calculating such credit; and
(4) revise basis rules for certain state buildings and community service facilities.

(Sec. 104) Repeals:
(1) the prohibition against providing low-income housing tax credits to properties receiving moderate rehabilitation assistance under the Housing Act of 1937; and
(2) bond posting requirements relating to the disposition of buildings for which a low-income housing tax credit was claimed.
Requires states to consider the energy efficiency of a low-income housing project and its historical nature in allocating credit amounts among such projects.
Extends eligibility for the low-income housing tax credit to students who receive foster care assistance under title IV (Grants to States for Aid and Services to Needy Families with Children and for Child-Welfare Services) of the Social Security Act. Part 2: Modifications to Tax-Exempt Housing Bond Rules -
(Sec. 111) Modifies rules pertaining to tax-exempt housing bonds to:
(1) permit treatment of certain residential rental project bonds as refunding bonds regardless of any change in the obligors of such bonds; and
(2) allow continued eligibility for low-income housing tax benefits with respect to new tenants, students, and single-room occupancies. Part 3: Reforms Related to the Low-Income Housing Credit and Tax-Exempt Housing Bonds -
(Sec. 121) Requires that median gross income levels established for calendar years after 2008 for determining eligibility for low-income housing tax benefits remain at the same level as preceding calendar years.
(Sec. 122) Waives annual income recertification requirements for residents of low-income rental projects whose incomes do not exceed applicable limits.
Subtitle B: Single Family Housing -
(Sec. 131) Allows first-time homebuyers a tax credit for 10% of the purchase price of a principal residence. Limits the dollar amount of such credit to $7,500.

(Sec. 132) Allows individual taxpayers who claim the standard deduction an additional deduction from gross income for state and local real property taxes. Subtitle C: General Provisions -
(Sec. 141) Authorizes in 2008 an additional $10 billion in the volume cap for issuing tax-qualified bonds for certain residential rental projects.
Allows until December 31, 2010, the use of mortgage bond proceeds to refinance certain subprime residential mortgage loans made between 2002 and 2008.

(Sec. 142) Exempts from the alternative minimum tax (AMT) tax-exempt interest on certain housing bonds. Allows low-income housing and rehabilitation tax credit amounts to offset AMT liability.
(Sec. 143) Allows certain municipal bonds that are guaranteed by federal home loan banks to qualify as tax-exempt bonds.
(Sec. 144) Sets forth an alternative procedure for furnishing a non-foreign affidavit in connection with the sale of a U.S. real property interest (USRPI) and the exemption from withholding of tax requirements. Allow a transferor of a USRPI to furnish a non-foreign affidavit to a qualified substitute (i.e., a person responsible for closing the transaction involving a USRPI or the transferee's agent). Denies an exemption from withholding of tax requirements if the qualified substitute or a transferee has actual knowledge that the non-foreign affidavit is false.
(Sec. 145) Increases from 35 to 50 the percentage of property that may be leased to a tax-exempt entity without affecting such property's allowable rehabilitation tax credit.
Title II: Reforms Related to Real Estate Investment Trusts - Subtitle A: Foreign Currency And Other Qualified Activities -
(Sec. 201) Amends the Internal Revenue Code relating to real estate investment trusts (REITs) to treat passive foreign exchange gains attributable to overseas real estate investment as qualifying REIT income. Revises income and asset tests for such REITs for purposes of determining REIT qualifying income.
Subtitle B: Taxable REIT Subsidiaries -
(Sec. 211) Increases from 20 to 25% the the maximum value of a REIT's total assets that may be represented by securities of one or more taxable REIT subsidiaries.
Subtitle C: Dealer Sales -
(Sec. 221) Reduces from four to two years the holding period for certain assets exempted from prohibited transaction rules for REITs.

(Sec. 222) Revises criteria for imposing an excise tax penalty for prohibited transactions for sales by REITs.
Subtitle D: Health Care REITs -
(Sec. 231) Allows the treatment of rental payments by a health care facility to a taxable REIT subsidiary to be treated as qualifying REIT rental income.
Subtitle E: Effective Dates -
(Sec. 241) Sets forth the effective dates for provisions of this Title.
Title III: Revenue Provisions -
(Sec. 301) Requires brokers who are required to report gross proceeds from the sale of any publicly-traded security to report the holder's adjusted basis in such security and whether any gain or loss with respect to such security is long or short-term.

(Sec. 302) Delays until 2010 the application of special rules for the worldwide allocation of interest for purposes of computing the limitation on the foreign tax credit.

(Sec. 303) Amends the Tax Increase Prevention and Reconciliation Act of 2005 to:
(1) repeal the adjustment to the estimated tax liability of corporations with at least $1 billion in assets for the third quarter of 2012; and
(2) increase the estimated tax payments of such corporations in the third quarter of 2013 by 13%.


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Sponsor

• Rep. Charles Rangel [D, NY-15]
• and 17 Co-Sponsors
  • Rep. Shelley Berkley [D, NV-1]
  • Rep. Earl Blumenauer [D, OR-3]
  • Rep. Joseph Crowley [D, NY-7]
  • Rep. Keith Ellison [D, MN-5]
  • Rep. Rahm Emanuel [D, IL-5]
  • Rep. Gabrielle Giffords [D, AZ-8]
  • Rep. Henry Johnson [D, GA-4]
  • Stephanie Jones
  • Rep. John Lewis [D, GA-5]
  • Tim Mahoney
  • Rep. James McDermott [D, WA-7]
  • Rep. Earl Pomeroy [D, ND-0]
  • Rep. Ciro Rodriguez [D, TX-23]
  • Rep. Carol Shea-Porter [D, NH-1]
  • Rep. Albio Sires [D, NJ-13]
  • Rep. C. Thompson [D, CA-1]
  • Rep. Peter Welch [D, VT-0]
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Committees

• House Ways and Means

Amendments

This bill has no amendments.

Amendments to H.R.5720

Number	Status	Purpose

Bill Status

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Introduced		Voted on by House		Voted on by Senate		Considered By President		Bill Becomes Law
April 08, 2008

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• Apr 24, 2008: Reported (Amended) by the Committee on Ways and Means. H. Rept. 110-606.
• Added to calendar on Apr 24, 2008: Placed on the Union Calendar, Calendar No. 377..
• Apr 09, 2008: Committee Consideration and Mark-up Session Held.
• Added to calendar on Apr 09, 2008: Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 5..
• Introduced on Apr 08, 2008.
• Apr 08, 2008: Referred to the House Committee on Ways and Means.

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Related Issue Areas:

• Taxation
• Bonds
• Brokers
• Business
• 51 more
• Capital gains tax
• Corporation taxes
• Education
• Energy
• Energy efficiency
• Excise tax
• Finance
• Foreign exchange
• Foreign tax credit
• Foster home care
• Government information
• Government securities
• Health facilities
• Health policy
• Higher education
• Home ownership
• Housing
• Housing finance
• Housing subsidies
• Income tax
• Information disclosure (Securities law)
• Interest
• Leases
• Local taxation
• Low-income housing
• Medical care
• Medicine
• Minimum tax
• Mortgages
• Property tax
• Real estate investment
• Real estate investment trusts
• Rental housing
• Residential rehabilitation
• Secondary mortgage market
• Securities
• State and local government
• State taxation
• Student housing
• Students
• Subsidiary corporations
• Surety and fidelity
• Tax administration
• Tax credits
• Tax deductions
• Tax exclusion
• Tax exemption
• Tax penalties
• Tax returns
• Tax-exempt organizations
• Welfare

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In the News

May 06, 2008 Real Estate Trusts Hoping to Ride the Housing Wave to Tax Changes

... clout to attach tax changes worth hundreds of millions of dollars to housing-related legislation ( HR 3221 , HR 5720 ) advancing through Congress. ...

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Source: CQPolitics.com, DC

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April 28, 2008 Mahoney: Blame the Senate

The Housing Assistance Tax Act of 2008 (HR 5720). Mahoney co-sponsored this bill which would provide home owners who claim the standard deduction with an ...

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Source: Sarasota Herald-Tribune, FL

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April 24, 2008 Builders Lead the Way in Energy Efficient Housing, Congress Told

Hodgson noted that a provision in House bill HR 5720 could shore up home prices by stimulating sales and reducing excess inventory in housing markets. ...

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Source: Business Wire (press release), CA

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Blog Coverage

October 21, 2008 Real Estate Blog - HR 3221 Passes - 1st Time Home Buyers Get $7500 ...

Tax Provisions to Expand Refinancing Opportunities and Spur Home Buying (H.R. 5720). · Provides $15 billion in tax benefits, including tax credits to first-time homebuyers, a real property tax deduction for non-itemizers, an additional ...

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Source: Wichita Falls Real Estate Blog

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October 10, 2008 New government documents in Milner Library, September 2008

Call No: A 77.2:SCI 1/, Title: ARS science hall of fame. Author: United States. Agricultural Research Service. Imprint: [Beltsville Md.] : US Dept. of Agriculture, Agricultural Research Service. Type: Serial 16-4 wk ...

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Source: Government Documents

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October 03, 2008 barney frank's housing bill to reform fannie and freddie may 8, 2008

amendment 2-- tax provisions to expand refinancing opportunities and spur home buying (hr 5720): this amendment provides $11 billion in tax benefits, including tax credits to first-time homebuyers, a real property tax deduction for ...

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