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S 2266 IS

To amend the Internal Revenue Code to provide for an alternative test for qualifying as a cooperative housing corporation.

October 30, 2007

Mr. SCHUMER introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code to provide for an alternative test for qualifying as a cooperative housing corporation.

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 `Cooperative Tax Deduction Preservation Act of 2007'.

SEC. 2. ALTERNATIVE TESTS FOR QUALIFYING AS COOPERATIVE HOUSING CORPORATION.

(a) In General- Subparagraph (D) of section 216(b)(1) of the Internal Revenue Code of 1986 (defining cooperative housing corporation) is amended to read as follows:

`(D) meeting 1 or more of the following requirements for the taxable year in which the taxes and interest described in subsection (a) are paid or incurred:

`(i) 80 percent or more of the corporation's gross income for such taxable year is derived from tenant-stockholders.

`(ii) At all times during such taxable year, 80 percent or more of the total square footage of the corporation's property is used or available for use by the tenant-stockholders for residential purposes or purposes ancillary to such residential use.

`(iii) 90 percent or more of the expenditures of the corporation paid or incurred during such taxable year are paid or incurred for the acquisition, construction, management, maintenance, or care of the corporation's property for the benefit of the tenant-stockholders.'.

(b) Effective Date- The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.