S 2636 PCSCommentsClose CommentsPermalink

To provide needed housing reform.CommentsClose CommentsPermalink

February 13, 2008

Mr. REID introduced the following bill; which was read the first timeCommentsClose CommentsPermalink

February 14, 2008

Read the second time and placed on the calendarCommentsClose CommentsPermalink

To provide needed housing reform.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Foreclosure Prevention Act of 2008'.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS

Sec. 101. Modifications on use of qualified mortgage bonds; temporary increased volume cap for certain housing bonds.CommentsClose CommentsPermalink

TITLE II--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES

Sec. 201. Emergency assistance for the redevelopment of abandoned and foreclosed homes.CommentsClose CommentsPermalink

TITLE III--HOUSING COUNSELING RESOURCES

Sec. 301. Housing counseling resources.CommentsClose CommentsPermalink

TITLE IV--HELPING FAMILIES SAVE THEIR HOME IN BANKRUPTCY ACT

Sec. 401. Short title.CommentsClose CommentsPermalink

Subtitle A--Minimizing Foreclosures

Sec. 411. Special rules for modification of loans secured by residences.CommentsClose CommentsPermalink





Sec. 412. Waiver of counseling requirement when homes are in foreclosure.CommentsClose CommentsPermalink

Subtitle B--Providing Other Debtor Protections

Sec. 421. Combating excessive fees.CommentsClose CommentsPermalink





Sec. 422. Maintaining debtors' legal claims.CommentsClose CommentsPermalink





Sec. 423. Resolving disputes.CommentsClose CommentsPermalink





Sec. 424. Enacting a homestead floor for debtors over 55 years of age.CommentsClose CommentsPermalink





Sec. 425. Disallowing claims from violations of consumer protection laws.CommentsClose CommentsPermalink

TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

Sec. 501. Short title.CommentsClose CommentsPermalink





Sec. 502. Enhanced mortgage loan disclosures.CommentsClose CommentsPermalink

TITLE VI--INCENTIVES FOR BUSINESS

Sec. 601. Carryback of certain net operating losses allowed for 5 years; temporary suspension of 90 percent AMT limit.CommentsClose CommentsPermalink

TITLE I--MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS

SEC. 101. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS; TEMPORARY INCREASED VOLUME CAP FOR CERTAIN HOUSING BONDS.

(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:CommentsClose CommentsPermalink





`(12) SPECIAL RULES FOR SUBPRIME REFINANCINGS-CommentsClose CommentsPermalink





`(A) IN GENERAL- Notwithstanding the requirements of subsection (i)(1), the proceeds of a qualified mortgage issue may be used to refinance a mortgage on a residence which was originally financed by the mortgagor through a qualified subprime loan.CommentsClose CommentsPermalink





`(B) SPECIAL RULES- In applying this paragraph to any case in which the proceeds of a qualified mortgage issue are used for any refinancing described in subparagraph (A)--CommentsClose CommentsPermalink





`(i) subsection (a)(2)(D)(i) shall be applied by substituting `12-month period' for `42-month period' each place it appears,CommentsClose CommentsPermalink





`(ii) subsection (d) (relating to 3-year requirement) shall not apply, andCommentsClose CommentsPermalink





`(iii) 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.CommentsClose CommentsPermalink





`(C) 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 be reasonably likely to cause financial hardship to the borrower if not refinanced.CommentsClose CommentsPermalink





`(D) TERMINATION- This paragraph shall not apply to any bonds issued after December 31, 2010.'.CommentsClose CommentsPermalink





(b) Increased Volume Cap for Certain Bonds-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





`(5) INCREASE AND SET ASIDE FOR HOUSING BONDS FOR 2008-CommentsClose CommentsPermalink





`(A) INCREASE FOR 2008- In the case of calendar year 2008, the State ceiling for each State shall be increased by an amount equal to $10,000,000,000 multiplied by a fraction--CommentsClose CommentsPermalink





`(i) the numerator of which is the population of such State (as reported in the most recent decennial census), andCommentsClose CommentsPermalink





`(ii) the denominator of which is the total population of all States (as reported in the most recent decennial census).CommentsClose CommentsPermalink





`(B) SET ASIDE-CommentsClose CommentsPermalink





`(i) IN GENERAL- Any amount of the State ceiling for any State which is attributable to an increase under this paragraph shall be allocated solely for one or more qualified purposes.CommentsClose CommentsPermalink





`(ii) QUALIFIED PURPOSE- For purposes of this paragraph, the term `qualified purpose' means--CommentsClose CommentsPermalink





`(I) the issuance of exempt facility bonds used solely to provide qualified residential rental projects, orCommentsClose CommentsPermalink





`(II) a qualified mortgage issue (determined by substituting `12-month period' for `42-month period' each place it appears in section 143(a)(2)(D)(i)).'.CommentsClose CommentsPermalink





(2) CARRYFORWARD OF UNUSED LIMITATIONS- Subsection (f) of section 146 of such Code is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(6) SPECIAL RULES FOR INCREASED VOLUME CAP UNDER SUBSECTION (d)(5)-CommentsClose CommentsPermalink





`(A) IN GENERAL- No amount which is attributable to the increase under subsection (d)(5) may be used--CommentsClose CommentsPermalink





`(i) for a carryforward purpose other than a qualified purpose (as defined in subsection (d)(5)), andCommentsClose CommentsPermalink





`(ii) to issue any bond after calendar year 2010.CommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink





(c) Alternative Minimum Tax-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





`(I) any qualified 501(c)(3) bond (as defined in section 145), orCommentsClose CommentsPermalink





`(II) any qualified mortgage bond (as defined in section 143(a)) or qualified veterans' mortgage bond (as defined in section 143(b)) issued after the date of the enactment of this subclause and before January 1, 2011.'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- The heading for section 57(a)(5)(C)(ii) is amended by striking `QUALIFIED 501(c)(3) BONDS' and inserting `CERTAIN BONDS'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to bonds issued after the date of the enactment of this title.CommentsClose CommentsPermalink

TITLE II--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES

SEC. 201. EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES.

(a) Direct Appropriations- There shall be appropriated out of any money in the Treasury not otherwise appropriated for the fiscal year 2008, $4,000,000,000, to remain available until expended, for assistance to States and units of general local government (as such terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)) for the redevelopment of abandoned and foreclosed homes.CommentsClose CommentsPermalink





(b) Allocation of Appropriated Amounts-CommentsClose CommentsPermalink





(1) IN GENERAL- The amounts appropriated or otherwise made available to States and units of general local government under this section shall be allocated based on a funding formula established by the Secretary of Housing and Urban Development.CommentsClose CommentsPermalink





(2) FORMULA TO BE DEVISED SWIFTLY- The funding formula required under paragraph (1) shall be established not later than 60 days after the date of enactment of this title.CommentsClose CommentsPermalink





(3) CRITERIA- The funding formula required under paragraph (1) shall ensure that any amounts appropriated or otherwise made available under this section are allocated to States and units of general local government with the greatest need, as such need is determined in the discretion of the Secretary based on the following factors:CommentsClose CommentsPermalink





(A) The number and percentage of home foreclosures in each State or unit of general local government.CommentsClose CommentsPermalink





(B) The number and percentage of homes financed by a subprime mortgage related loan in each State or unit of general local government.CommentsClose CommentsPermalink





(C) The number and percentage of homes in default or delinquency in each State or unit of general local government.CommentsClose CommentsPermalink





(4) DISTRIBUTION- Amounts appropriated or otherwise made available to States and units of general local government under this section shall be distributed according to the funding formula required under paragraph (1) not later than 30 days after the establishment of such formula.CommentsClose CommentsPermalink





(c) Use of Funds-CommentsClose CommentsPermalink





(1) IN GENERAL- Any State or unit of general local government that receives amounts pursuant to this section shall, not later than 18 months after the receipt of such amounts, use such amounts to redevelop abandoned and foreclosed homes.CommentsClose CommentsPermalink





(2) PRIORITY- Any State or unit of general local government that receives amounts pursuant to this section shall in distributing such amounts give priority emphasis and consideration to those metropolitan areas, metropolitan cities, urban areas, rural areas, low- and moderate-income areas, and other areas with the greatest need, including those--CommentsClose CommentsPermalink





(A) with the greatest percentage of home foreclosures;CommentsClose CommentsPermalink





(B) with the highest percentage of homes financed by a subprime mortgage related loan; orCommentsClose CommentsPermalink





(C) identified by the State or unit of general local government as likely to face a significant rise in the rate of home foreclosures.CommentsClose CommentsPermalink





(3) ELIGIBLE USES-CommentsClose CommentsPermalink





(A) IN GENERAL- Amounts made available under this section may be used to--CommentsClose CommentsPermalink





(i) make grants, loans, and other financing mechanisms to community development financial institutions (as such term is defined under section 103(5) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702(5))), national intermediaries, and nonprofit housing or community development organizations and others to purchase and rehabilitate homes that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes;CommentsClose CommentsPermalink





(ii) establish financing mechanisms for redevelopment of foreclosed upon homes, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers;CommentsClose CommentsPermalink





(iii) purchase and rehabilitate homes that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes;CommentsClose CommentsPermalink





(iv) establish land banks for homes that have been foreclosed upon; andCommentsClose CommentsPermalink





(v) demolish blighted structures.CommentsClose CommentsPermalink





(B) LIMITATION- Any funds used under this section for the purchase of an abandoned or foreclosed upon home shall be at a cost equal to or less than the appraised value of the home based on the most up-to-date appraisal, as such appraisal is defined by the Secretary.CommentsClose CommentsPermalink





(d) Rule of Construction- Amounts appropriated or otherwise made available to States and units of general local government under this section shall be treated as though such funds were community development block grant funds under title I of the Housing and Community Development Act of 1974.CommentsClose CommentsPermalink





(e) Waiver Authority-CommentsClose CommentsPermalink





(1) IN GENERAL- In administering any amounts appropriated or otherwise made available under this section, the Secretary of Housing and Urban Development may waive, or specify alternative requirements for, any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the recipient of such funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), in order to expedite or facilitate the use of such funds.CommentsClose CommentsPermalink





(2) LOW AND MODERATE INCOME REQUIREMENT- Notwithstanding the authority of the Secretary under paragraph (1), all of the funds appropriated or otherwise made available under this section shall be used with respect to persons whose income does not exceed 120 percent of area median income.CommentsClose CommentsPermalink





(f) Emergency Designation- The amounts appropriated under this title are designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204 of S. Con. Res. 21 (110th Congress), the concurrent resolution on the budget for fiscal year 2008.CommentsClose CommentsPermalink

TITLE III--HOUSING COUNSELING RESOURCES

SEC. 301. HOUSING COUNSELING RESOURCES.

There shall be appropriated out of any money in the Treasury not otherwise appropriated, for an additional amount for the `Neighborhood Reinvestment Corporation--Payment to the Neighborhood Reinvestment Corporation' $200,000,000,000, to remain available until September 30, 2008, for foreclosure mitigation activities under the terms and conditions contained in the second paragraph under the heading `Neighborhood Reinvestment Corporation--Payment to the Neighborhood Reinvestment Corporation' of Public Law 110-161.CommentsClose CommentsPermalink

TITLE IV--HELPING FAMILIES SAVE THEIR HOME IN BANKRUPTCY ACT

SEC. 401. SHORT TITLE.

This title may be cited as the `Helping Families Save Their Homes in Bankruptcy Act of 2008'.CommentsClose CommentsPermalink

Subtitle A--Minimizing Foreclosures

SEC. 411. SPECIAL RULES FOR MODIFICATION OF LOANS SECURED BY RESIDENCES.

(a) In General- Section 1322(b) of title 11, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (10), by striking `and' at the end;CommentsClose CommentsPermalink





(2) by redesignating paragraph (11) as paragraph (12); andCommentsClose CommentsPermalink





(3) by inserting after paragraph (10) the following:CommentsClose CommentsPermalink





`(11) notwithstanding paragraph (2) and otherwise applicable nonbankruptcy law--CommentsClose CommentsPermalink





`(A) modify an allowed secured claim secured by the debtor's principal residence, as described in subparagraph (B), if, after deduction from the debtor's current monthly income of the expenses permitted for debtors described in section 1325(b)(3) of this title (other than amounts contractually due to creditors holding such allowed secured claims and additional payments necessary to maintain possession of that residence), the debtor has insufficient remaining income to retain possession of the residence by curing a default and maintaining payments while the case is pending, as provided under paragraph (5); andCommentsClose CommentsPermalink





`(B) provide for payment of such claim--CommentsClose CommentsPermalink





`(i) for a period not to exceed 30 years (reduced by the period for which the loan has been outstanding) from the date of the order for relief under this chapter; andCommentsClose CommentsPermalink





`(ii) at a rate of interest accruing after such date calculated at a fixed annual percentage rate, in an amount equal to the most recently published annual yield on conventional mortgages published by the Board of Governors of the Federal Reserve System, as of the applicable time set forth in the rules of the Board, plus a reasonable premium for risk; and'.CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 1325(a)(5) of title 11, United States Code, is amended by inserting before `with respect' the following: `except as otherwise provided in section 1322(b)(11) of this title,'.CommentsClose CommentsPermalink

SEC. 412. WAIVER OF COUNSELING REQUIREMENT WHEN HOMES ARE IN FORECLOSURE.

Section 109(h) of title 11, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink





`(5) Paragraph (1) shall not apply with respect to a debtor who files with the court a certification that a foreclosure sale of the debtor's principal residence has been scheduled.'.CommentsClose CommentsPermalink

Subtitle B--Providing Other Debtor Protections

SEC. 421. COMBATING EXCESSIVE FEES.

Section 1322(c) of title 11, the United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking `and' at the end;CommentsClose CommentsPermalink





(2) in paragraph (2), by striking the period at the end and inserting `; and'; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





`(3) to the extent that an allowed secured claim is secured by the debtor's principal residence, the value of which is greater than the amount of such claim, fees, costs, or charges arising during the pendency of the case may be added to secured debt provided for by the plan only if--CommentsClose CommentsPermalink





`(A) notice of such fees, costs or charges is filed with the court before the expiration of the earlier of--CommentsClose CommentsPermalink





`(i) 1 year after the time at which they are incurred; orCommentsClose CommentsPermalink





`(ii) 60 days before the conclusion of the case; andCommentsClose CommentsPermalink





`(B) such fees, costs, or charges are lawful, reasonable, and provided for in the underlying contract;CommentsClose CommentsPermalink





`(4) the failure of a party to give notice described in paragraph (3) shall be deemed a waiver of any claim for fees, costs, or charges described in paragraph (3) for all purposes, and any attempt to collect such fees, costs, or charges shall constitute a violation of section 524(a)(2) of this title or, if the violation occurs before the date of discharge, of section 362(a) of this title; andCommentsClose CommentsPermalink





`(5) a plan may provide for the waiver of any prepayment penalty on a claim secured by the principal residence of the debtor.'.CommentsClose CommentsPermalink

SEC. 422. MAINTAINING DEBTORS' LEGAL CLAIMS.

Section 554(e) of title 11, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink





`(e) In any action in State or Federal court with respect to a claim or defense asserted by an individual debtor in such action that was not scheduled under section 521(a)(1) of this title, the trustee shall be allowed a reasonable time to request joinder or substitution as the real party in interest. If the trustee does not request joinder or substitution in such action, the debtor may proceed as the real party in interest, and no such action shall be dismissed on the ground that it is not prosecuted in the name of the real party in interest or on the ground that the debtor's claims were not properly scheduled in a case under this title.'.CommentsClose CommentsPermalink

SEC. 423. RESOLVING DISPUTES.

Section 1334 of title 28, United States Code, is amended by adding at the end the following: `Notwithstanding any agreement for arbitration that is subject to chapter 1 of title 9, in any core proceeding under section 157(b) of this title involving an individual debtor whose debts are primarily consumer debts, the court may hear and determine the proceeding, and enter appropriate orders and judgments, in lieu of referral to arbitration.'.CommentsClose CommentsPermalink

SEC. 424. ENACTING A HOMESTEAD FLOOR FOR DEBTORS OVER 55 YEARS OF AGE.

(a) In General- Section 522(b)(3) of title 11, United States Code, is amended--CommentsClose CommentsPermalink





(1) in subparagraph (B), by striking `and' at the end;CommentsClose CommentsPermalink





(2) in subparagraph (C), by striking the period at the end and inserting `; and'; andCommentsClose CommentsPermalink





(3) by adding at the end and inserting the following:CommentsClose CommentsPermalink





`(D) if the debtor, as of the date of the filing of the petition, is 55 years old or older, the debtor's aggregate interest, not to exceed $75,000 in value, in real property or personal property that the debtor or a dependent of the debtor uses as a principal residence, or in a cooperative that owns property that the debtor or a dependent of the debtor uses as a principal residence.'.CommentsClose CommentsPermalink





(b) Exemption Authority- Section 522(d)(1) of title 11, United States Code, is amended by inserting `or, if the debtor is 55 years of age or older, $75,000 in value,' before `in real property'.CommentsClose CommentsPermalink

SEC. 425. DISALLOWING CLAIMS FROM VIOLATIONS OF CONSUMER PROTECTION LAWS.

Section 502(b) of title 11, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (8), by striking `or' at the end;CommentsClose CommentsPermalink





(2) in paragraph (9), by striking the period at the end and inserting `; or'; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





`(10) the claim is subject to any remedy for damages or rescission due to failure to comply with any applicable requirement under the Truth in Lending Act (15 U.S.C. 1601 et seq.), or any other provision of applicable State or Federal consumer protection law that was in force when the noncompliance took place, notwithstanding the prior entry of a foreclosure judgment.'.CommentsClose CommentsPermalink

TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

SEC. 501. SHORT TITLE.

This title may be cited as the `Mortgage Disclosure Improvement Act of 2008'.CommentsClose CommentsPermalink

SEC. 502. ENHANCED MORTGAGE LOAN DISCLOSURES.

(a) Truth in Lending Act Disclosures- Section 128(b)(2) of the Truth in Lending Act (15 U.S.C. 1638(b)(2)) is amended--CommentsClose CommentsPermalink





(1) by inserting `(A)' before `In the';CommentsClose CommentsPermalink





(2) by striking `a residential mortgage transaction, as defined in section 103(w)' and inserting `any extension of credit that is secured by the dwelling of a consumer';CommentsClose CommentsPermalink





(3) by striking `shall be made in accordance' and all that follows through `extended, or'; andCommentsClose CommentsPermalink





(4) by striking `If the' and all that follows through the end of the paragraph and inserting the following:CommentsClose CommentsPermalink





`(B) In the case of an extension of credit that is secured by the dwelling of a consumer, in addition to the other disclosures required by subsection (a), the disclosures provided under this paragraph shall--CommentsClose CommentsPermalink





`(i) state in conspicuous type size and format, the following: `You are not required to complete this agreement merely because you have received these disclosures or signed a loan application.'; andCommentsClose CommentsPermalink





`(ii) be furnished to the borrower not later than 7 business days before the date of consummation of the transaction, and at the time of consummation of the transaction, subject to subparagraph (D).CommentsClose CommentsPermalink





`(C) In the case of an extension of credit that is secured by the dwelling of a consumer, under which the annual rate of interest is variable, or with respect to which the regular payments may otherwise be variable, in addition to the other disclosures required by subsection (a), the disclosures provided under this paragraph shall--CommentsClose CommentsPermalink





`(i) label the payment schedule as follows: `Payment Schedule: Payments Will Vary Based on Interest Rate Changes'; andCommentsClose CommentsPermalink





`(ii) state the maximum amount of the regular required payments on the loan, based on the maximum interest rate allowed, introduced with the following language in conspicuous type size and format: `Your payment can go as high as XXX', the blank to be filled in with the maximum possible payment amount.CommentsClose CommentsPermalink





`(D) In any case in which the disclosure statement provided 7 business days before the date of consummation of the transaction contains an annual percentage rate of interest that is no longer accurate, as determined under section 107(c), the creditor shall furnish an additional, corrected statement to the borrower, not later than 3 business days before the date of consummation of the transaction.'.CommentsClose CommentsPermalink





(b) Civil Liability- Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2)(A)(iii), by striking `not less than $200 or greater than $2,000' and inserting `$5,000, such amount to be adjusted annually based on the consumer price index, to maintain current value'; andCommentsClose CommentsPermalink





(2) in the penultimate sentence of the undesignated matter following paragraph (4)--CommentsClose CommentsPermalink





(A) by striking `only for' and inserting `for';CommentsClose CommentsPermalink





(B) by striking `section 125 or' and inserting `section 122, section 125,';CommentsClose CommentsPermalink





(C) by inserting `or section 128(b),'after `128(a),'; andCommentsClose CommentsPermalink





(D) by inserting `or section 128(b)' before the period.CommentsClose CommentsPermalink

TITLE VI--INCENTIVES FOR BUSINESS

SEC. 601. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED FOR 5 YEARS; TEMPORARY SUSPENSION OF 90 PERCENT AMT LIMIT.

(a) In General- Subparagraph (H) of section 172(b)(1) of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





`(H) 5-year CARRYBACK OF CERTAIN LOSSES-CommentsClose CommentsPermalink





`(i) TAXABLE YEARS ENDING DURING 2001 AND 2002- In the case of a net operating loss for any taxable year ending during 2001 or 2002, subparagraph (A)(i) shall be applied by substituting `5' for `2' and subparagraph (F) shall not apply.CommentsClose CommentsPermalink





`(ii) TAXABLE YEARS BEGINNING OR ENDING DURING 2006, 2007, AND 2008- In the case of a net operating loss with respect to any eligible taxpayer (within the meaning of section 168(k)(1)(B)) for any taxable year beginning or ending during 2006, 2007, or 2008--CommentsClose CommentsPermalink





`(I) subparagraph (A)(i) shall be applied by substituting `5' for `2',CommentsClose CommentsPermalink





`(II) subparagraph (E)(ii) shall be applied by substituting `4' for `2', andCommentsClose CommentsPermalink





`(III) subparagraph (F) shall not apply.'.CommentsClose CommentsPermalink





(b) Temporary Suspension of 90 Percent Limit on Certain NOL Carrybacks and Carryovers-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 56(d) of the of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(3) ADDITIONAL ADJUSTMENTS- For purposes of paragraph (1)(A), in the case of an eligible taxpayer (within the meaning of section 168(k)(1)(B)), the amount described in clause (I) of paragraph (1)(A)(ii) shall be increased by the amount of the net operating loss deduction allowable for the taxable year under section 172 attributable to the sum of--CommentsClose CommentsPermalink





`(A) carrybacks of net operating losses from taxable years beginning or ending during 2006, 2007, and 2008, andCommentsClose CommentsPermalink





`(B) carryovers of net operating losses to taxable years beginning or ending during 2006, 2007, or 2008.'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Subclause (I) of section 56(d)(1)(A)(i) of such Code is amended by inserting `amount of such' before `deduction described in clause (ii)(I)'.CommentsClose CommentsPermalink





(c) Anti-Abuse Rules- The Secretary of Treasury or the Secretary's designee shall prescribes such rules as are necessary to prevent the abuse of the purposes of the amendments made by this section, including anti-stuffing rules, anti-churning rules (including rules relating to sale-leasebacks), and rules similar to the rules under section 1091 of the Internal Revenue Code of 1986 relating to losses from wash sales.CommentsClose CommentsPermalink





(d) Effective Dates-CommentsClose CommentsPermalink





(1) SUBSECTION (a)-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as provided in subparagraph (B), the amendments made by subsection (a) shall apply to net operating losses arising in taxable years beginning or ending in 2006, 2007, or 2008.CommentsClose CommentsPermalink





(B) ELECTION- In the case of an eligible taxpayer (within the meaning of section 168(k)(1)(B) of the Internal Revenue Code of 1986) with a net operating loss for a taxable year beginning or ending during 2006 or 2007--CommentsClose CommentsPermalink





(i) any election made under section 172(b)(3) of the Internal Revenue Code of 1986 may (notwithstanding such section) be revoked before November 1, 2008, andCommentsClose CommentsPermalink





(ii) any election made under section 172(j) of such Code shall (notwithstanding such section) be treated as timely made if made before November 1, 2008.CommentsClose CommentsPermalink





(2) SUBSECTION (b)- The amendments made by subsection (b) shall apply to taxable years ending after December 31, 1995.CommentsClose CommentsPermalink

Calendar No. 577CommentsClose CommentsPermalink

To provide needed housing reform.CommentsClose CommentsPermalink

February 14, 2008