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<PRE>[DOCID: f:s1554is.txt]






107th CONGRESS
  1st Session
                                S. 1554

To amend the Internal Revenue Code of 1986 to provide an increased low-
  income housing credit for property located immediately adjacent to 
                        qualified census tracts.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 16, 2001

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

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide an increased low-
  income housing credit for property located immediately adjacent to 
                        qualified census tracts.

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

SECTION 1. INCREASE IN CREDIT FOR LOW-INCOME HOUSING.

    (a) In General.--Clause (ii) of section 42(d)(5)(C) of the Internal 
Revenue Code of 1986 (relating to increase in credit for buildings in 
high cost areas) is amended by adding at the end the following:
                                    ``(IV) Contiguous property.--For 
                                purposes of clause (i), property which 
                                is contiguous to a qualified census 
                                tract and which meets the criteria and 
                                preferences of a qualified allocation 
                                plan (as defined in subsection 
                                (m)(1)(B)), as determined by the 
                                appropriate housing credit agency, 
                                shall be treated as if such property is 
                                located in a qualified census tract.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.
                                 &lt;all&gt;

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