[DOCID: f:hr066.110]
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110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-66
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KATRINA HOUSING TAX RELIEF ACT OF 2007
_______
March 23, 2007.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Rangel, from the Committee on Ways and Means, submitted the
following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 1562]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 1562) to amend the Internal Revenue Code of 1986 to
extend and expand certain rules with respect to housing in the
GO Zones, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Katrina Housing Tax Relief Act of
2007''.
SEC. 2. EXTENSION AND EXPANSION OF LOW-INCOME HOUSING CREDIT RULES FOR
BUILDINGS IN THE GO ZONES.
(a) Time for Making Low-Income Housing Credit Allocations.--
Subsection (c) of section 1400N of the Internal Revenue Code of 1986
(relating to low-income housing credit) is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
``(5) Time for making low-income housing credit
allocations.--Section 42(h)(1)(B) shall not apply to an
allocation of housing credit dollar amount to a building
located in the Gulf Opportunity Zone, the Rita GO Zone, or the
Wilma GO Zone, if such allocation is made in 2006, 2007, or
2008, and such building is placed in service before January 1,
2011.''.
(b) Extension of Period for Treating GO Zones as Difficult
Development Areas.--
(1) In general.--Subparagraph (A) of section 1400N(c)(3) of
such Code is amended by striking ``2006, 2007, or 2008'' and
inserting ``the period beginning on January 1, 2006, and ending
on December 31, 2010''.
(2) Conforming amendment.--Clause (ii) of section
1400N(c)(3)(B) of such Code is amended by striking ``such
period'' and inserting ``the period described in subparagraph
(A)''.
(c) Community Development Block Grants Not Taken Into Account in
Determining if Buildings Are Federally Subsidized.--Subsection (c) of
section 1400N of such Code (relating to low-income housing credit), as
amended by this Act, is amended by redesignating paragraph (6) as
paragraph (7) and by inserting after paragraph (5) the following new
paragraph:
``(6) Community development block grants not taken into
account in determining if buildings are federally subsidized.--
For purpose of applying section 42(i)(2)(D) to any building
which is placed in service in the Gulf Opportunity Zone, the
Rita GO Zone, or the Wilma GO Zone during the period beginning
on January 1, 2006, and ending on December 31, 2010, a loan
shall not be treated as a below market Federal loan solely by
reason of any assistance provided under section 106, 107, or
108 of the Housing and Community Development Act of 1974 by
reason of section 122 of such Act or any provision of the
Department of Defense Appropriations Act, 2006, or the
Emergency Supplemental Appropriations Act for Defense, the
Global War on Terror, and Hurricane Recovery, 2006.''.
SEC. 3. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR REPAIRS AND
RECONSTRUCTIONS OF RESIDENCES IN THE GO ZONES.
Subsection (a) of section 1400N of the Internal Revenue Code of 1986
(relating to tax-exempt bond financing) is amended by adding at the end
the following new paragraph:
``(7) Special rule for repairs and reconstructions.--
``(A) In general.--For purposes of section 143 and
this subsection, any qualified GO Zone repair or
reconstruction shall be treated as a qualified
rehabilitation.
``(B) Qualified go zone repair or reconstruction.--
For purposes of subparagraph (A), the term `qualified
GO Zone repair or reconstruction' means any repair of
damage caused by Hurricane Katrina, Hurricane Rita, or
Hurricane Wilma to a building located in the Gulf
Opportunity Zone, the Rita GO Zone, or the Wilma GO
Zone (or reconstruction of such building in the case of
damage constituting destruction) if the expenditures
for such repair or reconstruction are 25 percent or
more of the mortgagor's adjusted basis in the
residence. For purposes of the preceding sentence, the
mortgagor's adjusted basis shall be determined as of
the completion of the repair or reconstruction or, if
later, the date on which the mortgagor acquires the
residence.
``(C) Termination.--This paragraph shall apply only
to owner-financing provided after the date of the
enactment of this paragraph and before January 1,
2011.''.
SEC. 4. GAO STUDY OF PRACTICES EMPLOYED BY STATE AND LOCAL GOVERNMENTS
IN ALLOCATING AND UTILIZING TAX INCENTIVES PROVIDED
PURSUANT TO THE GULF OPPORTUNITY ZONE ACT OF 2005.
(a) In General.--The Comptroller General of the United States shall
conduct a study of the practices employed by State and local
governments, and subdivisions thereof, in allocating and utilizing tax
incentives provided pursuant to the Gulf Opportunity Zone Act of 2005
and this Act.
(b) Submission of Report.--Not later than one year after the date of
the enactment of this Act, the Comptroller General shall submit a
report on the findings of the study conducted under subsection (a) and
shall include therein recommendations (if any) relating to such
findings. The report shall be submitted to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of
the Senate.
(c) Congressional Hearings.--In the case that the report submitted
under this section includes findings of significant fraud, waste or
abuse, each Committee specified in subsection (b) shall, within 60 days
after the date the report is submitted under subsection (b), hold a
public hearing to review such findings.
SEC. 5. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES FOR
EMPLOYMENT TAX LIABILITIES.
(a) In General.--Section 6330(f) of the Internal Revenue Code of 1986
(relating to jeopardy and State refund collection) is amended--
(1) by striking ``; or'' at the end of paragraph (1) and
inserting a comma,
(2) by adding ``or'' at the end of paragraph (2), and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) the Secretary has, on or before September 30, 2015,
served a levy in connection with the collection of taxes under
chapter 21, 22, 23, or 24,''.
(b) Effective Date.--The amendments made by this section shall apply
to levies served on or after the date that is 120 days after the date
of the enactment of this Act.
SEC. 6. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Subparagraph (B) of section 401(1) of the Tax Increase Prevention and
Reconciliation Act of 2005 is amended by striking ``106.25 percent''
and inserting ``106.45 percent''.