HOLDING PERIOD UNDER SAFE HARBOR.

SEC. 3051. HOLDING PERIOD UNDER SAFE HARBOR.(a) In General.—Section 857(b)(6) (relating to income from prohibited transactions) is amended—(1) by striking “4 years” in subparagraphs (C)(i), (C)(iv), and (D)(i) and inserting “2 years”,(2) by striking “4-year period” in subparagraphs (C)(ii), (D)(ii), and (D)(iii) and inserting “2-year period”, and(3) by striking “real estate asset”and all that follows through “if” in the matter preceding clause (i) of subparagraphs (C) and (D), respectively, and inserting “real estate asset (as defined in section 856(c)(5)(B)) and which is described in section 1221(a)(1) if”.(b) Retention of Existing Law.—Section 857(b)(6) is amended—(1) by striking subparagraph (G) and redesignating subparagraphs (H) and (I) as subparagraphs (G) and (H), respectively, and(2) in subparagraph (G), as so redesignated, by adding at the end the following: “For purposes of the preceding sentence, the reference to subparagraph (D) shall be a reference 122 STAT. 2901 to such subparagraph as in effect on the day before the enactment of the Housing Assistance Tax Act of 2008, as modified by subparagraph (G) as so in effect.”.