TREATMENT OF MILITARY BASIC PAY.

SEC. 3005. TREATMENT OF MILITARY BASIC PAY.(a) In General.—Subparagraph (B) of section 142(d)(2) (relating to income of individuals; area median gross income) is amended—(1) by striking “The income” and inserting the following:“(i) In general.—The income”, and(2) by adding at the end the following:“(ii) Special rule relating to basic housing allowances.—For purposes of determining income under this subparagraph, payments under section 403 of title 37, United States Code, as a basic pay allowance for housing shall be disregarded with respect to any qualified building.“(iii) Qualified building.—For purposes of clause (ii), the term ‘qualified building’ means any building located—“(I) in any county in which is located a qualified military installation to which the number of members of the Armed Forces of the United States assigned to units based out of such qualified military installation, as of June 1, 2008, has increased by not less than 20 percent, as compared to such number on December 31, 2005, or“(II) in any county adjacent to a county described in subclause (I).“(iv) Qualified military installation.—For purposes of clause (iii), the term ‘qualified military installation’ means any military installation or facility the number of members of the Armed Forces of the United States assigned to which, as of June 1, 2008, is not less than 1,000.”.(b) Effective Date.—The amendments made by this section shall apply to—(1) determinations made after the date of the enactment of this Act and before January 1, 2012, in the case of any qualified building (as defined in section 142(d)(2)(B)(iii) of the Internal Revenue Code of 1986)—(A) with respect to which housing credit dollar amounts have been allocated on or before the date of the enactment of this Act, or(B) with respect to buildings placed in service before such date of enactment, to the extent paragraph (1) of section 42(h) of such Code does not apply to such building by reason of paragraph (4) thereof, but only with respect to bonds issued before such date of enactment, and(2) determinations made after the date of enactment of this Act, in the case of qualified buildings (as so defined)—(A) with respect to which housing credit dollar amounts are allocated after the date of the enactment of this Act and before January 1, 2012, or(B) with respect to which buildings placed in service after the date of enactment of this Act and before January 1, 2012, to the extent paragraph (1) of section 42(h) of such Code does not apply to such building by reason of paragraph (4) thereof, but only with respect to bonds issued after such date of enactment and before January 1, 2012.122 STAT. 2886