REPEAL OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON TAX-EXEMPT HOUSING BONDS, LOW-INCOME HOUSING TAX CREDIT, AND REHABILITATION CREDIT.

SEC. 3022. REPEAL OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON TAX-EXEMPT HOUSING BONDS, LOW-INCOME HOUSING TAX CREDIT, AND REHABILITATION CREDIT.(a) Tax-Exempt Interest on Certain Housing Bonds Exempted From Alternative Minimum Tax.—(1) In general.—Subparagraph (C) of section 57(a)(5) (relating to specified private activity bonds) is amended by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively, and by inserting after clause (ii) the following new clause:“(iii) Exception for certain housing bonds.—For purposes of clause (i), the term ‘private activity bond’ shall not include any bond issued after the date of the enactment of this clause if such bond is—“(I) an exempt facility bond issued as part of an issue 95 percent or more of the net proceeds of which are to be used to provide qualified residential rental projects (as defined in section 142(d)),“(II) a qualified mortgage bond (as defined in section 143(a)), or“(III) a qualified veterans’ mortgage bond (as defined in section 143(b)).122 STAT. 2894The preceding sentence shall not apply to any refunding bond unless such preceding sentence applied to the refunded bond (or in the case of a series of refundings, the original bond).”.(2) No adjustment to adjusted current earnings.—Subparagraph (B) of section 56(g)(4) is amended by adding at the end the following new clause:“(iii) Tax exempt interest on certain housing bonds.—Clause (i) shall not apply in the case of any interest on a bond to which section 57(a)(5)(C)(iii) applies.”.(b) Allowance of Low-Income Housing Credit Against Alternative Minimum Tax.—Subparagraph (B) of section 38(c)(4) (relating to specified credits) is amended by redesignating clauses (ii) through (iv) as clauses (iii) through (v) and inserting after clause (i) the following new clause:“(ii) the credit determined under section 42 to the extent attributable to buildings placed in service after December 31, 2007,”.(c) Allowance of Rehabilitation Credit Against Alternative Minimum Tax.—Subparagraph (B) of section 38(c)(4), as amended by subsection (b), is amended by striking “and” at the end of clause (iv), by redesignating clause (v) as clause (vi), and by inserting after clause (iv) the following new clause:“(v) the credit determined under section 47 to the extent attributable to qualified rehabilitation expenditures properly taken into account for periods after December 31, 2007, and”.(d) Effective Date.—(1) Housing bonds.—The amendments made by subsection (a) shall apply to bonds issued after the date of the enactment of this Act.(2) Low income housing credit.—The amendments made by subsection (b) shall apply to credits determined under section 42 of the Internal Revenue Code of 1986 to the extent attributable to buildings placed in service after December 31, 2007.(3) Rehabilitation credit.—The amendments made by subsection (c) shall apply to credits determined under section 47 of the Internal Revenue Code of 1986 to the extent attributable to qualified rehabilitation expenditures properly taken into account for periods after December 31, 2007.