LOW-INCOME HOUSING TAX CREDIT.

SEC. 305. LOW-INCOME HOUSING TAX CREDIT. (a) Additional Low-income Housing Credit Allocations.— (1) In general.—For purposes of section 42 of the Internal Revenue Code of 1986, the State housing credit ceiling for any State for each of calendar years 2021 and 2022 shall be increased by the aggregate housing credit dollar amount allocated by the State housing credit agencies of such State for such calendar year to buildings located in any qualified disaster zone in such State. (2) Limitation.— (A) Application of aggregate limitation.—The increase determined under paragraph (1) with respect to any State shall not exceed— (i) in the case of any such increase determined for calendar year 2021, the applicable dollar limitation for such State, and (ii) in the case of any such increase determined for calendar year 2022, the applicable dollar limitation for such State reduced by the amount of any increase determined under paragraph (1) with respect to such State for calendar year 2021. (B) Applicable dollar limitation.—For purposes of this paragraph, the term “applicable dollar limitation” means, with respect to any State, the lesser of— (i) the product of $3.50 multiplied by the population of such State (as determined for calendar year 2020) which resides in qualified disaster zones in such State, or (ii) 65 percent of the State housing credit ceiling for such State for calendar year 2020. (3) Extension of placed in service deadline for designated housing credit dollar amounts.— (A) In general.—In the case of any housing credit dollar amount which is allocated by a State housing credit agency of a State for calendar year 2021 or 2022 to a building located in a qualified disaster zone in such State and which is designated (at such time and in such manner as the Secretary may provide) by such State housing credit agency as housing credit dollar amount to which this paragraph applies, section 42(h)(1)(E) of the Internal Revenue Code of 1986 shall be applied— (i) by substituting “third calendar year” for “second calendar year” both places it appears, and (ii) by substituting “2 years” for “1 year” in clause (ii) thereof. (B) Application of limitation.—The aggregate amount of housing credit dollar amount designated under subparagraph (A) for any calendar year by all State housing credit agencies of a State shall not exceed the amount determined under paragraph (2)(A) with respect to such State for such calendar year. (4) Allocations treated as made first from additional allocation for purposes of determining carryover.—For purposes of determining the unused State housing credit ceiling for any calendar year under section 42(h)(3)(C) of the Internal Revenue Code of 1986, any increase in the State housing credit ceiling under paragraph (1) shall be treated as an amount described in clause (ii) of such section.