Page:United States Statutes at Large Volume 122.djvu/2903

 12 2 STA T . 2 8 8 0PUBLIC LA W 110 – 28 9—J UL Y3 0, 2008 (i ii )bystr i k i ng‘ ‘s u bs ec ti o n( d ) —’ ’ a nda l lt h at f ol - lo w s and inserting ‘‘subsection (d) the p roceeds of such obligation . ’’. ( B ) S ubparagraph ( C ) of section 42 (i)(2) is a m ended— (i) by striking ‘‘or below market F ederal loan’’ in the matter preceding clause (i) , (ii) in clause (i)— ( I ) by striking ‘‘or loan (when issued or made)’’ and inserting ‘‘(when issued)’’, and (II) by striking ‘‘the proceeds of such obligation or loan’’ and inserting ‘‘the proceeds of such obliga- tion’’, and (iii) by striking ‘‘, and such loan is repaid,’’ in clause (ii). (C) P aragraph (2) of section 42(i) is amended by striking subparagraphs ( D )and( E ). (c) E F F ECTIV ED A TE.— T he amendments made by this subsection shall apply to buildings placed in ser v ice after the date of the enactment of this A ct. SEC.30 03. MODIF IC AT IO N S TO DEFINITION OF E L I G I B LE BASIS. (a) I N C R EA S EINCRE D ITF O R CERTAIN STATE DESI G NATED B U I L DINGS.—Subparagraph (C) of section 42(d)( 5 ) (relating to increase in credit for buildings in high cost areas), before redesigna- tion under subsection (g), is amended by adding at the end the following new clause

‘‘(v) BUILDINGS DESIGNATED BY STATE H OUSING CREDIT AGENCY.—Any building which is designated by the State housing credit agency as re q uiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing pro j ect shall be treated for purposes of this subparagraph as located in a difficult development area which is designated for purposes of this subparagraph. The preceding sen- tence shall not apply to any building if paragraph ( 1 ) of subsection (h) does not apply to any portion of the eligible basis of such building by reason of para- graph (4) of such subsection.’’. (b) M ODIFICATION TO R EHABILITATION RE Q UIRE M ENTS.— (1) IN GENERAL.—Clause (ii) of section 42(e)( 3 )(A) is amended— (A) by striking ‘‘1 0 percent’’ in subclause (I) and inserting ‘‘20 percent’’, and (B) by striking ‘‘ $ 3,000’’ in subclause (II) and inserting ‘‘$ 6 ,000’’. (2) INFLATION AD J USTMENT.—Paragraph (3) of section 42(e) is amended by adding at the end the following new subpara- graph: ‘‘(D) INFLATION ADJUSTMENT.—In the case of any e x penditures which are treated under paragraph (4) as placed in service during any calendar year after 200 9, the $6,000 amount in subparagraph (A)(ii)(II) shall be increased by an amount equal to— ‘‘(i) such dollar amount, multiplied by

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