# Pub. L. 110-289: changes to the Internal Revenue Code 2008-07-30, 122 Stat. 2891. Source: . ## Legislative history - Bill: [H.R. 3221](https://www.congress.gov/bill/110th-congress/house-bill/3221) - Bluebook: [JCT general explanation (2009)](https://www.govinfo.gov/app/details/CPRT-111JPRT46159) ## § 26: Limitation based on tax liability; definition of tax liability - § 26(b)(2)(W): Pub. L. 110–289 added subpar. (W). ## § 36: First-time homebuyer credit - Enacted 26 U.S.C. § 36. ## § 37: Overpayments of tax ## § 38: General business credit - § 38(c)(4)(B)(ii), § 38(c)(4)(B)(iii), § 38(c)(4)(B)(iv): Pub. L. 110–289, § 3022(b), added cl. (ii) and redesignated former cls. (ii) and (iii) as (iii) and (iv), respectively. Former cl. (iv) redesignated (v). - § 38(c)(4)(B)(v): Pub. L. 110–289, § 3022(c), added cl. (v). Former cl. (v) redesignated (vi). - § 38(c)(4)(B)(v): Pub. L. 110–289, § 3022(b), redesignated cl. (iv) as (v). - § 38(c)(4)(B)(vi): Pub. L. 110–289, § 3022(c), redesignated cl. (v) as (vi). ## § 42: Low-income housing credit - § 42(b): Pub. L. 110–289, § 3002(a), redesignated par. (2) as (1), in heading, substituted “Determination of applicable percentage” for “Buildings placed in service after 1987”, in text, substituted “For purposes of this section, the term ‘applicable percentage’ means, with respect to any building, the appropriate percentage” for “(A) In general.—In the case of any qualified low-income building placed in service by the taxpayer after 1987, the term ‘applicable percentage’ means the appropriate percentage”, “a new building which is not federally subsidized for the taxable year” for “a building described in paragraph (1)(A)”, and “a building not described in clause (i)” for “a building described in paragraph (1)(B)”, added par. (2), and struck out “For purposes of this section—” after subsec. heading and former par. (1) which related to buildings placed in service during 1987. - § 42(c)(2): Pub. L. 110–289, § 3004(a), struck out concluding provisions which read as follows: “Such term does not include any building with respect to which moderate rehabilitation assistance is provided, at any time during the compliance period, under section 8(e)(2) of the United States Housing Act of 1937 (other than assistance under the McKinney-Vento Homeless Assistance Act (as in effect on the date of the enactment of this sentence)).” - § 42(d)(2)(B)(ii): Pub. L. 110–289, § 3003(g)(1), substituted “the date the building was last placed in service,” for “the later of— - § 42(d)(2)(D): Pub. L. 110–289, § 3003(e), (g)(2), redesignated cls. (ii) and (iii)(II) as (i) and (ii), respectively, in cl. (ii) struck out at end “For purposes of the preceding sentence, in applying section 267(b) or 707(b)(1), ‘10 percent’ shall be substituted for ‘50 percent’.”, and struck out former cls. (i) and (iii)(I) which related to the term “nonqualified substantial improvement” and application of section 179 for purposes of subpar. (B)(i). - § 42(d)(4)(C)(ii): Pub. L. 110–289, § 3003(c), substituted “shall not exceed the sum of—” for “shall not exceed 10 percent of the eligible basis of the qualified low-income housing project of which it is a part.” and added subcls. (I) and (II). - § 42(d)(5)(A): Pub. L. 110–289, § 3003(d), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “If, during any taxable year of the compliance period, a grant is made with respect to any building or the operation thereof and any portion of such grant is funded with Federal funds (whether or not includible in gross income), the eligible basis of such building for such taxable year and all succeeding taxable years shall be reduced by the portion of such grant which is so funded.” - § 42(d)(5)(B), § 42(d)(5): Pub. L. 110–289, § 3003(g)(3), redesignated subpar. (C) as (B) and struck out heading and text of former subpar. (B). Text read as follows: “The eligible basis of any building shall not include any portion of its adjusted basis which is attributable to amounts with respect to which an election is made under section 167(k) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).” - § 42(d)(5): Pub. L. 110–289, § 3003(a), added cl. (v). - § 42(d)(6): Pub. L. 110–289, § 3003(f), amended par. (6) generally. Prior to amendment, par. (6) consisted of subpars. (A) to (E) relating to general rule for waiver of par. (2)(B)(ii) with respect to any federally-assisted building, definition of “federally-assisted building”, waiver for buildings with low-income occupancy, waiver for buildings acquired from insured depository institutions in default, and definition of “appropriate Federal official”. - § 42(e)(3)(A)(ii)(I): Pub. L. 110–289, § 3003(b)(1)(A), substituted “20 percent” for “10 percent”. - § 42(e)(3)(A)(ii)(II): Pub. L. 110–289, § 3003(b)(1)(B), substituted “$6,000” for “$3,000”. - § 42(e)(3)(D): Pub. L. 110–289, § 3003(b)(2), added subpar. (D). - § 42(f)(5)(B)(ii)(II): Pub. L. 110–289, § 3003(b)(3), substituted “if the dollar amount in effect under subsection (e)(3)(A)(ii)(II) were two-thirds of such amount.” for “if subsection (e)(3)(A)(ii)(II) were applied by substituting ‘$2,000’ for ‘$3,000’.” - § 42(g)(9): Pub. L. 110–289, § 3004(g), added par. (9). - § 42(h)(1)(E)(ii): Pub. L. 110–289, § 3004(b), substituted “(as of the date which is 1 year after the date that the allocation was made)” for “(as of the later of the date which is 6 months after the date that the allocation was made or the close of the calendar year in which the allocation is made)”. - § 42(h)(3)(I): Pub. L. 110–289, § 3001, added subpar. (I). - § 42(h)(4)(A)(ii): Pub. L. 110–289, § 3007(b), inserted “or such financing is refunded as described in section 146(i)(6)” before period at end. - § 42(i)(2)(A): Pub. L. 110–289, § 3002(b)(1), struck out “, or any below market Federal loan,” before “the proceeds of which”. - § 42(i)(2)(B): Pub. L. 110–289, § 3002(b)(2)(A), in heading, struck out “balance of loan or” before “proceeds” and in text, struck out “loan or” before “tax-exempt obligation” and substituted “for purposes of subsection (d) the proceeds of such obligation.” for “for purposes of subsection (d)— - § 42(i)(2)(C): Pub. L. 110–289, § 3002(b)(2)(B)(i), struck out “or below market Federal loan” after “tax-exempt obligation” in introductory provisions. - § 42(i)(2)(C)(i): Pub. L. 110–289, § 3002(b)(2)(B)(ii), substituted “(when issued)” for “or loan (when issued or made)” and “the proceeds of such obligation” for “the proceeds of such obligation or loan”. - § 42(i)(2)(C)(ii): Pub. L. 110–289, § 3002(b)(2)(B)(iii), struck out “, and such loan is repaid,” after “redeemed”. - § 42(i)(2): Pub. L. 110–289, § 3002(b)(2)(C), struck out subpars. (D) and (E) which related to below market Federal loan and buildings receiving HOME assistance or Native American housing assistance, respectively. - § 42(i)(3)(D)(i)(II), § 42(i)(3)(D)(i)(III): Pub. L. 110–289, § 3004(e), added subcl. (II) and redesignated former subcl. (II) as (III). - § 42(i)(8): Pub. L. 110–289, § 3004(f), added par. (8). - § 42(j)(6): Pub. L. 110–289, § 3004(c), amended par. (6) generally. Prior to amendment, text read as follows: “In the case of a disposition of a building or an interest therein, the taxpayer shall be discharged from liability for any additional tax under this subsection by reason of such disposition if— - § 42(m)(1)(C)(ix), § 42(m)(1)(C)(x): Pub. L. 110–289, § 3004(d), added cls. (ix) and (x). ## § 47: Rehabilitation credit - § 47(c)(2)(B)(v)(I): Pub. L. 110–289 substituted “section 168(h), except that ‘50 percent’ shall be substituted for ‘35 percent’ in paragraph (1)(B)(iii) thereof” for “section 168(h)”. ## § 56: Adjustments in computing alternative minimum taxable income - § 56: Pub. L. 110–289 added cl. (iii). ## § 57: Items of tax preference - § 57(a)(5)(C)(iii), § 57(a)(5)(C)(iv), § 57(a)(5)(C)(v): Pub. L. 110–289 added cl. (iii) and redesignated former cls. (iii) and (iv) as (iv) and (v), respectively. ## § 63: Taxable income defined - § 63(c)(1): Pub. L. 110–289, § 3012(a), added subpar. (C). - § 63(c)(7): Pub. L. 110–289, § 3012(b), added par. (7). ## § 121: Exclusion of gain from sale of principal residence - § 121(b)(4): Pub. L. 110–289 added par. (4) relating to exclusion of gain allocated to nonqualified use. ## § 142: Exempt facility bond - § 142(d)(2)(B): Pub. L. 110–289, § 3005(a), designated existing provisions as cl. (i), inserted heading, and added cls. (ii) to (iv). - § 142(d)(2)(C): Pub. L. 110–289, § 3008(b), added subpar. (C). - § 142(d)(2)(D): Pub. L. 110–289, § 3008(c), added subpar. (D). - § 142(d)(2)(E): Pub. L. 110–289, § 3009(a), added subpar. (E). - § 142(d)(3)(A): Pub. L. 110–289, § 3010(a), inserted at end “The preceding sentence shall not apply with respect to any project for any year if during such year no residential unit in the project is occupied by a new resident whose income exceeds the applicable income limit.” - § 142(d)(3)(C): Pub. L. 110–289, § 3008(a), added subpar. (C). ## § 143: Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond - § 143(k)(11): Pub. L. 110–289, § 3026(a), substituted “May 1, 2008” for “December 31, 1996” and “January 1, 2010” for “January 1, 1999” in concluding provisions. - § 143(k)(12): Pub. L. 110–289, § 3021(b)(1), added par. (12) relating to special rules for subprime refinancings. ## § 146: Volume cap - § 146(d)(5): Pub. L. 110–289, § 3021(a)(1), added par. (5). - § 146(f)(6): Pub. L. 110–289, § 3021(a)(2), added par. (6). - § 146(i)(6): Pub. L. 110–289, § 3007(a), added par. (6). ## § 149: Bonds must be registered to be tax exempt; other requirements - § 149(b)(3)(A)(iv): Pub. L. 110–289, § 3023(a), added cl. (iv). - § 149(b)(3)(E): Pub. L. 110–289, § 3023(b), added subpar. (E). ## § 168: Accelerated cost recovery system - § 168(k)(4): Pub. L. 110–289 added par. (4). ## § 414: Definitions and special rules - § 414(l)(2)(G): Pub. L. 110–289, § 1604(b)(4), which directed substitution of “bridge depository institution” for “bridge bank”, was executed by making the substitution wherever appearing in text, to reflect the probable intent of Congress. ## § 856: Definition of real estate investment trust - § 856(c)(4): Pub. L. 110–289, § 3032(a), inserted “(including a discrepancy caused solely by the change in the foreign currency exchange rate used to value a foreign asset)” after “such requirements” in first sentence of concluding provisions. - § 856(c)(4)(B)(ii): Pub. L. 110–289, § 3041, substituted “than 25 percent” for “than 20 percent” and “REIT subsidiaries,” for “REIT subsidiaries (in the case of a quarter which closes on or before the termination date, 25 percent in the case of a timber real estate investment trust), and”. - § 856(c)(5)(G): Pub. L. 110–289, § 3031(b), amended subpar. (G) generally. Prior to amendment, text read as follows: “Except to the extent provided by regulations, any income of a real estate investment trust from a hedging transaction (as defined in clause (ii) or (iii) of section 1221(b)(2)(A)) which is clearly identified pursuant to section 1221(a)(7), including gain from the sale or disposition of such a transaction, shall not constitute gross income under paragraph (2) to the extent that the transaction hedges any indebtedness incurred or to be incurred by the trust to acquire or carry real estate assets.” - § 856(c)(5)(J): Pub. L. 110–289, § 3031(c), added subpar. (J). - § 856(c)(5)(K): Pub. L. 110–289, § 3032(b), added subpar. (K). - § 856(d)(8)(B): Pub. L. 110–289, § 3061(a), amended subpar. (B) generally. Prior to amendment, text read as follows: “The requirements of this subparagraph are met with respect to an interest in real property which is a qualified lodging facility leased by the trust to a taxable REIT subsidiary of the trust if the property is operated on behalf of such subsidiary by a person who is an eligible independent contractor.” - § 856(d)(9)(A), § 856(d)(9)(B): Pub. L. 110–289, § 3061(b), amended subpars. (A) and (B) generally. Prior to amendment, subpar. (A) defined “eligible independent contractor” with respect to any qualified lodging facility and subpar. (B) set forth reasons by which a person would not fail to be treated as an independent contractor with respect to any qualified lodging facility. - § 856(l)(3): Pub. L. 110–289, § 3061(c), inserted “or a health care facility” after “a lodging facility” and “or health care facility” after “such lodging facility” in concluding provisions. - § 856(n): Pub. L. 110–289, § 3031(a), added subsec. (n). ## § 857: Taxation of real estate investment trusts and their beneficiaries - § 857(b)(4)(B)(i): Pub. L. 110–289, § 3033(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “gain from the sale or other disposition of foreclosure property described in section 1221(a)(1) and the gross income for the taxable year derived from foreclosure property (as defined in section 856(e)), but only to the extent such gross income is not described in subparagraph (A), (B), (C), (D), (E), or (G) of section 856(c)(3), over”. - § 857(b)(6)(B)(i): Pub. L. 110–289, § 3033(b), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “the term ‘net income derived from prohibited transactions’ means the excess of the gain from prohibited transactions over the deductions allowed by this chapter which are directly connected with prohibited transactions;”. - § 857(b)(6)(C): Pub. L. 110–289, § 3051(a)(3), substituted “real estate asset (as defined in section 856(c)(5)(B)) and which is described in section 1221(a)(1) if” for “real estate asset as defined in section 856(c)(5)(B) if” in introductory provisions. - § 857(b)(6)(C)(i): Pub. L. 110–289, § 3051(a)(1), substituted “2 years” for “4 years”. - § 857(b)(6)(C)(ii): Pub. L. 110–289, § 3051(a)(2), substituted “2-year period” for “4-year period”. - § 857(b)(6)(C)(iii): Pub. L. 110–289, § 3052(1), added subcl. (III). - § 857(b)(6)(C)(iv): Pub. L. 110–289, § 3051(a)(1), substituted “2 years” for “4 years”. - § 857(b)(6)(D): Pub. L. 110–289, § 3051(a)(3), substituted “real estate asset (as defined in section 856(c)(5)(B)) and which is described in section 1221(a)(1) if” for “real estate asset (as defined in section 856(c)(5)(B)) if” in introductory provisions. - § 857(b)(6)(D)(i): Pub. L. 110–289, § 3051(a)(1), substituted “2 years” for “4 years”. - § 857(b)(6)(D)(ii), § 857(b)(6)(D)(iii): Pub. L. 110–289, § 3051(a)(2), substituted “2-year period” for “4-year period” in introductory provisions. - § 857(b)(6)(D)(iv)(III): Pub. L. 110–289, § 3052(2), added subcl. (III). - § 857(b)(6)(G): Pub. L. 110–289, § 3051(b), redesignated subpar. (H) as (G), inserted at end “For purposes of the preceding sentence, the reference to subparagraph (D) shall be a reference 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.”, and struck out former subpar. (G). Prior to amendment, text of subpar. (G) read as follows: - § 857(b)(6)(H), § 857(b)(6)(I): Pub. L. 110–289, § 3051(b)(1), redesignated subpar. (I) as (H). Former subpar. (H) redesignated (G). ## § 864: Definitions and special rules - § 864(f): Pub. L. 110–289, § 3093(a), substituted “December 31, 2010” for “December 31, 2008”. - § 864(f): Pub. L. 110–289, § 3093(b), added par. (7). ## § 1445: Withholding of tax on dispositions of United States real property interests - § 1445(b)(7): Pub. L. 110–289, § 3024(c)(1), amended par. (7) generally. Prior to amendment, par. (7) related to special rules for paragraphs (2) and (3). - § 1445(b)(9): Pub. L. 110–289, § 3024(a), added par. (9). - § 1445(d): Pub. L. 110–289, § 3024(c)(2)(C), substituted “, transferee’s agents, or qualified substitutes” for “or transferee’s agents” in heading. - § 1445(d)(1): Pub. L. 110–289, § 3024(c)(2)(A), amended par. (1) generally. Prior to amendment, par. (1) related to notice of false affidavit; foreign corporations. - § 1445(d)(2): Pub. L. 110–289, § 3024(c)(2)(B), amended par. (2) generally. Prior to amendment, par. (2) related to failure to furnish notice. - § 1445(f)(6): Pub. L. 110–289, § 3024(b), added par. (6). ## § 3406: Backup withholding - § 3406(b)(3)(F): Pub. L. 110–289 added subpar. (F). ## § 6050W: Returns relating to payments made in settlement of payment card and third party network transactions - Enacted 26 U.S.C. § 6050W. ## § 6211: Definition of a deficiency - § 6211(b)(4)(A): Pub. L. 110–289 substituted “34, 35, 36, 53(e), and 6428” for “34, 35, 53(e), and 6428”. ## § 6724: Waiver; definitions and special rules - § 6724(d)(1)(B)(xix): Pub. L. 110–289, § 3091(b)(1)(B), redesignated cl. (xix) relating to section 6039(a) as (xxi). - § 6724(d)(1)(B)(xx): Pub. L. 110–289, § 3091(b)(1)(A), which directed amendment of cl. (xx) by striking “or” at end, could not be executed because “or” did not appear. - § 6724(d)(1)(B)(xxi): Pub. L. 110–289, § 3091(b)(1)(B), (C), redesignated cl. (xix) as (xxi) and substituted “or” for “and” at end. - § 6724(d)(1)(B)(xxii): Pub. L. 110–289, § 3091(b)(1)(D), added cl. (xxii). - § 6724(d)(2)(BB): Pub. L. 110–289, § 3091(b)(2), which directed amendment of subpar. (BB) by striking “or” at end, could not be executed because “or” did not appear. - § 6724(d)(2)(CC): Pub. L. 110–289, § 3091(b)(2), substituted “, or” for period at end. - § 6724(d)(2)(DD): Pub. L. 110–289, § 3091(b)(2), added subpar. (DD).