This Act may be cited as the Preserving Rural Housing Investments Act.

(a) In general Section 168(h)(6)(F)(iii)(I) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: For purposes of applying the preceding sentence to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association, the term tax-exempt entity shall not include the United States or any agency or instrumentality of the United States.. (b) Effective date The amendment made by this section shall apply to taxable years ending after July 30, 2008.