Low-income housing tax credit for transit-oriented development areas

(a) In general Section 42(d)(5) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (C) Increase in credit for buildings in transit-oriented development areas (i) In general In the case of any building located in a transit-oriented development area which is designated for purposes of this subparagraph— (I) in the case of a new building, the eligible basis of such building shall be 150 percent of such basis determined without regard to this subparagraph, and (II) in the case of an existing building, the rehabilitation expenditures taken into account under subsection (e) shall be 150 percent of such expenditures determined without regard to this subparagraph. (ii) Increased eligible basis for noncontiguous States and territories In the case of a transit-oriented development area in Hawaii, Alaska, or any territory of the United States, subclauses (I) and (II) of clause (i) shall each be applied by substituting 155 percent for 150 percent. (iii) Transit-oriented development area For purposes of this subparagraph, the term transit-oriented development area means an area designated by the Secretary of Housing and Urban Development and State housing credit agency as located in an area within ½ of a mile from a rail, bus, harbor, or waterway station and as zoned for high-density. (iv) Limit on areas designated The portions of metropolitan statistical areas which may be designated for purposes of this subparagraph shall not exceed an aggregate area having 20 percent of the population of such metropolitan statistical areas. A comparable rule shall apply to nonmetropolitan statistical areas. (v) Coordination with high cost areas If the eligible basis of a new building, or the rehabilitation expenditures with respect to an existing building, are determined pursuant to subparagraph (B), such building shall not be treated as located in a transit-oriented development area for purposes of this subparagraph.. (b) Effective date The amendment made by this section shall apply to buildings placed in service after the date of the enactment of this Act.