The bill would amend the Internal Revenue Code to create tax incentives for certain residential rental buildings. Eligible property would generally need to be owned by specified public, tax-exempt, tribal, or housing-authority entities; have at least 70% rent-restricted units occupied by tenants at or below 80% of area median income; undergo specified rehabilitation; and have been placed in service more than 15 years earlier. The proposal would provide a 15-year depreciation period, exempt rental activity from passive-activity and profit-motive rules, establish rules for financing and sales after 10 years, and exclude certain capital grants from income and basis reductions. The changes would apply to taxable years beginning after enactment.

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