12 2 STA T . 2 89 2 PUBLIC LA W 11 0– 289 —J UL Y3 0 , 2008 ‘ ‘ (C)inthecas e of an y ta x a bl e yea r be g inning in 20 0 8, the real p roperty tax d ed u ction .’ ’. (b) DEFIN I T I O N. —S ection 63 (c)isa m ended by adding at the end the follo w ing new paragraph
‘‘( 7 ) R E ALPR OPERT Y TA XD ED UC TION.— F or purposes of para - graph ( 1 ), the real property tax deduction is the lesser of— ‘‘( A ) the amount allowable as a deduction under this chapter for State and local taxes described in section 16 4 (a)(1), or ‘‘( B ) $5 00 ($1,000 in the case of a j oint return). Any taxes ta k en into account under section 62(a) shall not be taken into account under this paragraph.’’. (c) E FFECTI V E DATE.— T he amendments made by this section shall apply to taxable years beginning after December 31, 2007. Subti t leC—G e n e ra l P r ov i s ions SEC.3021 . T E MPORA R YLIB ERALI Z ATIO N O F TA X- EXEMPT H O U SIN G BON D RULES. (a) TE M PORARY I NCREA S EIN V OLUME CAP.— (1) IN G ENERAL.—Subsection (d) of section 146 is amended by adding at the end the following new paragraph: ‘‘(5) INCREASE AND SET ASIDE FOR H OUSING B ONDS FOR 20 0 8 .— ‘‘(A) INCREASE FOR 2008.—In the case of calendar year 2008, the State ceiling for each State shall be increased by an amount e q ual to $11,000,000,000 multiplied by a fraction— ‘‘(i) the numerator of which is the State ceiling applicable to the State for calendar year 2008, deter- mined without regard to this paragraph, and ‘‘(ii) the denominator of which is the sum of the State ceilings determined under clause (i) for all States. ‘‘(B) SET ASIDE.— ‘‘(i) IN GENERAL.—Any amount of the State ceiling for any State which is attributable to an increase under this paragraph shall be allocated solely for one or more qualified housing issues. ‘‘(ii) Q UALIFIED HOUSING ISSUE.—For purposes of this paragraph, the term ‘qualified housing issue’ means— ‘‘(I) an issue described in section 142(a)(7) (relating to qualified residential rental projects), or ‘‘(II) a qualified mortgage issue (determined by substituting ‘12-month period’ for ‘42-month period’ each place it appears in section 143(a)(2)(D)(i)).’’. (2) CARRYFOR W ARD OF UNUSED LIMITATIONS.—Subsection (f) of section 146 is amended by adding at the end the following new paragraph: ‘‘(6) SPECIAL RULES FOR INCREASED VOLUME CAP UNDER SUBSECTION (d)(5).— N o amount which is attributable to the increase under subsection (d)(5) may be used— ‘‘(A) for any issue other than a qualified housing issue (as defined in subsection (d)(5)), or 26USC 6 3note.
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