; special rules For purposes of this section— (1) In general Any term used in section 45S which is also used in this section shall have the same meaning as given such term by section 45S. (2) Applicable rules Rules similar to the rules under section 127(c)(5)(A) shall apply for purposes of this section. (3) Basis adjustment For purposes of this subtitle, if an exclusion is allowed under subsection (a) with respect to a residence, the basis of such residence shall be reduced by the amount of the exclusion. . (b) Reporting requirements Subsection (d)(1) of section 6039D of the Internal Revenue Code of 1986 (relating to returns and records with respect to certain fringe benefit plans) is amended by striking or 137 and inserting 137, or 139G . (c) Conforming amendments (1) The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139F the following new item: Sec. 139G. Employee housing assistance programs. . (2) Subsection (a) of section 1016 of such Code (relating to adjustments to basis) is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , and , and by adding at the end the following new paragraph: (38) in the case of a residence with respect to which amounts were excluded from income under section 139G, to the extent provided in section 139G(c)(3). . (d) Effective date The amendments made by this section shall apply to taxable years beginning December 31, 2016. 5. Grants to cover employer-assisted housing program costs (a) Grants authorized (1) In general The Secretary may award a grant to an eligible entity to pay— (A) the operating costs of administering an employer-assisted housing program; (B) for technical assistance provided by the eligible entity to an employer in connection with such a program