1. Short title This Act may be cited as the Preserving Investment in Neighborhoods Act . 2. Exclusion of contributions to capital of partnership (a) In general Subsection (a) of section 118 of the Internal Revenue Code of 1986 is amended by inserting before the period at the end the following: , and, in the case of a partnership, gross income shall not include contributions to the capital of the partnership . (b) Basis of property contributed to partnership Section 723 of such Code is amended— (1) by striking The basis of property and inserting the following: (a) In general Except as provided in subsection (b), the basis of property , and (2) by adding at the end the following new subsection: (b) Contributions to capital (1) Property other than money If property other than money— (A) is acquired by a partnership as a contribution to capital, and (B) is not contributed by a partner as such, then the basis of such property shall be zero. (2) Money If money— (A) is received by a partnership as a contribution to capital, and (B) is not contributed by a partner as such, then the basis of any property acquired with such money during the 12-month period beginning on the day the contribution is received shall be reduced by the amount of such contribution. The excess (if any) of the amount of such contribution over the amount of the reduction under the preceding sentence shall be applied to the reduction (as of the last day of the period specified in the preceding sentence) of the basis of any other property of the partnership. The particular properties to which the reductions required by this paragraph shall be allocated shall be determined under regulations prescribed by the Secretary. . (c) No increase in basis of partner’s interest Subparagraph (B) of section 705(a)(1) of such Code is amended by inserting (other than amounts excluded from gross income under section 118) after exempt from tax under this title . (d) Conforming amendment The heading for section 118 of such Code is amended by striking of a corporation