. (c) Conforming amendments (1) Subsection (c) of section 196 of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (13), by striking the period at the end of paragraph (14) and inserting , and , and by adding at the end the following new paragraph: (15) the employer-provided employee housing assistance credit determined under section 45S(a). . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45S. Employer-provided employee housing assistance. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. 4. Exclusion from income of employer-provided employee housing assistance (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 139F the following new section: 139G. Employee housing assistance programs (a) Exclusion from gross income (1) In general Gross income of an eligible employee does not include amounts paid or incurred by the employer of such employee for qualified housing expenses provided to the employee if the assistance is furnished pursuant to a program described in subsection (b). (2) Limitation (A) In general The aggregate amount of qualified housing expenses which may be excluded under paragraph (1) with respect to any eligible employee for any taxable year shall not exceed, when added to any qualified housing expenses excluded in any preceding taxable year with respect to such employee— (i) in the case of homeownership assistance, the lesser of $10,000 or 6 percent of the purchase price of such employee's principal residence, and (ii) in the case of rental assistance, $5,000. (B) Inflation adjustment (i) In general In the case of any taxable year beginning after 2017, each dollar amount referred to in subparagraph (A) shall be increased by an amount equal to— (I) such