1. Short title This Act may be cited as the Neighborhood Homes Investment Act . 2. Neighborhood homes credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 42 the following new section: 42A. Neighborhood homes credit (a) Allowance of credit For purposes of section 38, the amount of the neighborhood homes credit determined under this section for a taxable year for a qualified project shall be, with respect to each qualified residence that is part of such qualified project and that experiences a qualified completion event during such taxable year, an amount equal to— (1) in the case of an affordable sale, with respect to the seller, the excess of— (A) the qualified development cost incurred by such seller for such residence, over (B) the sale price of such residence, or (2) in the case of any other qualified completion event, with respect to a taxpayer other than the owner of the residence (or a related person with respect to such owner), the excess of— (A) the development cost incurred by such taxpayer for such residence, over (B) the amount received by such taxpayer as payment for such rehabilitation. (b) Limitations (1) Amount The amount determined under subsection (a) with respect to a residence shall not exceed 35 percent of the lesser of— (A) the qualified development cost, or (B) 80 percent of the national median sale price for new homes. (2) Allocations (A) In general The amount determined under subsection (a) with respect to a residence that is part of a qualified project and that experiences a qualified completion event shall not exceed the excess of— (i) the amount determined under subparagraph (B), over (ii) the amounts previously determined under subsection (a) with respect to such qualified project. (B) Allocation amount The amount determined under this paragraph with respect to a residence that is part of a qualified project and that experiences a qualified completion event is the least of— (i) the amount