and by inserting after paragraph (5) the following new paragraph: (6) the neighborhood homes credit determined under section 42A(a), . (c) Limitation on carryback Section 39 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: (e) No carryback of neighborhood homes credit before effective date No amount of the unused credit attributable to section 42A may be taken into account under section 38(a)(3) for any taxable year beginning before the date of the enactment of this Act. . (d) Cancellation of indebtedness Section 108 of the Internal Revenue Code of 1986 is amended— (1) by striking or at the end of subsection (a)(1)(D), by striking the period at the end of subsection (a)(1)(E)(ii) and inserting , or , and adding at the end of subsection (a)(1) the following new subparagraph: (F) if the discharge is qualified neighborhood homes credit indebtedness. , and (2) by adding at the end of subsection (b)(2) the following new subparagraph: (H) Special rules relating to qualified neighborhood homes credit indebtedness For purposes of this section, the term qualified neighborhood homes credit indebtedness means indebtedness arising in connection with the development of a qualified residence under section 42A. . (e) Conforming amendments Subsections (i)(3)(D), (i)(6)(B)(i), and (k)(1) of section 469 of the Internal Revenue Code of 1986 are each amended by inserting or 42A after section 42 . (f) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 42 the following: Sec. 42A. Neighborhood homes credit. (g) Effective date The amendments made by this section shall apply to calendar years beginning after December 31, 2019.