65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 6434. Payments in lieu of renters credit for partnerships and S corporations (a) In general In the case of any qualified building (as defined in section 36C(a)(3)) directly held by any partnership or S corporation, the Secretary shall pay to such partnership or S corporation for any taxable year an amount equal to the amount of the credit which, but for section 36C(i), would be allowed under section 36C with respect to such building. (b) Regulatory authority The Secretary shall prescribe such regulations, rules, and guidance as may be necessary to carry out section 36C(i), section 92, and this section, including regulations, rules, and guidance providing for— (1) the application of the rules under section 36C with respect to payments under this section in the same manner as such rules apply for purposes of the credit under section 36C, (2) the time and manner of payments under subsection (a), and (3) the determination of a partner's distributive share, or an S corporation shareholder's pro rata share, of any payment under subsection (a). . (2) Conforming amendment The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 6434. Payments in lieu of renters credit for partnerships and S corporations. . (c) Credit includible in gross income (1) In general Part II of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 92. Inclusion in income of renters credit and payments Gross income includes the amount of the credit allowed to the taxpayer under section 36C for the taxable year and the amount of any payment in lieu of such credit under section 6434. . (2) Income disregarded for alternative minimum taxable income Section 56(a) of such Code is amended by adding at the end the following: (8) Section 92 not applicable Section 92 (relating to inclusion in income