HR 3760 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a Federal income tax credit for certain home purchases.CommentsClose CommentsPermalink

October 8, 2009CommentsClose CommentsPermalink

Mrs. BIGGERT (for herself, Mr. MCHENRY, Mr. PAUL, Mr. LANCE, Mr. THOMPSON of Pennsylvania, Mr. JONES, Mrs. BONO MACK, Mr. KING of New York, Mr. GARY G. MILLER of California, and Mr. DUNCAN) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a Federal income tax credit for certain home purchases.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Home Buyer Tax Credit Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. CREDIT FOR CERTAIN HOME PURCHASES.

(a) Allowance of Credit- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:CommentsClose CommentsPermalink

‘SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

‘(a) Allowance of Credit-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of an individual who is a purchaser of a principal residence during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 10 percent of the purchase price of the residence.CommentsClose CommentsPermalink





‘(2) DOLLAR LIMITATION- The amount of the credit allowed under paragraph (1) shall not exceed $15,000.CommentsClose CommentsPermalink





‘(3) ALLOCATION OF CREDIT AMOUNT- At the election of the taxpayer, the amount of the credit allowed under paragraph (1) (after application of paragraph (2)) may be equally divided among the 2 taxable years beginning with the taxable year in which the purchase of the principal residence is made.CommentsClose CommentsPermalink





‘(b) Limitations-CommentsClose CommentsPermalink





‘(1) DATE OF PURCHASE- The credit allowed under subsection (a) shall be allowed only with respect to purchases made--CommentsClose CommentsPermalink





‘(A) after the date of the enactment of the Home Buyer Tax Credit Act of 2009, andCommentsClose CommentsPermalink





‘(B) on or before the date that is 1 year after such date of enactment.CommentsClose CommentsPermalink





‘(2) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of--CommentsClose CommentsPermalink





‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink





‘(B) the sum of the credits allowable under this subpart (other than this section) for the taxable year.CommentsClose CommentsPermalink





‘(3) ONE-TIME ONLY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If a credit is allowed under this section in the case of any individual (and such individual’s spouse, if married) with respect to the purchase of any principal residence, no credit shall be allowed under this section in any taxable year with respect to the purchase of any other principal residence by such individual or a spouse of such individual.CommentsClose CommentsPermalink





‘(B) JOINT PURCHASE- In the case of a purchase of a principal residence by 2 or more unmarried individuals or by 2 married individuals filing separately, no credit shall be allowed under this section if a credit under this section has been allowed to any of such individuals in any taxable year with respect to the purchase of any other principal residence.CommentsClose CommentsPermalink





‘(c) Principal Residence- For purposes of this section, the term ‘principal residence’ has the same meaning as when used in section 121.CommentsClose CommentsPermalink





‘(d) Denial of Double Benefit- No credit shall be allowed under this section for any purchase for which a credit is allowed under section 36 or section 1400C.CommentsClose CommentsPermalink





‘(e) Special Rules-CommentsClose CommentsPermalink





‘(1) JOINT PURCHASE-CommentsClose CommentsPermalink





‘(A) MARRIED INDIVIDUALS FILING SEPARATELY- In the case of 2 married individuals filing separately, subsection (a) shall be applied to each such individual by substituting ‘$7,500’ for ‘$15,000’ in subsection (a)(1).CommentsClose CommentsPermalink





‘(B) UNMARRIED INDIVIDUALS- If 2 or more individuals who are not married purchase a principal residence, the amount of the credit allowed under subsection (a) shall be allocated among such individuals in such manner as the Secretary may prescribe, except that the total amount of the credits allowed to all such individuals shall not exceed $15,000.CommentsClose CommentsPermalink





‘(2) PURCHASE- In defining the purchase of a principal residence, rules similar to the rules of paragraphs (2) and (3) of section 1400C(e) (as in effect on the date of the enactment of this section) shall apply.CommentsClose CommentsPermalink





‘(3) REPORTING REQUIREMENT- Rules similar to the rules of section 1400C(f) (as so in effect) shall apply.CommentsClose CommentsPermalink





‘(f) Recapture of Credit in the Case of Certain Dispositions-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the event that a taxpayer--CommentsClose CommentsPermalink





‘(A) disposes of the principal residence with respect to which a credit was allowed under subsection (a), orCommentsClose CommentsPermalink





‘(B) fails to occupy such residence as the taxpayer’s principal residence,CommentsClose CommentsPermalink





at any time within 24 months after the date on which the taxpayer purchased such residence, then the tax imposed by this chapter for the taxable year during which such disposition occurred or in which the taxpayer failed to occupy the residence as a principal residence shall be increased by the amount of such credit.CommentsClose CommentsPermalink





‘(2) EXCEPTIONS-CommentsClose CommentsPermalink





‘(A) DEATH OF TAXPAYER- Paragraph (1) shall not apply to any taxable year ending after the date of the taxpayer’s death.CommentsClose CommentsPermalink





‘(B) INVOLUNTARY CONVERSION- Paragraph (1) shall not apply in the case of a residence which is compulsorily or involuntarily converted (within the meaning of section 1033(a)) if the taxpayer acquires a new principal residence within the 2-year period beginning on the date of the disposition or cessation referred to in such paragraph. Paragraph (1) shall apply to such new principal residence during the remainder of the 24-month period described in such paragraph as if such new principal residence were the converted residence.CommentsClose CommentsPermalink





‘(C) TRANSFERS BETWEEN SPOUSES OR INCIDENT TO DIVORCE- In the case of a transfer of a residence to which section 1041(a) applies--CommentsClose CommentsPermalink





‘(i) paragraph (1) shall not apply to such transfer, andCommentsClose CommentsPermalink





‘(ii) in the case of taxable years ending after such transfer, paragraph (1) shall apply to the transferee in the same manner as if such transferee were the transferor (and shall not apply to the transferor).CommentsClose CommentsPermalink





‘(D) RELOCATION OF MEMBERS OF THE ARMED FORCES- Paragraph (1) shall not apply in the case of a member of the Armed Forces of the United States on active duty who moves pursuant to a military order and incident to a permanent change of station.CommentsClose CommentsPermalink





‘(3) JOINT RETURNS- In the case of a credit allowed under subsection (a) with respect to a joint return, half of such credit shall be treated as having been allowed to each individual filing such return for purposes of this subsection.CommentsClose CommentsPermalink





‘(4) RETURN REQUIREMENT- If the tax imposed by this chapter for the taxable year is increased under this subsection, the taxpayer shall, notwithstanding section 6012, be required to file a return with respect to the taxes imposed under this subtitle.CommentsClose CommentsPermalink





‘(g) Basis Adjustment- For purposes of this subtitle, if a credit is allowed under this section with respect to the purchase of any residence, the basis of such residence shall be reduced by the amount of the credit so allowed.CommentsClose CommentsPermalink





‘(h) Election To Treat Purchase in Prior Year- In the case of a purchase of a principal residence after December 31, 2009, and on or before the date described in subsection (b)(1)(B), a taxpayer may elect to treat such purchase as made on December 31, 2009, for purposes of this section.’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 24(b)(3)(B) of the Internal Revenue Code of 1986 is amended by striking ‘and 25B’ and inserting ‘, 25B, and 25E’.CommentsClose CommentsPermalink





(2) Section 25(e)(1)(C)(ii) of such Code is amended by inserting ‘25E,’ after ‘25D,’.CommentsClose CommentsPermalink





(3) Section 25B(g)(2) of such Code is amended by striking ‘section 23’ and inserting ‘sections 23 and 25E’.CommentsClose CommentsPermalink





(4) Section 904(i) of such Code is amended by striking ‘and 25B’ and inserting ‘25B, and 25E’.CommentsClose CommentsPermalink





(5) Section 1016(a) of such Code is amended by striking ‘and’ at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting ‘, and’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(38) to the extent provided in section 25E(g).’.CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of sections for subpart A 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 25D the following new item:CommentsClose CommentsPermalink





‘Sec. 25E. Credit for certain home purchases.’.CommentsClose CommentsPermalink





(d) Sunset of Current First-Time Homebuyer Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (h) of section 36 of the Internal Revenue Code of 1986 is amended by striking ‘before December 1, 2009’ and inserting ‘on or before the date of the enactment of the Home Buyer Tax Credit Act of 2009’.CommentsClose CommentsPermalink





(2) ELECTION TO TREAT PURCHASE IN PRIOR YEAR- Subsection (g) of section 36 of the Internal Revenue Code of 1986 is amended by striking ‘before December 1, 2009’ and inserting ‘on or before the date of the enactment of the Home Buyer Tax Credit Act of 2009’.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to purchases after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 3. RESCISSION OF ARRA APPROPRIATIONS.

(a) In General- Effective on the date of the enactment of this Act, of the discretionary appropriations made available by division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5), the applicable percentage of unobligated balances are rescinded.CommentsClose CommentsPermalink





(b) Applicable Percentage- For purposes of this section, the term ‘applicable percentage’ means the percentage that the Secretary of the Treasury estimates will result in an increase in revenue to the Treasury equal to the decrease in revenue by reason of the amendments made by section 2 of this Act.CommentsClose CommentsPermalink