‘(a) Allowance of Credit-
‘(1) IN GENERAL- In the case of an individual who is a first-time homebuyer of a principal residence in the United States during any taxable year, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to so much of the purchase price of the residence as does not exceed $20,000.
‘(2) TAXABLE INCOME LIMITATION- No credit shall be allowed under subsection (a) if the taxpayer’s adjusted gross income for the taxable year immediately preceding the taxable year in which the purchase of the principal residence occurs exceeds $75,000 ($150,000 in the case of a joint return).
‘(b) Definitions and Special Rules- For purposes of this section--
‘(1) FIRST-TIME HOMEBUYER-
‘(A) IN GENERAL- The term ‘first-time homebuyer’ has the same meaning as when used in section 72(t)(8)(D)(i).
‘(B) ONE-TIME ONLY- If an individual is treated as a first-time homebuyer with respect to any principal residence, such individual may not be treated as a first-time homebuyer with respect to any other principal residence.
‘(C) MARRIED INDIVIDUALS FILING JOINTLY- In the case of married individuals who file a joint return, the credit under this section is allowable only if both individuals are first-time homebuyers.
‘(D) OTHER TAXPAYERS- If 2 or more individuals who are not married purchase a principal residence--
‘(i) the credit under this section is allowable only if each of the individuals is a first-time homebuyer, and
‘(ii) the amount of the credit allowed under subsection (a) shall be allocated among such individuals in such manner as the Secretary may prescribe.
‘(2) PRINCIPAL RESIDENCE- The term ‘principal residence’ has the same meaning as when used in section 121. Except as provided in regulations, an interest in a partnership, S corporation, or trust which owns an interest in a residence shall not be treated as an interest in a residence.
‘(3) PURCHASE-
‘(A) IN GENERAL- The term ‘purchase’ means any acquisition, but only if--
‘(i) the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267 (b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only the individual’s spouse, ancestors, and lineal descendants), and
‘(ii) the basis of the property in the hands of the person acquiring it is not determined--
‘(I) in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or
‘(II) under section 1014(a) (relating to property acquired from a decedent).
‘(B) CONSTRUCTION- A residence which is constructed by the taxpayer shall be treated as purchased by the taxpayer.
‘(4) PURCHASE PRICE- The term ‘purchase price’ means the adjusted basis of the principal residence on the date of acquisition (within the meaning of section 72(t)(8)(D)(iii)).
‘(c) Denial of Double Benefit- No credit shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter.
‘(d) 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.
‘(e) Property To Which Section Applies- The provisions of this section shall apply to a principal residence if the taxpayer purchases the residence during the period beginning on the date of enactment, and ending on the date which is 1 year after such date.’.
(b) Conforming Amendments-
(1) Subsection (a) of section 1016 of the Internal Revenue Code of 1986 (relating to general rule for adjustments to basis) 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:
‘(38) in the case of a residence with respect to which a credit was allowed under section 36A, to the extent provided in section 36A(d).’.
(2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting ‘or 36A’ after ‘36’.
(c) Clerical Amendment- The table of sections for subpart C 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 36 the following new item:
U.S. Congress - Text of S.312 as Introduced in Senate First-Time Homebuyers' Tax Credit Act of 2009
