S.Amdt. 4989

SA 4989. Mr. ISAKSON (for himself and Mr. Chambliss) submitted an
amendment intended to be proposed to amendment SA 4983 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221,
moving the United States toward greater energy independence and
security, developing innovative new technologies, reducing carbon
emissions, creating green jobs, protecting consumers, increasing clean
renewable energy production, and modernizing our energy infrastructure,
and to amend the Internal Revenue Code of 1986 to provide tax
incentives for the production of renewable energy and energy
conservation; which was ordered to lie on the table; as follows:

On page 564, beginning at line 7, strike through page 572,
line 22, and insert the following:

SEC. 3011. CREDIT FOR CERTAIN HOME PURCHASES.

(a) Allowance of Credit.--Subpart A of part IV of
subchapter A of chapter 1 (relating to nonrefundable personal
credits) is amended by inserting after section 25D the
following new section:

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

``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual who is a
purchaser of a qualified principal residence during the
taxable year, there shall be allowed as a credit against the
tax imposed by this chapter an amount equal to so much of the
purchase price of the residence as does not exceed $7,000.
``(2) Allocation of credit amount.--The amount of the
credit allowed under paragraph (1) shall be equally divided
among the 2 taxable years beginning with the taxable year in
which the purchase of the qualified principal residence is
made.
``(b) Limitations.--
``(1) Date of purchase.--The credit allowed under
subsection (a) shall be allowed only with respect to
purchases made--
``(A) after June 30, 2008, and
``(B) before July 1, 2009.
``(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--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) for the taxable year.
``(3) One-time only.--
``(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
qualified principal residence, no credit shall be allowed
under this section in any taxable year with respect to the
purchase of any other qualified principal residence by such
individual or a spouse of such individual.
``(B) Joint purchase.--In the case of a purchase of a
qualified 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
qualified principal residence.
``(c) Qualified Principal Residence.--
``(1) In general.--For purposes of this section, the term
`qualified principal residence' means an eligible single-
family residence that is purchased to be the principal
residence of the purchaser.
``(2) Eligible single-family residence.--
``(A) In general.--For purposes of this subsection, the
term `eligible single-family residence' means a single-family
structure that is--
``(i) a new previously unoccupied residence for which a
building permit is issued and construction begins on or
before September 1, 2007,
``(ii) an owner-occupied residence with respect to which
the owner's acquisition indebtedness (as defined in section
163(h)(3)(B), determined without regard to clause (ii)
thereof) is in default on or before July 1, 2008, or
``(iii) a residence with respect to which a foreclosure
event has taken place and which is owned by the mortgagor or
the mortgagor's agent.
``(B) Certification.--In the case of an eligible single-
family residence described in subparagraph (A)(i), no credit
shall be allowed under this section unless the purchaser
submits a certification by the seller of such residence that
such residence meets the requirements of such subparagraph.
``(d) Denial of Double Benefit.--No credit shall be allowed
under this section for any purchase for which a credit is
allowed under section 1400C.
``(e) Special Rules.--
``(1) Joint purchase.--
``(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
`$3,500' for `$7,000' in subsection (a)(1).
``(B) Unmarried individuals.--If 2 or more individuals who
are not married purchase a qualified 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
$7,000.
``(2) Purchase.--In defining the purchase of a qualified
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.
``(3) Reporting requirement.--Rules similar to the rules of
section 1400C(f) (as so in effect) shall apply.
``(f) 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.''.
(b) Conforming Amendment.--Section 1016(a) is amended by
striking ``and'' at the end of paragraph (35), by striking
the period at the end of paragraph (36) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(37) to the extent provided in section 25E(f).''.
(c) Clerical Amendment.--The table of sections for subpart
A of part IV of subchapter A of chapter 1 is amended by
inserting after the item relating to section 25D the
following new item:

``Sec. 25E. Credit for certain home purchases.''.

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