To amend the Internal Revenue Code of 1986 to extend the time for closing on a principal residence eligible for the first-time homebuyer credit.

SA 4344. Mr. REID proposed an amendment to amendment SA 4301 proposed
by Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code
of 1986 to extend certain expiring provisions, and for other purposes;
as follows:

At the end of part I of subtitle B of title II, insert the
following:

SEC. --. FIRST-TIME HOMEBUYER CREDIT.

(a) In General.--Paragraph (2) of section 36(h) is amended
by striking ``paragraph (1) shall be applied by substituting
`July 1, 2010' '' and inserting ``and who purchases such
residence before October 1, 2010, paragraph (1) shall be
applied by substituting `October 1, 2010' ''.
(b) Conforming Amendment.--Subparagraph (B) of section
36(h)(3) is amended by inserting ``and for `October 1, 2010'
'' after ``for `July 1, 2010' ''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall apply to residences purchased after June 30,
2010.
(d) Offset.--
(1) Disallowance of deduction for punitive damages.--
(A) In general.--Section 162(g) (relating to treble damage
payments under the antitrust laws) is amended--
(i) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively,
(ii) by striking ``If'' and inserting:
``(1) Treble damages.--If'', and
(iii) by adding at the end the following new paragraph:
``(2) Punitive damages.--No deduction shall be allowed
under this chapter for any amount paid or incurred for
punitive damages in connection with any judgment in, or
settlement of, any action. This paragraph shall not apply to
punitive damages described in section 104(c).''.
(B) Conforming amendment.--The heading for section 162(g)
is amended by inserting ``Or Punitive Damages'' after
``Laws''.
(2) Inclusion in income of punitive damages paid by insurer
or otherwise.--
(A) In general.--Part II of subchapter B of chapter 1
(relating to items specifically included in gross income) is
amended by adding at the end the following new section:

``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR
OTHERWISE.

``Gross income shall include any amount paid to or on
behalf of a taxpayer as insurance or otherwise by reason of
the taxpayer's liability (or agreement) to pay punitive
damages.''.
(B) Reporting requirements.--Section 6041 (relating to
information at source) is amended by adding at the end the
following new subsection:
``(h) Section To Apply to Punitive Damages Compensation.--
This section shall apply to payments by a person to or on
behalf of another person as insurance or otherwise by reason
of the other person's liability (or agreement) to pay
punitive damages.''.
(C) Conforming amendment.--The table of sections for part
II of subchapter B of chapter 1 is amended by adding at the
end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise.''.
(3) Effective date.--The amendments made by this subsection
shall apply to damages paid or incurred after December 31,
2011.
______