H.R. 101 – Reading Mode

111th CONGRESS

1st Session

H. R. 101

IN THE HOUSE OF REPRESENTATIVES

January 6, 2009

Mr. Dreier introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow all individuals, whether or not first-time homebuyers, a refundable income tax credit for the purchase of a residence during 2009 or 2010.

Short title

This Act may be cited as the Economic Recovery Through Responsible Homeownership Act of 2009.

Refundable credit for residences purchased during 2009 or 2010

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36 the following new section:

36A.

General homebuyer credit for residences purchased during 2009 or 2010

(a)

Allowance of credit

In the case of an individual who makes an eligible purchase during the taxable year, there shall be allowed as a credit against the tax imposed by this subtitle for such taxable year an amount equal to so much of the purchase price as does not exceed the applicable amount.

(b)

Applicable amount

For purposes of subsection (a), the applicable amount is—

(1)

$10,000 in the case of an eligible purchase where the down payment is at least 15 percent of the purchase price,

(2)

$5,000 in the case of an eligible purchase where the down payment is at least 10 percent of the purchase price,

(3)

$2,000 in the case of an eligible purchase where the down payment is at least 5 percent of the purchase price, and

(4)

zero in any other case.

(c)

Definitions

For purposes of this section—

(1)

Eligible purchase

The term eligible purchase means the purchase of a residence for the taxpayer if—

(A)

such residence is located in the United States,

(B)

the construction of such residence began before 2009, and

(C)

such purchase is made by the taxpayer during 2009 or 2010.

(2)

Other definitions

The terms purchase and purchase price have the respective meanings given such terms by section 26(c).

(d)

Exceptions

No credit shall be allowed under subsection (a) to any taxpayer for any taxable year with respect to the purchase of a residence if—

(1)

credit under section 36 (relating to first-time homebuyer credit) or 1400C (relating to first-time homebuyer in the District of Columbia) is allowed to the taxpayer (or the taxpayer's spouse) for such taxable year or any prior taxable year,

(2)

the residence is financed by the proceeds of a qualified mortgage issue the interest on which is exempt from tax under section 103,

(3)

the taxpayer is a nonresident alien, or

(4)

the taxpayer disposes of such residence (or such residence ceases to be a residence of the taxpayer (or, if married, the taxpayer’s spouse)) before the close of such taxable year.

(e)

Other rules To apply

(1)

Related persons

Rules similar to the rules of section 26(c)(5) shall apply for purposes of this section.

(2)

Married individuals filing separate returns, etc

Rules similar to the rules of subparagraphs (B) and (C) of section 26(b)(1) shall apply for purposes of this section.

(3)

Reporting

Rules similar to the rules of section 26(e) shall apply for purposes of this section.

(f)

Recapture of credit

Rules similar to the rules of section 26(f) shall apply for purposes of this section, except that—

(1)

paragraph (1) thereof shall be applied by substituting 331/3 percent for 62/3 percent, and

(2)

paragraph (7) thereof shall be applied by substituting 3 years for 15 years.

(b)

Conforming amendments

(1)

Section 26(b)(2) of such Code is amended—

(A)

in subparagraph (W)—

(i)

by striking homebuyer credit and inserting first-time homebuyer credit, and

(ii)

by striking and,

(B)

by striking the period at the end of subparagraph (X) and inserting , and, and

(C)

by inserting after subparagraph (X) the following new subparagraph:

(Y)

section 36A(f) (relating to recapture of general homebuyer credit)

(2)

Section 6211(b)(4)(A) of such Code is amended by inserting 36A, after 36,.

(3)

Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36A, after 36,.

(4)

The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36 the following new item:

Sec. 36A. General homebuyer credit for residences purchased during 2009 or 2010..

(c)

Effective date

The amendments made by this section shall apply to residences purchased after December 31, 2008, in taxable years ending after such date.