I
111th CONGRESS
1st Session
H. R. 1245
IN THE HOUSE OF REPRESENTATIVES
March 2, 2009
Mr. Calvert 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 provide a Federal income tax credit for certain home purchases.
Short title
This Act may be cited as the
Homebuyer Tax Credit Act of
2009
.
Credit for certain home purchases
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:
Credit for certain home purchases
Allowance of credit
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.
Dollar limitation
The amount of the credit allowed under paragraph (1) shall not exceed $15,000.
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.
Limitations
Date of purchase
The credit allowed under subsection (a) shall be allowed only with respect to purchases made during the 1-year period beginning with the date of the enactment of this section.
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—
the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
the sum of the credits allowable under this subpart (other than this section) for the taxable year.
One-time only
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.
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.
Principal residence
For purposes of this section, the term principal residence has the same meaning as when used in section 121.
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.
Special rules
Joint purchase
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).
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.
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.
Reporting requirement
Rules similar to the rules of section 1400C(f) (as so in effect) shall apply.
Recapture of credit in the case of certain dispositions
In general
In the event that a taxpayer—
disposes of the principal residence with respect to which a credit was allowed under subsection (a), or
fails to occupy such residence as the taxpayer's principal residence,
Exceptions
Death of taxpayer
Paragraph (1) shall not apply to any taxable year ending after the date of the taxpayer’s death.
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.
Transfers between spouses or incident to divorce
In the case of a transfer of a residence to which section 1041(a) applies—
paragraph (1) shall not apply to such transfer, and
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).
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.
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.
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.
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.
.
Clerical amendment
The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item:
Sec. 25E. Credit for certain home purchases.
.
Sunset of current first-time homebuyer credit
In general
Subsection (h) of section 36 of such Code is amended by
striking December 1, 2009
and inserting the date of the
enactment of the Homebuyer Tax Credit Act of
2009
.
Election to treat purchase in prior year
Subsection (g) of section 36 of such
Code is amended by striking December 1, 2009
and inserting
the date of the enactment of the Homebuyer Tax Credit Act of
2009
.
Effective date
The amendments made by this section shall apply to purchases after the date of the enactment of this Act.