To amend the Internal Revenue Code of 1986 to provide that qualified homeowner downpayment assistance is a charitable purpose.

Amends the Internal Revenue Code to designate the provision of qualified homeowner dowpayment assistance as a "charitable purpose" for purposes of income, estate, and gift taxes. Defines "qualified homeowner downpayment assistance" as a gift of cash for the purpose of providing any downpayment for the purchase of a principal residence. Denies an income tax deduction to certain donors of homeowner downpayment assistance who receive a direct financial benefit in connection with the purchase of a principal residence for which the purchaser received downpayment assistance.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3875 Introduced in House (IH)]







108th CONGRESS
  2d Session
                                H. R. 3875

 To amend the Internal Revenue Code of 1986 to provide that qualified 
       homeowner downpayment assistance is a charitable purpose.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 2004

  Mr. Collins (for himself and Mr. Becerra) 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 that qualified 
       homeowner downpayment assistance is a charitable purpose.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. QUALIFIED HOMEOWNER DOWNPAYMENT ASSISTANCE.

    (a) In General.--Section 501 of the Internal Revenue Code of 1986 
(relating to exemption of tax on corporations, certain trusts, etc.) is 
amended by redesignating subsection (q) as subsection (r) and by 
inserting after subsection (p) the following new subsection:
    ``(q) Qualified Homeowner Downpayment Assistance.--
            ``(1) In general.--For purposes of subsection (c)(3) and 
        sections 170(c)(2), 2055(a)(2), and 2522(a)(2), the term 
        `charitable purposes' includes the provision of qualified 
        homeowner downpayment assistance.
            ``(2) Qualified homeowner downpayment assistance.--For 
        purposes of this subsection, the term `qualified homeowner 
        downpayment assistance' means a gift of cash for the purpose of 
        providing any downpayment for a qualified home purchase.
            ``(3) Qualified home purchase.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified home purchase' means the 
                acquisition of any property as a principal residence 
                (within the meaning of section 121) if the amount of 
                the acquisition indebtedness (within the meaning of 
                section 163(h)(3)) with respect to such property is 
                less than the maximum mortgage amount applicable at the 
                time the indebtedness is incurred for the area in which 
                the property is located.
                    ``(B) Maximum mortgage amount.--For purposes of 
                this paragraph, the term `maximum mortgage amount' 
                means the maximum single-family home mortgage loan 
                which would be eligible for insurance from the 
                Department of Housing and Urban Development pursuant to 
                section 203(b) or 234(c) of the National Housing 
                Act.''.
    (b) No Charitable Deduction for Contributions for Downpayment 
Assistance.--Subsection (f) of section 170 of the Internal Revenue Code 
of 1986 (relating to disallowance of deduction in certain cases and 
special rules) is amended by adding at the end the following new 
paragraph:
            ``(11) Denial of deduction of contributions for downpayment 
        assistance.--No deduction shall be allowed under this section 
        for a contribution to an organization which provides homeowner 
        downpayment assistance if the contribution is made directly or 
        indirectly in connection with a transaction in which the 
        purchaser of a home received downpayment assistance and the 
        contributor--
                    ``(A) received the downpayment assistance,
                    ``(B) sold the home to the purchaser,
                    ``(C) loaned money to the purchaser, or
                    ``(D) otherwise received a commission or other 
                benefit associated with the transaction.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
                                 <all>