Homeowner's Tax Relief Act of 2005

Homeowner's Tax Relief Act of 2005 - Amends the Internal Revenue Code to allow individual taxpayers an additional tax deduction (whether or not such taxpayers itemize deductions) for state and local real property taxes paid for a principal residence that exceed the national average, as determined by the Secretary of the Treasury. Denies such deduction for taxpayers whose adjusted gross income exceeds $80,000 ($160,000 for joint returns).

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4620 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4620

    To amend the Internal Revenue Code of 1986 to provide a double 
  deduction for a portion of an individual's State and local property 
           taxes that are in excess of the national average.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 17, 2005

  Mrs. Kelly 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 double 
  deduction for a portion of an individual's State and local property 
           taxes that are in excess of the national average.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeowner's Tax Relief Act of 
2005''.

SEC. 2. DOUBLE DEDUCTION OF CERTAIN STATE AND LOCAL PROPERTY TAXES.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by redesignating section 224 as 
section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. DOUBLE DEDUCTION OF CERTAIN STATE AND LOCAL PROPERTY TAXES.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction (in addition to the deduction allowed under 
section 164) the excess of--
            ``(1) the amount of State and local real property taxes 
        paid or accrued with respect to the individual's principal 
        residence (within the meaning of section 121) within the 
        taxable year, over
            ``(2) the amount estimated by the Secretary to be the 
        average annual amount of State and local real property taxes 
        for principal residences in the United States with respect to 
        the calendar year in which such taxable year begins.
    ``(b) Income Limitation.--No deduction will be allowed under this 
subsection for any taxable year in the case of a taxpayer whose 
adjusted gross income for such taxable year exceeds $80,000 ($160,000 
in the case of a joint return).''.
    (b) Deduction Allowed Whether or not Individual Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting before the last sentence the following new paragraph:
            ``(21) Certain state and local property taxes.--The 
        deduction allowed by section 224.''.
    (c) Clerical Amendment.--The table of sections of such part is 
amended by redesignating the item relating to section 224 as an item 
relating to section 225 and inserting before such item the following 
new item:

``Sec. 224. Double deduction of certain State and local property 
                            taxes.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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