Amends the Internal Revenue Code to allow individual taxpayers a one-time tax credit for up to $10,000 of the cost of a principal residence purchased in the United States within the 12-month period following enactment of this Act. Terminates such credit after 2009.
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 5670 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5670
To amend the Internal Revenue Code of 1986 to provide a Federal income
tax credit for certain home purchases.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2008
Mr. Fossella (for himself and Mr. Pascrell) 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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CREDIT FOR CERTAIN HOME PURCHASES.
(a) Allowance of Credit.--Subpart A 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 25D the following new
section:
``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.
``(a) Allowance of Credit.--In the case of an individual who
purchases a principal residence in the United States during the 12-
month period beginning on the date of the enactment of this section,
there shall be allowed to the taxpayer as a credit against the tax
imposed by this chapter for the taxable year an amount equal to so much
of the purchase price of the residence as does not exceed $10,000.
``(b) Limitations.--
``(1) Conforming loan limitation.--Subsection (a) shall not
apply with respect to any residence the value of which exceeds
the limitation for the area in which the residence is located
on the maximum original principal obligation of a mortgage that
may be purchased by the Federal Home Loan Mortgage Corporation,
as in effect for 2008 pursuant to section 201(a)(2) of the
Economic Stimulus Act of 2008.
``(2) 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--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section) for the taxable year.
``(3) One-time only.--
``(A) 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.
``(B) 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.
``(c) Principal Residence.--The term `principal residence' has the
same meaning as when used in section 121.
``(d) Denial of Double Benefit.--No credit shall be allowed under
this section for any purchase for which a credit is allowed under
section 1400C.
``(e) Special Rules.--For purposes of this section--
``(1) Joint purchase by 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
$10,000.
``(2) 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.
``(3) Reporting requirement.--Rules similar to the rules of
section 1400C(f) (as so in effect) shall apply.
``(f) 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.
``(g) Application.--This section shall not apply to any taxable
year beginning after December 31, 2009.''.
(b) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25D the
following new item:
``Sec. 25E. Credit for certain home purchases.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to residences purchased after the date of the
enactment of this Act in taxable years ending after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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