Helping Homebuyers Act of 2009 - Amends the Internal Revenue Code to allow individual taxpayers a one-time tax credit for 15% of the purchase price of a principal residence, up to $18,000. Requires repayment of such credit if the taxpayer sells the residence, or fails to occupy the residence as a principal residence, at any time within 60 months after the date of purchase.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3825 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3825
To amend the Internal Revenue Code of 1986 to provide a Federal income
tax credit for certain home purchases.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 15, 2009
Mr. Bright 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. SHORT TITLE.
This Act may be cited as the ``Helping Homebuyers Act of 2009''.
SEC. 2. 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 is amended by inserting
after section 25D the following new section:
``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual who
purchases 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 15 percent of the purchase price of
the residence.
``(2) Allocation of credit amount.--At the election of the
taxpayer, the amount of the credit allowed under paragraph (1)
(after application of subsection (b)(1)) may be equally divided
among the 2 taxable years beginning with the taxable year in
which the purchase of the principal residence is made.
``(b) Limitations.--
``(1) Dollar limitation.--The amount of the credit allowed
under paragraph (1) shall not exceed $18,000.
``(2) Married individuals filing separately.--In the case
of 2 married individuals filing separately, paragraph (1) shall
be applied to each such individual by substituting `$7,500' for
`$9,000'.
``(3) Other 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 $18,000.
``(4) 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 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.
``(5) Limitation based on modified adjusted gross income.--
``(A) In general.--The amount allowable as a credit
under subsection (a) (determined without regard to this
paragraph) for the taxable year shall be reduced (but
not below zero) by the amount which bears the same
ratio to the amount which is so allowable as--
``(i) the excess (if any) of--
``(I) the taxpayer's modified
adjusted gross income for such taxable
year, over
``(II) $150,000 ($300,000 in the
case of a joint return), bears to
``(ii) $75,000.
``(B) Modified adjusted gross income.--For purposes
of subparagraph (A), the term `modified adjusted gross
income' means the adjusted gross income of the taxpayer
for the taxable year increased by any amount excluded
from gross income under section 911, 931, or 933.
``(c) Recapture of Credit in the Case of Certain Dispositions.--
``(1) In general.--In the event that a taxpayer--
``(A) disposes of the principal residence with
respect to which a credit was allowed under subsection
(a), or
``(B) fails to occupy such residence as the
taxpayer's principal residence,
at any time within 60 months after the date on which the
taxpayer purchased such residence, then the tax imposed by this
chapter for the taxable year during which such disposition
occurred or in which the taxpayer failed to occupy the
residence as a principal residence shall be increased by the
amount of such credit.
``(2) Exceptions.--
``(A) Death of taxpayer.--Paragraph (1) shall not
apply to any taxable year ending after the date of the
taxpayer's death.
``(B) 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 60-month period described in such
paragraph as if such new principal residence were the
converted residence.
``(C) Transfers between spouses or incident to
divorce.--In the case of a transfer of a residence to
which section 1041(a) applies--
``(i) paragraph (1) shall not apply to such
transfer, and
``(ii) 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).
``(D) 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.
``(3) 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.
``(4) 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.
``(d) 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--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under this subpart
(other than this section) for the taxable year.
``(e) Definitions and Special Rules.--For purposes of this
section--
``(1) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121.
``(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.
``(4) Denial of double benefit.--
``(A) Coordination with other credits.--No credit
shall be allowed under this section for any purchase
for which a credit is allowed under section 36 or
section 1400C.
``(B) 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.
``(f) Application of Section.--This section shall not apply to
residences purchased during the 1-year period beginning on the date of
the enactment of this subsection.''.
(b) Conforming Amendment.--Subsection (a) of section 1016 of such
Code is amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(38) to the extent provided in section 25E(e)(4).''.
(c) 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.''.
(d) Effective Date.--The amendments made by this section shall
apply to residences purchased after the date of the enactment of this
Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line