To amend the Internal Revenue Code of 1986 to provide relief to certain married couples who would otherwise be ineligible for the first-time homebuyer credit.

Amends the Internal Revenue Code to allow married couples filing a joint tax return who would otherwise be ineligible for the first-time homebuyer tax credit due to the ineligibility of one spouse for such credit a partial tax credit for the purchase of a principal residence.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4701 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4701

To amend the Internal Revenue Code of 1986 to provide relief to certain 
 married couples who would otherwise be ineligible for the first-time 
                           homebuyer credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 2010

  Mr. Engel 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 relief to certain 
 married couples who would otherwise be ineligible for the first-time 
                           homebuyer credit.

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

SECTION 1. MARRIAGE RELIEF FOR FIRST-TIME HOMEBUYER CREDIT.

    (a) In General.--Subsection (c) of section 36 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(7) Special rules for married individuals.--
                    ``(A) In general.--In the case of married 
                individuals filing a joint return--
                            ``(i) one of whom is a first-time 
                        homebuying spouse and one of whom is an 
                        ineligible spouse, such individuals shall be 
                        treated as first-time homebuyers and subsection 
                        (b)(1)(A) shall be applied by substituting 
                        `$4,000' for `$8,000',
                            ``(ii) one of whom is a long-time 
                        homeowning spouse and one of whom is an 
                        ineligible spouse, such individuals shall be 
                        treated as being long-time residents and 
                        subsection (b)(1)(D) shall be applied by 
                        substituting `$3,250' for `$6,500',
                            ``(iii) one of whom is a first-time 
                        homebuying spouse and one of whom is a long-
                        time homeowning spouse, such individuals shall 
                        be treated as long-time residents, and
                            ``(iv) each of whom is a long-time 
                        homeowning spouse, such individuals shall be 
                        treated as long-time residents.
                    ``(B) Definitions and special rule.--For purposes 
                of this paragraph--
                            ``(i) First-time homebuying spouse.--The 
                        term `first-time homebuying spouse' means a 
                        married individual who would, without regard to 
                        such individual's spouse and this paragraph, be 
                        treated as a first-time homebuyer under this 
                        section and other than by reason of paragraph 
                        (6).
                            ``(ii) Long-time homeowning spouse.--The 
                        term `long-time homeowning spouse' means a 
                        married individual who would, without regard to 
                        such individual's spouse and this paragraph, be 
                        treated as a long-time resident.
                            ``(iii) Ineligible spouse.--The term 
                        `ineligible spouse' means a married individual 
                        who would, without regard to such individual's 
                        spouse and this paragraph, not be not treated 
                        as a first-time homebuyer or long-time resident 
                        under this section.
                            ``(iv) Long-time resident.--The term `long-
                        time resident' means a taxpayer to whom a 
                        credit under subsection (a) is allowed by 
                        reason of paragraph (6).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to residences purchased after the date of the enactment of this Act.
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