A bill to amend the Internal Revenue Code of 1954 to provide that the two-thousand dollars credit for the purchase of a new principal residence will not be recaptured where the taxpayer replaces it with another principal residence.

Amends the Internal Revenue Code to provide that failure to purchase a newly-constructed principal residence with the proceeds from the sale of a newly-constructed principal residence, the original purchase of which resulted in a tax credit to the taxpayer, will not trigger the recapture of such credit if the taxpayer replaces such residence with other property used as the taxpayer's principal residence.