[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1911 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1911

     To amend the Internal Revenue Code of 1986 to provide a $500 
  nonrefundable credit to individuals for the payment of real estate 
                                 taxes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 2, 1998

  Mr. D'Amato introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to provide a $500 
  nonrefundable credit to individuals for the payment of real estate 
                                 taxes.

    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 ``Working Middle Class Tax Relief Act 
of 1998''.

SEC. 2. NONREFUNDABLE TAX CREDIT FOR REAL ESTATE TAXES ON PRINCIPAL 
              RESIDENCE.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25A the 
following:

``SEC. 25B. REAL ESTATE TAXES ON PRINCIPAL RESIDENCE.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the lesser of--
            ``(1) the applicable dollar amount, or
            ``(2) the amount allowable as a deduction under section 164 
        (determined without regard to subsection (c)(3) thereof) for 
        State, local, and foreign real property taxes paid or accrued 
        by the taxpayer on property for periods the property was owned 
        and used by the taxpayer as the taxpayer's principal residence.
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Applicable dollar amount.--The applicable dollar 
        amount shall be determined in accordance with the following 
        table:


``For taxable years                                          The dollar
    beginning in:                                            amount is:
    1999..........................................                $100 
    2000..........................................                 200 
    2001..........................................                 300 
    2002..........................................                 400 
    2003 and thereafter...........................                 500.
            ``(2) Principal residence.--The term `principal residence' 
        has the meaning given such term by section 121, except that the 
        period for which a dwelling unit is treated as a principal 
        residence of the taxpayer shall include the 30-day period 
        ending on the first day on which it would (but for this 
        paragraph) be treated as the taxpayer's principal residence.
            ``(3) Joint return required.--Rules similar to the rules of 
        paragraphs (2), (3), and (4) of section 21(e) shall apply.
            ``(4) Ownership and use.--Rules similar to the rules of 
        paragraphs (1), (2), (3), (4), and (7) of section 121(d) shall 
        apply.''
    (b) Denial of Double Benefit.--Section 164(c) of the Internal 
Revenue Code of 1986 (relating to deduction denied in case of certain 
taxes) is amended by adding at the end the following:
            ``(3) Taxes on real property to the extent of the amount of 
        the credit allowed under section 25B.''
    (c) Conforming 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 25A the 
following:

                              ``Sec. 25B. Real estate taxes on 
                                        principal residence.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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