[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7325 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7325

 To amend the Internal Revenue Code of 1986 to allow all individuals, 
 whether or not first-time homebuyers, a refundable income tax credit 
          for the purchase of a residence during 2009 or 2010.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 10, 2008

  Mr. Dreier 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 allow all individuals, 
 whether or not first-time homebuyers, a refundable income tax credit 
          for the purchase of a residence during 2009 or 2010.

    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 ``Economic Recovery Through 
Responsible Homeownership Act of 2008''.

SEC. 2. REFUNDABLE CREDIT FOR RESIDENCES PURCHASED DURING 2009 OR 2010.

    (a) In General.--Subpart C 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 36 the following new section:

``SEC. 36A. GENERAL HOMEBUYER CREDIT FOR RESIDENCES PURCHASED DURING 
              2009 OR 2010.

    ``(a) Allowance of Credit.--In the case of an individual who makes 
an eligible purchase during the taxable year, there shall be allowed as 
a credit against the tax imposed by this subtitle for such taxable year 
an amount equal to so much of the purchase price as does not exceed 
$5,000 ($10,000 in the case of an eligible purchase where the down 
payment is at least 15 percent of the purchase price).
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible purchase.--The term `eligible purchase' 
        means the purchase of a residence for the taxpayer if--
                    ``(A) such residence is located in the United 
                States,
                    ``(B) the construction of such residence began 
                before 2010,
                    ``(C) there is a down payment of at least 10 
                percent of the purchase price, and
                    ``(D) such purchase is made by the taxpayer during 
                2009 or 2010.
            ``(2) Other definitions.--The terms `purchase' and 
        `purchase price' have the respective meanings given such terms 
        by section 26(c).
    ``(c) Exceptions.--No credit shall be allowed under subsection (a) 
to any taxpayer for any taxable year with respect to the purchase of a 
residence if--
            ``(1) credit under section 26 (relating to first-time 
        homebuyer credit) or 1400C (relating to first-time homebuyer in 
        the District of Columbia) is allowed to the taxpayer (or the 
        taxpayer's spouse) for such taxable year or any prior taxable 
        year,
            ``(2) the residence is financed by the proceeds of a 
        qualified mortgage issue the interest on which is exempt from 
        tax under section 103,
            ``(3) the taxpayer is a nonresident alien, or
            ``(4) the taxpayer disposes of such residence (or such 
        residence ceases to be a residence of the taxpayer (or, if 
        married, the taxpayer's spouse)) before the close of such 
        taxable year.
    ``(d) Other Rules To Apply.--
            ``(1) Related persons.--Rules similar to the rules of 
        section 26(c)(5) shall apply for purposes of this section.
            ``(2) Married individuals filing separate returns, etc.--
        Rules similar to the rules of subparagraphs (B) and (C) of 
        section 26(b)(1) shall apply for purposes of this section.
            ``(3) Reporting.--Rules similar to the rules of section 
        26(e) shall apply for purposes of this section.
    ``(e) Recapture of Credit.--Rules similar to the rules of section 
26(f) shall apply for purposes of this section, except that--
            ``(1) paragraph (1) thereof shall be applied by 
        substituting `33\1/3\ percent' for `6\2/3\ percent', and
            ``(2) paragraph (7) thereof shall be applied by 
        substituting `3 years' for `15 years'.''.
    (b) Conforming Amendments.--
            (1) Section 26(b)(2) of such Code is amended--
                    (A) in subparagraph (W)--
                            (i) by striking ``homebuyer credit'' and 
                        inserting ``first-time homebuyer credit'', and
                            (ii) by striking ``and'',
                    (B) by striking the period at the end of 
                subparagraph (X) and inserting ``, and'', and
                    (C) by inserting after subparagraph (X) the 
                following new subparagraph:
                    ``(Y) section 36A(e) (relating to recapture of 
                general homebuyer credit)''.
            (2) Section 6211(b)(4)(A) of such Code is amended by 
        inserting ``36A,'' after ``36,''.
            (3) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``36A,'' after ``36,''.
            (4) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 36 the following new item:

``Sec. 36A. General homebuyer credit for residences purchased during 
                            2009 or 2010.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to residences purchased after December 31, 2008, in taxable years 
ending after such date.
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