[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1119 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1119
To amend the Internal Revenue Code of 1986 to expand the application of
the homebuyer credit, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 23, 2009
Mr. Davis of Tennessee 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 expand the application of
the homebuyer credit, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. EXPANSION AND MODIFICATION OF HOMEBUYER CREDIT.
(a) Elimination of First-Time Homebuyer Requirement.--
(1) In general.--Subsection (a) of section 36 of the
Internal Revenue Code of 1986 is amended by striking ``who is a
first-time homebuyer of a principal residence'' and inserting
``who purchases a principal residence''.
(2) Conforming amendments.--
(A) Subsection (c) of section 36 of such Code is
amended by striking paragraph (1) and by redesignating
paragraphs (2), (3), (4), and (5) as paragraphs (1),
(2), (3), and (4), respectively.
(B) Section 36 of such Code is amended by striking
``first-time homebuyer credit'' in the heading and
inserting ``home purchase credit''.
(C) The table of sections for subpart C of part IV
of subchapter A of chapter 1 of such Code is amended by
striking the item relating to section 36 and inserting
the following new item:
``Sec. 36. Home purchase credit.''.
(D) Subparagraph (W) of section 26(b)(2) of such
Code is amended by striking ``homebuyer credit'' and
inserting ``home purchase credit''.
(b) Elimination of Recapture Except for Homes Sold Within 3
Years.--Subsection (f) of section 36 of the Internal Revenue Code of
1986 is amended to read as follows:
``(f) 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 36 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 36-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.''.
(c) Modification of Credit Amount.--
(1) In general.--Subparagraph (A) of section 36(b)(1) of
the Internal Revenue Code of 1986 is amended by striking
``$8,000'' and inserting ``the amount that is 3.5 percent of
the dollar amount limitation determined under section 305(a)(2)
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)), including any increase in the limitation for an
area determined to be a high-cost area under such section, with
respect to the purchase of the qualified principal residence''.
(2) Conforming amendments.--Paragraph (1) of section 36(b)
of such Code is amended--
(A) by striking ``$4,000'' in subparagraph (B) and
inserting ``1.75 percent'',
(B) by striking ``$8,000'' in subparagraph (B) and
inserting ``3.5 percent'', and
(C) by striking ``$8,000'' in subparagraph (C) and
inserting ``the amount described in subparagraph (A)''.
(d) Modification of Income Limitation.--Subclause (II) of section
36(b)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by
striking ``$75,000 ($150,000 in the case of a joint return)'' and
inserting ``$125,000 ($250,000 in the case of a joint return)''.
(e) Availability of Credit for Transfer.--Section 36 of the
Internal Revenue Code of 1986 is amended by redesignating subsections
(g) and (h), as amended by this section, as subsections (h) and (i),
respectively, and by inserting after subsection (f) the following new
subsection:
``(g) Transfer of Credit.--
``(1) In general.--A taxpayer may transfer all or a portion
of the credit allowable under subsection (a) to 1 or more
persons as payment of any liability of the taxpayer arising out
of--
``(A) the downpayment of any portion of the
purchase price of the principal residence,
``(B) mortgage, flood, and hazard insurance
premiums in connection with the purchase and paid at or
before closing,
``(C) interest on any debt incurred to purchase the
residence,
``(D) State and local real property taxes paid in
connection with the purchase, and
``(E) funding fees paid to the Department of
Veterans Affairs in connection with the purchase.
``(2) Credit transfer mechanism.--
``(A) In general.--Not less than 60 days after the
date of the enactment of this subsection, the Secretary
shall establish and implement a credit transfer
mechanism for purposes of paragraph (1). Such mechanism
shall require the Secretary to--
``(i) certify that the taxpayer is eligible
to receive the credit provided by this section
with respect to the purchase of a principal
residence and that the transferee is eligible
to receive the credit transfer,
``(ii) certify the credit transfer amount
which will be paid to the transferee, and
``(iii) require any transferee that
directly receives the credit transfer amount
from the Secretary to notify the taxpayer
within 14 days of the receipt of such amount.
Any check, certificate, or voucher issued by the
Secretary pursuant to this paragraph shall include the
taxpayer identification number of the taxpayer and the
address of the principal residence being purchased. For
purposes of determining the credit transfer amount
under clause (ii), the Secretary may estimate the
taxpayer's modified adjusted gross income for the
taxable year (as described in subsection (b)(2)) based
on the taxpayer's modified adjusted gross income (as so
described) for the preceding taxable year.
``(B) Timely receipt.--The Secretary shall issue
the credit transfer amount not less than 30 days after
the date of the receipt of an application for a credit
transfer.
``(3) Payment of interest.--
``(A) In general.--Notwithstanding any other
provision of this title, the Secretary shall pay
interest on any amount which is not paid to a person
during the 30-day period described in paragraph (2)(B).
``(B) Amount of interest.--Interest under
subparagraph (A) shall be allowed and paid--
``(i) from the day after the 30-day period
described in paragraph (2)(B) to the date
payment is made, and
``(ii) at the overpayment rate established
under section 6621.
``(C) Exception.--This paragraph shall not apply to
failures to make payments as a result of any natural
disaster or other circumstance beyond the control of
the Secretary.
``(4) Recapture of transfer amount.--If the credit transfer
amount paid to the transferee exceeds the amount of the credit
allowable under subsection (a) to the taxpayer, the taxpayer's
tax imposed by this chapter for the taxable year shall be
increased by the amount of such excess.
``(5) Effect on legal rights and obligations.--Nothing in
this subsection shall be construed to--
``(A) require a lender to complete a loan
transaction before the credit transfer amount has been
transferred to the lender, or
``(B) prevent a lender from altering the terms of a
loan (including the rate, points, fees, and other
costs) due to changes in market conditions or other
factors during the period of time between the
application by the taxpayer for a credit transfer and
the receipt by the lender of the credit transfer
amount.''.
(f) Effective Date.--The amendments made by this section shall
apply to residences purchased on or after December 31, 2008, in taxable
years ending on or after such date.
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