I 111th CONGRESS 1st Session H. R. 2398 IN THE HOUSE OF REPRESENTATIVES May 13, 2009 Mr. Jones 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 waive recapture of the first-time homebuyer credit for a member of the Armed Forces who sells the residence for which the member receives the credit during the 36-month period after the purchase of the residence because the member is transferred to a new duty station, is deployed overseas, or is required to reside in Government quarters during such period.

1.

Short title

This Act may be cited as the Service Members First-Time Homebuyer Relief Act of 2009.

2.

Waiver of recapture of first-time homebuyer credit for members of the Armed Forces transferred to different duty stations or deployed overseas

(a)

In general

Paragraph (4) of section 36(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (E)

Special rule for members of Armed Forces

In the case of a member of the Armed Forces of the United States, subparagraph (D) shall be applied without regard to clause (ii) thereof if, after the date of the purchase of the principal residence described therein, such member receives Government orders for service on qualified official extended duty (as defined in section 121(d)(9)(C)) under which such member is required to deploy outside the United States, make a permanent or temporary change of station to a duty station that is at least 50 miles from such residence, or reside in Government quarters. This subparagraph applies regardless of whether the Government orders provide for the return of the member to the original duty station at the end of the deployment or temporary duty. . (b)

Effective date

The amendment made by subsection (a) shall take effect as if included in the amendments made by section 1006 of the American Recovery and Reinvestment Tax Act of 2009.