[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3825 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3825

To amend the Internal Revenue Code of 1986 to provide a Federal income 
                 tax credit for certain home purchases.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 15, 2009

  Mr. Bright 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 provide a Federal income 
                 tax credit for certain home purchases.

    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 ``Helping Homebuyers Act of 2009''.

SEC. 2. CREDIT FOR CERTAIN HOME PURCHASES.

    (a) Allowance of Credit.--Subpart A of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is amended by inserting 
after section 25D the following new section:

``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an individual who 
        purchases a principal residence during the taxable year, there 
        shall be allowed as a credit against the tax imposed by this 
        chapter an amount equal to 15 percent of the purchase price of 
        the residence.
            ``(2) Allocation of credit amount.--At the election of the 
        taxpayer, the amount of the credit allowed under paragraph (1) 
        (after application of subsection (b)(1)) may be equally divided 
        among the 2 taxable years beginning with the taxable year in 
        which the purchase of the principal residence is made.
    ``(b) Limitations.--
            ``(1) Dollar limitation.--The amount of the credit allowed 
        under paragraph (1) shall not exceed $18,000.
            ``(2) Married individuals filing separately.--In the case 
        of 2 married individuals filing separately, paragraph (1) shall 
        be applied to each such individual by substituting `$7,500' for 
        `$9,000'.
            ``(3) Other individuals.--If 2 or more individuals who are 
        not married purchase a principal residence, the amount of the 
        credit allowed under subsection (a) shall be allocated among 
        such individuals in such manner as the Secretary may prescribe, 
        except that the total amount of the credits allowed to all such 
        individuals shall not exceed $18,000.
            ``(4) One-time only.--
                    ``(A) In general.--If a credit is allowed under 
                this section in the case of any individual (and such 
                individual's spouse, if married) with respect to the 
                purchase of any principal residence, no credit shall be 
                allowed under this section in any taxable year with 
                respect to the purchase of any other principal 
                residence by such individual or a spouse of such 
                individual.
                    ``(B) Joint purchase.--In the case of a purchase of 
                a principal residence by or more unmarried individuals 
                or by 2 married individuals filing separately, no 
                credit shall be allowed under this section if a credit 
                under this section has been allowed to any of such 
                individuals in any taxable year with respect to the 
                purchase of any other principal residence.
            ``(5) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The amount allowable as a credit 
                under subsection (a) (determined without regard to this 
                paragraph) for the taxable year shall be reduced (but 
                not below zero) by the amount which bears the same 
                ratio to the amount which is so allowable as--
                            ``(i) the excess (if any) of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $150,000 ($300,000 in the 
                                case of a joint return), bears to
                            ``(ii) $75,000.
                    ``(B) Modified adjusted gross income.--For purposes 
                of subparagraph (A), the term `modified adjusted gross 
                income' means the adjusted gross income of the taxpayer 
                for the taxable year increased by any amount excluded 
                from gross income under section 911, 931, or 933.
    ``(c) 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 60 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 60-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.
    ``(d) Limitation Based on Amount of Tax.--In the case of a taxable 
year to which section 26(a)(2) does not apply, the credit allowed under 
subsection (a) for any taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under this subpart 
        (other than this section) for the taxable year.
    ``(e) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 121.
            ``(2) Purchase.--In defining the purchase of a principal 
        residence, rules similar to the rules of paragraphs (2) and (3) 
        of section 1400C(e) (as in effect on the date of the enactment 
        of this section) shall apply.
            ``(3) Reporting requirement.--Rules similar to the rules of 
        section 1400C(f) (as so in effect) shall apply.
            ``(4) Denial of double benefit.--
                    ``(A) Coordination with other credits.--No credit 
                shall be allowed under this section for any purchase 
                for which a credit is allowed under section 36 or 
                section 1400C.
                    ``(B) Basis adjustment.--For purposes of this 
                subtitle, if a credit is allowed under this section 
                with respect to the purchase of any residence, the 
                basis of such residence shall be reduced by the amount 
                of the credit so allowed.
    ``(f) Application of Section.--This section shall not apply to 
residences purchased during the 1-year period beginning on the date of 
the enactment of this subsection.''.
    (b) Conforming Amendment.--Subsection (a) of section 1016 of such 
Code is amended by striking ``and'' at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(38) to the extent provided in section 25E(e)(4).''.
    (c) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25D the following new 
item:

``Sec. 25E. Credit for certain home purchases.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to residences purchased after the date of the enactment of this 
Act.
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