I 111th CONGRESS 2d Session H. R. 4701 IN THE HOUSE OF REPRESENTATIVES February 25, 2010 Mr. Engel 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 relief to certain married couples who would otherwise be ineligible for the first-time homebuyer credit.

1.

Marriage relief for first-time homebuyer credit

(a)

In general

Subsection (c) of section 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (7)

Special rules for married individuals

(A)

In general

In the case of married individuals filing a joint return— (i)one of whom is a first-time homebuying spouse and one of whom is an ineligible spouse, such individuals shall be treated as first-time homebuyers and subsection (b)(1)(A) shall be applied by substituting $4,000 for $8,000, (ii)one of whom is a long-time homeowning spouse and one of whom is an ineligible spouse, such individuals shall be treated as being long-time residents and subsection (b)(1)(D) shall be applied by substituting $3,250 for $6,500, (iii)one of whom is a first-time homebuying spouse and one of whom is a long-time homeowning spouse, such individuals shall be treated as long-time residents, and (iv)each of whom is a long-time homeowning spouse, such individuals shall be treated as long-time residents. (B)

Definitions and special rule

For purposes of this paragraph— (i)

First-time homebuying spouse

The term first-time homebuying spouse means a married individual who would, without regard to such individual’s spouse and this paragraph, be treated as a first-time homebuyer under this section and other than by reason of paragraph (6). (ii)

Long-time homeowning spouse

The term long-time homeowning spouse means a married individual who would, without regard to such individual’s spouse and this paragraph, be treated as a long-time resident. (iii)

Ineligible spouse

The term ineligible spouse means a married individual who would, without regard to such individual’s spouse and this paragraph, not be not treated as a first-time homebuyer or long-time resident under this section. (iv)

Long-time resident

The term long-time resident means a taxpayer to whom a credit under subsection (a) is allowed by reason of paragraph (6). . (b)

Effective date

The amendment made by this section shall apply to residences purchased after the date of the enactment of this Act.