I 111th CONGRESS 1st Session H. R. 802 IN THE HOUSE OF REPRESENTATIVES February 3, 2009 Mr. Heller 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 extend and modify the first-time homebuyer credit.
1.
Extension and modification of first-time homebuyer credit
(a)
Extension of credit
Subsection (i) of section 36 of the Internal Revenue Code of 1986 (as redesignated by subsection (d)) is amended by striking July 1, 2009 and inserting January 1, 2010. (b)
Repeal of first-time homebuyer requirement
(1)
In general
Subsection (a) of section 36 of such Code is amended by striking an individual who is a first-time homebuyer of a principal residence and inserting an individual who purchases a principal residence. (2)
Conforming amendments
(A)Section 36(b)(1)(A) of such Code is amended by inserting with respect to any taxpayer for any taxable year after subsection (a). (B)Section 36(c) of such Code is amended by striking paragraph (1) and by redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively. (C)The heading of section 36 of such Code (and the item relating to such section in the table of sections for subpart C of part IV of subchapter A of chapter 1) are amended by striking First-time homebuyer and inserting Homebuyer. (c)
Repeal of recapture rules
(1)
In general
Paragraph (4) of section 36(f) of such Code is amended by adding at the end the following new subparagraph: (D)
Waiver of recapture for purchases in 2009
In the case of any credit allowed with respect to the purchase of a principal residence after December 31, 2008— (i)paragraph (1) shall not apply, and (ii)paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer. . (2)
Conforming amendment
Subsection (g) of section 36 of such Code is amended by striking subsection (c) and inserting subsections (c) and (f)(4)(D). (d)
Downpayment requirement
Section 36 of such Code is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h)
Downpayment requirement
No credit shall be allowed under subsection (a) to any taxpayer with respect to the purchase of any residence unless such taxpayer makes a downpayment of not less 5 percent of the purchase price of such residence. For purposes of the preceding sentence, an amount shall not be treated as a downpayment if such amount is repayable by the taxpayer to any other person. . (e)
Effective date
(1)
In general
Except as provided in paragraph (2), the amendments made by this section shall apply to residences purchased after December 31, 2008. (2)
Downpayment requirement
The amendment made by subsection (d) shall apply to residences purchased after the date of the enactment of this Act.