[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1230 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1230

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 10, 2009

 Mr. Isakson (for himself, Mr. Lieberman, Mr. Dodd, Mr. Chambliss, Mr. 
 Alexander, Mr. Risch, Mr. Ensign, Mr. Bunning, Ms. Murkowski, and Mr. 
    Vitter) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 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 ``Home Buyer Tax Credit 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 is a 
        purchaser of 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 10 percent of the purchase 
        price of the residence.
            ``(2) Dollar limitation.--The amount of the credit allowed 
        under paragraph (1) shall not exceed $15,000.
            ``(3) Allocation of credit amount.--At the election of the 
        taxpayer, the amount of the credit allowed under paragraph (1) 
        (after application of paragraph (2)) 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) Date of purchase.--The credit allowed under 
        subsection (a) shall be allowed only with respect to purchases 
        made--
                    ``(A) after the date of the enactment of the Home 
                Buyer Tax Credit Act of 2009, and
                    ``(B) on or before the date that is 1 year after 
                such date of enactment.
            ``(2) 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--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) for the taxable year.
            ``(3) 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 2 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.
    ``(c) Principal Residence.--For purposes of this section, the term 
`principal residence' has the same meaning as when used in section 121.
    ``(d) Denial of Double Benefit.--No credit shall be allowed under 
this section for any purchase for which a credit is allowed under 
section 36 or section 1400C.
    ``(e) Special Rules.--
            ``(1) Joint purchase.--
                    ``(A) Married individuals filing separately.--In 
                the case of 2 married individuals filing separately, 
                subsection (a) shall be applied to each such individual 
                by substituting `$7,500' for `$15,000' in subsection 
                (a)(1).
                    ``(B) Unmarried 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 
                $15,000.
            ``(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.
    ``(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 24 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 24-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.
    ``(g) 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.
    ``(h) Election To Treat Purchase in Prior Year.--In the case of a 
purchase of a principal residence after December 31, 2009, and on or 
before the date described in subsection (b)(1)(B), a taxpayer may elect 
to treat such purchase as made on December 31, 2009, for purposes of 
this section.''.
    (b) Conforming Amendments.--
            (1) Section 24(b)(3)(B) of the Internal Revenue Code of 
        1986 is amended by striking ``and 25B'' and inserting ``, 25B, 
        and 25E''.
            (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``25E,'' after ``25D,''.
            (3) Section 25B(g)(2) of such Code is amended by striking 
        ``section 23'' and inserting ``sections 23 and 25E''.
            (4) Section 904(i) of such Code is amended by striking 
        ``and 25B'' and inserting ``25B, and 25E''.
            (5) Section 1016(a) 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(g).''.
    (c) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Credit for certain home purchases.''.
    (d) Sunset of Current First-Time Homebuyer Credit.--
            (1) In general.--Subsection (h) of section 36 of the 
        Internal Revenue Code of 1986 is amended by striking ``before 
        December 1, 2009'' and inserting ``on or before the date of the 
        enactment of the Home Buyer Tax Credit Act of 2009''.
            (2) Election to treat purchase in prior year.--Subsection 
        (g) of section 36 of the Internal Revenue Code of 1986 is 
        amended by striking ``before December 1, 2009'' and inserting 
        ``on or before the date of the enactment of the Home Buyer Tax 
        Credit Act of 2009''.
    (e) Effective Date.--The amendments made by this section shall 
apply to purchases after the date of the enactment of this Act.
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