[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2277 Introduced in Senate (IS)]

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114th CONGRESS
  1st Session
                                S. 2277

   To amend the Internal Revenue Code of 1986 to allow a credit for 
  veteran first-time homebuyers and for adaptive housing and mobility 
      improvements for disabled veterans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 10, 2015

   Mr. Casey 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 allow a credit for 
  veteran first-time homebuyers and for adaptive housing and mobility 
      improvements for disabled veterans, and for other purposes.

    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 ``Veterans Homebuyer Accessibility Act 
of 2015''.

SEC. 2. VETERAN FIRST-TIME HOMEBUYER TAX CREDIT.

    (a) In General.--Subsection (a) of section 36 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(a) Allowance of Credit.--In the case of an eligible veteran who 
purchases a principal residence in the United States during the taxable 
year, there shall be allowed as a credit against the tax imposed by 
this subtitle for such taxable year an amount equal to 10 percent of 
the purchase price of the residence.''.
    (b) Additional Limitation for Adaptive Housing Improvements.--
            (1) In general.--Paragraph (1) of section 36(b) of such 
        Code is amended by redesignating subparagraphs (B), (C), and 
        (D) as subparagraphs (C), (D), and (E), respectively, and by 
        inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Special rule for adaptive housing 
                improvements.--In the case of a principal residence 
                with special fixtures or movable facilities made 
                necessary by the nature of the disability of the 
                veteran, if such fixtures and facilities are--
                            ``(i) provided to the veteran pursuant to 
                        specially adapted housing assistance under 
                        chapter 17 or 21 of title 38, United States 
                        Code, or
                            ``(ii) similar to such fixtures and 
                        facilities that would be provided to the 
                        veteran if the veteran received such 
                        assistance,
                then subparagraph (A) shall be increased by the lesser 
                of $8,000 or the portion of the purchase price of the 
                principal residence attributable such fixtures or 
                movable facilities.''.
            (2) Conforming amendments.--
                    (A) Subparagraph (D) of section 36(b)(1) of such 
                Code, as redesignated by paragraph (1), is amended by 
                striking ``$8,000'' and inserting ``the sum of the 
                limitations under subparagraphs (A) and (B)''.
                    (B) Subparagraph (E) of section 36(b)(1) of such 
                Code, as redesignated by paragraph (1), is amended by 
                striking ``subparagraphs (A), (B), and (C)'' and 
                inserting ``subparagraphs (A) and (C)''.
    (c) Eligible Veteran.--
            (1) In general.--Paragraph (1) of section 36(c) of such 
        Code is amended by striking ``First-time homebuyer.--The term 
        `first time homebuyer' means any individual'' and inserting 
        ``Eligible veteran.--The term `eligible veteran' means any 
        individual who is a veteran (as defined in section 101(2) of 
        title 38, United States Code)''.
            (2) Long-time resident.--Paragraph (6) of section 36(c) of 
        such Code is amended by striking ``treated as a first-time 
        homebuyer'' and inserting ``treated as meeting the no present 
        ownership interest requirement of paragraph (1)''.
    (d) Recapture of Credit.--Subsection (f) of section 36 of such Code 
is amended to read as follows:
    ``(f) Recapture of Credit.--
            ``(1) In general.--If a taxpayer disposes of the principal 
        residence with respect to which a credit was allowed under 
        subsection (a) (or such residence ceases to be the principal 
        residence of the taxpayer (and, if married, the taxpayer's 
        spouse)) before the end of the 36-month period beginning on the 
        date of the purchase of such residence by the taxpayer the tax 
        imposed by this chapter for the taxable year of such 
        disposition or cessation shall be increased by the amount of 
        the credit so allowed.
            ``(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 during the 2-year period 
                beginning on the date of the disposition or cessation 
                referred to in paragraph (1). Paragraph (1) shall apply 
                to such new principal residence during the 36-month 
                period referred to therein in the same manner 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) Special rule for members of the armed forces, 
                etc.--
                            ``(i) In general.--In the case of the 
                        disposition of a principal residence by an 
                        individual (or a cessation referred to in 
                        paragraph (1)) in connection with Government 
                        orders received by such individual, or such 
                        individual's spouse, for qualified official 
                        extended duty service, paragraph (1) shall not 
                        apply to such disposition (or cessation).
                            ``(ii) Qualified official extended duty 
                        service.--For purposes of this section, the 
                        term `qualified official extended duty service' 
                        means service on qualified official extended 
                        duty as--
                                    ``(I) a member of the uniformed 
                                services,
                                    ``(II) a member of the Foreign 
                                Service of the United States, or
                                    ``(III) an employee of the 
                                intelligence community.
                            ``(iii) Definitions.--Any term used in this 
                        subparagraph which is also used in paragraph 
                        (9) of section 121(d) shall have the same 
                        meaning as when used in such paragraph.
            ``(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.''.
    (e) Application of Credit.--Subsection (h) of section 36 of such 
Code is amended to read as follows:
    ``(h) Termination.--This section shall not apply to any residence 
purchased after December 31, 2017.''.
    (f) Assignment of Credit in Case of Construction.--Section 36 of 
such Code is amended by adding at the end the following new subsection:
    ``(i) Credit May Be Assigned.--
            ``(1) In general.--In the case of a residence constructed 
        by the taxpayer, if such taxpayer elects the application of 
        this subsection for any taxable year, any portion of the credit 
        determined under this section which is attributable to an 
        increase under subparagraph (B) of subsection (b)(1) for such 
        year which would (but for this subsection) be allowable to the 
        taxpayer may be assigned to any person who is an eligible 
        designee. The person so designated shall be allowed the amount 
        of the credit so assigned and shall be treated as the taxpayer 
        with respect to such credit for purposes of this title (other 
        than this paragraph), except that such credit shall be treated 
        as a credit listed in section 38(b) for such taxable year (and 
        not allowed under subsection (a)).
            ``(2) Eligible designee.--For purposes of paragraph (1), 
        the term `eligible designee' means any person who, with respect 
        to the residence, provides or installs any improvements, 
        special fixtures, or movable facilities to which the credit is 
        attributable under subparagraph (B) of subsection (b)(1).
            ``(3) Election requirements.--Any election under paragraph 
        (1) shall include such information and shall be made at such 
        time, and in such form and manner, as the Secretary shall by 
        regulation prescribe.''.
    (g) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (35), by striking the period 
        at the end of paragraph (36) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(37) the portion of the veteran first-time homebuyer 
        credit assigned to the taxpayer to which the second sentence of 
        section 36(i)(1) applies,''.
            (2) The heading for section 1400C(e)(4) of such Code is 
        amended by striking ``national first-time homebuyers credit'' 
        and inserting ``veteran first-time homebuyers credit''.
    (h) Clerical Amendments.--
            (1) The heading for section 36 of such Code is amended to 
        read as follows:

``SEC. 36. VETERAN FIRST-TIME HOMEBUYER CREDIT.''.

            (2) The item relating to section 36 in the table of 
        sections for subpart C of part IV of subchapter A of chapter 1 
        of such Code is amended to read as follows:

``Sec. 36. Veteran first-time homebuyer credit.''.
    (i) Effective Date.--The amendments made by this section shall 
apply to residences purchased after the date of the enactment of this 
Act.

SEC. 3. VETERAN HOME MOBILITY IMPROVEMENT CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting before 
section 37 the following new section:

``SEC. 36C. VETERAN HOME MOBILITY IMPROVEMENT CREDIT.

    ``(a) In General.--In the case of a veteran, there shall be allowed 
as a credit against the tax imposed by this subtitle for any taxable 
year an amount equal to the amount paid or incurred by the taxpayer for 
qualified adaptive housing improvements for the taxable year.
    ``(b) Limitation.--The credit allowed under subsection (a) shall 
not exceed $8,000.
    ``(c) Qualified Adaptive Housing Improvement.--For purposes of this 
section, the term `qualified adaptive housing improvement' means 
special fixtures or movable facilities with respect to the principal 
residence of the veteran which are made necessary by the nature of the 
disability of the veteran, if such fixtures and facilities are--
            ``(1) provided to the veteran pursuant to specially adapted 
        housing assistance under chapter 17 or 21 of title 38, United 
        States Code, or
            ``(2) similar to such fixtures and facilities that would be 
        provided to the veteran if the veteran received such 
        assistance.
    ``(d) Credit May Be Assigned.--
            ``(1) In general.--If the taxpayer elects the application 
        of this subsection for any taxable year, any portion of the 
        credit under this section for such year which would (but for 
        this subsection) be allowable to the taxpayer may be assigned 
        to any person who is an eligible designee. The person so 
        designated shall be allowed the amount of the credit so 
        assigned and shall be treated as the taxpayer with respect to 
        such credit for purposes of this title (other than this 
        paragraph), except that such credit shall be treated as a 
        credit listed in section 38(b) for such taxable year (and not 
        allowed under subsection (a)).
            ``(2) Eligible designee.--For purposes of paragraph (1), 
        the term `eligible designee' means any person who, with respect 
        to the residence, provides or installs any qualified adaptive 
        housing improvements to which the credit under this section is 
        attributable.
            ``(3) Election requirements.--Any election under paragraph 
        (1) shall include such information and shall be made at such 
        time, and in such form and manner, as the Secretary shall by 
        regulation prescribe.''.
    (b) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``36C,'' after ``36B,''.
            (2) Section 38(b) of the Internal Revenue Code of 1986, as 
        amended by section 2, is amended by striking ``plus'' 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) the portion of the veteran home mobility improvement 
        credit assigned to the taxpayer to which the second sentence of 
        section 36C(d)(1) applies.''.
            (3) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting before the item relating to section 37 
        the following new item:

``Sec. 36C. Veteran home mobility improvement credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.
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