[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3790 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 3790
To amend the Internal Revenue Code of 1986 to provide for a credit
against tax for homebuyers purchasing residences in residential
recovery zones, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 17, 2019
Mr. Dunn introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Financial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for a credit
against tax for homebuyers purchasing residences in residential
recovery zones, 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 ``Residential Recovery Zone Act''.
SEC. 2. RESIDENTIAL RECOVERY ZONE HOMEBUYER CREDIT.
(a) In General.--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. RESIDENTIAL RECOVERY ZONE HOMEBUYER CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual who
purchases a principal residence in a residential recovery zone
during a 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.
``(2) Timing.--At the election of an individual, the credit
allowed under subsection (a) for a taxable year may be allowed
instead during any one on the subsequent 3 taxable years.
``(b) Limitations.--
``(1) Dollar limitation.--
``(A) In general.--Except as otherwise provided in
this paragraph, the credit allowed under subsection (a)
shall not exceed $8,000.
``(B) Married individuals filing separately.--In
the case of a married individual filing a separate
return, subparagraph (A) shall be applied by
substituting `$4,000' for `$8,000'.
``(C) Other individuals.--If two 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
$8,000.
``(2) Limitation based on purchase price.--No credit shall
be allowed under subsection (a) for the purchase of any
residence if the purchase price of such residence exceeds
$1,500,000.
``(c) Definitions.--For purposes of this section--
``(1) Residential recovery zone defined.--
``(A) In general.--The term `residential recovery
zone' means, with respect to a Federally declared
disaster, a population census tract that is--
``(i) in the disaster area related to such
disaster, and
``(ii) designated under subparagraph (B).
``(B) Designation.--A population census tract is
designated under this paragraph with respect to a
Federally declared disaster if, during the period
beginning on the earliest incident date specified in
the declaration to which such area relates and ending
on the date that is one year after such date--
``(i) the chief executive officer of the
State in which the tract is located--
``(I) nominates the tract for
designation as a residential recovery
zone, and
``(II) notifies the Secretary in
writing of such nomination, and
``(ii) the Secretary certifies such
nomination and designates such tract as a
residential recovery zone.
``(C) Duration of designation.--A designation under
subparagraph (B) shall terminate on the date that is 3
years after the date of the certification described in
subparagraph (B)(ii).
``(D) State; federally declared disaster; disaster
area.--The term `State' has the meaning given such
terms in section 1400Z-1, and `Federally declared
disaster' and `disaster area' have the meaning given
such terms in section 165(i).
``(2) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121.
``(3) Purchase; purchase price.--The term `purchase' and
`purchase price' have the meanings given such terms in section
36(c).
``(d) Exceptions.--No credit under subsection (a) shall be allowed
to any taxpayer for any taxable year with respect to the purchase of a
residence if--
``(1) a deduction under section 151 with respect to such
taxpayer is allowable to another taxpayer for such taxable
year, or
``(2) the taxpayer fails to attach to the return of tax for
such taxable year a properly executed copy of the settlement
statement used to complete such purchase.
``(e) Recapture of Credit.--
``(1) In general.--If a residence with respect to which a
credit was allowed under subsection (a) ceases to be the
principal residence of the taxpayer before the end of the 3-
year period beginning on the date of the purchase of such
residence the tax imposed by this chapter for the taxable year
of cessation shall be increased by the amount of the credit so
allowed and claimed.
``(2) Exceptions.--
``(A) Death of taxpayer.--Paragraph (1) shall not
apply if the cessation is attributable to the
taxpayer's death.
``(B) Involuntary conversion.--Paragraph (1) shall
not apply if the cessation is attributable to a
compulsorily or involuntarily conversion (within the
meaning of section 1033(a)) and the taxpayer acquires a
new principal residence during the 2-year period
beginning on the date of such cessation.
``(C) Special rule for members of the armed forces,
etc.--
``(i) In general.--Paragraph (1) shall not
apply if the cessation is attributable to
Government orders received by such individual,
or such individual's spouse, for 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.
``(ii) Definitions.--Any term used in this
subparagraph which is also used in section
121(d)(9) shall have the same meaning as when
used in such paragraph.''.
(b) 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. Residential recovery zone homebuyer credit.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to purchases in taxable years beginning after the
date that is 1 year before the date of the enactment of this Act.
SEC. 3. TREATMENT AS OPPORTUNITY ZONES.
(a) In General.--Section 1400Z-1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new subsection:
``(g) Certain Disaster Zones.--
``(1) Designation.--With respect to a Federally declared
disaster, the chief executive officer of a State may designate
under this paragraph not more than 5 percent of the applicable
disaster tracts in such State with respect to such disaster.
``(2) No effect on limitation on number of designations.--
An applicable disaster tract designated under paragraph (1)
shall not be taken into account in determining the limitation
under subsection (d).
``(3) Applicable disaster tract.--The term `applicable
disaster tract' means, with respect to a Federally declared
disaster, a population census tract in the disaster area
related to such disaster.
``(4) Federally declared disaster; disaster area.--In this
subsection, the term `Federally declared disaster' and the term
`disaster area' have the meaning given such terms in section
165(i).
``(5) Applicable start date.--
``(A) Qualified opportunity fund businesses and
property.--In the case of an applicable disaster tract
designated under paragraph (1), subparagraphs
(B)(i)(I), (C)(i), and (D)(i)(I) of section 1400Z-
2(d)(2) shall each be applied by substituting `the
applicable start date' for `December 31, 2017'.
``(B) Extension of determination period.--In the
case of an applicable disaster tract designated under
paragraph (1), section (c)(2)(B) shall be applied by
substituting `the applicable start date' for `the date
of the enactment of the Tax Cuts and Jobs Act'.
``(C) Applicable start date.--The term `applicable
start date' means, with respect to a disaster area, the
earliest incident date specified in the declaration to
which such area relates.''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to Federally declared disasters declared after the
date of the enactment of this Act.
SEC. 4. CREDIT UNDER THE COMMUNITY REINVESTMENT ACT OF 1977 FOR LENDING
IN A RESIDENTIAL RECOVERY ZONE.
Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C.
2903) is amended by adding at the end the following:
``(e) Residential Recovery Zone Loans.--In assessing and taking
into account, under subsection (a), the record of a financial
institution, the appropriate Federal financial supervisory agency shall
consider as a factor lending activities to individuals and businesses
that are located in a residential recovery zone (as defined under
section 36A(c) of the Internal Revenue Code of 1986).''.
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