[Congressional Record Volume 155, Number 144 (Wednesday, October 7, 2009)]
[House]
[Pages H10550-H10554]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             SERVICE MEMBERS HOME OWNERSHIP TAX ACT OF 2009

  Mr. BLUMENAUER. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3590) to amend the Internal Revenue Code of 1986 to modify 
the first-time homebuyers credit in the case of members of the Armed 
Forces and certain other Federal employees, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3590

       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 ``Service Members Home 
     Ownership Tax Act of 2009''.

     SEC. 2. WAIVER OF RECAPTURE OF FIRST-TIME HOMEBUYER CREDIT 
                   FOR INDIVIDUALS ON QUALIFIED OFFICIAL EXTENDED 
                   DUTY.

       (a) In General.--Paragraph (4) of section 36(f) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(E) 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 (2)) after December 31, 2008, in connection 
     with Government orders received by such individual, or such 
     individual's spouse, for qualified official extended duty 
     service--

       ``(I) paragraph (2) and subsection (d)(2) shall not apply 
     to such disposition (or cessation), and
       ``(II) if such residence was acquired before January 1, 
     2009, paragraph (1) shall not apply to the taxable year in 
     which such disposition (or cessation) occurs or any 
     subsequent taxable year.

       ``(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) as 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.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to dispositions and cessations after December 31, 
     2008.

     SEC. 3. EXTENSION OF FIRST-TIME HOMEBUYER CREDIT FOR 
                   INDIVIDUALS ON QUALIFIED OFFICIAL EXTENDED DUTY 
                   OUTSIDE THE UNITED STATES.

       (a) In General.--Subsection (h) of section 36 of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``This section'' and inserting the 
     following:
       ``(1) In general.--This section'', and
       (2) by adding at the end the following:
       ``(2) Special rules for individuals on qualified official 
     extended duty outside the united states.--In the case of any 
     individual who serves on qualified official extended duty 
     service outside the United States for at least 90 days in 
     calendar year 2009 and, if married, such individual's 
     spouse--
       ``(A) paragraph (1) shall be applied by substituting 
     `December 1, 2010' for `December 1, 2009',
       ``(B) subsection (f)(4)(D) shall be applied by substituting 
     `December 1, 2010' for `December 1, 2009', and
       ``(C) in lieu of subsection (g), in the case of a purchase 
     of a principal residence after December 31, 2009, and before 
     July 1, 2010, the taxpayer may elect to treat such purchase 
     as made on December 31, 2009, for purposes of this section 
     (other than subsections (c) and (f)(4)(D)).''.
       (b) Coordination With First-Time Homebuyer Credit for 
     District of Columbia.--Paragraph (4) of section 1400C(e) of 
     such Code is amended by inserting ``(December 1, 2010, in the 
     case of a purchase subject to section 36(h)(2))'' after 
     ``December 1, 2009''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to residences purchased after November 30, 2009.

     SEC. 4. EXCLUSION FROM GROSS INCOME OF QUALIFIED MILITARY 
                   BASE REALIGNMENT AND CLOSURE FRINGE.

       (a) In General.--Subsection (n) of section 132 of the 
     Internal Revenue Code of 1986 is amended--
       (1) in subparagraph (1) by striking ``this subsection) to 
     offset the adverse effects on housing values as a result of a 
     military base realignment or closure'' and inserting ``the 
     American Recovery and Reinvestment Tax Act of 2009)'', and
       (2) in subparagraph (2) by striking ``clause (1) of''.
       (b) Effective Date.--The amendments made by this act shall 
     apply to payments made after February 17, 2009.

     SEC. 5. INCREASE IN PENALTY FOR FAILURE TO FILE A PARTNERSHIP 
                   OR S CORPORATION RETURN.

       (a) In General.--Sections 6698(b)(1) and 6699(b)(1) of the 
     Internal Revenue Code of 1986 are each amended by striking 
     ``$89'' and inserting ``$110''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to returns for taxable years beginning after 
     December 31, 2009.

     SEC. 6. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       The percentage under paragraph (1) of section 202(b) of the 
     Corporate Estimated Tax Shift Act of 2009 in effect on the 
     date of the enactment of this Act is increased by 0.5 
     percentage points.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Oregon (Mr. Blumenauer) and the gentleman from Michigan (Mr. Camp) each 
will control 20 minutes. The Chair recognizes the gentleman from 
Oregon.


                             General Leave

  Mr. BLUMENAUER. Mr. Speaker, I ask that all Members have 5 
legislative days to revise and extend their remarks and insert 
extraneous material in the record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Oregon?
  There was no objection.
  Mr. BLUMENAUER. In addition, I, along with Ways and Means Ranking

[[Page H10551]]

Member Camp, have asked the nonpartisan Joint Committee on Taxation to 
make available to the public a technical explanation of the bill. The 
technical explanation expresses the committee's understanding and 
legislative intent behind this important legislation. It is available 
on the Joint Committee Web site at www.jct.gov, and is listed under the 
document number JCX-3909.
  Mr. Speaker, I yield myself such time as I may consume. H.R. 3590, 
the Service Members Home Ownership Tax Act, is about basic fairness for 
those who serve our country. In June of this year, a constituent 
contacted me regarding an issue of great concern to his family because 
they had purchased a home in my district, with the first-time homeowner 
tax credit. Yet, because of a temporary USAID Foreign Service 
assignment overseas, they must repay the credit.
  This constituent eloquently expressed his frustration and asked my 
office to help him and the thousands of Foreign Service families like 
him. The next month I introduced the Call to Service Homebuyer tax 
credit to protect families in the Foreign Service, intelligence 
community and military who serve our country away from home. I would 
note that my friend and colleague, Congressman Kind from Wisconsin, has 
been working on similar legislation focused on the military, and I 
deeply appreciate his partnership and coordination in working together 
to move this expeditiously, and of course that of the Ways and Means 
leadership, Chairman Rangel, Ranking Member Camp and the Ways and Means 
staff.
  Currently, the credit provides up to $8,000 towards the purchase of a 
home through November 30 of this year, provided that the home is the 
primary residence for 36 months afterward. The program has been so 
successful that the National Association of Realtors estimates that 
almost 2 million families will file for the credit, and that 
approximately 350,000 wouldn't have been able to purchase a home 
without it. But for all its popularity, the credit is inaccessible to 
many Americans, who, like my constituents and Congressman Kind's, are 
serving in the military, Foreign Service or intelligence sector. These 
occupations obviously often require time served abroad, rendering a 36-
month commitment to a domestic residence difficult and, in some cases, 
impossible.
  Even now there are hundreds of thousands of men and women who are 
overseas serving our country on bases and embassies and other posts 
away from family, friends and community, often in very hazardous 
circumstances. Those serving our government should not have to choose 
between their job and their home. This bill protects those called to 
service, now or in the future, by waiving the recapture time for duty 
away from home. It also gives a second chance for those who served away 
from home in 2009 by extending the credit for 1 year. I strongly urge 
my colleagues to support the legislation.
  I reserve the balance of my time.
  Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume. 
Since September 11, American military, diplomatic and intelligence 
personnel have seen extended and recurring deployments in support of 
contingency operations in Iraq and Afghanistan. These brave Americans 
have answered the call and, at the drop of a hat, gone off to defend 
this great Nation in a most consequential time. This House and the 
American people are extremely grateful for their courage and sacrifice.
  Today, as we rotate personnel home from Iraq and contemplate 
increasing force levels in Afghanistan, Congress can ease the 
transition for those in uniform by ensuring existing homeownership tax 
incentives are flexible for their circumstances. This bill does that. 
It modifies the existing first-time homebuyer tax credit to make it 
fairer for military and diplomatic families deploying overseas or 
returning home who, under the way the current credit is written, may be 
unable to take advantage. These provisions are based heavily on 
language included in bills that many, including my colleague from 
Louisiana, Charles Boustany, and from North Carolina, Walter Jones, 
have championed for some time.
  The bill also helps military families relocating as part of the Base 
Realignment and Closure, or BRAC, process. As DOD has transformed its 
base infrastructure, many service families have had difficulty selling 
homes adjacent to military installations because of declining values 
and an unprecedented slowdown in the housing market. In the stimulus 
bill, Congress provided relief in the form of a one-time funding 
increase for DOD's homeowners assistance program, which provides 
housing payments to these military families to help with relocation. 
H.R. 3590 clarifies that military families will not be taxed on these 
additional benefits.
  In closing, Mr. Speaker, this is a good bill, and I'm proud to lend 
my support to it today. I'm hopeful the Senate will quickly approve the 
legislation so the President can sign it into law. We owe our men and 
women in uniform, as well as the families that support them, nothing 
less.
  I reserve the balance of my time.
  Mr. BLUMENAUER. Mr. Speaker, it is my pleasure to recognize the 
gentleman from Tennessee (Mr. Tanner), the distinguished Chair of the 
Social Security Subcommittee of Ways and Means, for 2 minutes.
  Mr. TANNER. Mr. Speaker, the bill has been explained. May I just 
simply say this is a bill that is completely bipartisan and, more 
importantly, or as importantly, fully paid for. It protects the Foreign 
Service officers, the military and the intelligence community members 
who may have been ordered or otherwise sent from their homes under the 
Homebuyers Act, and it protects their rights thereunder. Important. It 
should be done. They are risking not only their lives, but often, many 
times their liberties.
  And so I want to thank everyone who's worked on this bill. Mr. Camp, 
thank you, and others, for bringing to the floor a bipartisan, paid-for 
bill that will protect the rights of the Homebuyers Act of our Foreign 
Service officers, our military, and the intelligence community.
  Mr. CAMP. At this time I yield 2 minutes to a distinguished member of 
the Ways and Means Committee, the gentlewoman from Florida (Ms. Ginny 
Brown-Waite).
  Ms. GINNY BROWN-WAITE of Florida. Mr. Speaker, I rise today in strong 
support of H.R. 3590, the Service Members Home Ownership Tax Act of 
2009.
  The first-time homebuyer credit gives qualifying consumers a tax 
refund of up to $8,000 when buying a primary residence. So far, over 
1.4 million Americans have taken advantage of this credit. However, the 
men and women serving in our Nation's Armed Forces are largely unable 
to take advantage of this credit. Why? Because the current law requires 
consumers who utilize the first-time homebuyers' tax credit to repay 
the credit if they move from the primary residence within 36 months of 
the closing. This 3-year residency requirement disqualifies many 
military personnel from taking advantage of the tax credit.
  Following the call of the military, armed services members regularly 
relocate duty stations, thus resulting in an immediate recapture of the 
credit. That's just not fair to our Armed Forces. Our military 
personnel, Foreign Service officers, intelligence agents and their 
families should not be penalized for required moving in service to our 
Nation. H.R. 3590 eliminates the inequities in the first-time 
homebuyers tax credit by waiving the 36-month requirement for 
servicemembers, Foreign Service officers, and intelligence agents who 
must sell their homes in connection with Federal orders relating to 
official extended duty.
  With over 116,000 veterans living in my district, I'm keenly aware of 
issues that are of interest to our military servicemembers. While we 
can never do enough to thank our men and women in uniform for their 
service, the Service Members Home Ownership Tax Act of 2009 is one way 
that we can demonstrate America's commitment to our troops while they 
are serving.
  I thank my colleague from New York, Mr. Rangel, for introducing this 
bill. And I'm proud to cosponsor it, and I urge its support. Hopefully 
the Senate will act in an expeditious manner so that we can truly make 
sure that this tax benefit extends to our servicemembers.
  Mr. BLUMENAUER. Mr. Speaker, it is my pleasure to recognize the 
gentleman from Wisconsin (Mr. Kind), a tireless champion of veterans 
with whom I've been pleased to work with on this legislation, for 3 
minutes.

[[Page H10552]]

  Mr. KIND. Mr. Speaker, I rise in strong support of H.R. 3590, and 
thank my colleague and friend from Oregon, Mr. Blumenauer, not only for 
yielding me the time but for the work that he has put into this 
important piece of legislation. I also want to thank Chairman Rangel 
and Ranking Member Camp and the other members of the Ways and Means 
Committee, and the bipartisan support that this legislation has in 
Congress today. It is the right thing to do for our men and women in 
uniform.
  As my colleague from Tennessee also indicated, Mr. Tanner, it is 
completely paid for. So it will not add a nickel to our national 
deficit. And it incorporates a number of very important proposals, 
including legislation that I had introduced earlier this year with a 
number of my colleagues to ensure that the men and women who are 
serving our country abroad are eligible for all the benefits and the 
opportunities that would be available to them as if they were stationed 
here in the United States instead of being deployed abroad in a 
conflict situation where they can't take advantage of these programs 
because of their deployment.

                             {time}  (1445)

  This sort of equity is the bare minimum that we should extend to 
these patriotic servicemembers, many of whom are serving us very 
bravely in very dangerous missions.
  Earlier this year, Congress took an important step to rejuvenating 
the housing market and helping middle class families buy their first 
home by modifying and extending the First-Time Homebuyer Credit. This 
important provision provides first-time homebuyers with an $8,000 tax 
credit for homes purchased before November 31, 2009. Unfortunately, 
again, with our servicemembers serving overseas, they haven't been able 
to take advantage of that credit.
  Earlier this year, I was joined by my colleague and friend from 
Wisconsin (Mr. Kagen) along with Representatives Sam Johnson and 
Charles Boustany, to introduce H.R. 2562, the Service Members Home 
Ownership Act. All that did was extend the opportunity for our 
servicemen and -women who are serving us abroad by 1 year the 
opportunity to take advantage of the first-time homebuyer $8,000 tax 
credit.
  And with the work that Mr. Blumenauer did and his focus on extending 
that to Foreign Servicemembers deployed overseas and members of our 
intelligence community, these provisions are reflected in this 
legislation today.
  I do want to thank Chairman Rangel and others on the committee for 
understanding the basic equity that's enshrined in this legislation and 
also for clarifying the tax treatment of the Homeowner's Assistance 
Program, a program that is administered by the Department of Defense 
that was expanded in the American Recovery Act that makes it easier for 
certain members of the military to sell their homes as a result of 
their service to their country. The passage of this bill today will 
make sure that this assistance is not taxed as income.
  I think these are very simple steps, steps that are necessary and 
fair to our servicemen and -women, including the largest call-up of 
National Guard members since World War II in the State of Wisconsin, 
who are serving us so very well overseas right now under trying and 
difficult circumstances. But the men and women who put their lives on 
the line for us every day deserve this kind of treatment from their 
government.
  So I support the legislation, and I strongly encourage the rest of my 
colleagues to do so.
  Mr. CAMP. At this time I yield 2 minutes to the gentleman from North 
Carolina (Mr. Jones).
  Mr. JONES. Mr. Speaker, I want to thank you and both sides for 
bringing this legislation to the floor today, the Service Members Home 
Ownership Tax Act. I got a call last January from a wife of a marine. 
The marine had been to Iraq twice. And she called me and said, 
Congressman, we cannot participate in this fine program that's been 
presented by the Congress of the United States. She said, My husband is 
getting ready to go back for his third tour. Is there something you can 
do to help our family?
  I went ahead and wrote a letter to Mr. Rangel and asked him to 
please, as this session started, to please consider making this 
necessary change so that our military and their families could take 
part in this wonderful program of first-time buyers where they get a 
benefit of $8,000.
  I want to say to the lady, thank you for the service that you and 
your husband are giving to this country. And to all those in uniform, 
thank you for your service. And for those that might benefit from this 
wonderful bill that's on the floor today, and the families that will 
benefit, I say to both sides, the Democrats and the Republicans, Mr. 
Rangel, Mr. Camp, and all the members of Ways and Means, thank you for 
bringing this bill to the floor of the House.
  Mr. BLUMENAUER. It is my privilege to yield 2 minutes to a tireless 
member of the Ways and Means Committee, the gentleman from New Jersey 
(Mr. Pascrell).
  Mr. PASCRELL. Thank you, my friend, Mr. Blumenauer. I stand before 
you to discuss H.R. 3590, the Service Members Home Ownership Tax Act of 
2009. I want to congratulate Mr. Rangel, Mr. Camp, Mr. Blumenauer. This 
body stands tallest when we work together for our servicemembers. It 
really reflects the dignity of this body.
  And I say this emphatically, that Mr. Rangel and Mr. Camp are always 
there, not only because they have a deep affection for their country, 
but because they have a deep connection with our service folks who 
defend us every day. This is the least we can do.
  This legislation would extend the first-time homebuyer credit, the 
time limit by 1 year, for our military members serving outside the 
United States in 2009. The extension would allow servicemembers 
currently serving overseas to take advantage of an important tax credit 
offered to all citizens by the Recovery Act.
  Our legislation would protect servicemembers from having to repay the 
credit if they are called up for service overseas and forced to sell 
their home within 3 years of purchasing.
  Think of this, Mr. Speaker: this bill comes at a time when our 
servicemembers are challenged with the dual strain of war and economic 
strife. Taking care of the responsibilities in Iraq and Afghanistan and 
trying to take care of familial needs--just imagine, just imagine that 
stress.
  The first-time homebuyer credit has already provided tax benefits to 
a million and a half families. Congress should do everything we can to 
ensure our servicemembers are also able to take full advantage of the 
programs we enact to benefit all Americans. And they need to know about 
it. We have an obligation to communicate to our service folks and our 
veterans what is available out there, because I think in the past 8 
years we have surpassed in attempting to reach out to them so that they 
know what their benefits are.
  I hope this bill sees swift passage in the House and the Senate. It's 
the right thing to do, Mr. Speaker.
  Mr. CAMP. We have no further speakers at this time. I reserve the 
balance of my time.
  Mr. BLUMENAUER. It is my pleasure to recognize for 2 minutes a 
gentleman who often shares his insights about military families, the 
gentleman from North Carolina (Mr. Etheridge).
  Mr. ETHERIDGE. I thank Mr. Blumenauer for yielding. Let me thank Mr. 
Rangel and the ranking member for their work on the committee, and all 
the members who have worked on it. I'm a proud cosponsor of H.R. 3590.
  My congressional district includes Fort Bragg and Pope Air Force Base 
and is home to thousands of our brave military men and women, many of 
whom have been subject to multiple deployments, as well as the 30th 
Heavy Brigade National Guard Units, who are currently serving their 
second tour in Iraq.
  This bill makes sure that servicemembers are able to take full 
advantages of the benefits available to all Americans, and I commend 
all of my colleagues who have worked on this and made a difference.
  Under H.R. 3590, personnel overseas would have an extra year to take 
advantage of the first-time homebuyer tax credit. As an Army veteran 
myself, I understand that military members are subject to orders that 
may require them to uproot their homes and their

[[Page H10553]]

families, move to another base, or even be shipped overseas with just a 
short notice. This bill would allow folks to keep the tax credit even 
if they have to sell their homes due to military relocations within 3 
years of their home's purchase.
  The first-time homebuyers tax credit has helped more, as you have 
already heard today, more than a million and a half homeowners. While 
the sluggish housing industry has been in a very difficult time, it's 
helped stimulate it. So let's help extend this successful provision to 
those Americans who are sacrificing so much for all of us.
  Mr. Speaker, we've already heard today that this bill is paid for. It 
is bipartisan. It deserves not only our total support, but our trust 
that the Senate will move quickly and send it to the President of the 
United States for his signature.
  Mr. CAMP. I continue to reserve the balance of my time.
  Mr. BLUMENAUER. Mr. Speaker, I'm pleased to recognize for 2 minutes a 
gentleman who's been long active on this issue, the gentleman from 
Wisconsin (Mr. Kagen).
  Mr. KAGEN. Mr. Speaker, I rise in strong support of H.R. 3590. I wish 
to compliment Mr. Camp, Mr. Blumenauer, and everyone who's had a 
contribution to making this a very good bill. It's about teamwork. It's 
about making certain that our soldiers, our service men and women, have 
the support they need before, during, and after they've been deployed. 
And certainly everyone here would agree that our service men and women 
shouldn't be punished for going overseas to serve our Nation anyplace, 
let alone Iraq or Afghanistan.
  In April of this year I received a telephone call from the Kavanaugh 
family. Jerry in Kaukauna called up to say he was concerned his son 
might not be able to take advantage of the first-time homebuyer tax 
credit of nearly $8,000. He wouldn't be able to take advantage of this 
because he was being deployed once more overseas.
  Well, I think it's time to work together. We came up with a bill with 
Ron Kind to address this issue, and it has been improved upon by the 
Ways and Means Committee.
  Over 1.4 million people have already taken advantage of the First-
Time HomeBuyer Act, and now it's a great opportunity for all service 
men and women to consider coming home and taking advantage of this 
opportunity to solidify not just their own home but the housing market 
here across the country.
  I wish to honor all service men and women who have served overseas. I 
wish to thank as well Chairman Rangel; Representatives Boustany and 
Johnson, who also worked with me on preparing legislation that has been 
morphed into this act.
  Again, I thank you for the hard work and teamwork to mend our Nation 
and make certain our service men and women are made whole when they 
return.
  Mr. CAMP. I reserve the balance of my time.
  Mr. BLUMENAUER. At this time I'm pleased to yield 2 minutes to a 
tireless champion of Las Vegas, the gentlewoman from Nevada (Ms. 
Berkley).
  Ms. BERKLEY. I thank the gentleman for the recognition. I rise in 
support of this important piece of legislation. This bill would ensure 
that members of the U.S. military, the Foreign Service, or the 
intelligence community who are deployed overseas are not penalized by 
the requirement to repay the first-time homebuyer tax credit.
  For those who have been stationed abroad for at least 90 days this 
year, it would also provide an additional year to qualify for the 
first-time homebuyer tax credit. This would include the 1st Squadron, 
221st Cavalry out of Las Vegas, Nevada, and the 1st Battalion of the 
168th Medevac Unit of the Nevada National Guard. Both are deployed 
overseas in Afghanistan on behalf of their Nation.
  The brave men and women who selflessly serve this country should not 
be penalized because of their commitment to our Nation. This 
legislation ensures that they do not miss out on the important housing 
tax benefit.
  I encourage my colleagues to support the passage of this bill.
  Mr. CAMP. Mr. Speaker, I would just yield back the balance of my time 
and urge support for H.R. 3560, the Service Members Home Ownership Tax 
Act of 2009.
  Mr. BLUMENAUER. I would express my appreciation to Mr. Camp and his 
team for helping move this legislation through in a bipartisan and 
expeditious fashion.
  I would conclude, Mr. Speaker, by saying you have heard today strong 
testimony from people on both sides of the aisle why this legislation 
is important. Over the course of the last 6 months I've had an 
opportunity to make it personal in terms of Oregonians: people in the 
Peace Corps, in the Foreign Service in Swaziland, in China, in 
Mozambique, who are posted overseas but for whom their roots are still 
here. We want to make sure that it makes a difference for them.
  Likewise, in Oregon we have significant deployment of our 41st 
Brigade of the Oregon National Guard who will be serving in Iraq and 
scheduled to not return until the spring of 2010. It's personal for all 
of these people.

                              {time}  1500

  It's a pleasure to see the rapid response to respond to the needs of 
these Americans serving abroad.
  I note that this legislation is endorsed by The American Legion, the 
Military Officers Association of America, the National Association of 
Home Builders, the National Association of Realtors, the National 
Military Family Association and Veterans of Foreign Wars of the United 
States.
  I strongly urge my colleagues to add their support to this bill and 
give the men and women who serve our country the same opportunity as 
other Americans to own a home.
  Mr. CALVERT. Mr. Speaker, the Service Members Home Ownership Tax Act 
is a good bill that extends the availability of the homebuyer tax 
credit to our servicemembers serving our country overseas. The 
homebuyer tax credit has proven to be an effective measure in 
stimulating our housing market, and I'm hopeful more of our 
servicemembers will be able to use it now that it is being extended.
  In fact, I know that many members, including myself, support 
extending the homebuyer tax credit for everyone. I have a bill, the 
Homebuyer Tax Credit Act, H.R. 1245, that would extend and expand the 
tax credit. My bill has almost fifty cosponsors and I aware of other 
bills that have been introduced to extend the homebuyer tax credit.
   am hopeful that in addition to passing this bill today, the House 
leadership and the Ways and Means Committee will act on a broader 
extension of the homebuyer tax credit in the near future.
  Mr. SKELTON. Mr. Speaker, first let me thank my good friend and a 
valued member of the House Armed Services Committee, Walter B. Jones of 
North Carolina, for introducing the first bill in the House to fix the 
first time homebuyer tax issue for our servicemembers. Mr. Jones is a 
good friend of the military, and I was proud to join him in this 
effort.
  Let me also thank Ways and Means Committee Chairman Charlie Rangel, a 
Korean war veteran and supporter of our troops, for recognizing that we 
needed to improve the Federal Tax Code for military personnel and their 
families and for wrapping together several related tax bills into the 
legislation we are considering today, the Service Members Home 
Ownership Tax Act.
  The first time homebuyer tax credit, which was enacted as part of the 
American Recovery and Reinvestment Act, has been popular with the 
American people and has had a positive impact on the economy.
  Since the tax credit took effect, home sales have increased and there 
have been glimpses of price stability in the housing market. While much 
work remains before a full recovery can be achieved in the real estate 
sector, this tax credit has produced results.
  To qualify for the tax credit, a first time homebuyer must meet 
certain criteria, including a stipulation that he or she live in the 
house as a primary residence for 3 years or be forced to repay the 
credit to the Federal Government.
  For those military personnel, Foreign Service officers, and 
intelligence officers who wish to purchase their first home but who 
might be required by government orders to move duty stations within a 
3-year window, this stipulation has proven problematic.
  To fix it, I recently co-authored the Service Members Home Ownership 
Tax Act, which would waive the repayment clause if the servicemember, 
State Department official, or intelligence officer receives official 
orders and is forced to sell his or her house within that 3-year 
window.
  The measure would also allow qualifying Defense and State Department 
personnel and intelligence personnel who have served outside the United 
States for at least 90 days in

[[Page H10554]]

2009 to have an additional year to participate in the first time 
homebuyer tax credit, which is currently scheduled to expire on 
November 30, 2009.
  In addition to these particular changes, the legislation would ensure 
that certain payments under the Department of Defense Homeowner's 
Assistance Program are exempt from taxation.
  The Service Members Home Ownership Tax Act is important for our 
troops and their families and would foster economic activity in areas 
near military bases. I urge its quick passage in the House of 
Representatives.
  Mr. BACA. Mr. Speaker, I ask for unanimous consent to address the 
House for one minute.
  I stand in support of H.R. 3590 and commend Representative Rangel for 
his leadership in protecting the livelihoods of our service men and 
women.
  H.R. 3590 extends the first-time homebuyer tax credit for one year 
for qualifying service members and waives the recapture requirement for 
service members if they are forced to sell their home within three 
years because of a change in duty station.
  The first-time homebuyer program works. We have already seen positive 
results.
  According to the National Association of Home Builders, approximately 
200,000 additional home sales are attributable to the present-law tax 
credit and that it has resulted in a net increase of 187,000 jobs.
  H.R. 3590 will allow more families to buy a home and help our 
economy.
  I am hopeful that we will extend the credit for all Americans, but I 
am most grateful that today we will do the right thing and provide this 
incentive to our service men and women.
  It is in the top five for highest number of foreclosures.
  Mr. MITCHELL. Mr. Speaker, I rise today on behalf of America's 
service members who devote their lives to defending and serving this 
great country.
  The Service Members Home Ownership Tax Act of 2009, H.R. 3590, will 
help strengthen our Nation's housing industry while ensuring that our 
honorable service men and women can take full advantage of the benefits 
they have earned through their service and sacrifice.
  Earlier this year, we enacted a temporary $8000 tax credit for first 
time-time homebuyers.
  So far, the tax credit has worked. According to Moody's chief 
economist Mark Zandi, almost 400,000 new and existing home sales are 
attributable to the tax break.
  In the Phoenix metropolitan area--we have seen a growth in first-time 
home sales, especially of homes below $150,000. According to at least 
one recent survey, home sales reached 9,614 in June, up 11 percent from 
May.
  Current law, however, requires first-time homebuyers who use the 
$8,000 tax credit to repay the credit if they move from their principal 
residence within three years of closing.
  This is a problem for service members, who are often required to 
redeploy overseas within a three year period. We need to ensure that 
service members are not adversely impacted by simply carrying out their 
duties.
  The Service Members Home Ownership Tax Act of 2009, would exempt 
service members from the repayment requirement if they are deployed 
overseas within three years of using the home buyer tax credit.
  I encourage my colleagues to honor the men and women who serve this 
country and pass this important legislation.
  Mr. BLUMENAUER. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Oregon (Mr. Blumenauer) that the House suspend the rules 
and pass the bill, H.R. 3590.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. BLUMENAUER. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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