[Congressional Record Volume 156, Number 99 (Tuesday, June 29, 2010)]
[House]
[Pages H4936-H4939]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HOMEBUYER ASSISTANCE AND IMPROVEMENT ACT OF 2010
Mr. LEVIN. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 5623) to amend the Internal Revenue Code of 1986 to extend the
homebuyer tax credit for the purchase of a principal residence before
October 1, 2010, in the case of a written binding contract entered into
with respect to such principal residence before May 1, 2010, and for
other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5623
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 ``Homebuyer Assistance and
Improvement Act of 2010''.
SEC. 2. EXTENSION OF HOMEBUYER CREDIT FOR CERTAIN PURCHASES
PURSUANT TO BINDING CONTRACTS.
(a) In General.--Paragraph (2) of section 36(h) of the
Internal Revenue Code of 1986 is amended by striking
``paragraph (1) shall be applied by substituting `July 1,
2010' '' and inserting ``and who purchases such residence
before October 1, 2010, paragraph (1) shall be applied by
substituting `October 1, 2010' ''.
(b) Conforming Amendment.--Subparagraph (B) of section
36(h)(3) of such Code is amended by inserting ``, and for
`October 1, 2010' '' after ``for `July 1, 2010' ''.
(c) Effective Date.--The amendments made by this section
shall apply to residences purchased after June 30, 2010.
SEC. 3. APPLICATION OF BAD CHECKS PENALTY TO ELECTRONIC
PAYMENTS.
(a) In General.--Section 6657 of the Internal Revenue Code
of 1986 is amended--
(1) by striking ``If any check or money order in payment of
any amount'' and inserting ``If any instrument in payment, by
any commercially acceptable means, of any amount'', and
(2) by striking ``such check'' each place it appears and
inserting ``such instrument''.
(b) Effective Dates.--The amendments made by this section
shall apply to instruments tendered after the date of the
enactment of this Act.
SEC. 4. DISCLOSURE OF PRISONER RETURN INFORMATION TO STATE
PRISONS.
(a) In General.--Subparagraph (A) of section 6103(k)(10) of
the Internal Revenue Code of 1986 is amended--
(1) by inserting ``and the head of any State agency charged
with the responsibility for administration of prisons'' after
``the head of the Federal Bureau of Prisons'', and
(2) by striking ``Federal prison'' and inserting ``Federal
or State prison''.
(b) Restriction on Redisclosure.--Subparagraph (B) of
section 6103(k)(10) of such Code is amended--
(1) by inserting ``and the head of any State agency charged
with the responsibility for administration of prisons'' after
``the head of the Federal Bureau of Prisons'', and
(2) by inserting ``or agency'' after ``such Bureau''.
(c) Recordkeeping.--Paragraph (4) of section 6103(p) of
such Code is amended by inserting ``(k)(10),'' before
``(l)(6),'' in the matter preceding subparagraph (A).
(d) Clerical Amendment.--The heading of paragraph (10) of
section 6103(k) of such Code is amended by striking ``of
prisoners to federal bureau of prisons'' and inserting ``to
certain prison officials''.
(e) Effective Date.--The amendments made by this section
shall apply to disclosures made after the date of the
enactment of this Act.
[[Page H4937]]
SEC. 5. AMENDMENT OF TRAVEL PROMOTION ACT OF 2009.
(a) Travel Promotion Fund Fees.--Section 217(h)(3)(B) of
the Immigration and Nationality Act (8 U.S.C. 1187(h)(3)(B))
is amended--
(1) by striking ``subsection (d) of section 11 of the
Travel Promotion Act of 2009.'' in clause (ii) and inserting
``subsection (d) of the Travel Promotion Act of 2009 (22
U.S.C. 2131(d)).''; and
(2) by striking ``September 30, 2014.'' in clause (iii) and
inserting ``September 30, 2015.''.
(b) Implementation Beginning in Fiscal Year 2011.--
Subsection (d) of the Travel Promotion Act of 2009 (22 U.S.C.
2131(d)) is amended--
(1) by striking ``For fiscal year 2010, the'' in paragraph
(2)(A) and inserting ``The'';
(2) by striking ``quarterly, beginning on January 1,
2010,'' in paragraph (2)(A) and inserting ``monthly,
immediately following the collection of fees under section
217(h)(3)(B)(i)(I) of the Immigration and Nationality Act (8
U.S.C. 1187(h)(3)(B)(i)(I)),'';
(3) by striking ``fiscal years 2011 through 2014,'' in
paragraph (2)(B) and inserting ``fiscal years 2012 through
2015,'';
(4) by striking ``fiscal year 2010,'' in paragraph (3)(A)
and inserting ``fiscal year 2011,'';
(5) by striking ``fiscal year 2011,'' each place it appears
in paragraph (3)(A) and inserting ``fiscal year 2012,''; and
(6) by striking ``fiscal year 2010, 2011, 2012, 2013, or
2014'' in paragraph (4)(B) and inserting ``fiscal year 2011,
2012, 2013, 2014, or 2015''.
SEC. 6. PAYGO COMPLIANCE.
The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go-Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the House Budget Committee, provided that such
statement has been submitted prior to the vote on passage.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Michigan (Mr. Levin) and the gentleman from Kentucky (Mr. Davis) each
will control 20 minutes.
The Chair recognizes the gentleman from Michigan.
Mr. LEVIN. Mr. Speaker, millions of American families have taken
advantage of the home buyer tax credit, giving a much-needed boost to
home sales at a time when our housing market needed it most. In a word,
this tax credit has worked. It gave a boost to our economic recovery,
and it helped first-time buyers achieve their dream, the American Dream
of owning a home.
Today's legislation helps ensure the credit works for people who have
followed the terms of the incentive. Under current law, taxpayers that
entered into a written, binding contract to purchase a home prior to
May 1, 2010, are eligible for the home buyer tax credit so long as the
sale was completed prior to July 1, 2010. The bill would extend this
closing date from prior to July 1, 2010, to prior to October 1, 2010.
As a result, taxpayers that entered into a written, binding contract
prior to May 1, 2010, will have until September 30, 2010, and I
emphasize that, until September 30, 2010, to complete their home
purchase transactions.
This legislation also takes important steps to eliminate instances of
fraud that were recently discovered by the Treasury Inspector General
for Tax Administration relating to prison inmates. Last year, the
Oversight Subcommittee chair, Mr. Lewis, took the lead in examining
issues of abuse, and this clearly is one, and so this bill addresses
this abuse very effectively.
Mr. Speaker, this legislation is a necessary step to extend this
benefit to those who qualify and the need to facilitate their
purchases, and also, it addresses the issue of fraud. This legislation
is fully paid for, and I strongly encourage my colleagues to support
the bill and follow through on our commitment to thousands and
thousands of home buyers who have followed the rules and now should be
able to follow through with their purchase.
I reserve the balance of my time.
Mr. DAVIS of Kentucky. Mr. Speaker, I yield myself such time as I may
consume.
(Mr. DAVIS of Kentucky asked and was given permission to revise and
extend his remarks.)
Mr. DAVIS of Kentucky. I rise in support of H.R. 5623.
Last November, Congress extended the home buyer credit, Mr. Speaker,
for buyers who entered into a binding contract by the end of April this
year but only if they closed on their house by the end of June. I agree
with my colleague from Michigan on the need for this extension, but
only those who closed on their houses by the end of June would be
eligible.
The slow grinding gears of bureaucracy have left many potential home
buyers who could build equity and build for the future out in the cold
on this, and by doing this extension, we buy an appropriate amount of
time for those who have signed contracts by the April deadline but
haven't closed yet to be able to close. In short, we just need a little
more time.
This bill does not extend the deadline for signing a contract to buy
a home. The contract still must have been signed before the deadline at
the end of April, but it does provide relief for those home buyers who
haven't yet been able to close but who might be depending on the tax
credit for their down payment or closing costs. It seems unfair to
leave those home buyers in limbo even though they tried to comply with
the rules. Denying them the tax credit could cause the deal to
collapse, which would put downward pressure on home prices and
exacerbate the problems with the housing market.
{time} 1420
Mr. Speaker, I am also pleased to see that this bill responds to a
recent report from the Treasury Inspector General for Tax
Administration, who found that almost 1,300 incarcerated prisoners
claimed over $9 million in tax credits for homes they supposedly
purchased while in prison.
The bill would improve information sharing between the IRS and State
prison systems so that the IRS could obtain information on just who is
claiming to have bought a home. Refundable tax credits always attract
fraud, and we need to do better to prevent people from claiming
benefits to which they are not entitled.
I think this legislation includes sensible changes to improve the
administration of the home buyer tax credit, and I urge an ``aye''
vote.
I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, it is now my special privilege to yield 2
minutes to the gentlewoman from Pennsylvania, Kathy Dahlkemper.
Mrs. DAHLKEMPER. Mr. Speaker, I rise today in support of my bill,
H.R. 5623, the Homebuyers Assistance and Improvement Act of 2010.
I particularly would like to thank the leader, Chairman Levin, for
helping advance this legislation, which will extend tomorrow's closing
deadline for those eligible for the home buyer tax credit.
The National Association of Realtors estimates that 180,000 families,
including over 5,800 in my home State of Pennsylvania alone, signed
contracts for new homes by the April 30 deadline, but have not yet
finished their closings. One realtor in my district estimated that
there are 20 of these such closings which have not been able to be
completed yet. Due to the turmoil in the housing market and the
overwhelming success of the tax credit, lenders and Federal programs
have not been able to keep up with the demand, and that is what has
created the backlog.
The Homebuyers Assistance and Improvement Act will provide time to
clear this bottleneck and to make sure that these new homeowners are
not punished for delays that are out of their control.
As our economy continues on a slow yet steady path toward recovery,
we have a responsibility to promote policies that aid in that growth.
The Homebuyers Assistance and Improvement Act will do just that, so I
urge my colleagues to support H.R. 5623.
Mr. DAVIS of Kentucky. Mr. Speaker, I yield such time as he may
consume to a distinguished member of the Ways and Means Committee, the
gentleman from California (Mr. Herger).
Mr. HERGER. Mr. Speaker, I rise to applaud the inclusion in this bill
of a provision that enhances information sharing between the IRS and
State prisons.
Recently, the Treasury Inspector General for Tax Administration
issued a report, finding that at least 1,295 prisoners received $9.1
million in home buyer tax credits for homes they reported purchasing
while incarcerated. We must put a stop to this fraud.
I am a long-time supporter of increased data sharing among agencies
to ensure that prisoners do not illegally obtain taxpayer-funded
benefits. In the 1996 welfare reform bill, I championed a program that
authorized incentive payments to penal institutions for providing
information on newly incarcerated individuals. This data sharing
[[Page H4938]]
gave the Social Security Administration the information they needed to
prevent checks from going to jailed beneficiaries, which saved
taxpayers over $5 billion.
Currently, the IRS shares information with Federal prisons but not
with State prisons. The bill before us would change that, and I support
its passage.
General Leave
Mr. LEVIN. Mr. Speaker, I ask unanimous consent that all Members have
5 legislative days to revise and extend their remarks and to insert any
extraneous material in the Congressional Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. LEVIN. Mr. Speaker, now it is my privilege to yield 2 minutes to
a very vigorous Representative, the gentlewoman from Nevada (Ms.
Titus).
Ms. TITUS. Thank you, Mr. Chairman.
Mr. Speaker, I rise today in support of the Homebuyers Assistance and
Improvement Act of 2010.
The first-time home buyer tax credit has helped bring stability to
the struggling housing market in southern Nevada. In total, over 25,000
Nevadans have collected about $200 million from the credit, which has
dramatically reduced the State's excess housing inventory.
In southern Nevada, short sales have become more and more common as
lenders and owners are able to avoid the arduous and costly process of
foreclosure, and buyers can then purchase homes slightly below market
value.
Unlike the traditional sale of a property between an owner and a
buyer, however, a short sale must be approved by the holder of the
mortgage. In many cases, although a purchase price is agreed to by the
seller and the buyer, the lender may not approve the sale for months.
Certainly, this has been the case in Nevada. As a result, many first-
time home buyers have entered into agreements for short sales prior to
the April 30 deadline, but have not yet been able to close on the
purchase prices prior to the upcoming June 30 deadline.
According to local experts, the Homebuyers Assistance and Improvement
Act of 2010, which is before us now, will extend to October 1, the date
by which a purchaser must close a sale of a home in order to obtain the
home buyer tax credit. This will allow approximately 3,800 first-time
home buyers in southern Nevada to receive the credit. It is a fair
solution that will help consumers who have met all of the eligibility
requirements for the credit but who have had the timely processing of
their loans held up through no fault of their own.
So I thank the chairman for his assistance in moving this forward,
and I urge my colleagues to support the legislation.
Mr. DAVIS of Kentucky. Mr. Speaker, I yield as much time as she may
consume to the distinguished member of the Ways and Means Committee,
the gentlewoman from Florida (Ms. Ginny Brown-Waite).
Ms. GINNY BROWN-WAITE of Florida. I thank the gentleman from
Kentucky.
Mr. Speaker, I rise today in support of the bill before us, the
Homebuyers Assistance and Improvement Act of 2010.
For reasons known only to them, our Democrat colleagues in the Senate
have been unable or unwilling to reach a compromise addressing the
bipartisan concerns about the bundle of extensions still pending across
the Capitol. Due to this failure of basic leadership, the National
Flood Insurance Program was allowed to expire, as well as a number of
other programs.
I mention the Flood Insurance Program specifically because realtors
in my district are calling my office morning, noon and night on behalf
of clients who cannot close on their new homes without an extension in
the Flood Insurance Program. Remember, it is Florida. You need flood
insurance. Subsequently, quite a few of these individuals are going to
be missing the homebuyer tax credit that they were told they would
qualify for.
Say what you will about the tax credit, but in my view, if the
government says it is going to do something, like anybody else, it had
better follow through. Frankly, at this point, I'm not sure that the
Democrat majority is even capable of doing that. If you can't muster up
enough votes to ram your agenda through, despite opposition from your
own Members, or you are faced with the prospect of actually having to
pay for something--isn't that unique?--this government comes to a
screeching halt.
On most issues, my constituents and I think this liberal legislative
meltdown is a blessing; but on matters where families and small
businesses have made financial decisions based on the expectation that
the government would keep its word, we do demand and deserve action.
My colleagues on the other side of the aisle have control of the
White House, and they have the majorities in both houses of Congress.
They need to stop blaming everybody else and get their act together for
the sake of the American people.
Mr. LEVIN. Before I recognize the next distinguished gentleman, I
just sit here. Even on a bipartisan supported bill, we get such
partisan rhetoric. I hope everybody listens to it.
It is now my privilege to yield 2 minutes, or as much time as he may
consume, to a very active Member of Congress, the gentleman from the
proud State of Mississippi (Mr. Childers).
Mr. CHILDERS. Thank you, Mr. Chairman.
Mr. Speaker, I rise today in support of the Homebuyers Assistance and
Improvement Act of 2010.
This bill is important for home buyers who have met the requirements
of the first-time homebuyer tax credit program but who are now not able
to close on their new homes due to circumstances which are out of their
control.
{time} 1430
With the passage of this act, over 1,500 home buyers in my great
State of Mississippi will be able to take advantage of the Homebuyers
Tax Credit program, making homes more affordable for families and
individuals and creating much-needed jobs.
As a veteran realtor for over 30 years, I have seen firsthand the ups
and downs associated with the housing market. Recent signs of recovery
in the market are certainly encouraging, but we must follow through and
sustain the progress linked to the initial benefits of the homebuyer
tax credits.
I urge my colleagues to support this bill and to support the
prospective homeowners in America.
Mr. DAVIS of Kentucky. Mr. Speaker, I would encourage all of my
colleagues to support H.R. 5623 to continue and extend this program for
those who signed up before the April 30 close.
Mr. Speaker, with that, I yield back the balance of my time.
Mr. LEVIN. Mr. Speaker, I include for the Record a letter from the
chairman of the Homeland Security Committee, Mr. Thompson, to me dated
June 29, 2010, and a letter from me as chairman of the Ways and Means
Committee to Mr. Thompson.
Committee on Homeland Security, House of Representatives,
Washington, DC, June 29, 2010.
Hon. Sander M. Levin,
Chairman, Committee on Ways and Means, House of
Representatives, Longworth House Office Building,
Washington, DC.
Dear Mr. Chairman: I am writing you regarding the
``Homebuyer Assistance and Improvement Act of 2010.''
This legislation contains provisions within the
jurisdiction of the Committee on Homeland Security. I
recognize and appreciate your desire to bring this
legislation before the House in an expeditious manner and,
accordingly, have waived further consideration of the
measure. I have done so with the understanding that waiving
consideration of the bill should not be construed as the
Committee on Homeland Security waiving, altering, or
otherwise affecting its jurisdiction over subject matters
contained in the bill which fall within its Rule X
jurisdiction.
Further, I request your support for the appointment of
Homeland Security conferees during any House-Senate
conference convened on this or similar legislation. I also
ask that a copy of this letter and your response be placed in
the Congressional Record during floor consideration of this
bill.
I look forward to working with you on this legislation and
other matters of great importance to this nation.
Sincerely,
Bennie G. Thompson,
Chairman.
[[Page H4939]]
____
House of Representatives,
Committee on Ways and Means,
Washington, DC, June 29, 2010.
Hon. Bennie Thompson,
Chairman, Committee on Homeland Security, Ford House Office
Building, Washington, DC.
Dear Chairman Thompson, Thank you for your letter regarding
H.R. 5623, the Homebuyer Assistance and Improvement Act of
2010.
I appreciate your willingness to work cooperatively on this
legislation, and I acknowledge that there are provisions
within the bill that are within the jurisdiction of the
Committee on Homeland Security. I agree that your inaction
with respect to this bill does not in any way prejudice the
Committee with respect to the appointment of conferees or its
jurisdictional prerogatives on this bill or similar
legislation in the future.
I will ensure that our exchange of letters is included in
the Congressional Record during consideration of H.R. 5623.
Sincerely,
Sander Levin,
Chairman.
Mr. LEVIN. I can close very briefly. This bill is meritorious. It
deserves bipartisan support, and I hope very much it will receive it.
We owe this to the people who have essentially followed the rules who
are caught by a closing date.
This is a credit. There is often question about, is the effort of the
recovery program and like programs working? This is an example of it
working, and in fact working so actively that now it is necessary and I
think correct that we make sure that people who have advantaged
themselves of it correctly are able to follow through.
So I urge a strong vote.
Ms. JACKSON LEE of Texas. Mr. Speaker, I wish to thank Congress
members Dahlkemper, Kratovil and Childers for introducing this
important and much-needed piece of legislation.
The mortgage crisis continues to affect millions of Americans, and
has greatly interfered with the American dream of home ownership. It is
imperative that we help everyday Americans in their effort to remain
afloat in light of the ongoing effects of the economic meltdown. For
these reasons, I support the proposed amendments to this Act which will
extend the closing deadline for the First-Time Homebuyer tax credit to
September 30, 2010.
The housing market is an area that was, perhaps, the most largely
affected by the economic crisis. As of January, 2010, there were
315,716 foreclosures on properties in the United States reported just
within the month. Additionally, 1 in every 409 U.S. housing units
received a foreclosure filing in the same month. Texas received the
sixth highest number of foreclosure filings in January, 2010. As of
March, 2010, the foreclosure rate in Houston, Texas had increased by
almost ten percent from the previous month. Although our economy
appears to be on the path to recovery, these statistics are still cause
for concern.
The programs set in place to counteract the effects of the economic
downturn have attracted many ordinary Americans who are desperate to
keep their homes. The first-time homebuyer tax credit, specifically,
represented positive steps to guide ordinary Americans towards
financial recovery. However, it is important to allow all who are
eligible, and especially all who require the help, to benefit from the
tax credit by extending the closing deadline. There has been a delay in
processing due to all the new mortgages that have resulted from the tax
credit. However, ordinary Americans who have attempted to obtain new
mortgages, and are sincerely in need of the aid provided through the
tax credit should not be punished for the backlog that resulted from
factors entirely outside of their control.
We are all familiar with the ongoing effects of the economic
meltdown. Jobs have been lost, homes have been foreclosed upon, and
many have been left with no source of income or livelihood. In
addition, many Americans have been stripped of the ability to achieve a
goal that they have, in certain instances, worked decades to attain--
owning a home. Extending the tax credit will provide everyday citizens
with an opportunity to realize this dream, even in the midst of a
recovering economy.
Mr. LEVIN. I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Michigan (Mr. Levin) that the House suspend the rules
and pass the bill, H.R. 5623, as amended.
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. LEVIN. 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.
____________________