[Congressional Record (Bound Edition), Volume 156 (2010), Part 9]
[House]
[Pages 12033-12036]
[From the U.S. 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.

     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.

[[Page 12034]]

  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.
  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 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

[[Page 12035]]

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.
                                  ____

                                         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.

  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

[[Page 12036]]

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.

                          ____________________