[House Report 110-360]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-360

======================================================================

 
   PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3648) TO AMEND THE 
INTERNAL REVENUE CODE OF 1986 TO EXCLUDE DISCHARGES OF INDEBTEDNESS ON 
     PRINCIPAL RESIDENCES FROM GROSS INCOME, AND FOR OTHER PURPOSES

                                _______
                                

   October 2, 2007.--Referred to the House and ordered to be printed

                                _______
                                

   Mr. Cardoza, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 703]

    The Committee on Rules, having had under consideration 
House Resolution 703, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 3648, the 
``Mortgage Forgiveness Debt Relief Act of 2007,'' under a 
closed rule. The resolution provides for one hour of debate 
equally divided and controlled by the chairman and ranking 
minority member of the Committee on Ways and Means.
    The resolution waives all points of order against 
consideration of the bill except those arising under clause 9 
or 10 of rule XXI. The resolution considers as adopted the 
committee amendment in the nature of a substitute, modified by 
the amendment printed in this report, and considers the bill, 
as amended, as read. The resolution waives all points of order 
against provisions in the bill, as amended. This waiver does 
not affect the point of order available under clause 9 of rule 
XXI (regarding earmark disclosure). The resolution provides one 
motion to recommit with or without instructions. Finally, the 
resolution permits the Chair, during consideration of the bill, 
to postpone further consideration of it to a time designated by 
the Speaker.

                         EXPLANATION OF WAIVERS

    Although the rule waives all points of order against the 
bill and its consideration (except those arising under clause 9 
or 10 of rule XXI), the Committee is not aware of any points of 
order against the bill or its consideration. The waivers of all 
points of order against the bill and its consideration (except 
those arising under clause 9 or 10 of rule XXI) are 
prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 325

    Date: October 2, 2007.
    Measure: H.R. 3648.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment in the nature of a substitute by Rep. 
McCrery that would replace the underlying text with a temporary 
(three-year) provision on the issue of cancellation of 
indebtedness income.
    Results: Defeated 4-8.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Diaz-Balart--Yea; Hastings 
(WA)--Yea; Sessions--Yea.

Rules Committee record vote No. 326

    Date: October 2, 2007.
    Measure: H.R. 3648.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order an amendment, if 
offered by Mr. McCrery or his designee, which would be 
separately debatable for one hour, and that the rule waive all 
points of order against the amendment, except those arising 
under clauses 9 or 10 of rule XXI.
    Results: Defeated 4-8.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Diaz-Balart--Yea; Hastings 
(WA)--Yea; Sessions--Yea.

            SUMMARY OF AMENDMENT TO BE CONSIDERED AS ADOPTED

    The amendment would place a $2 million cap on the maximum 
amount of forgiven debt that would be eligible for tax relief. 
Second, it would further limit tax relief to situations where 
the debt is forgiven because of a decrease in home value or 
because of the financial hardship on the borrower.

             TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

  Paragraph (2) of section 108(h) of the Internal Revenue Code 
of 1986, as proposed to be added by section 2 of the bill, is 
amended by striking ``without regard to clause (ii) thereof'' 
and inserting ``applied by substituting `$2,000,000 
($1,000,000' for `$1,000,000 ($500,000' in clause (ii) 
thereof''.
  Paragraph (3) of section 108(h) of the Internal Revenue Code 
of 1986, as proposed to be added by section 2 of the bill, is 
amended to read as follows:
          (3) Exception for certain discharges not related to 
        taxpayer's financial condition.--Subsection (a)(1)(E) 
        shall not apply to the discharge of a loan if the 
        discharge is on account of services performed for the 
        lender or any other factor not directly related to a 
        decline in the value of the residence or to the 
        financial condition of the taxpayer.

                                  
