To amend the Internal Revenue Code of 1986 to provide a Federal income tax credit for certain home purchases.

Summary: Amends the Internal Revenue Code to allow purchasers of a single-family principal residence a one-time tax credit for up to $15,000 of the purchase price. Requires such a residence to be purchased after February 29, 2008, and before March 1, 2009, and that it be: (1) a new previously unoccupied residence for which a building permit has been issued and construction began on or before September 1, 2007; (2) an owner-occupied residence with a mortgage indebtedness in default on or before March 1, 2008; or (3) in foreclosure and owned by the mortgagor or the mortgagor's agent.

SECTION 1. CREDIT FOR CERTAIN HOME PURCHASES.

    (a) Allowance of Credit.--Subpart A of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to refundable 
credits) is amended by inserting after section 25D the following new 
section:

``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an individual who is a 
        purchaser of a qualified principal residence during the taxable 
        year, there shall be allowed as a credit against the tax 
        imposed by this chapter an amount equal to so much of the 
        purchase price of the residence as does not exceed $15,000.
            ``(2) Allocation of credit amount.--The amount of the 
        credit allowed under paragraph (1) shall be equally divided 
        among the 3 taxable years beginning with the taxable year in 
        which the purchase of the qualified principal residence is 
        made.
    ``(b) Limitations.--
            ``(1) Date of purchase.--The credit allowed under 
        subsection (a) shall be allowed only with respect to purchases 
        made--
                    ``(A) after February 29, 2008, and
                    ``(B) before March 1, 2009.
            ``(2) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) for the taxable year.
            ``(3) One-time only.--
                    ``(A) In general.--If a credit is allowed under 
                this section in the case of any individual (and such 
                individual's spouse, if married) with respect to the 
                purchase of any qualified principal residence, no 
                credit shall be allowed under this section in any 
                taxable year with respect to the purchase of any other 
                qualified principal residence by such individual or a 
                spouse of such individual.
                    ``(B) Joint purchase.--In the case of a purchase of 
                a qualified principal residence by 2 or more unmarried 
                individuals or by 2 married individuals filing 
                separately, no credit shall be allowed under this 
                section if a credit under this section has been allowed 
                to any of such individuals in any taxable year with 
                respect to the purchase of any other qualified 
                principal residence.
    ``(c) Qualified Principal Residence.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified principal residence' means an eligible single-family 
        residence that is purchased to be the principal residence of 
        the purchaser.
            ``(2) Eligible single-family residence.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `eligible single-family residence' means a 
                single-family structure that is--
                            ``(i) a new previously unoccupied residence 
                        for which a building permit is issued and 
                        construction begins on or before September 1, 
                        2007,
                            ``(ii) an owner-occupied residence with 
                        respect to which the owner's acquisition 
                        indebtedness (as defined in section 
                        163(h)(3)(B), determined without regard to 
                        clause (ii) thereof) is in default on or before 
                        March 1, 2008, or
                            ``(iii) a residence with respect to which a 
                        foreclosure event has taken place and which is 
                        owned by the mortgagor or the mortgagor's 
                        agent.
                    ``(B) Certification.--In the case of an eligible 
                single-family residence described in subparagraph 
                (A)(i), no credit shall be allowed under this section 
                unless the purchaser submits a certification by the 
                seller of such residence that such residence meets the 
                requirements of such subparagraph.
    ``(d) Denial of Double Benefit.--No credit shall be allowed under 
this section for any purchase for which a credit is allowed under 
section 1400C.
    ``(e) Special Rules.--
            ``(1) Joint purchase.--
                    ``(A) Married individuals filing separately.--In 
                the case of 2 married individuals filing separately, 
                subsection (a) shall be applied to each such individual 
                by substituting `$7,500' for `$15,000' in subsection 
                (a)(1).
                    ``(B) Unmarried individuals.--If 2 or more 
                individuals who are not married purchase a qualified 
                principal residence, the amount of the credit allowed 
                under subsection (a) shall be allocated among such 
                individuals in such manner as the Secretary may 
                prescribe, except that the total amount of the credits 
                allowed to all such individuals shall not exceed 
                $15,000.
            ``(2) Purchase.--In defining the purchase of a qualified 
        principal residence, rules similar to the rules of paragraphs 
        (2) and (3) of section 1400C(e) (as in effect on the date of 
        the enactment of this section) shall apply.
            ``(3) Reporting requirement.--Rules similar to the rules of 
        section 1400C(f) (as so in effect) shall apply.
    ``(f) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section with respect to the purchase of any 
residence, the basis of such residence shall be reduced by the amount 
of the credit so allowed.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Credit for certain home purchases.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after February 29, 2008.