A bill to amend the Internal Revenue Code of 1986 to allow a refundable credit against income tax for the purchase of a principal residence by a first-time homebuyer.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``First-Time Homebuyers' Tax Credit 
Act of 2009''.

SEC. 2. REFUNDABLE CREDIT FOR FIRST-TIME HOMEBUYERS.

    (a) In General.--Subpart C 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 36 the following new section:

``SEC. 36A. PURCHASE OF PRINCIPAL RESIDENCE BY FIRST-TIME HOMEBUYER.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an individual who is a 
        first-time homebuyer of a principal residence in the United 
        States during any taxable year, there shall be allowed as a 
        credit against the tax imposed by this subtitle for the taxable 
        year an amount equal to so much of the purchase price of the 
        residence as does not exceed $20,000.
            ``(2) Taxable income limitation.--No credit shall be 
        allowed under subsection (a) if the taxpayer's adjusted gross 
        income for the taxable year immediately preceding the taxable 
        year in which the purchase of the principal residence occurs 
        exceeds $75,000 ($150,000 in the case of a joint return).
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) First-time homebuyer.--
                    ``(A) In general.--The term `first-time homebuyer' 
                has the same meaning as when used in section 
                72(t)(8)(D)(i).
                    ``(B) One-time only.--If an individual is treated 
                as a first-time homebuyer with respect to any principal 
                residence, such individual may not be treated as a 
                first-time homebuyer with respect to any other 
                principal residence.
                    ``(C) Married individuals filing jointly.--In the 
                case of married individuals who file a joint return, 
                the credit under this section is allowable only if both 
                individuals are first-time homebuyers.
                    ``(D) Other taxpayers.--If 2 or more individuals 
                who are not married purchase a principal residence--
                            ``(i) the credit under this section is 
                        allowable only if each of the individuals is a 
                        first-time homebuyer, and
                            ``(ii) the amount of the credit allowed 
                        under subsection (a) shall be allocated among 
                        such individuals in such manner as the 
                        Secretary may prescribe.
            ``(2) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 121. Except as 
        provided in regulations, an interest in a partnership, S 
        corporation, or trust which owns an interest in a residence 
        shall not be treated as an interest in a residence.
            ``(3) Purchase.--
                    ``(A) In general.--The term `purchase' means any 
                acquisition, but only if--
                            ``(i) the property is not acquired from a 
                        person whose relationship to the person 
                        acquiring it would result in the disallowance 
                        of losses under section 267 or 707(b) (but, in 
                        applying section 267 (b) and (c) for purposes 
                        of this section, paragraph (4) of section 
                        267(c) shall be treated as providing that the 
                        family of an individual shall include only the 
                        individual's spouse, ancestors, and lineal 
                        descendants), and
                            ``(ii) the basis of the property in the 
                        hands of the person acquiring it is not 
                        determined--
                                    ``(I) in whole or in part by 
                                reference to the adjusted basis of such 
                                property in the hands of the person 
                                from whom acquired, or
                                    ``(II) under section 1014(a) 
                                (relating to property acquired from a 
                                decedent).
                    ``(B) Construction.--A residence which is 
                constructed by the taxpayer shall be treated as 
                purchased by the taxpayer.
            ``(4) Purchase price.--The term `purchase price' means the 
        adjusted basis of the principal residence on the date of 
        acquisition (within the meaning of section 72(t)(8)(D)(iii)).
    ``(c) Denial of Double Benefit.--No credit shall be allowed under 
subsection (a) for any expense for which a deduction or credit is 
allowed under any other provision of this chapter.
    ``(d) 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.
    ``(e) Property To Which Section Applies.--The provisions of this 
section shall apply to a principal residence if the taxpayer purchases 
the residence during the period beginning on the date of enactment, and 
ending on the date which is 1 year after such date.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 1016 of the Internal Revenue 
        Code of 1986 (relating to general rule for adjustments to 
        basis) is amended by striking ``and'' at the end of paragraph 
        (36), by striking the period at the end of paragraph (37) and 
        inserting ``, and'', and by adding at the end the following new 
        paragraph:
            ``(38) in the case of a residence with respect to which a 
        credit was allowed under section 36A, to the extent provided in 
        section 36A(d).''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``or 36A'' after ``36''.
    (c) Clerical Amendment.--The table of sections for subpart C 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 36 the 
following new item:

``Sec. 36A. Purchase of principal residence by first-time homebuyer.''.

Summary: First-Time Homebuyers' Tax Credit Act of 2009 - Amends the Internal Revenue Code to allow an individual taxpayer who qualifies as a first-time homebuyer a one-time refundable credit for up to $20,000 of the purchase price of a principal residence. Reduces such credit for taxpayers with adjusted gross incomes exceeding $75,000 .