I 

114TH CONGRESS 

1ST SESSION H. R. 3975 

To amend the Internal Revenue Code of 1986 to allow a credit for veteran 

first-time homebuyers and for adaptive housing and mobility improvements for disabled veterans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 5, 2015 

Mr. LANGEVIN (for himself, Mr. COOK, and Ms. TITUS) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow a 

credit for veteran first-time homebuyers and for adaptive 

housing and mobility improvements for disabled veterans, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veterans Homebuyer 

5 Accessibility Act of 2015’’. 

6 SEC. 2. VETERAN FIRST-TIME HOMEBUYER TAX CREDIT. 

7 (a) IN GENERAL.—Section 36(a) of the Internal Rev8 enue Code of 1986 is amended to read as follows: 


SSpencer on DSK4SPTVN1PROD with BILLS
2 

•HR 3975 IH

1 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli2 gible veteran who purchases a principal residence in the 

3 United States during the taxable year, there shall be al4 lowed as a credit against the tax imposed by this subtitle 

5 for such taxable year an amount equal to 10 percent of 

6 the purchase price of the residence.’’. 

7 (b) ADDITIONAL LIMITATION FOR ADAPTIVE HOUS8 ING IMPROVEMENTS.—Section 36(b)(1) of such Code is 

9 amended by redesignating subparagraphs (B), (C), and 

10 (D) as subparagraphs (C), (D), and (E), respectively, and 

11 by inserting after subparagraph (A) the following new sub12 paragraph: 

13 ‘‘(B) SPECIAL RULE FOR ADAPTIVE HOUS14 ING IMPROVEMENTS.—In the case of a principal 

15 residence with special fixtures or movable facili16 ties made necessary by the nature of the dis17 ability of the veteran, if such fixtures and facili18 ties are— 

19 ‘‘(i) provided to the veteran pursuant 

20 to specially adapted housing assistance 

21 under chapter 17 or 21 of title 38, United 

22 States Code, or 

23 ‘‘(ii) similar to such fixtures and fa24 cilities that would be provided to the vetVerDate Sep 11 2014 01:14 Nov 10, 2015 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3975.IH H3975

SSpencer on DSK4SPTVN1PROD with BILLS
3 

•HR 3975 IH

1 eran if the veteran received such assist2 ance, 

3 then subparagraph (A) shall be increased by the 

4 lesser of $8,000 or the portion of the purchase 

5 price of the principal residence attributable 

6 such fixtures or movable facilities.’’. 

7 (c) ELIGIBLE VETERAN.— 

8 (1) IN GENERAL.—Section 36(c)(1) of such 

9 Code is amended by striking ‘‘FIRST-TIME HOME10 BUYER.—The term ‘first time homebuyer’ means 

11 any individual’’ and inserting ‘‘ELIGIBLE VET12 ERAN.—The term ‘eligible veteran’ means any indi13 vidual who is a veteran (as defined in section 101(2) 

14 of title 38, United States Code)’’. 

15 (2) LONG-TIME RESIDENT.—Section 36(c)(6) of 

16 such Code is amended by striking ‘‘treated as a 

17 first-time homebuyer’’ and inserting ‘‘treated as 

18 meeting the no present ownership interest require19 ment of paragraph (1)’’. 

20 (d) RECAPTURE OF CREDIT.—Section 36(f) of such 

21 Code is amended to read as follows: 

22 ‘‘(f) RECAPTURE OF CREDIT.— 

23 ‘‘(1) IN GENERAL.—If a taxpayer disposes of 

24 the principal residence with respect to which a credit 

25 was allowed under subsection (a) (or such residence 


SSpencer on DSK4SPTVN1PROD with BILLS
4 

•HR 3975 IH

1 ceases to be the principal residence of the taxpayer 

2 (and, if married, the taxpayer’s spouse)) before the 

3 end of the 36-month period beginning on the date of 

4 the purchase of such residence by the taxpayer the 

5 tax imposed by this chapter for the taxable year of 

6 such disposition or cessation shall be increased by 

7 the amount of the credit so allowed. 

8 ‘‘(2) EXCEPTIONS.— 

9 ‘‘(A) DEATH OF TAXPAYER.—Paragraph 

10 (1) shall not apply to any taxable year ending 

11 after the date of the taxpayer’s death. 

12 ‘‘(B) INVOLUNTARY CONVERSION.—Para13 graph (1) shall not apply in the case of a resi14 dence which is compulsorily or involuntarily 

15 converted (within the meaning of section 

16 1033(a)) if the taxpayer acquires a new prin17 cipal residence during the 2-year period begin18 ning on the date of the disposition or cessation 

19 referred to in paragraph (1). Paragraph (1) 

20 shall apply to such new principal residence dur21 ing the 36-month period referred to therein in 

22 the same manner as if such new principal resi23 dence were the converted residence. 

24 ‘‘(C) TRANSFERS BETWEEN SPOUSES OR

25 INCIDENT TO DIVORCE.—In the case of a transVerDate Sep 11 2014 01:14 Nov 10, 2015 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3975.IH H3975

SSpencer on DSK4SPTVN1PROD with BILLS
5 

•HR 3975 IH

1 fer of a residence to which section 1041(a) ap2 plies— 

3 ‘‘(i) paragraph (1) shall not apply to 

4 such transfer, and 

5 ‘‘(ii) in the case of taxable years end6 ing after such transfer, paragraph (1) shall 

7 apply to the transferee in the same manner 

8 as if such transferee were the transferor 

9 (and shall not apply to the transferor). 

10 ‘‘(D) SPECIAL RULE FOR MEMBERS OF

11 THE ARMED FORCES, ETC.— 

12 ‘‘(i) IN GENERAL.—In the case of the 

13 disposition of a principal residence by an 

14 individual (or a cessation referred to in 

15 paragraph (1)) in connection with Govern16 ment orders received by such individual, or 

17 such individual’s spouse, for qualified offi18 cial extended duty service, paragraph (1) 

19 shall not apply to such disposition (or ces20 sation). 

21 ‘‘(ii) QUALIFIED OFFICIAL EXTENDED

22 DUTY SERVICE.—For purposes of this sec23 tion, the term ‘qualified official extended 

24 duty service’ means service on qualified of25 ficial extended duty as— 


SSpencer on DSK4SPTVN1PROD with BILLS
6 

•HR 3975 IH

1 ‘‘(I) a member of the uniformed 

2 services, 

3 ‘‘(II) a member of the Foreign 

4 Service of the United States, or 

5 ‘‘(III) an employee of the intel6 ligence community. 

7 ‘‘(iii) DEFINITIONS.—Any term used 

8 in this subparagraph which is also used in 

9 paragraph (9) of section 121(d) shall have 

10 the same meaning as when used in such 

11 paragraph. 

12 ‘‘(3) JOINT RETURNS.—In the case of a credit 

13 allowed under subsection (a) with respect to a joint 

14 return, half of such credit shall be treated as having 

15 been allowed to each individual filing such return for 

16 purposes of this subsection. 

17 ‘‘(4) RETURN REQUIREMENT.—If the tax im18 posed by this chapter for the taxable year is in19 creased under this subsection, the taxpayer shall, 

20 notwithstanding section 6012, be required to file a 

21 return with respect to the taxes imposed under this 

22 subtitle.’’. 

23 (e) APPLICATION OF CREDIT.—Section 36(h) of such 

24 Code is amended to read as follows: 


SSpencer on DSK4SPTVN1PROD with BILLS
7 

•HR 3975 IH

1 ‘‘(h) TERMINATION.—This section shall not apply to 

2 any residence purchased after December 31, 2017.’’. 

3 (f) ASSIGNMENT OF CREDIT IN CASE OF CONSTRUC4 TION.—Section 36 of such Code is amended by adding at 

5 the end the following new subsection: 

6 ‘‘(i) CREDIT MAY BE ASSIGNED.— 

7 ‘‘(1) IN GENERAL.—In the case of a residence 

8 constructed by the taxpayer, if such taxpayer elects 

9 the application of this subsection for any taxable 

10 year, any portion of the credit determined under this 

11 section which is attributable to an increase under 

12 subparagraph (B) of subsection (b)(1) for such year 

13 which would (but for this subsection) be allowable to 

14 the taxpayer may be assigned to any person who is 

15 an eligible designee. The person so designated shall 

16 be allowed the amount of the credit so assigned and 

17 shall be treated as the taxpayer with respect to such 

18 credit for purposes of this title (other than this 

19 paragraph), except that such credit shall be treated 

20 as a credit listed in section 38(b) for such taxable 

21 year (and not allowed under subsection (a)). 

22 ‘‘(2) ELIGIBLE DESIGNEE.—For purposes of 

23 paragraph (1), the term ‘eligible designee’ means 

24 any person who, with respect to the residence, pro25 vides or installs any improvements, special fixtures, 


SSpencer on DSK4SPTVN1PROD with BILLS
8 

•HR 3975 IH

1 or movable facilities to which the credit is attrib2 utable under subparagraph (B) of subsection (b)(1). 

3 ‘‘(3) ELECTION REQUIREMENTS.—Any election 

4 under paragraph (1) shall include such information 

5 and shall be made at such time, and in such form 

6 and manner, as the Secretary shall by regulation 

7 prescribe.’’. 

8 (g) CONFORMING AMENDMENTS.— 

9 (1) Section 38(b) of such Code is amended by 

10 striking ‘‘plus’’ at the end of paragraph (35), by 

11 striking the period at the end of paragraph (36) and 

12 inserting ‘‘, plus’’, and by adding at the end the fol13 lowing new paragraph: 

14 ‘‘(37) the portion of the veteran first-time 

15 homebuyer credit assigned to the taxpayer to which 

16 the second sentence of section 36(i)(1) applies,’’. 

17 (2) The heading for section 1400C(e)(4) of 

18 such Code is amended by striking ‘‘NATIONAL FIRST19 TIME HOMEBUYERS CREDIT’’ and inserting ‘‘VET20 ERAN FIRST-TIME HOMEBUYERS CREDIT’’. 

21 (h) CLERICAL AMENDMENTS.— 

22 (1) The heading for section 36 of such Code is 

23 amended to read as follows: 


SSpencer on DSK4SPTVN1PROD with BILLS
9 

•HR 3975 IH

1 ‘‘SEC. 36. VETERAN FIRST-TIME HOMEBUYER CREDIT.’’. 

2 (2) The item relating to section 36 in the table 

3 of sections for subpart C of part IV of subchapter 

4 A of chapter 1 of such Code is amended to read as 

5 follows: 

‘‘Sec. 36. Veteran first-time homebuyer credit.’’. 

6 (i) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to residences purchased after the 

8 date of the enactment of this Act. 

9 SEC. 3. VETERAN HOME MOBILITY IMPROVEMENT CREDIT. 

10 (a) IN GENERAL.—Subpart C of part IV of sub11 chapter A of chapter 1 of the Internal Revenue Code of 

12 1986 is amended by inserting before section 37 the fol13 lowing new section: 

14 ‘‘SEC. 36C. VETERAN HOME MOBILITY IMPROVEMENT 

15 CREDIT. 

16 ‘‘(a) IN GENERAL.—In the case of a veteran, there 

17 shall be allowed as a credit against the tax imposed by 

18 this subtitle for any taxable year an amount equal to the 

19 amount paid or incurred by the taxpayer for qualified 

20 adaptive housing improvements for the taxable year. 

21 ‘‘(b) LIMITATION.—The credit allowed under sub22 section (a) shall not exceed $8,000. 

23 ‘‘(c) QUALIFIED ADAPTIVE HOUSING IMPROVE24 MENT.—For purposes of this section, the term ‘qualified 

25 adaptive housing improvement’ means special fixtures or 


SSpencer on DSK4SPTVN1PROD with BILLS
10 

•HR 3975 IH

1 movable facilities with respect to the principal residence 

2 of the veteran which are made necessary by the nature 

3 of the disability of the veteran, if such fixtures and facili4 ties are— 

5 ‘‘(1) provided to the veteran pursuant to spe6 cially adapted housing assistance under chapter 17 

7 or 21 of title 38, United States Code, or 

8 ‘‘(2) similar to such fixtures and facilities that 

9 would be provided to the veteran if the veteran re10 ceived such assistance. 

11 ‘‘(d) CREDIT MAY BE ASSIGNED.— 

12 ‘‘(1) IN GENERAL.—If the taxpayer elects the 

13 application of this subsection for any taxable year, 

14 any portion of the credit under this section for such 

15 year which would (but for this subsection) be allow16 able to the taxpayer may be assigned to any person 

17 who is an eligible designee. The person so designated 

18 shall be allowed the amount of the credit so assigned 

19 and shall be treated as the taxpayer with respect to 

20 such credit for purposes of this title (other than this 

21 paragraph), except that such credit shall be treated 

22 as a credit listed in section 38(b) for such taxable 

23 year (and not allowed under subsection (a)). 

24 ‘‘(2) ELIGIBLE DESIGNEE.—For purposes of 

25 paragraph (1), the term ‘eligible designee’ means 


SSpencer on DSK4SPTVN1PROD with BILLS
11 

•HR 3975 IH

1 any person who, with respect to the residence, pro2 vides or installs any qualified adaptive housing im3 provements to which the credit under this section is 

4 attributable. 

5 ‘‘(3) ELECTION REQUIREMENTS.—Any election 

6 under paragraph (1) shall include such information 

7 and shall be made at such time, and in such form 

8 and manner, as the Secretary shall by regulation 

9 prescribe.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 1324(b)(2) of title 31, United 

12 States Code, is amended by inserting ‘‘36C,’’ after 

13 ‘‘36B,’’. 

14 (2) Section 38(b) of the Internal Revenue Code 

15 of 1986, as amended by section 2, is amended by 

16 striking ‘‘plus’’ at the end of paragraph (36), by 

17 striking the period at the end of paragraph (37) and 

18 inserting ‘‘, and’’, and by adding at the end the fol19 lowing new paragraph: 

20 ‘‘(38) the portion of the veteran home mobility 

21 improvement credit assigned to the taxpayer to 

22 which the second sentence of section 36C(d)(1) ap23 plies.’’. 

24 (3) The table of sections for subpart C of part 

25 IV of subchapter A of chapter 1 of the Internal RevVerDate Sep 11 2014 01:14 Nov 10, 2015 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3975.IH H3975

SSpencer on DSK4SPTVN1PROD with BILLS
12 

•HR 3975 IH

1 enue Code of 1986 is amended by inserting before 

2 the item relating to section 37 the following new 

3 item: 

‘‘Sec. 36C. Veteran home mobility improvement credit.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2014. 

Æ 


SSpencer on DSK4SPTVN1PROD with BILLS