I 

111TH CONGRESS 

1ST SESSION H. R. 1805 

To amend the Internal Revenue Code of 1986 to make permanent the deduction for State and local sales tax, the deduction for qualified tuition 

and related expenses, and the deduction for mortgage interest premiums, 

and to modify to the homebuyer credit. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 31, 2009 

Mr. WAMP 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 make 

permanent the deduction for State and local sales tax, 

the deduction for qualified tuition and related expenses, 

and the deduction for mortgage interest premiums, and 

to modify to the homebuyer credit. 

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 ‘‘American Working 

5 Families Tax Relief Act of 2009’’. 


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1 SEC. 2. STATE AND LOCAL SALES TAX DEDUCTION MADE 

2 PERMANENT. 

3 (a) IN GENERAL.—Paragraph (5) of section 164(b) 

4 of the Internal Revenue Code of 1986 is amended by strik5 ing subparagraph (I). 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 subsection (a) shall apply to taxable years beginning after 

8 December 31, 2009. 

9 SEC. 3. DEDUCTION FOR QUALIFIED TUITION AND RE10 LATED EXPENSES MADE PERMANENT. 

11 (a) IN GENERAL.—Section 222 of the Internal Rev12 enue Code of 1986 is amended by striking subsection (e) 

13 (relating to termination). 

14 (b) SUNSET NOT TO APPLY.—Section 901 of the 

15 Economic Growth and Tax Relief Reconciliation Act of 

16 2001 shall not apply to provisions of, and amendments 

17 made by, section 431 of such Act (relating to deduction 

18 for higher education expenses). 

19 (c) EFFECTIVE DATE.—The amendment made by 

20 this section shall apply to taxable years beginning after 

21 December 31, 2009. 

22 SEC. 4. MORTGAGE INSURANCE PREMIUMS TREATED AS IN23 TEREST MADE PERMANENT. 

24 (a) IN GENERAL.—Subparagraph (E) of section 

25 163(h)(3) of the Internal Revenue Code of 1986 is amend26 ed by striking clause (iv). 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to amounts paid or accrued after 

3 December 31, 2009. 

4 SEC. 5. EXPANSION AND MODIFICATION OF THE HOME5 BUYER CREDIT. 

6 (a) EXTENSION.— 

7 (1) IN GENERAL.—Section 36(h) of the Internal 

8 Revenue Code of 1986 is amended by striking ‘‘De9 cember 1, 2009’’ and inserting ‘‘December 31, 

10 2009’’. 

11 (2) CONFORMING AMENDMENT.—Section 36(g) 

12 of such Code is amended by striking ‘‘December 1, 

13 2009’’ and inserting ‘‘December 31, 2009’’. 

14 (b) EXPANSION TO ALL PURCHASERS OF PRINCIPAL

15 RESIDENCE.— 

16 (1) IN GENERAL.—Subsection (a) of section 36 

17 of such Code is amended by striking ‘‘who is a first18 time homebuyer of a principal residence’’ and insert19 ing ‘‘who purchases a principal residence’’. 

20 (2) CONFORMING AMENDMENTS.— 

21 (A) Subsection (c) of section 36 of such 

22 Code is amended by striking paragraph (1) and 

23 by redesignating paragraphs (2), (3), (4), and 

24 (5) as paragraphs (1), (2), (3), and (4), respec25 tively. 


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1 (B) Section 36 of such Code is amended by 

2 striking ‘‘FIRST-TIME HOMEBUYER CREDIT’’ 

3 in the heading and inserting ‘‘HOME PUR4 CHASE CREDIT’’. 

5 (C) The table of sections for subpart C of 

6 part IV of subchapter A of chapter 1 of such 

7 Code is amended by striking the item relating 

8 to section 36 and inserting the following new 

9 item: 

‘‘Sec. 36. Home purchase credit.’’. 

10 (D) Subparagraph (W) of section 26(b)(2) 

11 of such Code is amended by striking ‘‘home12 buyer credit’’ and inserting ‘‘home purchase 

13 credit’’. 

14 (c) MODIFICATION OF RECAPTURE.— 

15 (1) REPEAL OF GENERAL RECAPTURE RULE.— 

16 Subsection (f) of section 36 of such Code is amended 

17 by striking paragraph (1) and by redesignating 

18 paragraphs (2) through (7) as paragraphs (1) 

19 through (6), respectively. 

20 (2) 3-YEAR RECAPTURE PERIOD.—Paragraph 

21 (6) of section 36(f) of such Code, as so redesignated, 

22 is amended to read as follows: 

23 ‘‘(6) RECAPTURE PERIOD.—For purposes of 

24 this subsection, the term ‘recapture period’ means 


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1 the 36-month period beginning on the date of the 

2 purchase of such residence by the taxpayer.’’. 

3 (3) CONFORMING AMENDMENTS.— 

4 (A) Paragraph (1) of section 36(f) of such 

5 Code, as so redesignated, is amended to read as 

6 follows: 

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

8 the principal residence with respect to which a credit 

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

10 ceases to be the principal residence of the taxpayer 

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

12 end of the recapture period, the tax imposed by this 

13 chapter for the taxable year of such disposition or 

14 cessation shall be increased by the amount of the 

15 credit so allowed.’’. 

16 (B) Section 36(f)(2) of such Code, as so 

17 redesignated, is amended— 

18 (i) by striking ‘‘paragraph (2)’’ and 

19 inserting ‘‘paragraph (1)’’, and 

20 (ii) by striking the second sentence. 

21 (C) Section 36(f)(3) of such Code, as so 

22 redesignated, is amended— 

23 (i) by striking ‘‘Paragraphs (1) and’’ 

24 in subparagraph (A) and inserting ‘‘Para25 graph (1)’’, 


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1 (ii) in subparagraph (B)— 

2 (I) by striking ‘‘Paragraph (2)’’ 

3 both places it appears and inserting 

4 ‘‘Paragraph (1)’’, and 

5 (II) by striking ‘‘paragraph (2)’’ 

6 and inserting ‘‘paragraph (1)’’, 

7 (iii) in subparagraph (C)— 

8 (I) by striking ‘‘paragraph (2)’’ 

9 in clause (i) and inserting ‘‘paragraph 

10 (1)’’, and 

11 (II) by striking ‘‘paragraphs (1) 

12 and (2)’’ and inserting ‘‘paragraph 

13 (1)’’, and 

14 (iv) by striking subparagraph (D). 

15 (4) CONFORMING AMENDMENT.—Subsection (g) 

16 of section 36 of such Code is amended by striking 

17 ‘‘subsection (c)’’ and inserting ‘‘subsections (c) and 

18 (f)(4)(D)’’. 

19 (d) EFFECTIVE DATES.— 

20 (1) EXTENSION.—The amendment made by 

21 subsection (a) shall take effect on the date of the en22 actment of this Act. 

23 (2) 1ST TIME HOMEBUYER.—The amendment 

24 made by subsection (b) shall apply to purchases on 

25 or after the date of the enactment of this Act. 


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1 (3) MODIFICATION OF RECAPTURE.—The 

2 amendments made by subsection (c) shall take effect 

3 as if included in the amendments made by section 

4 3011(c) of the Housing and Economic Recovery Act 

5 of 2008. 

Æ 


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