I 

111TH CONGRESS 

1ST SESSION H. R. 214 

To amend the Internal Revenue Code of 1986 to provide a Federal income 

tax credit for certain home purchases. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 6, 2009 

Mr. WILSON of South Carolina 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 provide 

a Federal income tax credit for certain home purchases. 

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

3 SECTION 1. CREDIT FOR CERTAIN HOME PURCHASES. 

4 (a) ALLOWANCE OF CREDIT.—Subpart A of part IV 

5 of subchapter A of chapter 1 of the Internal Revenue Code 

6 of 1986 (relating to refundable credits) is amended by in7 serting after section 25D the following new section: 

8 ‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES. 

9 ‘‘(a) ALLOWANCE OF CREDIT.— 


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1 ‘‘(1) IN GENERAL.—In the case of an individual 

2 who is a purchaser of a qualified principal residence 

3 during the taxable year, there shall be allowed as a 

4 credit against the tax imposed by this chapter an 

5 amount equal to so much of the purchase price of 

6 the residence as does not exceed $15,000. 

7 ‘‘(2) ALLOCATION OF CREDIT AMOUNT.—The 

8 amount of the credit allowed under paragraph (1) 

9 shall be equally divided among the 3 taxable years 

10 beginning with the taxable year in which the pur11 chase of the qualified principal residence is made. 

12 ‘‘(b) LIMITATIONS.— 

13 ‘‘(1) DATE OF PURCHASE.—The credit allowed 

14 under subsection (a) shall be allowed only with re15 spect to purchases made— 

16 ‘‘(A) after February 29, 2008, and 

17 ‘‘(B) before March 1, 2009. 

18 ‘‘(2) LIMITATION BASED ON AMOUNT OF

19 TAX.—In the case of a taxable year to which section 

20 26(a)(2) does not apply, the credit allowed under 

21 subsection (a) for any taxable year shall not exceed 

22 the excess of— 

23 ‘‘(A) the sum of the regular tax liability 

24 (as defined in section 26(b)) plus the tax im25 posed by section 55, over 


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1 ‘‘(B) the sum of the credits allowable 

2 under this subpart (other than this section) for 

3 the taxable year. 

4 ‘‘(3) ONE-TIME ONLY.— 

5 ‘‘(A) IN GENERAL.—If a credit is allowed 

6 under this section in the case of any individual 

7 (and such individual’s spouse, if married) with 

8 respect to the purchase of any qualified prin9 cipal residence, no credit shall be allowed under 

10 this section in any taxable year with respect to 

11 the purchase of any other qualified principal 

12 residence by such individual or a spouse of such 

13 individual. 

14 ‘‘(B) JOINT PURCHASE.—In the case of a 

15 purchase of a qualified principal residence by 2 

16 or more unmarried individuals or by 2 married 

17 individuals filing separately, no credit shall be 

18 allowed under this section if a credit under this 

19 section has been allowed to any of such individ20 uals in any taxable year with respect to the 

21 purchase of any other qualified principal resi22 dence. 

23 ‘‘(c) QUALIFIED PRINCIPAL RESIDENCE.— 

24 ‘‘(1) IN GENERAL.—For purposes of this sec25 tion, the term ‘qualified principal residence’ means 


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1 an eligible single-family residence that is purchased 

2 to be the principal residence of the purchaser. 

3 ‘‘(2) ELIGIBLE SINGLE-FAMILY RESIDENCE.— 

4 ‘‘(A) IN GENERAL.—For purposes of this 

5 subsection, the term ‘eligible single-family resi6 dence’ means a single-family structure that is— 

7 ‘‘(i) a new previously unoccupied resi8 dence for which a building permit is issued 

9 and construction begins on or before Sep10 tember 1, 2007, 

11 ‘‘(ii) an owner-occupied residence with 

12 respect to which the owner’s acquisition in13 debtedness (as defined in section 

14 163(h)(3)(B), determined without regard 

15 to clause (ii) thereof) is in default on or 

16 before March 1, 2008, or 

17 ‘‘(iii) a residence with respect to 

18 which a foreclosure event has taken place 

19 and which is owned by the mortgagor or 

20 the mortgagor’s agent. 

21 ‘‘(B) CERTIFICATION.—In the case of an 

22 eligible single-family residence described in sub23 paragraph (A)(i), no credit shall be allowed 

24 under this section unless the purchaser submits 

25 a certification by the seller of such residence 


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1 that such residence meets the requirements of 

2 such subparagraph. 

3 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit shall 

4 be allowed under this section for any purchase for which 

5 a credit is allowed under section 1400C. 

6 ‘‘(e) SPECIAL RULES.— 

7 ‘‘(1) JOINT PURCHASE.— 

8 ‘‘(A) MARRIED INDIVIDUALS FILING SEPA9 RATELY.—In the case of 2 married individuals 

10 filing separately, subsection (a) shall be applied 

11 to each such individual by substituting ‘$7,500’ 

12 for ‘$15,000’ in subsection (a)(1). 

13 ‘‘(B) UNMARRIED INDIVIDUALS.—If 2 or 

14 more individuals who are not married purchase 

15 a qualified principal residence, the amount of 

16 the credit allowed under subsection (a) shall be 

17 allocated among such individuals in such man18 ner as the Secretary may prescribe, except that 

19 the total amount of the credits allowed to all 

20 such individuals shall not exceed $15,000. 

21 ‘‘(2) PURCHASE.—In defining the purchase of a 

22 qualified principal residence, rules similar to the 

23 rules of paragraphs (2) and (3) of section 1400C(e) 

24 (as in effect on the date of the enactment of this 

25 section) shall apply. 


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1 ‘‘(3) REPORTING REQUIREMENT.—Rules similar 

2 to the rules of section 1400C(f) (as so in effect) 

3 shall apply. 

4 ‘‘(f) BASIS ADJUSTMENT.—For purposes of this sub5 title, if a credit is allowed under this section with respect 

6 to the purchase of any residence, the basis of such resi7 dence shall be reduced by the amount of the credit so al8 lowed.’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for subpart A of part IV of subchapter A of chapter 1 

11 of the Internal Revenue Code of 1986 is amended by in12 serting after the item relating to section 25D the following 

13 new item: 

‘‘Sec. 25E. Credit for certain home purchases.’’. 

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

15 this section shall apply to taxable years ending after Feb16 ruary 29, 2008. 

Æ 


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