II 

111TH CONGRESS 

1ST SESSION S. 1728 

To amend the Internal Revenue Code of 1986 to modify the first-time homebuyer credit in the case of members of the Armed Forces and certain 

other Federal employees, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 30, 2009 

Mrs. MCCASKILL (for herself and Mr. MERKLEY) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the first-time homebuyer credit in the case of members 

of the Armed Forces and certain other Federal employees, 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 ‘‘Service Members 

5 Home Ownership Tax Act of 2009’’. 


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1 SEC. 2. WAIVER OF RECAPTURE OF FIRST-TIME HOME2 BUYER CREDIT FOR INDIVIDUALS ON QUALI3 FIED OFFICIAL EXTENDED DUTY. 

4 (a) IN GENERAL.—Paragraph (4) of section 36(f) of 

5 the Internal Revenue Code of 1986 is amended by adding 

6 at the end the following new subparagraph: 

7 ‘‘(E) SPECIAL RULE FOR MEMBERS OF

8 THE ARMED FORCES, ETC.— 

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

10 disposition of a principal residence by an 

11 individual (or a cessation referred to in 

12 paragraph (2)) after December 31, 2008, 

13 in connection with Government orders re14 ceived by such individual, or such individ15 ual’s spouse, for qualified official extended 

16 duty service— 

17 ‘‘(I) paragraph (2) and sub18 section (d)(2) shall not apply to such 

19 disposition (or cessation), and 

20 ‘‘(II) if such residence was ac21 quired before January 1, 2009, para22 graph (1) shall not apply to the tax23 able year in which such disposition (or 

24 cessation) occurs or any subsequent 

25 taxable year. 


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1 ‘‘(ii) QUALIFIED OFFICIAL EXTENDED

2 DUTY SERVICE.—For purposes of this sec3 tion, the term ‘qualified official extended 

4 duty service’ means service on qualified of5 ficial extended duty as— 

6 ‘‘(I) a member of the uniformed 

7 services, 

8 ‘‘(II) a member of the Foreign 

9 Service of the United States, or 

10 ‘‘(III) as an employee of the in11 telligence community. 

12 ‘‘(iii) DEFINITIONS.—Any term used 

13 in this subparagraph which is also used in 

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

15 the same meaning as when used in such 

16 paragraph.’’. 

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

18 this section shall apply to dispositions and cessations after 

19 December 31, 2008. 

20 SEC. 3. EXTENSION OF FIRST-TIME HOMEBUYER CREDIT 

21 FOR INDIVIDUALS ON QUALIFIED OFFICIAL 

22 EXTENDED DUTY OUTSIDE THE UNITED 

23 STATES. 

24 (a) IN GENERAL.—Subsection (h) of section 36 of the 

25 Internal Revenue Code of 1986 is amended— 


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1 (1) by striking ‘‘This section’’ and inserting 

2 ‘‘(1) IN GENERAL.—This section’’, and 

3 (2) by adding at the end the following: 

4 ‘‘(2) SPECIAL RULES FOR INDIVIDUALS ON QUALI5 FIED OFFICIAL EXTENDED DUTY OUTSIDE THE UNITED

6 STATES.—In the case of any individual who serves on 

7 qualified official extended duty service outside the United 

8 States for at least 90 days in calendar year 2009 and, 

9 if married, such individual’s spouse— 

10 ‘‘(A) paragraph (1) shall be applied by sub11 stituting ‘December 1, 2010’ for ‘December 1, 

12 2009’, 

13 ‘‘(B) subsection (f)(4)(D) shall be applied by 

14 substituting ‘December 1, 2010’ for ‘December 1, 

15 2009’, and 

16 ‘‘(C) in lieu of subsection (g), in the case of a 

17 purchase of a principal residence after December 31, 

18 2009, and before July 1, 2010, the taxpayer may 

19 elect to treat such purchase as made on December 

20 31, 2009, for purposes of this section (other than 

21 subsections (c) and (f)(4)(D)).’’. 

22 (b) COORDINATION WITH FIRST-TIME HOMEBUYER

23 CREDIT FOR DISTRICT OF COLUMBIA.—Paragraph (4) of 

24 section 1400C(e) of such Code is amended by inserting 


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1 ‘‘(December 1, 2010, in the case of a purchase subject 

2 to section 36(h)(2))’’ after ‘‘December 1, 2009’’. 

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

4 this section shall apply to residences purchased after No5 vember 30, 2009. 

6 SEC. 4. EXCLUSION FROM GROSS INCOME OF QUALIFIED 

7 MILITARY BASE REALIGNMENT AND CLO8 SURE FRINGE. 

9 (a) IN GENERAL.—Subsection (n) of section 132 of 

10 the Internal Revenue Code of 1986 is amended— 

11 (1) in subparagraph (1) by striking ‘‘this sub12 section) to offset the adverse effects on housing val13 ues as a result of a military base realignment or clo14 sure’’ and inserting ‘‘the American Recovery and 

15 Reinvestment Tax Act of 2009)’’, and 

16 (2) in subparagraph (2) by striking ‘‘clause (1) 

17 of’’. 

18 (b) EFFECTIVE DATE.—The amendments made by 

19 this act shall apply to payments made after February 17, 

20 2009. 

21 SEC. 5. INCREASE IN PENALTY FOR FAILURE TO FILE A 

22 PARTNERSHIP OR S CORPORATION RETURN. 

23 (a) IN GENERAL.—Sections 6698(b)(1) and 

24 6699(b)(1) of the Internal Revenue Code of 1986 are each 

25 amended by striking ‘‘$89’’ and inserting ‘‘$110’’. 


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

2 this section shall apply to returns for taxable years begin3 ning after December 31, 2009. 

4 SEC. 6. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

5 TAXES. 

6 The percentage under paragraph (1) of section 

7 202(b) of the Corporate Estimated Tax Shift Act of 2009 

8 in effect on the date of the enactment of this Act is in9 creased by 0.5 percentage points. 

Æ 


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