I 

111TH CONGRESS 

1ST SESSION H. R. 1245 

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

tax credit for certain home purchases. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 2, 2009 

Mr. CALVERT 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Homebuyer Tax Credit 

5 Act of 2009’’. 

6 SEC. 2. CREDIT FOR CERTAIN HOME PURCHASES. 

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

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

9 of 1986 is amended by inserting after section 25D the fol10 lowing new section: 


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

2 ‘‘(a) ALLOWANCE OF CREDIT.— 

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

4 who is a purchaser of a principal residence during 

5 the taxable year, there shall be allowed as a credit 

6 against the tax imposed by this chapter an amount 

7 equal to 10 percent of the purchase price of the resi8 dence. 

9 ‘‘(2) DOLLAR LIMITATION.—The amount of the 

10 credit allowed under paragraph (1) shall not exceed 

11 $15,000. 

12 ‘‘(3) ALLOCATION OF CREDIT AMOUNT.—At the 

13 election of the taxpayer, the amount of the credit al14 lowed under paragraph (1) (after application of 

15 paragraph (2)) may be equally divided among the 2 

16 taxable years beginning with the taxable year in 

17 which the purchase of the principal residence is 

18 made. 

19 ‘‘(b) LIMITATIONS.— 

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

21 under subsection (a) shall be allowed only with re22 spect to purchases made during the 1-year period 

23 beginning with the date of the enactment of this sec24 tion. 

25 ‘‘(2) LIMITATION BASED ON AMOUNT OF

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


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1 26(a)(2) does not apply, the credit allowed under 

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

3 the excess of— 

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

5 (as defined in section 26(b)) plus the tax im6 posed by section 55, over 

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

8 under this subpart (other than this section) for 

9 the taxable year. 

10 ‘‘(3) ONE-TIME ONLY.— 

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

12 under this section in the case of any individual 

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

14 respect to the purchase of any principal resi15 dence, no credit shall be allowed under this sec16 tion in any taxable year with respect to the pur17 chase of any other principal residence by such 

18 individual or a spouse of such individual. 

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

20 purchase of a principal residence by 2 or more 

21 unmarried individuals or by 2 married individ22 uals filing separately, no credit shall be allowed 

23 under this section if a credit under this section 

24 has been allowed to any of such individuals in 


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1 any taxable year with respect to the purchase of 

2 any other principal residence. 

3 ‘‘(c) PRINCIPAL RESIDENCE.—For purposes of this 

4 section, the term ‘principal residence’ has the same mean5 ing as when used in section 121. 

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

7 be allowed under this section for any purchase for which 

8 a credit is allowed under section 36 or section 1400C. 

9 ‘‘(e) SPECIAL RULES.— 

10 ‘‘(1) JOINT PURCHASE.— 

11 ‘‘(A) MARRIED INDIVIDUALS FILING SEPA12 RATELY.—In the case of 2 married individuals 

13 filing separately, subsection (a) shall be applied 

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

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

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

17 more individuals who are not married purchase 

18 a principal residence, the amount of the credit 

19 allowed under subsection (a) shall be allocated 

20 among such individuals in such manner as the 

21 Secretary may prescribe, except that the total 

22 amount of the credits allowed to all such indi23 viduals shall not exceed $15,000. 

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

25 principal residence, rules similar to the rules of 


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1 paragraphs (2) and (3) of section 1400C(e) (as in 

2 effect on the date of the enactment of this section) 

3 shall apply. 

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

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

6 shall apply. 

7 ‘‘(f) RECAPTURE OF CREDIT IN THE CASE OF CER8 TAIN DISPOSITIONS.— 

9 ‘‘(1) IN GENERAL.—In the event that a tax10 payer— 

11 ‘‘(A) disposes of the principal residence 

12 with respect to which a credit was allowed 

13 under subsection (a), or 

14 ‘‘(B) fails to occupy such residence as the 

15 taxpayer’s principal residence, 

16 at any time within 24 months after the date on 

17 which the taxpayer purchased such residence, then 

18 the tax imposed by this chapter for the taxable year 

19 during which such disposition occurred or in which 

20 the taxpayer failed to occupy the residence as a prin21 cipal residence shall be increased by the amount of 

22 such credit. 

23 ‘‘(2) EXCEPTIONS.— 


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1 ‘‘(A) DEATH OF TAXPAYER.—Paragraph 

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

3 after the date of the taxpayer’s death. 

4 ‘‘(B) INVOLUNTARY CONVERSION.—Para5 graph (1) shall not apply in the case of a resi6 dence which is compulsorily or involuntarily 

7 converted (within the meaning of section 

8 1033(a)) if the taxpayer acquires a new prin9 cipal residence within the 2-year period begin10 ning on the date of the disposition or cessation 

11 referred to in such paragraph. Paragraph (1) 

12 shall apply to such new principal residence dur13 ing the remainder of the 24-month period de14 scribed in such paragraph as if such new prin15 cipal residence were the converted residence. 

16 ‘‘(C) TRANSFERS BETWEEN SPOUSES OR

17 INCIDENT TO DIVORCE.—In the case of a trans18 fer of a residence to which section 1041(a) ap19 plies— 

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

21 such transfer, and 

22 ‘‘(ii) in the case of taxable years end23 ing after such transfer, paragraph (1) shall 

24 apply to the transferee in the same manner 


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1 as if such transferee were the transferor 

2 (and shall not apply to the transferor). 

3 ‘‘(D) RELOCATION OF MEMBERS OF THE

4 ARMED FORCES.—Paragraph (1) shall not 

5 apply in the case of a member of the Armed 

6 Forces of the United States on active duty who 

7 moves pursuant to a military order and incident 

8 to a permanent change of station. 

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

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

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

12 been allowed to each individual filing such return for 

13 purposes of this subsection. 

14 ‘‘(4) RETURN REQUIREMENT.—If the tax im15 posed by this chapter for the taxable year is in16 creased under this subsection, the taxpayer shall, 

17 notwithstanding section 6012, be required to file a 

18 return with respect to the taxes imposed under this 

19 subtitle. 

20 ‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub21 title, if a credit is allowed under this section with respect 

22 to the purchase of any residence, the basis of such resi23 dence shall be reduced by the amount of the credit so al24 lowed.’’. 


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

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

3 of such Code is amended by inserting after the item relat4 ing to section 25D the following new item: 

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

5 (c) SUNSET OF CURRENT FIRST-TIME HOMEBUYER

6 CREDIT.— 

7 (1) IN GENERAL.—Subsection (h) of section 36 

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

9 2009’’ and inserting ‘‘the date of the enactment of 

10 the Homebuyer Tax Credit Act of 2009’’. 

11 (2) ELECTION TO TREAT PURCHASE IN PRIOR

12 YEAR.—Subsection (g) of section 36 of such Code is 

13 amended by striking ‘‘December 1, 2009’’ and in14 serting ‘‘the date of the enactment of the Home15 buyer Tax Credit Act of 2009’’. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to purchases after the date of the 

18 enactment of this Act. 

Æ 


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