I 

111TH CONGRESS 

1ST SESSION H. R. 3760 

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

tax credit for certain home purchases. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 8, 2009 

Mrs. BIGGERT (for herself, Mr. MCHENRY, Mr. PAUL, Mr. LANCE, Mr. 

THOMPSON of Pennsylvania, Mr. JONES, Mrs. BONO MACK, Mr. KING of 

New York, Mr. GARY G. MILLER of California, and Mr. DUNCAN) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committee on Appropriations, for a 

period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

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 ‘‘Home Buyer Tax 

5 Credit Act of 2009’’. 


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1 SEC. 2. CREDIT FOR CERTAIN HOME PURCHASES. 

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

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

4 of 1986 is amended by inserting after section 25D the fol5 lowing new section: 

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

7 ‘‘(a) ALLOWANCE OF CREDIT.— 

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

9 who is a purchaser of a principal residence during 

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

11 against the tax imposed by this chapter an amount 

12 equal to 10 percent of the purchase price of the resi13 dence. 

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

15 credit allowed under paragraph (1) shall not exceed 

16 $15,000. 

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

18 election of the taxpayer, the amount of the credit al19 lowed under paragraph (1) (after application of 

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

21 taxable years beginning with the taxable year in 

22 which the purchase of the principal residence is 

23 made. 

24 ‘‘(b) LIMITATIONS.— 


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

2 under subsection (a) shall be allowed only with re3 spect to purchases made— 

4 ‘‘(A) after the date of the enactment of the 

5 Home Buyer Tax Credit Act of 2009, and 

6 ‘‘(B) on or before the date that is 1 year 

7 after such date of enactment. 

8 ‘‘(2) LIMITATION BASED ON AMOUNT OF

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

10 26(a)(2) does not apply, the credit allowed under 

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

12 the excess of— 

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

14 (as defined in section 26(b)) plus the tax im15 posed by section 55, over 

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

17 under this subpart (other than this section) for 

18 the taxable year. 

19 ‘‘(3) ONE-TIME ONLY.— 

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

21 under this section in the case of any individual 

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

23 respect to the purchase of any principal resi24 dence, no credit shall be allowed under this sec25 tion in any taxable year with respect to the purVerDate Nov 24 2008 00:27 Oct 09, 2009 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3760.IH H3760

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1 chase of any other principal residence by such 

2 individual or a spouse of such individual. 

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

4 purchase of a principal residence by 2 or more 

5 unmarried individuals or by 2 married individ6 uals filing separately, no credit shall be allowed 

7 under this section if a credit under this section 

8 has been allowed to any of such individuals in 

9 any taxable year with respect to the purchase of 

10 any other principal residence. 

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

12 section, the term ‘principal residence’ has the same mean13 ing as when used in section 121. 

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

15 be allowed under this section for any purchase for which 

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

17 ‘‘(e) SPECIAL RULES.— 

18 ‘‘(1) JOINT PURCHASE.— 

19 ‘‘(A) MARRIED INDIVIDUALS FILING SEPA20 RATELY.—In the case of 2 married individuals 

21 filing separately, subsection (a) shall be applied 

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

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

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

25 more individuals who are not married purchase 


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1 a principal residence, the amount of the credit 

2 allowed under subsection (a) shall be allocated 

3 among such individuals in such manner as the 

4 Secretary may prescribe, except that the total 

5 amount of the credits allowed to all such indi6 viduals shall not exceed $15,000. 

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

8 principal residence, rules similar to the rules of 

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

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

11 shall apply. 

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

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

14 shall apply. 

15 ‘‘(f) RECAPTURE OF CREDIT IN THE CASE OF CER16 TAIN DISPOSITIONS.— 

17 ‘‘(1) IN GENERAL.—In the event that a tax18 payer— 

19 ‘‘(A) disposes of the principal residence 

20 with respect to which a credit was allowed 

21 under subsection (a), or 

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

23 taxpayer’s principal residence, 

24 at any time within 24 months after the date on 

25 which the taxpayer purchased such residence, then 


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1 the tax imposed by this chapter for the taxable year 

2 during which such disposition occurred or in which 

3 the taxpayer failed to occupy the residence as a prin4 cipal residence shall be increased by the amount of 

5 such credit. 

6 ‘‘(2) EXCEPTIONS.— 

7 ‘‘(A) DEATH OF TAXPAYER.—Paragraph 

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

9 after the date of the taxpayer’s death. 

10 ‘‘(B) INVOLUNTARY CONVERSION.—Para11 graph (1) shall not apply in the case of a resi12 dence which is compulsorily or involuntarily 

13 converted (within the meaning of section 

14 1033(a)) if the taxpayer acquires a new prin15 cipal residence within the 2-year period begin16 ning on the date of the disposition or cessation 

17 referred to in such paragraph. Paragraph (1) 

18 shall apply to such new principal residence dur19 ing the remainder of the 24-month period de20 scribed in such paragraph as if such new prin21 cipal residence were the converted residence. 

22 ‘‘(C) TRANSFERS BETWEEN SPOUSES OR

23 INCIDENT TO DIVORCE.—In the case of a trans24 fer of a residence to which section 1041(a) ap25 plies— 


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

2 such transfer, and 

3 ‘‘(ii) in the case of taxable years end4 ing after such transfer, paragraph (1) shall 

5 apply to the transferee in the same manner 

6 as if such transferee were the transferor 

7 (and shall not apply to the transferor). 

8 ‘‘(D) RELOCATION OF MEMBERS OF THE

9 ARMED FORCES.—Paragraph (1) shall not 

10 apply in the case of a member of the Armed 

11 Forces of the United States on active duty who 

12 moves pursuant to a military order and incident 

13 to a permanent change of station. 

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

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

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

17 been allowed to each individual filing such return for 

18 purposes of this subsection. 

19 ‘‘(4) RETURN REQUIREMENT.—If the tax im20 posed by this chapter for the taxable year is in21 creased under this subsection, the taxpayer shall, 

22 notwithstanding section 6012, be required to file a 

23 return with respect to the taxes imposed under this 

24 subtitle. 


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1 ‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub2 title, if a credit is allowed under this section with respect 

3 to the purchase of any residence, the basis of such resi4 dence shall be reduced by the amount of the credit so al5 lowed. 

6 ‘‘(h) ELECTION TO TREAT PURCHASE IN PRIOR

7 YEAR.—In the case of a purchase of a principal residence 

8 after December 31, 2009, and on or before the date de9 scribed in subsection (b)(1)(B), a taxpayer may elect to 

10 treat such purchase as made on December 31, 2009, for 

11 purposes of this section.’’. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) Section 24(b)(3)(B) of the Internal Revenue 

14 Code of 1986 is amended by striking ‘‘and 25B’’ 

15 and inserting ‘‘, 25B, and 25E’’. 

16 (2) Section 25(e)(1)(C)(ii) of such Code is 

17 amended by inserting ‘‘25E,’’ after ‘‘25D,’’. 

18 (3) Section 25B(g)(2) of such Code is amended 

19 by striking ‘‘section 23’’ and inserting ‘‘sections 23 

20 and 25E’’. 

21 (4) Section 904(i) of such Code is amended by 

22 striking ‘‘and 25B’’ and inserting ‘‘25B, and 25E’’. 

23 (5) Section 1016(a) of such Code is amended 

24 by striking ‘‘and’’ at the end of paragraph (36), by 

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


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1 inserting ‘‘, and’’, and by adding at the end the fol2 lowing new paragraph: 

3 ‘‘(38) to the extent provided in section 

4 25E(g).’’. 

5 (c) CLERICAL AMENDMENT.—The table of sections 

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

7 of the Internal Revenue Code of 1986 is amended by in8 serting after the item relating to section 25D the following 

9 new item: 

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

10 (d) SUNSET OF CURRENT FIRST-TIME HOMEBUYER

11 CREDIT.— 

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

13 of the Internal Revenue Code of 1986 is amended by 

14 striking ‘‘before December 1, 2009’’ and inserting 

15 ‘‘on or before the date of the enactment of the Home 

16 Buyer Tax Credit Act of 2009’’. 

17 (2) ELECTION TO TREAT PURCHASE IN PRIOR

18 YEAR.—Subsection (g) of section 36 of the Internal 

19 Revenue Code of 1986 is amended by striking ‘‘be20 fore December 1, 2009’’ and inserting ‘‘on or before 

21 the date of the enactment of the Home Buyer Tax 

22 Credit Act of 2009’’. 

23 (e) EFFECTIVE DATE.—The amendments made by 

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

25 enactment of this Act. 


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1 SEC. 3. RESCISSION OF ARRA APPROPRIATIONS. 

2 (a) IN GENERAL.—Effective on the date of the enact3 ment of this Act, of the discretionary appropriations made 

4 available by division A of the American Recovery and Re5 investment Act of 2009 (Public Law 111–5), the applica6 ble percentage of unobligated balances are rescinded. 

7 (b) APPLICABLE PERCENTAGE.—For purposes of 

8 this section, the term ‘‘applicable percentage’’ means the 

9 percentage that the Secretary of the Treasury estimates 

10 will result in an increase in revenue to the Treasury equal 

11 to the decrease in revenue by reason of the amendments 

12 made by section 2 of this Act. 

Æ 


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