111TH CONGRESS 

1ST SESSION H. R. 3590 

AN ACT 

To amend the Internal Revenue Code of 1986 to modify 

the first-time homebuyers 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, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Service Members 

3 Home Ownership Tax Act of 2009’’. 

4 SEC. 2. WAIVER OF RECAPTURE OF FIRST-TIME HOME5 BUYER CREDIT FOR INDIVIDUALS ON QUALI6 FIED OFFICIAL EXTENDED DUTY. 

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

8 the Internal Revenue Code of 1986 is amended by adding 

9 at the end the following new subparagraph: 

10 ‘‘(E) SPECIAL RULE FOR MEMBERS OF

11 THE ARMED FORCES, ETC.— 

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

13 disposition of a principal residence by an 

14 individual (or a cessation referred to in 

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

16 in connection with Government orders re17 ceived by such individual, or such individ18 ual’s spouse, for qualified official extended 

19 duty service— 

20 ‘‘(I) paragraph (2) and sub21 section (d)(2) shall not apply to such 

22 disposition (or cessation), and 

23 ‘‘(II) if such residence was ac24 quired before January 1, 2009, para25 graph (1) shall not apply to the tax26 able year in which such disposition (or 
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1 cessation) occurs or any subsequent 

2 taxable year. 

3 ‘‘(ii) QUALIFIED OFFICIAL EXTENDED

4 DUTY SERVICE.—For purposes of this sec5 tion, the term ‘qualified official extended 

6 duty service’ means service on qualified of7 ficial extended duty as— 

8 ‘‘(I) a member of the uniformed 

9 services, 

10 ‘‘(II) a member of the Foreign 

11 Service of the United States, or 

12 ‘‘(III) as an employee of the in13 telligence community. 

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

15 in this subparagraph which is also used in 

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

17 the same meaning as when used in such 

18 paragraph.’’. 

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

20 this section shall apply to dispositions and cessations after 

21 December 31, 2008. 
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1 SEC. 3. EXTENSION OF FIRST-TIME HOMEBUYER CREDIT 

2 FOR INDIVIDUALS ON QUALIFIED OFFICIAL 

3 EXTENDED DUTY OUTSIDE THE UNITED 

4 STATES. 

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

6 Internal Revenue Code of 1986 is amended— 

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

8 following: 

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

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

11 ‘‘(2) SPECIAL RULES FOR INDIVIDUALS ON

12 QUALIFIED OFFICIAL EXTENDED DUTY OUTSIDE

13 THE UNITED STATES.—In the case of any individual 

14 who serves on qualified official extended duty service 

15 outside the United States for at least 90 days in cal16 endar year 2009 and, if married, such individual’s 

17 spouse— 

18 ‘‘(A) paragraph (1) shall be applied by 

19 substituting ‘December 1, 2010’ for ‘December 

20 1, 2009’, 

21 ‘‘(B) subsection (f)(4)(D) shall be applied 

22 by substituting ‘December 1, 2010’ for ‘Decem23 ber 1, 2009’, and 

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

25 of a purchase of a principal residence after De26 cember 31, 2009, and before July 1, 2010, the 
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1 taxpayer may elect to treat such purchase as 

2 made on December 31, 2009, for purposes of 

3 this section (other than subsections (c) and 

4 (f)(4)(D)).’’. 

5 (b) COORDINATION WITH FIRST-TIME HOMEBUYER

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

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

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

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

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

11 this section shall apply to residences purchased after No12 vember 30, 2009. 

13 SEC. 4. EXCLUSION FROM GROSS INCOME OF QUALIFIED 

14 MILITARY BASE REALIGNMENT AND CLO15 SURE FRINGE. 

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

17 the Internal Revenue Code of 1986 is amended— 

18 (1) in subparagraph (1) by striking ‘‘this sub19 section) to offset the adverse effects on housing val20 ues as a result of a military base realignment or clo21 sure’’ and inserting ‘‘the American Recovery and 

22 Reinvestment Tax Act of 2009)’’, and 

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

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

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

3 2009. 

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

5 PARTNERSHIP OR S CORPORATION RETURN. 

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

7 6699(b)(1) of the Internal Revenue Code of 1986 are each 

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

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

10 this section shall apply to returns for taxable years begin11 ning after December 31, 2009. 

12 SEC. 6. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

13 TAXES. 

14 The percentage under paragraph (1) of section 

15 202(b) of the Corporate Estimated Tax Shift Act of 2009 

16 in effect on the date of the enactment of this Act is in17 creased by 0.5 percentage points. 

Passed the House of Representatives October 8, 

2009. 

Attest: 

Clerk. 

111TH CONGRESS 

1ST SESSION H. R. 3590 

AN ACT 

To amend the Internal Revenue Code of 1986 to 

poses. tain other Federal employees, and for other purcase of members of the Armed Forces and cermodify the first-time homebuyers credit in the