I 

111TH CONGRESS 

1ST SESSION H. R. 3825 

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 15, 2009 

Mr. BRIGHT 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 ‘‘Helping Homebuyers 

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 purchases a principal residence during the tax5 able year, there shall be allowed as a credit against 

6 the tax imposed by this chapter an amount equal to 

7 15 percent of the purchase price of the residence. 

8 ‘‘(2) ALLOCATION OF CREDIT AMOUNT.—At the 

9 election of the taxpayer, the amount of the credit al10 lowed under paragraph (1) (after application of sub11 section (b)(1)) may be equally divided among the 2 

12 taxable years beginning with the taxable year in 

13 which the purchase of the principal residence is 

14 made. 

15 ‘‘(b) LIMITATIONS.— 

16 ‘‘(1) DOLLAR LIMITATION.—The amount of the 

17 credit allowed under paragraph (1) shall not exceed 

18 $18,000. 

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

21 separately, paragraph (1) shall be applied to each 

22 such individual by substituting ‘$7,500’ for ‘$9,000’. 

23 ‘‘(3) OTHER INDIVIDUALS.—If 2 or more indi24 viduals who are not married purchase a principal 

25 residence, the amount of the credit allowed under 

26 subsection (a) shall be allocated among such individVerDate Nov 24 2008 00:44 Oct 17, 2009 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3825.IH H3825

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1 uals in such manner as the Secretary may prescribe, 

2 except that the total amount of the credits allowed 

3 to all such individuals shall not exceed $18,000. 

4 ‘‘(4) 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 principal resi9 dence, no credit shall be allowed under this sec10 tion in any taxable year with respect to the pur11 chase of any other principal residence by such 

12 individual or a spouse of such individual. 

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

14 purchase of a principal residence by or more 

15 unmarried individuals or by 2 married individ16 uals filing separately, no credit shall be allowed 

17 under this section if a credit under this section 

18 has been allowed to any of such individuals in 

19 any taxable year with respect to the purchase of 

20 any other principal residence. 

21 ‘‘(5) LIMITATION BASED ON MODIFIED AD22 JUSTED GROSS INCOME.— 

23 ‘‘(A) IN GENERAL.—The amount allowable 

24 as a credit under subsection (a) (determined 

25 without regard to this paragraph) for the taxVerDate Nov 24 2008 00:44 Oct 17, 2009 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3825.IH H3825

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1 able year shall be reduced (but not below zero) 

2 by the amount which bears the same ratio to 

3 the amount which is so allowable as— 

4 ‘‘(i) the excess (if any) of— 

5 ‘‘(I) the taxpayer’s modified ad6 justed gross income for such taxable 

7 year, over 

8 ‘‘(II) $150,000 ($300,000 in the 

9 case of a joint return), bears to 

10 ‘‘(ii) $75,000. 

11 ‘‘(B) MODIFIED ADJUSTED GROSS IN12 COME.—For purposes of subparagraph (A), the 

13 term ‘modified adjusted gross income’ means 

14 the adjusted gross income of the taxpayer for 

15 the taxable year increased by any amount ex16 cluded from gross income under section 911, 

17 931, or 933. 

18 ‘‘(c) RECAPTURE OF CREDIT IN THE CASE OF CER19 TAIN DISPOSITIONS.— 

20 ‘‘(1) IN GENERAL.—In the event that a tax21 payer— 

22 ‘‘(A) disposes of the principal residence 

23 with respect to which a credit was allowed 

24 under subsection (a), or 


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

2 taxpayer’s principal residence, 

3 at any time within 60 months after the date on 

4 which the taxpayer purchased such residence, then 

5 the tax imposed by this chapter for the taxable year 

6 during which such disposition occurred or in which 

7 the taxpayer failed to occupy the residence as a prin8 cipal residence shall be increased by the amount of 

9 such credit. 

10 ‘‘(2) EXCEPTIONS.— 

11 ‘‘(A) DEATH OF TAXPAYER.—Paragraph 

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

13 after the date of the taxpayer’s death. 

14 ‘‘(B) INVOLUNTARY CONVERSION.—Para15 graph (1) shall not apply in the case of a resi16 dence which is compulsorily or involuntarily 

17 converted (within the meaning of section 

18 1033(a)) if the taxpayer acquires a new prin19 cipal residence within the 2-year period begin20 ning on the date of the disposition or cessation 

21 referred to in such paragraph. Paragraph (1) 

22 shall apply to such new principal residence dur23 ing the remainder of the 60-month period de24 scribed in such paragraph as if such new prin25 cipal residence were the converted residence. 


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1 ‘‘(C) TRANSFERS BETWEEN SPOUSES OR

2 INCIDENT TO DIVORCE.—In the case of a trans3 fer of a residence to which section 1041(a) ap4 plies— 

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

6 such transfer, and 

7 ‘‘(ii) in the case of taxable years end8 ing after such transfer, paragraph (1) shall 

9 apply to the transferee in the same manner 

10 as if such transferee were the transferor 

11 (and shall not apply to the transferor). 

12 ‘‘(D) RELOCATION OF MEMBERS OF THE

13 ARMED FORCES.—Paragraph (1) shall not 

14 apply in the case of a member of the Armed 

15 Forces of the United States on active duty who 

16 moves pursuant to a military order and incident 

17 to a permanent change of station. 

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

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

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

21 been allowed to each individual filing such return for 

22 purposes of this subsection. 

23 ‘‘(4) RETURN REQUIREMENT.—If the tax im24 posed by this chapter for the taxable year is in25 creased under this subsection, the taxpayer shall, 


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1 notwithstanding section 6012, be required to file a 

2 return with respect to the taxes imposed under this 

3 subtitle. 

4 ‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.—In 

5 the case of a taxable year to which section 26(a)(2) does 

6 not apply, the credit allowed under subsection (a) for any 

7 taxable year shall not exceed the excess of— 

8 ‘‘(1) the sum of the regular tax liability (as de9 fined in section 26(b)) plus the tax imposed by sec10 tion 55, over 

11 ‘‘(2) the sum of the credits allowable under this 

12 subpart (other than this section) for the taxable 

13 year. 

14 ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For pur15 poses of this section— 

16 ‘‘(1) PRINCIPAL RESIDENCE.—The term ‘prin17 cipal residence’ has the same meaning as when used 

18 in section 121. 

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

20 principal residence, rules similar to the rules of 

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

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

23 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 ‘‘(4) DENIAL OF DOUBLE BENEFIT.— 

5 ‘‘(A) COORDINATION WITH OTHER CRED6 ITS.—No credit shall be allowed under this sec7 tion for any purchase for which a credit is al8 lowed under section 36 or section 1400C. 

9 ‘‘(B) BASIS ADJUSTMENT.—For purposes 

10 of this subtitle, if a credit is allowed under this 

11 section with respect to the purchase of any resi12 dence, the basis of such residence shall be re13 duced by the amount of the credit so allowed. 

14 ‘‘(f) APPLICATION OF SECTION.—This section shall 

15 not apply to residences purchased during the 1-year period 

16 beginning on the date of the enactment of this sub17 section.’’. 

18 (b) CONFORMING AMENDMENT.—Subsection (a) of 

19 section 1016 of such Code is amended by striking ‘‘and’’ 

20 at the end of paragraph (36), by striking the period at 

21 the end of paragraph (37) and inserting ‘‘, and’’, and by 

22 adding at the end the following new paragraph: 

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

24 25E(e)(4).’’. 


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1 (c) 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 (d) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to residences purchased after the 

7 date of the enactment of this Act. 

Æ 


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