I 

116TH CONGRESS 

1ST SESSION H. R. 3790 

To amend the Internal Revenue Code of 1986 to provide for a credit against 

tax for homebuyers purchasing residences in residential recovery zones, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 17, 2019 

Mr. DUNN introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committee on Financial Services, 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 

for a credit against tax for homebuyers purchasing residences in residential recovery zones, 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 ‘‘Residential Recovery 

5 Zone Act’’. 


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1 SEC. 2. RESIDENTIAL RECOVERY ZONE HOMEBUYER CRED2 IT. 

3 (a) IN GENERAL.—Subpart A of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by inserting after section 25D the fol6 lowing new section: 

7 ‘‘SEC. 25E. RESIDENTIAL RECOVERY ZONE HOMEBUYER 

8 CREDIT. 

9 ‘‘(a) ALLOWANCE OF CREDIT.— 

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

11 who purchases a principal residence in a residential 

12 recovery zone during a taxable year, there shall be 

13 allowed as a credit against the tax imposed by this 

14 subtitle for such taxable year an amount equal to 10 

15 percent of the purchase price of the residence. 

16 ‘‘(2) TIMING.—At the election of an individual, 

17 the credit allowed under subsection (a) for a taxable 

18 year may be allowed instead during any one on the 

19 subsequent 3 taxable years. 

20 ‘‘(b) LIMITATIONS.— 

21 ‘‘(1) DOLLAR LIMITATION.— 

22 ‘‘(A) IN GENERAL.—Except as otherwise 

23 provided in this paragraph, the credit allowed 

24 under subsection (a) shall not exceed $8,000. 

25 ‘‘(B) MARRIED INDIVIDUALS FILING SEPA26 RATELY.—In the case of a married individual 


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1 filing a separate return, subparagraph (A) shall 

2 be applied by substituting ‘$4,000’ for ‘$8,000’. 

3 ‘‘(C) OTHER INDIVIDUALS.—If two or 

4 more individuals who are not married purchase 

5 a principal residence, the amount of the credit 

6 allowed under subsection (a) shall be allocated 

7 among such individuals in such manner as the 

8 Secretary may prescribe, except that the total 

9 amount of the credits allowed to all such indi10 viduals shall not exceed $8,000. 

11 ‘‘(2) LIMITATION BASED ON PURCHASE

12 PRICE.—No credit shall be allowed under subsection 

13 (a) for the purchase of any residence if the purchase 

14 price of such residence exceeds $1,500,000. 

15 ‘‘(c) DEFINITIONS.—For purposes of this section— 

16 ‘‘(1) RESIDENTIAL RECOVERY ZONE DE17 FINED.— 

18 ‘‘(A) IN GENERAL.—The term ‘residential 

19 recovery zone’ means, with respect to a Feder20 ally declared disaster, a population census tract 

21 that is— 

22 ‘‘(i) in the disaster area related to 

23 such disaster, and 

24 ‘‘(ii) designated under subparagraph 

25 (B). 


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1 ‘‘(B) DESIGNATION.—A population census 

2 tract is designated under this paragraph with 

3 respect to a Federally declared disaster if, dur4 ing the period beginning on the earliest incident 

5 date specified in the declaration to which such 

6 area relates and ending on the date that is one 

7 year after such date— 

8 ‘‘(i) the chief executive officer of the 

9 State in which the tract is located— 

10 ‘‘(I) nominates the tract for des11 ignation as a residential recovery 

12 zone, and 

13 ‘‘(II) notifies the Secretary in 

14 writing of such nomination, and 

15 ‘‘(ii) the Secretary certifies such nomi16 nation and designates such tract as a resi17 dential recovery zone. 

18 ‘‘(C) DURATION OF DESIGNATION.—A des19 ignation under subparagraph (B) shall termi20 nate on the date that is 3 years after the date 

21 of the certification described in subparagraph 

22 (B)(ii). 

23 ‘‘(D) STATE; FEDERALLY DECLARED DIS24 ASTER; DISASTER AREA.—The term ‘State’ has 

25 the meaning given such terms in section 


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1 1400Z–1, and ‘Federally declared disaster’ and 

2 ‘disaster area’ have the meaning given such 

3 terms in section 165(i). 

4 ‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin5 cipal residence’ has the same meaning as when used 

6 in section 121. 

7 ‘‘(3) PURCHASE; PURCHASE PRICE.—The term 

8 ‘purchase’ and ‘purchase price’ have the meanings 

9 given such terms in section 36(c). 

10 ‘‘(d) EXCEPTIONS.—No credit under subsection (a) 

11 shall be allowed to any taxpayer for any taxable year with 

12 respect to the purchase of a residence if— 

13 ‘‘(1) a deduction under section 151 with respect 

14 to such taxpayer is allowable to another taxpayer for 

15 such taxable year, or 

16 ‘‘(2) the taxpayer fails to attach to the return 

17 of tax for such taxable year a properly executed copy 

18 of the settlement statement used to complete such 

19 purchase. 

20 ‘‘(e) RECAPTURE OF CREDIT.— 

21 ‘‘(1) IN GENERAL.—If a residence with respect 

22 to which a credit was allowed under subsection (a) 

23 ceases to be the principal residence of the taxpayer 

24 before the end of the 3-year period beginning on the 

25 date of the purchase of such residence the tax imVerDate Sep 11 2014 19:28 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3790.IH H3790

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1 posed by this chapter for the taxable year of ces2 sation shall be increased by the amount of the credit 

3 so allowed and claimed. 

4 ‘‘(2) EXCEPTIONS.— 

5 ‘‘(A) DEATH OF TAXPAYER.—Paragraph 

6 (1) shall not apply if the cessation is attrib7 utable to the taxpayer’s death. 

8 ‘‘(B) INVOLUNTARY CONVERSION.—Para9 graph (1) shall not apply if the cessation is at10 tributable to a compulsorily or involuntarily 

11 conversion (within the meaning of section 

12 1033(a)) and the taxpayer acquires a new prin13 cipal residence during the 2-year period begin14 ning on the date of such cessation. 

15 ‘‘(C) SPECIAL RULE FOR MEMBERS OF

16 THE ARMED FORCES, ETC.— 

17 ‘‘(i) IN GENERAL.—Paragraph (1) 

18 shall not apply if the cessation is attrib19 utable to Government orders received by 

20 such individual, or such individual’s 

21 spouse, for service on qualified official ex22 tended duty as— 

23 ‘‘(I) a member of the uniformed 

24 services, 


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1 ‘‘(II) a member of the Foreign 

2 Service of the United States, or 

3 ‘‘(III) an employee of the intel4 ligence community. 

5 ‘‘(ii) DEFINITIONS.—Any term used 

6 in this subparagraph which is also used in 

7 section 121(d)(9) shall have the same 

8 meaning as when used in such para9 graph.’’. 

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

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

12 of the Internal Revenue Code of 1986 is amended by in13 serting after the item relating to section 25D the following 

14 new item: 

‘‘Sec. 25E. Residential recovery zone homebuyer credit.’’. 

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

16 this section shall apply with respect to purchases in tax17 able years beginning after the date that is 1 year before 

18 the date of the enactment of this Act. 

19 SEC. 3. TREATMENT AS OPPORTUNITY ZONES. 

20 (a) IN GENERAL.—Section 1400Z–1 of the Internal 

21 Revenue Code of 1986 is amended by adding at the end 

22 the following new subsection: 

23 ‘‘(g) CERTAIN DISASTER ZONES.— 

24 ‘‘(1) DESIGNATION.—With respect to a Feder25 ally declared disaster, the chief executive officer of 


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1 a State may designate under this paragraph not 

2 more than 5 percent of the applicable disaster tracts 

3 in such State with respect to such disaster. 

4 ‘‘(2) NO EFFECT ON LIMITATION ON NUMBER

5 OF DESIGNATIONS.—An applicable disaster tract 

6 designated under paragraph (1) shall not be taken 

7 into account in determining the limitation under 

8 subsection (d). 

9 ‘‘(3) APPLICABLE DISASTER TRACT.—The term 

10 ‘applicable disaster tract’ means, with respect to a 

11 Federally declared disaster, a population census 

12 tract in the disaster area related to such disaster. 

13 ‘‘(4) FEDERALLY DECLARED DISASTER; DIS14 ASTER AREA.—In this subsection, the term ‘Feder15 ally declared disaster’ and the term ‘disaster area’ 

16 have the meaning given such terms in section 165(i). 

17 ‘‘(5) APPLICABLE START DATE.— 

18 ‘‘(A) QUALIFIED OPPORTUNITY FUND

19 BUSINESSES AND PROPERTY.—In the case of an 

20 applicable disaster tract designated under para21 graph (1), subparagraphs (B)(i)(I), (C)(i), and 

22 (D)(i)(I) of section 1400Z–2(d)(2) shall each be 

23 applied by substituting ‘the applicable start 

24 date’ for ‘December 31, 2017’. 


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1 ‘‘(B) EXTENSION OF DETERMINATION PE2 RIOD.—In the case of an applicable disaster 

3 tract designated under paragraph (1), section 

4 (c)(2)(B) shall be applied by substituting ‘the 

5 applicable start date’ for ‘the date of the enact6 ment of the Tax Cuts and Jobs Act’. 

7 ‘‘(C) APPLICABLE START DATE.—The term 

8 ‘applicable start date’ means, with respect to a 

9 disaster area, the earliest incident date specified 

10 in the declaration to which such area relates.’’. 

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

12 this section shall apply with respect to Federally declared 

13 disasters declared after the date of the enactment of this 

14 Act. 

15 SEC. 4. CREDIT UNDER THE COMMUNITY REINVESTMENT 

16 ACT OF 1977 FOR LENDING IN A RESIDENTIAL 

17 RECOVERY ZONE. 

18 Section 804 of the Community Reinvestment Act of 

19 1977 (12 U.S.C. 2903) is amended by adding at the end 

20 the following: 

21 ‘‘(e) RESIDENTIAL RECOVERY ZONE LOANS.—In as22 sessing and taking into account, under subsection (a), the 

23 record of a financial institution, the appropriate Federal 

24 financial supervisory agency shall consider as a factor 

25 lending activities to individuals and businesses that are loVerDate Sep 11 2014 19:28 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3790.IH H3790

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1 cated in a residential recovery zone (as defined under sec2 tion 36A(c) of the Internal Revenue Code of 1986).’’. 

Æ 


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