I 

110TH CONGRESS 

2D SESSION H. R. 5670 

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

tax credit for certain home purchases. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2008 

Mr. FOSSELLA (for himself and Mr. PASCRELL) 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. CREDIT FOR CERTAIN HOME PURCHASES. 

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

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

6 of 1986 (relating to refundable credits) is amended by in7 serting after section 25D the following new section: 

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

9 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in10 dividual who purchases a principal residence in the United 


wwoods2 on PRODPC68 with BILLS
2 

•HR 5670 IH

1 States during the 12-month period beginning on the date 

2 of the enactment of this section, there shall be allowed 

3 to the taxpayer as a credit against the tax imposed by 

4 this chapter for the taxable year an amount equal to so 

5 much of the purchase price of the residence as does not 

6 exceed $10,000. 

7 ‘‘(b) LIMITATIONS.— 

8 ‘‘(1) CONFORMING LOAN LIMITATION.—Sub9 section (a) shall not apply with respect to any resi10 dence the value of which exceeds the limitation for 

11 the area in which the residence is located on the 

12 maximum original principal obligation of a mortgage 

13 that may be purchased by the Federal Home Loan 

14 Mortgage Corporation, as in effect for 2008 pursu15 ant to section 201(a)(2) of the Economic Stimulus 

16 Act of 2008. 

17 ‘‘(2) LIMITATION BASED ON AMOUNT OF

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

19 26(a)(2) does not apply, the credit allowed under 

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

21 the excess of— 

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

23 (as defined in section 26(b)) plus the tax im24 posed by section 55, over 


wwoods2 on PRODPC68 with BILLS
3 

•HR 5670 IH

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

2 under this subpart (other than this section) for 

3 the taxable year. 

4 ‘‘(3) 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 2 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 ‘‘(c) PRINCIPAL RESIDENCE.—The term ‘principal 

22 residence’ has the same meaning as when used in section 

23 121. 


wwoods2 on PRODPC68 with BILLS
4 

•HR 5670 IH

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

2 be allowed under this section for any purchase for which 

3 a credit is allowed under section 1400C. 

4 ‘‘(e) SPECIAL RULES.—For purposes of this sec5 tion— 

6 ‘‘(1) JOINT PURCHASE BY UNMARRIED INDIVID7 UALS.—If 2 or more individuals who are not married 

8 purchase a principal residence, the amount of the 

9 credit allowed under subsection (a) shall be allocated 

10 among such individuals in such manner as the Sec11 retary may prescribe, except that the total amount 

12 of the credits allowed to all such individuals shall 

13 not exceed $10,000. 

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

15 principal residence, rules similar to the rules of 

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

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

18 shall apply. 

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

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

21 shall apply. 

22 ‘‘(f) BASIS ADJUSTMENT.—For purposes of this sub23 title, if a credit is allowed under this section with respect 

24 to the purchase of any residence, the basis of such resiVerDate Aug 31 2005 03:37 Apr 03, 2008 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5670.IH H5670

wwoods2 on PRODPC68 with BILLS
5 

•HR 5670 IH

1 dence shall be reduced by the amount of the credit so al2 lowed. 

3 ‘‘(g) APPLICATION.—This section shall not apply to 

4 any taxable year beginning after December 31, 2009.’’. 

5 (b) 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 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply with respect to residences pur12 chased after the date of the enactment of this Act in tax13 able years ending after such date. 

Æ 


wwoods2 on PRODPC68 with BILLS