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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5670 Introduced in House (IH)]

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CREDIT FOR CERTAIN HOME PURCHASES.

    (a) Allowance of Credit.--Subpart A of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to refundable 
credits) is amended by inserting after section 25D the following new 
section:

``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

    ``(a) Allowance of Credit.--In the case of an individual who 
purchases a principal residence in the United States during the 12-
month period beginning on the date of the enactment of this section, 
there shall be allowed to the taxpayer as a credit against the tax 
imposed by this chapter for the taxable year an amount equal to so much 
of the purchase price of the residence as does not exceed $10,000.
    ``(b) Limitations.--
            ``(1) Conforming loan limitation.--Subsection (a) shall not 
        apply with respect to any residence the value of which exceeds 
        the limitation for the area in which the residence is located 
        on the maximum original principal obligation of a mortgage that 
        may be purchased by the Federal Home Loan Mortgage Corporation, 
        as in effect for 2008 pursuant to section 201(a)(2) of the 
        Economic Stimulus Act of 2008.
            ``(2) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) for the taxable year.
            ``(3) One-time only.--
                    ``(A) In general.--If a credit is allowed under 
                this section in the case of any individual (and such 
                individual's spouse, if married) with respect to the 
                purchase of any principal residence, no credit shall be 
                allowed under this section in any taxable year with 
                respect to the purchase of any other principal 
                residence by such individual or a spouse of such 
                individual.
                    ``(B) Joint purchase.--In the case of a purchase of 
                a principal residence by 2 or more unmarried 
                individuals or by 2 married individuals filing 
                separately, no credit shall be allowed under this 
                section if a credit under this section has been allowed 
                to any of such individuals in any taxable year with 
                respect to the purchase of any other principal 
                residence.
    ``(c) Principal Residence.--The term `principal residence' has the 
same meaning as when used in section 121.
    ``(d) Denial of Double Benefit.--No credit shall be allowed under 
this section for any purchase for which a credit is allowed under 
section 1400C.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Joint purchase by unmarried individuals.--If 2 or 
        more individuals who are not married purchase a principal 
        residence, the amount of the credit allowed under subsection 
        (a) shall be allocated among such individuals in such manner as 
        the Secretary may prescribe, except that the total amount of 
        the credits allowed to all such individuals shall not exceed 
        $10,000.
            ``(2) Purchase.--In defining the purchase of a principal 
        residence, rules similar to the rules of paragraphs (2) and (3) 
        of section 1400C(e) (as in effect on the date of the enactment 
        of this section) shall apply.
            ``(3) Reporting requirement.--Rules similar to the rules of 
        section 1400C(f) (as so in effect) shall apply.
    ``(f) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section with respect to the purchase of any 
residence, the basis of such residence shall be reduced by the amount 
of the credit so allowed.
    ``(g) Application.--This section shall not apply to any taxable 
year beginning after December 31, 2009.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Credit for certain home purchases.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to residences purchased after the date of the 
enactment of this Act in taxable years ending after such date.
                                 <all>
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