I 
110TH CONGRESS 
2D SESSION 
H. R. 7325 
To amend the Internal Revenue Code of 1986 to allow all individuals, whether 
or not first-time homebuyers, a refundable income tax credit for the 
purchase of a residence during 2009 or 2010. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 10, 2008 
Mr. DREIER 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 allow all 
individuals, whether or not first-time homebuyers, a re-
fundable income tax credit for the purchase of a resi-
dence during 2009 or 2010. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Economic Recovery 
Through Responsible Homeownership Act of 2008’’. 
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SEC. 2. REFUNDABLE CREDIT FOR RESIDENCES PUR-
CHASED DURING 2009 OR 2010. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by insert-
ing after section 36 the following new section: 
‘‘SEC. 36A. GENERAL HOMEBUYER CREDIT FOR RESI-
DENCES PURCHASED DURING 2009 OR 2010. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who makes an eligible purchase during the taxable 
year, there shall be allowed as a credit against the tax 
imposed by this subtitle for such taxable year an amount 
equal to so much of the purchase price as does not exceed 
$5,000 ($10,000 in the case of an eligible purchase where 
the down payment is at least 15 percent of the purchase 
price). 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE PURCHASE.—The term ‘eligible 
purchase’ means the purchase of a residence for the 
taxpayer if— 
‘‘(A) such residence is located in the 
United States, 
‘‘(B) the construction of such residence 
began before 2010, 
‘‘(C) there is a down payment of at least 
10 percent of the purchase price, and 
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‘‘(D) such purchase is made by the tax-
payer during 2009 or 2010. 
‘‘(2) OTHER
DEFINITIONS.—The terms ‘pur-
chase’ and ‘purchase price’ have the respective 
meanings given such terms by section 26(c). 
‘‘(c) EXCEPTIONS.—No credit shall be allowed under 
subsection (a) to any taxpayer for any taxable year with 
respect to the purchase of a residence if— 
‘‘(1) credit under section 26 (relating to first- 
time homebuyer credit) or 1400C (relating to first- 
time homebuyer in the District of Columbia) is al-
lowed to the taxpayer (or the taxpayer’s spouse) for 
such taxable year or any prior taxable year, 
‘‘(2) the residence is financed by the proceeds 
of a qualified mortgage issue the interest on which 
is exempt from tax under section 103, 
‘‘(3) the taxpayer is a nonresident alien, or 
‘‘(4) the taxpayer disposes of such residence (or 
such residence ceases to be a residence of the tax-
payer (or, if married, the taxpayer’s spouse)) before 
the close of such taxable year. 
‘‘(d) OTHER RULES TO APPLY.— 
‘‘(1) RELATED PERSONS.—Rules similar to the 
rules of section 26(c)(5) shall apply for purposes of 
this section. 
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‘‘(2) MARRIED INDIVIDUALS FILING SEPARATE 
RETURNS, ETC.—Rules similar to the rules of sub-
paragraphs (B) and (C) of section 26(b)(1) shall 
apply for purposes of this section. 
‘‘(3) REPORTING.—Rules similar to the rules of 
section 26(e) shall apply for purposes of this section. 
‘‘(e) RECAPTURE OF CREDIT.—Rules similar to the 
rules of section 26(f) shall apply for purposes of this sec-
tion, except that— 
‘‘(1) paragraph (1) thereof shall be applied by 
substituting ‘331⁄3 percent’ for ‘62⁄3 percent’, and 
‘‘(2) paragraph (7) thereof shall be applied by 
substituting ‘3 years’ for ‘15 years’.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 26(b)(2) of such Code is amended— 
(A) in subparagraph (W)— 
(i) by striking ‘‘homebuyer credit’’ 
and inserting ‘‘first-time homebuyer cred-
it’’, and 
(ii) by striking ‘‘and’’, 
(B) by striking the period at the end of 
subparagraph (X) and inserting ‘‘, and’’, and 
(C) by inserting after subparagraph (X) 
the following new subparagraph: 
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