‘‘(1) DATE OF PURCHASE.—The credit allowed 
under subsection (a) shall be allowed only with re-
spect to purchases made— 
‘‘(A) after the date of the enactment of the 
Home Buyer Tax Credit Act of 2009, and 
‘‘(B) on or before the date that is 1 year 
after such date of enactment. 
‘‘(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 im-
posed 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 resi-
dence, no credit shall be allowed under this sec-
tion in any taxable year with respect to the pur-
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chase 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 individ-
uals 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.—For purposes of this 
section, the term ‘principal residence’ has the same mean-
ing 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 36 or section 1400C. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) JOINT PURCHASE.— 
‘‘(A) MARRIED INDIVIDUALS FILING SEPA-
RATELY.—In the case of 2 married individuals 
filing separately, subsection (a) shall be applied 
to each such individual by substituting ‘$7,500’ 
for ‘$15,000’ in subsection (a)(1). 
‘‘(B) UNMARRIED INDIVIDUALS.—If 2 or 
more individuals who are not married purchase 
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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 indi-
viduals shall not exceed $15,000. 
‘‘(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) RECAPTURE OF CREDIT IN THE CASE OF CER-
TAIN DISPOSITIONS.— 
‘‘(1) IN GENERAL.—In the event that a tax-
payer— 
‘‘(A) disposes of the principal residence 
with respect to which a credit was allowed 
under subsection (a), or 
‘‘(B) fails to occupy such residence as the 
taxpayer’s principal residence, 
at any time within 24 months after the date on 
which the taxpayer purchased such residence, then 
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the tax imposed by this chapter for the taxable year 
during which such disposition occurred or in which 
the taxpayer failed to occupy the residence as a prin-
cipal residence shall be increased by the amount of 
such credit. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) DEATH
OF
TAXPAYER.—Paragraph 
(1) shall not apply to any taxable year ending 
after the date of the taxpayer’s death. 
‘‘(B) INVOLUNTARY
CONVERSION.—Para-
graph (1) shall not apply in the case of a resi-
dence which is compulsorily or involuntarily 
converted (within the meaning of section 
1033(a)) if the taxpayer acquires a new prin-
cipal residence within the 2-year period begin-
ning on the date of the disposition or cessation 
referred to in such paragraph. Paragraph (1) 
shall apply to such new principal residence dur-
ing the remainder of the 24-month period de-
scribed in such paragraph as if such new prin-
cipal residence were the converted residence. 
‘‘(C) TRANSFERS BETWEEN SPOUSES OR 
INCIDENT TO DIVORCE.—In the case of a trans-
fer of a residence to which section 1041(a) ap-
plies— 
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‘‘(i) paragraph (1) shall not apply to 
such transfer, and 
‘‘(ii) in the case of taxable years end-
ing after such transfer, paragraph (1) shall 
apply to the transferee in the same manner 
as if such transferee were the transferor 
(and shall not apply to the transferor). 
‘‘(D) RELOCATION OF MEMBERS OF THE 
ARMED
FORCES.—Paragraph (1) shall not 
apply in the case of a member of the Armed 
Forces of the United States on active duty who 
moves pursuant to a military order and incident 
to a permanent change of station. 
‘‘(3) JOINT RETURNS.—In the case of a credit 
allowed under subsection (a) with respect to a joint 
return, half of such credit shall be treated as having 
been allowed to each individual filing such return for 
purposes of this subsection. 
‘‘(4) RETURN REQUIREMENT.—If the tax im-
posed by this chapter for the taxable year is in-
creased under this subsection, the taxpayer shall, 
notwithstanding section 6012, be required to file a 
return with respect to the taxes imposed under this 
subtitle. 
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‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section with respect 
to the purchase of any residence, the basis of such resi-
dence shall be reduced by the amount of the credit so al-
lowed. 
‘‘(h) ELECTION TO TREAT PURCHASE
IN PRIOR 
YEAR.—In the case of a purchase of a principal residence 
after December 31, 2009, and on or before the date de-
scribed in subsection (b)(1)(B), a taxpayer may elect to 
treat such purchase as made on December 31, 2009, for 
purposes of this section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 24(b)(3)(B) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and 25B’’ 
and inserting ‘‘, 25B, and 25E’’. 
(2) Section 25(e)(1)(C)(ii) of such Code is 
amended by inserting ‘‘25E,’’ after ‘‘25D,’’. 
(3) Section 25B(g)(2) of such Code is amended 
by striking ‘‘section 23’’ and inserting ‘‘sections 23 
and 25E’’. 
(4) Section 904(i) of such Code is amended by 
striking ‘‘and 25B’’ and inserting ‘‘25B, and 25E’’. 
(5) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and 
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inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(38) to the extent provided in section 
25E(g).’’. 
(c) 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 in-
serting after the item relating to section 25D the following 
new item: 
‘‘Sec. 25E. Credit for certain home purchases.’’. 
(d) SUNSET OF CURRENT FIRST-TIME HOMEBUYER 
CREDIT.— 
(1) IN GENERAL.—Subsection (h) of section 36 
of the Internal Revenue Code of 1986 is amended by 
striking ‘‘before December 1, 2009’’ and inserting 
‘‘on or before the date of the enactment of the Home 
Buyer Tax Credit Act of 2009’’. 
(2) ELECTION TO TREAT PURCHASE IN PRIOR 
YEAR.—Subsection (g) of section 36 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘be-
fore December 1, 2009’’ and inserting ‘‘on or before 
the date of the enactment of the Home Buyer Tax 
Credit Act of 2009’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to purchases after the date of the 
enactment of this Act. 
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