‘‘(i) the numerator of which is the 
sum of the number of remaining whole 
months in such 1st taxable year after the 
sale of the qualified residence, and 
‘‘(ii) the denominator of which is 12. 
‘‘(B) DISALLOWED 1ST YEAR CREDIT AL-
LOWED IN 6TH YEAR.—Any reduction by reason 
of subparagraph (A) in the credit allowable 
(without regard to subparagraph (A)) for the 
1st taxable year of the credit period shall be al-
lowable under subsection (a) for the 1st taxable 
year following the credit period. 
‘‘(f) LIMITATION ON AGGREGATE CREDIT ALLOW-
ABLE WITH RESPECT TO QUALIFIED RESIDENCES LO-
CATED IN A STATE.—
‘‘(1) CREDIT MAY NOT EXCEED CREDIT DOLLAR 
AMOUNT ALLOCATED TO QUALIFIED RESIDENCE.—
‘‘(A) IN
GENERAL.—The amount of the 
credit determined under this section for any 
taxable year with respect to any qualified resi-
dence shall not exceed the homeownership cred-
it dollar amount allocated to such qualified resi-
dence under this subsection. 
‘‘(B) TIME FOR MAKING ALLOCATION.—
‘‘(i) An allocation shall be taken into 
account under subparagraph (A) only if it 
is made not later than the close of the cal-
endar year in which the qualified residence 
is sold. 
‘‘(ii) A homeownership credit agency 
may allocate available homeownership cred-
it dollar amounts to a qualified residence 
prior to the year of sale of such qualified 
residence if—
‘‘(I) the taxpayer owns fee title 
or a leasehold interest of not less than 
50 years in the site of the qualified 
residence as of the later of the date 
which is 6 months after the date that 
the allocation was made or the close 
of the calendar year in which the allo-
cation is made, and 
‘‘(II) such qualified residence is 
completed not later than the close of 
the second calendar year following the 
calendar year in which the allocation 
was made. 
‘‘(C) VESTED RIGHT TO CREDIT DOLLAR 
AMOUNT.—Once a homeownership credit alloca-
tion is received by a taxpayer, the right to such 
credit is vested in such taxpayer and is not sub-
ject to recapture, except as provided in para-
graph (5)(B). 
‘‘(2) 
HOMEOWNERSHIP
CREDIT
DOLLAR 
AMOUNT FOR AGENCIES.—
‘‘(A) IN GENERAL.—The aggregate home-
ownership credit dollar amount which a home-
ownership credit agency may allocate for any 
calendar year is the portion of the State home-
ownership credit ceiling allocated under this 
paragraph for such calendar year to such agen-
cy. 
‘‘(B) STATE
CEILING
INITIALLY
ALLO-
CATED
TO
STATE
HOMEOWNERSHIP
CREDIT 
AGENCIES.—Except as provided in subpara-
graphs (D) and (E), the State homeownership 
credit ceiling for each calendar year shall be al-
located to the homeownership credit agency of 
such State. If there is more than 1 homeowner-
ship credit agency of a State, all such agencies 
shall be treated as a single agency. 
‘‘(C) STATE
HOMEOWNERSHIP
CREDIT 
CEILING.—The State homeownership credit ceil-
ing applicable to any State for any calendar 
year shall be an amount equal to the sum of—
‘‘(i) the unused State homeownership 
credit ceiling (if any) of such State for the 
preceding calendar year, 
‘‘(ii) the greater of—
‘‘(I) $1.80 multiplied by the 
State population, or 
‘‘(II) $2,000,000, 
‘‘(iii) the amount of State homeowner-
ship credit ceiling returned in the calendar 
year, plus 
‘‘(iv) the amount (if any) allocated 
under subparagraph (D) to such State by 
the Secretary. 
For purposes of clause (i), the unused State 
homeownership credit ceiling for any calendar 
year is the excess (if any) of the sum of the 
amounts described in clauses (ii) through (iv) 
over the aggregate homeownership credit dollar 
amount allocated for such year. For purposes of 
clause (iii), the amount of State homeownership 
credit ceiling returned in the calendar year 
equals the homeownership credit dollar amount 
previously allocated within the State to any