SEC. 2. STATE AND LOCAL SALES TAX DEDUCTION MADE 
PERMANENT. 
(a) IN GENERAL.—Paragraph (5) of section 164(b) 
of the Internal Revenue Code of 1986 is amended by strik-
ing subparagraph (I). 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 3. DEDUCTION FOR QUALIFIED TUITION AND RE-
LATED EXPENSES MADE PERMANENT. 
(a) IN GENERAL.—Section 222 of the Internal Rev-
enue Code of 1986 is amended by striking subsection (e) 
(relating to termination). 
(b) SUNSET NOT TO APPLY.—Section 901 of the 
Economic Growth and Tax Relief Reconciliation Act of 
2001 shall not apply to provisions of, and amendments 
made by, section 431 of such Act (relating to deduction 
for higher education expenses). 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 4. MORTGAGE INSURANCE PREMIUMS TREATED AS IN-
TEREST MADE PERMANENT. 
(a) IN GENERAL.—Subparagraph (E) of section 
163(h)(3) of the Internal Revenue Code of 1986 is amend-
ed by striking clause (iv). 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or accrued after 
December 31, 2009. 
SEC. 5. EXPANSION AND MODIFICATION OF THE HOME-
BUYER CREDIT. 
(a) EXTENSION.— 
(1) IN GENERAL.—Section 36(h) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘De-
cember 1, 2009’’ and inserting ‘‘December 31, 
2009’’. 
(2) CONFORMING AMENDMENT.—Section 36(g) 
of such Code is amended by striking ‘‘December 1, 
2009’’ and inserting ‘‘December 31, 2009’’. 
(b) EXPANSION TO ALL PURCHASERS OF PRINCIPAL 
RESIDENCE.— 
(1) IN GENERAL.—Subsection (a) of section 36 
of such Code is amended by striking ‘‘who is a first- 
time homebuyer of a principal residence’’ and insert-
ing ‘‘who purchases a principal residence’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subsection (c) of section 36 of such 
Code is amended by striking paragraph (1) and 
by redesignating paragraphs (2), (3), (4), and 
(5) as paragraphs (1), (2), (3), and (4), respec-
tively. 
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(B) Section 36 of such Code is amended by 
striking ‘‘FIRST-TIME HOMEBUYER CREDIT’’ 
in the heading and inserting ‘‘HOME
PUR-
CHASE CREDIT’’. 
(C) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of such 
Code is amended by striking the item relating 
to section 36 and inserting the following new 
item: 
‘‘Sec. 36. Home purchase credit.’’. 
(D) Subparagraph (W) of section 26(b)(2) 
of such Code is amended by striking ‘‘home-
buyer credit’’ and inserting ‘‘home purchase 
credit’’. 
(c) MODIFICATION OF RECAPTURE.— 
(1) REPEAL OF GENERAL RECAPTURE RULE.— 
Subsection (f) of section 36 of such Code is amended 
by striking paragraph (1) and by redesignating 
paragraphs (2) through (7) as paragraphs (1) 
through (6), respectively. 
(2) 3-YEAR
RECAPTURE
PERIOD.—Paragraph 
(6) of section 36(f) of such Code, as so redesignated, 
is amended to read as follows: 
‘‘(6) RECAPTURE
PERIOD.—For purposes of 
this subsection, the term ‘recapture period’ means 
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the 36-month period beginning on the date of the 
purchase of such residence by the taxpayer.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Paragraph (1) of section 36(f) of such 
Code, as so redesignated, is amended to read as 
follows: 
‘‘(1) IN GENERAL.—If a taxpayer disposes of 
the principal residence with respect to which a credit 
was allowed under subsection (a) (or such residence 
ceases to be the principal residence of the taxpayer 
(and, if married, the taxpayer’s spouse)) before the 
end of the recapture period, the tax imposed by this 
chapter for the taxable year of such disposition or 
cessation shall be increased by the amount of the 
credit so allowed.’’. 
(B) Section 36(f)(2) of such Code, as so 
redesignated, is amended— 
(i) by striking ‘‘paragraph (2)’’ and 
inserting ‘‘paragraph (1)’’, and 
(ii) by striking the second sentence. 
(C) Section 36(f)(3) of such Code, as so 
redesignated, is amended— 
(i) by striking ‘‘Paragraphs (1) and’’ 
in subparagraph (A) and inserting ‘‘Para-
graph (1)’’, 
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(ii) in subparagraph (B)— 
(I) by striking ‘‘Paragraph (2)’’ 
both places it appears and inserting 
‘‘Paragraph (1)’’, and 
(II) by striking ‘‘paragraph (2)’’ 
and inserting ‘‘paragraph (1)’’, 
(iii) in subparagraph (C)— 
(I) by striking ‘‘paragraph (2)’’ 
in clause (i) and inserting ‘‘paragraph 
(1)’’, and 
(II) by striking ‘‘paragraphs (1) 
and (2)’’ and inserting ‘‘paragraph 
(1)’’, and 
(iv) by striking subparagraph (D). 
(4) CONFORMING AMENDMENT.—Subsection (g) 
of section 36 of such Code is amended by striking 
‘‘subsection (c)’’ and inserting ‘‘subsections (c) and 
(f)(4)(D)’’. 
(d) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendment made by 
subsection (a) shall take effect on the date of the en-
actment of this Act. 
(2) 1ST TIME HOMEBUYER.—The amendment 
made by subsection (b) shall apply to purchases on 
or after the date of the enactment of this Act. 
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(3) 
MODIFICATION
OF
RECAPTURE.—The 
amendments made by subsection (c) shall take effect 
as if included in the amendments made by section 
3011(c) of the Housing and Economic Recovery Act 
of 2008. 
Æ 
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