I 
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 Representa-
tives 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 in-
serting after section 25D the following new section: 
‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who purchases a principal residence in the United 
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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.—Sub-
section (a) shall not apply with respect to any resi-
dence 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 pursu-
ant 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 im-
posed by section 55, over 
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‘‘(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-
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.—The term ‘principal 
residence’ has the same meaning as when used in section 
121. 
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‘‘(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 sec-
tion— 
‘‘(1) JOINT PURCHASE BY UNMARRIED INDIVID-
UALS.—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 Sec-
retary 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 sub-
title, if a credit is allowed under this section with respect 
to the purchase of any residence, the basis of such resi-
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dence shall be reduced by the amount of the credit so al-
lowed. 
‘‘(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 in-
serting 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 pur-
chased after the date of the enactment of this Act in tax-
able years ending after such date. 
Æ 
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