Stimulus Act of 2008, is amended to read as fol-
lows: 
‘‘(7) SPECIAL RULE FOR ELIGIBLE TAXPAYERS IN 
2008.—In the case of any taxable year of any eligible 
taxpayer (within the meaning of section 168(k)(4)) 
beginning in 2008—
‘‘(A) the dollar limitation under paragraph 
(1) shall be $250,000, 
‘‘(B) the dollar limitation under paragraph 
(2) shall be $800,000, and 
‘‘(C) the amounts described in subpara-
graphs (A) and (B) shall not be adjusted under 
paragraph (5).’’. 
(B) EFFECTIVE
DATE.—The amendment 
made by this paragraph shall take effect as if in-
cluded in section 102 of the Economic Stimulus 
Act of 2008. 
SEC. 602. MODIFICATIONS ON USE OF QUALIFIED MORT-
GAGE BONDS; TEMPORARY INCREASED VOL-
UME CAP FOR CERTAIN HOUSING BONDS. 
(a) USE OF QUALIFIED MORTGAGE BONDS PROCEEDS 
FOR SUBPRIME REFINANCING LOANS.—Section 143(k) of 
the Internal Revenue Code of 1986 (relating to other defini-
tions and special rules) is amended by adding at the end 
the following new paragraph:
SEC. 603. 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 nonrefundable personal credits) is 
amended by inserting after section 25D the following new 
section: 
‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES. 
‘‘(a) ALLOWANCE OF CREDIT.—
‘‘(1) IN GENERAL.—In the case of an individual 
who is a purchaser of a qualified principal residence 
during the taxable year, there shall be allowed as a 
credit against the tax imposed by this chapter an 
amount equal to so much of the purchase price of the 
residence as does not exceed $7,000. 
‘‘(2) ALLOCATION
OF
CREDIT
AMOUNT.—The 
amount of the credit allowed under paragraph (1) 
shall be equally divided among the 2 taxable years be-
ginning with the taxable year in which the purchase 
of the qualified principal residence is made. 
‘‘(b) LIMITATIONS.—
‘‘(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 this 
section, and
109
Subtitle B—Dealer Sales 
SEC. 821. HOLDING PERIOD UNDER SAFE HARBOR. 
Section 857(b)(6) (relating to income from prohibited 
transactions) is amended—
(1) by striking ‘‘4 years’’ in subparagraphs 
(C)(i), (C)(iv), and (D)(i) and inserting ‘‘2 years’’, 
(2) by striking ‘‘4-year period’’ in subpara-
graphs (C)(ii), (D)(ii), and (D)(iii) and inserting ‘‘2-
year period’’, and 
(3) by striking ‘‘real estate asset’’and all that fol-
lows through ‘‘if’’ in the matter preceding clause (i) 
of subparagraphs (C) and (D), respectively, and in-
serting ‘‘real estate asset (as defined in section 
856(c)(5)(B)) and which is described in section 
1221(a)(1) if’’. 
SEC. 822. DETERMINING VALUE OF SALES UNDER SAFE 
HARBOR. 
Section 857(b)(6) is amended—
(1) by striking the semicolon at the end of sub-
paragraph (C)(iii) and inserting ‘‘, or (III) the fair 
market value of property (other than sales of fore-
closure property or sales to which section 1033 ap-
plies) sold during the taxable year does not exceed 10 
percent of the fair market value of all of the assets of 
the trust as of the beginning of the taxable year;’’, and
123
SEC. 904. EXTENSION OF ASSISTANCE FOR INDIVIDUALS 
RESIDING TEMPORARILY IN HOUSING OWNED 
BY A FAMILY MEMBER. 
Section 2102A(e) of title 38, United States Code, is 
amended by striking ‘‘after the end of the five-year period 
that begins on the date of the enactment of the Veterans’ 
Housing Opportunity and Benefits Improvement Act of 
2006’’ and inserting ‘‘after December 31, 2011’’. 
SEC. 905. INCREASE IN SPECIALLY ADAPTED HOUSING BEN-
EFITS FOR DISABLED VETERANS. 
(a) IN GENERAL.—Section 2102 of title 38, United 
States Code, is amended—
(1) in subsection (b)(2), by striking ‘‘$10,000’’ 
and inserting ‘‘$12,000’’; 
(2) in subsection (d)—
(A) in paragraph (1), by striking ‘‘$50,000’’ 
and inserting ‘‘$60,000’’; and 
(B) 
in 
paragraph 
(2), 
by 
striking 
‘‘$10,000’’ and inserting ‘‘$12,000’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(e)(1) Effective on October 1 of each year (beginning 
in 2009), the Secretary shall increase the amounts described 
in subsection (b)(2) and paragraphs (1) and (2) of sub-
section (d) in accordance with this subsection.