toration plan meets the requirements of 
this clause if the plan provides that the eq-
uity ratio of the Fund will meet or exceed 
the minimum amount specified in subpara-
graph (C) for the designated equity ratio 
before the end of the 5-year period begin-
ning upon the implementation of the plan 
(or such longer period as the Board may 
determine to be necessary due to extraor-
dinary circumstances). 
‘‘(iii) 
TRANSPARENCY.—Not 
more 
than 30 days after the Board establishes 
and implements a restoration plan under 
clause (i), the Board shall publish in the 
Federal Register a detailed analysis of the 
factors considered and the basis for the ac-
tions taken with regard to the plan.’’. 
SEC. 9. PROHIBITION ON THE RECEIPT OF COMMON STOCK 
AND 
THE 
EXERCISE 
OF 
STOCK 
VOTING 
POWER. 
Title I of the Emergency Economic Stabilization Act 
of 2008 is amended by adding at the end the following 
new section: 
VerDate Nov 24 2008 
04:40 Mar 05, 2009
Jkt 079200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.IH
H1295
rfrederick on PROD1PC67 with BILLS
‘‘SEC. 137. PROHIBITION ON THE RECEIPT OF COMMON 
STOCK AND THE EXERCISE OF STOCK VOT-
ING POWER. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this title, in carrying out this title the Secretary 
shall not make any purchase for which the Secretary re-
ceives control-diluting stock. 
‘‘(b) APPLICATION.—Subsection (a) shall apply to 
purchases made by the Secretary under this title on or 
after the date of the enactment of this section. 
‘‘(c) CONVERSION
OF CERTAIN SECURITIES RE-
CEIVED BY THE SECRETARY.—Notwithstanding any other 
provision of this title, the Secretary shall not convert any 
security received by the Secretary under this title, other 
than a warrant, into control-diluting stock. 
‘‘(d) CONTROL-DILUTING STOCK DEFINED.—For 
purposes of this section, the term ‘control-diluting stock’ 
means— 
‘‘(1) common stock of a financial institution; 
‘‘(2) any other voting stock of a financial insti-
tution, other than voting stock that the Secretary 
agrees not to exercise the voting power of such 
stock; or 
‘‘(3) a warrant giving the right to the Secretary 
to receive stock described in paragraph (1) or (2).’’. 
VerDate Nov 24 2008 
04:40 Mar 05, 2009
Jkt 079200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.IH
H1295
rfrederick on PROD1PC67 with BILLS
SEC. 10. TREATMENT OF GAIN ON DISPOSITION OF SUB-
SIDIZED RESIDENCES. 
(a) IN GENERAL.—In the case any taxpayer who 
holds (at the time of the provision of the relief or assist-
ance described in subsection (b)) any interest in a sub-
sidized residence— 
(1) section 121 of the Internal Revenue Code of 
1986 (relating to exclusion of gain from sale of prin-
cipal residence) shall not apply to any gain from the 
sale or exchange of such interest, and 
(2) the rate of tax under section 1 of such Code 
on such gain shall be twice the rate which would 
otherwise apply. 
(b) SUBSIDIZED RESIDENCE.—For purposes of this 
section, the term ‘‘subsidized residence’’ means any resi-
dence that is subject to a mortgage with respect to which 
relief or assistance is provided under this Act or any 
amendment made by this Act, under any authority or pro-
gram established or amended by this Act, or by any finan-
cial institution subject to the amendments made by section 
204. 
SEC. 11. REFUNDABLE TAX CREDIT FOR RESIDENCES PUR-
CHASED DURING 2009 OR 2010. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
VerDate Nov 24 2008 
04:40 Mar 05, 2009
Jkt 079200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.IH
H1295
rfrederick on PROD1PC67 with BILLS
1986 (relating to refundable credits) is amended by insert-
ing after section 36 the following new section: 
‘‘SEC. 36A. GENERAL HOMEBUYER CREDIT FOR RESI-
DENCES PURCHASED DURING 2009 OR 2010. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who makes an eligible purchase during the taxable 
year, there shall be allowed as a credit against the tax 
imposed by this subtitle for such taxable year an amount 
equal to so much of the purchase price as does not exceed 
the applicable amount. 
‘‘(b) APPLICABLE AMOUNT.—For purposes of sub-
section (a), the applicable amount is— 
‘‘(1) $10,000 in the case of an eligible purchase 
where the down payment is at least 15 percent of 
the purchase price, 
‘‘(2) $5,000 in the case of an eligible purchase 
where the down payment is at least 10 percent of 
the purchase price, 
‘‘(3) $2,000 in the case of an eligible purchase 
where the down payment is at least 5 percent of the 
purchase price, and 
‘‘(4) zero in any other case. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
VerDate Nov 24 2008 
04:40 Mar 05, 2009
Jkt 079200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.IH
H1295
rfrederick on PROD1PC67 with BILLS
‘‘(1) ELIGIBLE PURCHASE.—The term ‘eligible 
purchase’ means the purchase of a residence for the 
taxpayer if— 
‘‘(A) such residence is located in the 
United States, 
‘‘(B) the construction of such residence 
began before 2009, and 
‘‘(C) such purchase is made by the tax-
payer during 2009 or 2010. 
‘‘(2) OTHER
DEFINITIONS.—The terms ‘pur-
chase’ and ‘purchase price’ have the respective 
meanings given such terms by section 26(c). 
‘‘(d) EXCEPTIONS.—No credit shall be allowed under 
subsection (a) to any taxpayer for any taxable year with 
respect to the purchase of a residence if— 
‘‘(1) credit under section 36 (relating to first- 
time homebuyer credit) or 1400C (relating to first- 
time homebuyer in the District of Columbia) is al-
lowed to the taxpayer (or the taxpayer’s spouse) for 
such taxable year or any prior taxable year, 
‘‘(2) the residence is financed by the proceeds 
of a qualified mortgage issue the interest on which 
is exempt from tax under section 103, 
‘‘(3) the taxpayer is a nonresident alien, or 
VerDate Nov 24 2008 
04:40 Mar 05, 2009
Jkt 079200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.IH
H1295
rfrederick on PROD1PC67 with BILLS
‘‘(4) the taxpayer disposes of such residence (or 
such residence ceases to be a residence of the tax-
payer (or, if married, the taxpayer’s spouse)) before 
the close of such taxable year. 
‘‘(e) OTHER RULES TO APPLY.— 
‘‘(1) RELATED PERSONS.—Rules similar to the 
rules of section 26(c)(5) shall apply for purposes of 
this section. 
‘‘(2) MARRIED INDIVIDUALS FILING SEPARATE 
RETURNS, ETC.—Rules similar to the rules of sub-
paragraphs (B) and (C) of section 26(b)(1) shall 
apply for purposes of this section. 
‘‘(3) REPORTING.—Rules similar to the rules of 
section 26(e) shall apply for purposes of this section. 
‘‘(f) RECAPTURE OF CREDIT.—Rules similar to the 
rules of section 26(f) shall apply for purposes of this sec-
tion, except that— 
‘‘(1) paragraph (1) thereof shall be applied by 
substituting ‘331⁄3 percent’ for ‘62⁄3 percent’, and 
‘‘(2) paragraph (7) thereof shall be applied by 
substituting ‘3 years’ for ‘15 years’.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 26(b)(2) of such Code is amended— 
(A) in subparagraph (W)— 
VerDate Nov 24 2008 
04:40 Mar 05, 2009
Jkt 079200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.IH
H1295
rfrederick on PROD1PC67 with BILLS
(i) by striking ‘‘homebuyer credit’’ 
and inserting ‘‘first-time homebuyer cred-
it’’, and 
(ii) by striking ‘‘and’’, 
(B) by striking the period at the end of 
subparagraph (X) and inserting ‘‘, and’’, and 
(C) by inserting after subparagraph (X) 
the following new subparagraph: 
‘‘(Y) section 36A(f) (relating to recapture 
of general homebuyer credit)’’. 
(2) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36A,’’ after ‘‘36,’’. 
(3) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36A,’’ after 
‘‘36,’’. 
(4) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 36 the following new item: 
‘‘Sec. 36A. General homebuyer credit for residences purchased during 2009 or 
2010.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to residences purchased after De-
cember 31, 2008, in taxable years ending after such date. 
VerDate Nov 24 2008 
23:26 Mar 05, 2009
Jkt 079200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.IH
H1295
rfrederick on PROD1PC67 with BILLS