‘‘(c) SOCIAL SECURITY TAXES.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘social security
taxes’ means, with respect to any taxpayer for any
taxable year—
‘‘(A) the amount of the taxes imposed by
subsections (a) and (b) of section 3101 on
amounts received by the taxpayer during the
calendar year in which the taxable year begins,
‘‘(B) the amount of the taxes imposed by
section 3201(a) on amounts received by the tax-
payer during the calendar year in which the
taxable year begins,
‘‘(C) 50 percent of the taxes imposed by
subsections (a) and (b) of section 1401 on the
self-employment income of the taxpayer for the
taxable year, and
‘‘(D) 50 percent of the taxes imposed by
section 3211(a)(1) on amounts received by the
taxpayer during the calendar year in which the
taxable year begins.
‘‘(2) COORDINATION WITH SPECIAL REFUND OF
SOCIAL SECURITY TAXES.—The term ‘social security
taxes’ shall not include any taxes to the extent the
taxpayer is entitled to a special refund of such taxes
under section 6413(c).
‘‘(3) SPECIAL RULE.—Any amounts paid pursu-
ant to an agreement under section 3121(l) (relating
to agreements entered into by American employers
with respect to foreign affiliates) which are equiva-
lent to the taxes referred to in paragraph (1)(A)
shall be treated as taxes referred to in such para-
graph.
‘‘(d) YEARS
TO WHICH SECTION APPLIES.—This
section shall only apply to taxable years beginning after
December 31, 1994, and before January 1, 1997.’’
(b) CLERICAL AMENDMENT.—The table of sections
for subpart C of part IV of subchapter A of chapter 1
is amended by striking the item relating to section 35 and
inserting the following:
‘‘Sec. 35. Credit for portion of social security taxes.
‘‘Sec. 36. Overpayments of tax.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1994.
SEC. 3002. CREDIT FOR PURCHASE OF PRINCIPAL RESI-
DENCE BY FIRST-TIME HOMEBUYER.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 22 the following new
section:
‘‘SEC. 23. PURCHASE OF PRINCIPAL RESIDENCE BY FIRST-
TIME HOMEBUYER.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a first-
time homebuyer, there shall be allowed as a credit against
the tax imposed by this chapter an amount equal to 10
percent of the purchase price of the first principal resi-
dence purchased by the taxpayer during the eligibility pe-
riod. Except as otherwise provided in this section, such
credit shall be allowed for the taxable year in which such
residence is purchased.
‘‘(b) LIMITATIONS.—
‘‘(1) MAXIMUM OVERALL CREDIT.—The credit
allowed by subsection (a) to the taxpayer shall not
exceed $6,000.
‘‘(2) PHASEOUT
OF
CREDIT
BASED
ON
AD-
JUSTED GROSS INCOME.—If the adjusted gross in-
come of the taxpayer for the taxable year in which
the residence is purchased exceeds $50,000, the
$6,000 amount in paragraph (1) shall be reduced
(but not below zero) by $100 for each $200 of such
excess.
‘‘(c) FIRST-TIME HOMEBUYER.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘first-time home-
buyer’ means any individual unless such individual
or such individual’s spouse had a present ownership
interest in any residence at any time during the 3-
year period ending on the date of the purchase of
the residence referred to in subsection (a).
‘‘(2) UNMARRIED JOINT OWNERS.—An individ-
ual shall not be treated as a first-time homebuyer
with respect to any residence unless all the individ-
uals purchasing such residence with such individual
are first-time homebuyers.
‘‘(3) ALLOCATION OF LIMITS.—All individuals
purchasing a residence shall be treated as 1 individ-
ual for purposes of determining the maximum credit
under subsection (a); and such maximum credit, and
the $50,000 amount in subsection (b)(2), shall be al-
located among such individuals under regulations
prescribed by the Secretary.
‘‘(4) CERTAIN INDIVIDUALS INELIGIBLE.—The
term ‘first-time homebuyer’ shall not include any in-
dividual if, on the date of the purchase of the resi-
dence, the period of time specified in section 1034(a)
is suspended under subsection (h) or (k) of section
1034 with respect to such individual.