I 
109TH CONGRESS 
1ST SESSION H. R. 4430 
To amend the Internal Revenue Code of 1986 to provide that qualified 
homeowner downpayment assistance is a charitable purpose. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 18, 2005 
Mr. WELDON of Florida 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 
that qualified homeowner downpayment assistance is a 
charitable purpose. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. QUALIFIED HOMEOWNER DOWNPAYMENT AS-
SISTANCE. 
(a) IN GENERAL.—Section 501 of the Internal Rev-
enue Code of 1986 (relating to exemption of tax on cor-
porations, certain trusts, etc.) is amended by redesig-
nating subsection (q) as subsection (r) and by inserting 
after subsection (p) the following new subsection:
‘‘(q) QUALIFIED HOMEOWNER DOWNPAYMENT AS-
SISTANCE.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(c)(3) and sections 170(c)(2), 2055(a)(2), and 
2522(a)(2), the term ‘charitable purposes’ includes 
the provision of qualified homeowner downpayment 
assistance. 
‘‘(2) QUALIFIED HOMEOWNER DOWNPAYMENT 
ASSISTANCE.—For purposes of this subsection, the 
term ‘qualified homeowner downpayment assistance’ 
means a gift of cash for the purpose of providing 
any downpayment for the acquisition of any property 
as a principal residence (within the meaning of sec-
tion 121) for a qualified taxpayer if with respect to 
such property such gift does not exceed the lesser 
of— 
‘‘(A) $60,000, or 
‘‘(B) 20 percent of the value of such prop-
erty, determined as of the time the homeowner 
downpayment assistance is provided. 
‘‘(3) QUALIFIED TAXPAYER.—For purposes of 
paragraph (2), the term ‘qualified taxpayer’ means 
a taxpayer whose modified adjusted gross income for 
the taxable year in which the downpayment assist-
ance is received does not exceed $110,000 ($220,000
in the case of a joint return). For purposes of the 
preceding sentence, the term ‘modified adjusted 
gross income’ means adjusted gross income in-
creased by any amount excluded from gross income 
under section 911, 931, or 933.’’. 
(b) NO CHARITABLE DEDUCTION FOR CONTRIBU-
TIONS FOR DOWNPAYMENT ASSISTANCE.—Subsection (f) 
of section 170 of the Internal Revenue Code of 1986 (re-
lating to disallowance of deduction in certain cases and 
special rules) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(12) DENIAL OF DEDUCTION OF CONTRIBU-
TIONS FOR DOWNPAYMENT ASSISTANCE.—No deduc-
tion shall be allowed under this section for a con-
tribution to an organization which provides home-
owner downpayment assistance if the contribution is 
made directly or indirectly in connection with a 
transaction in which the purchaser of a home re-
ceived downpayment assistance and the contrib-
utor— 
‘‘(A) received the downpayment assistance, 
‘‘(B) sold the home to the purchaser, 
‘‘(C) loaned money to the purchaser, or 
‘‘(D) otherwise received a commission or 
other benefit associated with the transaction.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ