I 
111TH CONGRESS 
1ST SESSION H. R. 1119 
To amend the Internal Revenue Code of 1986 to expand the application 
of the homebuyer credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 23, 2009 
Mr. DAVIS of Tennessee 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 expand 
the application of the homebuyer credit, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXPANSION AND MODIFICATION OF HOME-
BUYER CREDIT. 
(a) ELIMINATION OF FIRST-TIME HOMEBUYER RE-
QUIREMENT.— 
(1) IN GENERAL.—Subsection (a) of section 36 
of the Internal Revenue Code of 1986 is amended by 
striking ‘‘who is a first-time homebuyer of a prin-
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cipal residence’’ and inserting ‘‘who purchases a 
principal residence’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subsection (c) of section 36 of such 
Code is amended by striking paragraph (1) and 
by redesignating paragraphs (2), (3), (4), and 
(5) as paragraphs (1), (2), (3), and (4), respec-
tively. 
(B) Section 36 of such Code is amended by 
striking ‘‘FIRST-TIME HOMEBUYER CREDIT’’ 
in the heading and inserting ‘‘HOME
PUR-
CHASE CREDIT’’. 
(C) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of such 
Code is amended by striking the item relating 
to section 36 and inserting the following new 
item: 
‘‘Sec. 36. Home purchase credit.’’. 
(D) Subparagraph (W) of section 26(b)(2) 
of such Code is amended by striking ‘‘home-
buyer credit’’ and inserting ‘‘home purchase 
credit’’. 
(b) ELIMINATION
OF
RECAPTURE
EXCEPT
FOR 
HOMES SOLD WITHIN 3 YEARS.—Subsection (f) of sec-
tion 36 of the Internal Revenue Code of 1986 is amended 
to read as follows: 
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‘‘(f) RECAPTURE OF CREDIT IN THE CASE OF CER-
TAIN DISPOSITIONS.— 
‘‘(1) IN GENERAL.—In the event that a tax-
payer— 
‘‘(A) disposes of the principal residence 
with respect to which a credit was allowed 
under subsection (a), or 
‘‘(B) fails to occupy such residence as the 
taxpayer’s principal residence, 
at any time within 36 months after the date on 
which the taxpayer purchased such residence, then 
the tax imposed by this chapter for the taxable year 
during which such disposition occurred or in which 
the taxpayer failed to occupy the residence as a prin-
cipal residence shall be increased by the amount of 
such credit. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) DEATH
OF
TAXPAYER.—Paragraph 
(1) shall not apply to any taxable year ending 
after the date of the taxpayer’s death. 
‘‘(B) INVOLUNTARY
CONVERSION.—Para-
graph (1) shall not apply in the case of a resi-
dence which is compulsorily or involuntarily 
converted (within the meaning of section 
1033(a)) if the taxpayer acquires a new prin-
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cipal residence within the 2-year period begin-
ning on the date of the disposition or cessation 
referred to in such paragraph. Paragraph (1) 
shall apply to such new principal residence dur-
ing the remainder of the 36-month period de-
scribed in such paragraph as if such new prin-
cipal residence were the converted residence. 
‘‘(C) TRANSFERS BETWEEN SPOUSES OR 
INCIDENT TO DIVORCE.—In the case of a trans-
fer of a residence to which section 1041(a) ap-
plies— 
‘‘(i) paragraph (1) shall not apply to 
such transfer, and 
‘‘(ii) in the case of taxable years end-
ing after such transfer, paragraph (1) shall 
apply to the transferee in the same manner 
as if such transferee were the transferor 
(and shall not apply to the transferor). 
‘‘(D) RELOCATION OF MEMBERS OF THE 
ARMED
FORCES.—Paragraph (1) shall not 
apply in the case of a member of the Armed 
Forces of the United States on active duty who 
moves pursuant to a military order and incident 
to a permanent change of station. 
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