‘‘(3) JOINT RETURNS.—In the case of a credit 
allowed under subsection (a) with respect to a joint 
return, half of such credit shall be treated as having 
been allowed to each individual filing such return for 
purposes of this subsection. 
‘‘(4) RETURN REQUIREMENT.—If the tax im-
posed by this chapter for the taxable year is in-
creased under this subsection, the taxpayer shall, 
notwithstanding section 6012, be required to file a 
return with respect to the taxes imposed under this 
subtitle.’’. 
(c) MODIFICATION OF CREDIT AMOUNT.— 
(1) IN GENERAL.—Subparagraph (A) of section 
36(b)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$8,000’’ and inserting ‘‘the 
amount that is 3.5 percent of the dollar amount lim-
itation determined under section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)), including any increase in the 
limitation for an area determined to be a high-cost 
area under such section, with respect to the pur-
chase of the qualified principal residence’’. 
(2) CONFORMING
AMENDMENTS.—Paragraph 
(1) of section 36(b) of such Code is amended— 
VerDate Nov 24 2008 
07:07 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1119.IH
H1119
rfrederick on PROD1PC67 with BILLS
(A) by striking ‘‘$4,000’’ in subparagraph 
(B) and inserting ‘‘1.75 percent’’, 
(B) by striking ‘‘$8,000’’ in subparagraph 
(B) and inserting ‘‘3.5 percent’’, and 
(C) by striking ‘‘$8,000’’ in subparagraph 
(C) and inserting ‘‘the amount described in 
subparagraph (A)’’. 
(d) MODIFICATION OF INCOME LIMITATION.—Sub-
clause (II) of section 36(b)(2)(A)(i) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘$75,000 
($150,000 in the case of a joint return)’’ and inserting 
‘‘$125,000 ($250,000 in the case of a joint return)’’. 
(e) AVAILABILITY OF CREDIT FOR TRANSFER.—Sec-
tion 36 of the Internal Revenue Code of 1986 is amended 
by redesignating subsections (g) and (h), as amended by 
this section, as subsections (h) and (i), respectively, and 
by inserting after subsection (f) the following new sub-
section: 
‘‘(g) TRANSFER OF CREDIT.— 
‘‘(1) IN GENERAL.—A taxpayer may transfer 
all or a portion of the credit allowable under sub-
section (a) to 1 or more persons as payment of any 
liability of the taxpayer arising out of— 
‘‘(A) the downpayment of any portion of 
the purchase price of the principal residence, 
VerDate Nov 24 2008 
07:07 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1119.IH
H1119
rfrederick on PROD1PC67 with BILLS
‘‘(B) mortgage, flood, and hazard insur-
ance premiums in connection with the purchase 
and paid at or before closing, 
‘‘(C) interest on any debt incurred to pur-
chase the residence, 
‘‘(D) State and local real property taxes 
paid in connection with the purchase, and 
‘‘(E) funding fees paid to the Department 
of Veterans Affairs in connection with the pur-
chase. 
‘‘(2) CREDIT TRANSFER MECHANISM.— 
‘‘(A) IN GENERAL.—Not less than 60 days 
after the date of the enactment of this sub-
section, the Secretary shall establish and imple-
ment a credit transfer mechanism for purposes 
of paragraph (1). Such mechanism shall require 
the Secretary to— 
‘‘(i) certify that the taxpayer is eligi-
ble to receive the credit provided by this 
section with respect to the purchase of a 
principal residence and that the transferee 
is eligible to receive the credit transfer, 
‘‘(ii) 
certify 
the 
credit 
transfer 
amount which will be paid to the trans-
feree, and 
VerDate Nov 24 2008 
07:07 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1119.IH
H1119
rfrederick on PROD1PC67 with BILLS
‘‘(iii) require any transferee that di-
rectly receives the credit transfer amount 
from the Secretary to notify the taxpayer 
within 14 days of the receipt of such 
amount. 
Any check, certificate, or voucher issued by the 
Secretary pursuant to this paragraph shall in-
clude the taxpayer identification number of the 
taxpayer and the address of the principal resi-
dence being purchased. For purposes of deter-
mining the credit transfer amount under clause 
(ii), the Secretary may estimate the taxpayer’s 
modified adjusted gross income for the taxable 
year (as described in subsection (b)(2)) based 
on the taxpayer’s modified adjusted gross in-
come (as so described) for the preceding taxable 
year. 
‘‘(B) TIMELY
RECEIPT.—The Secretary 
shall issue the credit transfer amount not less 
than 30 days after the date of the receipt of an 
application for a credit transfer. 
‘‘(3) PAYMENT OF INTEREST.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this title, the Secretary shall 
pay interest on any amount which is not paid 
VerDate Nov 24 2008 
07:07 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1119.IH
H1119
rfrederick on PROD1PC67 with BILLS