I 
108TH CONGRESS 
1ST SESSION H. R. 1952
To amend the Internal Revenue Code of 1986 to provide that the first-
time homebuyer credit for the District of Columbia be made permanent, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 5, 2003
Ms. NORTON 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 the first-time homebuyer credit for the District of 
Columbia be made permanent, 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. SHORT TITLE. 
This Act may be cited as the ‘‘District of Columbia 
$5000 Homebuyer Credit Act of 2003’’.
SEC. 2. FIRST-TIME HOMEBUYER CREDIT FOR DISTRICT OF 
COLUMBIA MADE PERMANENT; OTHER MODI-
FICATIONS. 
(a) CREDIT MADE PERMANENT.—Subsection (i) of 
section 1400C of the Internal Revenue Code of 1986 (re-
lating to first-time homebuyer credit for District of Co-
lumbia) is amended by striking ‘‘, and before January 1, 
2004’’. 
(b) TREATMENT
OF PURCHASES IN CONNECTION 
WITH DIVORCE.—
(1) IN
GENERAL.—Subsection (c) of section 
1400C of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(4) PURCHASES
IN
CONNECTION
WITH
DI-
VORCE.—Notwithstanding paragraphs (1) and (2), 
an individual shall be treated as a first-time home-
buyer with respect to the purchase of any residence 
if—
‘‘(A) the sale of the residence is pursuant 
to a divorce or separation instrument (as de-
fined in section 71(b)(2)) relating to such indi-
vidual and such individual’s spouse or former 
spouse, and 
‘‘(B) such residence was the principal resi-
dence of such individual at the time of such sale
or for any period ending not more than a rea-
sonable period before such sale. 
The Secretary shall prescribe such regulations as 
may be necessary to prevent the abuse of the pur-
poses of this paragraph.’’
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to purchases after the 
date of the enactment of this Act. 
(c) CREDIT ALLOWED AGAINST REGULAR TAX AND 
ALTERNATIVE MINIMUM TAX.—
(1) IN
GENERAL.—Subsection (d) of section 
1400C of such Code is amended to read as follows: 
‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.—
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for the taxable year shall not exceed 
the excess of—
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under subpart A of part IV of subchapter A 
and section 27 for the taxable year. 
‘‘(2) CARRYOVER OF CREDIT.—If the credit al-
lowable under subsection (a) exceeds the limitation 
imposed by paragraph (1) for such taxable year,
such excess shall be carried to the succeeding tax-
able year and added to the credit allowable under 
subsection (a) for such taxable year.’’
(2) 
CONFORMING
AMENDMENT.—Section 
1400C of such Code is amended by striking sub-
section (g) and by redesignating subsections (h) and 
(i) as subsections (g) and (h), respectively. 
(3) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to taxable years begin-
ning after the date of the enactment of this Act.
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