To amend the Internal Revenue Code of 1986 to allow all individuals, whether or not first-time homebuyers, a refundable income tax credit for the purchase of a residence during 2009 or 2010.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Recovery Through 
Responsible Homeownership Act of 2009''.

SEC. 2. REFUNDABLE CREDIT FOR RESIDENCES PURCHASED DURING 2009 OR 2010.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by inserting after section 36 the following new section:

``SEC. 36A. GENERAL HOMEBUYER CREDIT FOR RESIDENCES PURCHASED DURING 
              2009 OR 2010.

    ``(a) Allowance of Credit.--In the case of an individual who makes 
an eligible purchase during the taxable year, there shall be allowed as 
a credit against the tax imposed by this subtitle for such taxable year 
an amount equal to so much of the purchase price as does not exceed the 
applicable amount.
    ``(b) Applicable Amount.--For purposes of subsection (a), the 
applicable amount is--
            ``(1) $10,000 in the case of an eligible purchase where the 
        down payment is at least 15 percent of the purchase price,
            ``(2) $5,000 in the case of an eligible purchase where the 
        down payment is at least 10 percent of the purchase price,
            ``(3) $2,000 in the case of an eligible purchase where the 
        down payment is at least 5 percent of the purchase price, and
            ``(4) zero in any other case.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible purchase.--The term `eligible purchase' 
        means the purchase of a residence for the taxpayer if--
                    ``(A) such residence is located in the United 
                States,
                    ``(B) the construction of such residence began 
                before 2009, and
                    ``(C) such purchase is made by the taxpayer during 
                2009 or 2010.
            ``(2) Other definitions.--The terms `purchase' and 
        `purchase price' have the respective meanings given such terms 
        by section 26(c).
    ``(d) Exceptions.--No credit shall be allowed under subsection (a) 
to any taxpayer for any taxable year with respect to the purchase of a 
residence if--
            ``(1) credit under section 36 (relating to first-time 
        homebuyer credit) or 1400C (relating to first-time homebuyer in 
        the District of Columbia) is allowed to the taxpayer (or the 
        taxpayer's spouse) for such taxable year or any prior taxable 
        year,
            ``(2) the residence is financed by the proceeds of a 
        qualified mortgage issue the interest on which is exempt from 
        tax under section 103,
            ``(3) the taxpayer is a nonresident alien, or
            ``(4) the taxpayer disposes of such residence (or such 
        residence ceases to be a residence of the taxpayer (or, if 
        married, the taxpayer's spouse)) before the close of such 
        taxable year.
    ``(e) Other Rules To Apply.--
            ``(1) Related persons.--Rules similar to the rules of 
        section 26(c)(5) shall apply for purposes of this section.
            ``(2) Married individuals filing separate returns, etc.--
        Rules similar to the rules of subparagraphs (B) and (C) of 
        section 26(b)(1) shall apply for purposes of this section.
            ``(3) Reporting.--Rules similar to the rules of section 
        26(e) shall apply for purposes of this section.
    ``(f) Recapture of Credit.--Rules similar to the rules of section 
26(f) shall apply for purposes of this section, except that--
            ``(1) paragraph (1) thereof shall be applied by 
        substituting `33\1/3\ percent' for `6\2/3\ percent', and
            ``(2) paragraph (7) thereof shall be applied by 
        substituting `3 years' for `15 years'.''.
    (b) Conforming Amendments.--
            (1) Section 26(b)(2) of such Code is amended--
                    (A) in subparagraph (W)--
                            (i) by striking ``homebuyer credit'' and 
                        inserting ``first-time homebuyer credit'', and
                            (ii) by striking ``and'',
                    (B) by striking the period at the end of 
                subparagraph (X) and inserting ``, and'', and
                    (C) by inserting after subparagraph (X) the 
                following new subparagraph:
                    ``(Y) section 36A(f) (relating to recapture of 
                general homebuyer credit)''.
            (2) Section 6211(b)(4)(A) of such Code is amended by 
        inserting ``36A,'' after ``36,''.
            (3) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``36A,'' after ``36,''.
            (4) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 36 the following new item:

``Sec. 36A. General homebuyer credit for residences purchased during 
                            2009 or 2010.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to residences purchased after December 31, 2008, in taxable years 
ending after such date.

Summary: Economic Recovery Through Responsible Homeownership Act of 2009 - Amends the Internal Revenue Code to allow an individual taxpayer a refundable tax credit for the purchase in 2009 or 2010 of a residence located in the United States if the construction of such residence began before 2009. Allows a credit of either $2,000, $5,000, or $10,000 for downpayments of 5, 10, or 15% of the residence's purchase price respectively.