Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Problem:SECTION 1. SHORT TITLE.

This Act may be cited as the ''American Heroes' Homeownership
Assistance Act of 2008''.

SEC. 2. QUALIFIED SERVICE MEMBER HOMEBUYER CREDIT.

(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by redesignating
section 36 as section 37 and by inserting after section 35 the
following new section:

''SEC. 36. QUALIFIED SERVICE MEMBER HOMEBUYER CREDIT.

''(a) Allowance of Credit.--In the case of a qualified service
member, or such service member's surviving spouse, who purchases a
principal residence, there shall be allowed to the taxpayer a credit
against the tax imposed by this chapter an amount equal to 10 percent
of the purchase price of such residence.
''(b) Limitations.--
''(1) In general.--Except as otherwise provided in this
paragraph, the credit allowed under subsection (a) shall not
exceed $7,500.
''(2) Married individuals filing separately.--In the case
of a married individual filing a separate return, paragraph (1)
shall be applied by substituting '$3,750' for '$7,500'.
''(3) Other individuals.--If two or more individuals who
are not married purchase a principal residence, the amount of
the credit allowed under subsection (a) shall be allocated
among such individuals in such a manner as the Secretary may
prescribe, except that the total amount of the credits allowed
to all such individuals shall not exceed $7,500.
''(4) One-time only.--If an individual receives a credit
under subsection (a) for the purchase of a principal residence,
such individual shall not be allowed a credit under subsection
(a) with respect to the purchase of any other principal
residence. The preceding sentence shall not apply to a
principal residence with respect to which a credit is allowed
under subsection (a) and to which subsection (e)(1) applies.
''(c) Definitions.--
''(1) Qualified service member.--The term 'qualified
service member' means a current or former service member who
performs duty in a combat zone between the years 2001 and 2010.
''(2) Service member.--The term 'service member' means a
member of the uniformed services (as defined in section
101(a)(5) of title 10, United States Code).
''(3) Combat zone.--The term 'combat zone' has the meaning
given such term by section 112(c)(2).
''(4) Principal residence.--The term 'principal residence'
has the same meaning as when used in section 121.
''(5) Purchase.--
''(A) In general.--The term 'purchase' means any
acquisition, but only if--
''(i) the property is not acquired from a
person related to the person acquiring it, and
''(ii) the basis of the property in the
hands of the person acquiring it is not
determined--
''(I) in whole or part by reference
to the adjusted basis of such property
in the hands of the person from whom
acquired it, or
''(II) under section 1014(a)
(relating to property acquired from a
decedent).
''(B) Construction.--A residence which is
constructed by the taxpayer shall be treated as
purchased by the taxpayer on the date the taxpayer
first occupies the residence.
''(6) Purchase price.--The term 'purchase price' means the
adjusted basis of the principal residence on the date such
residence is purchased.
''(7) Related persons.--A person shall be treated as
related to another person if the relationship between such
persons would result in the disallowance of losses under
section 267 or 707(b) (but in applying section 267(b) and (c)
for purposes of this section, paragraph (4) of section 267(c)
shall be treated as providing that the family of an individual
shall include only his spouse, ancestors, and lineal
descendants).
''(d) Exceptions.--No credit under subsection (a) shall be allowed
to any taxpayer for any taxable year with respect to the purchase of a
residence if--
''(1) the residence is financed by the proceeds of a
qualified mortgage issue, the interest on which is exempt from
tax under section 103,
''(2) the taxpayer is a nonresident alien, or
''(3) the taxpayer disposes of such residence (or such
residence ceases to be the principal residence of the taxpayer
(and, if married, the taxpayer's spouse)) before the close of
such taxable year.
''(e) Recapture of Credit.--
''(1) In general.--Except as otherwise provided in this
subsection, if a taxpayer disposes of the principal residence
with respect to which a credit was allowed under subsection (a)
(or such residence ceases to be the principal residence of the
taxpayer) before the end of the recapture period, the taxpayer
shall take into gross income an amount equal to one half the
credit allowed under subsection (a) in the first taxable year
following such disposal or cessation and one half in the second
taxable year following such disposal or cessation.
''(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.--Paragraph (1) shall
not apply in the case of a residence which is
compulsorily or involuntarily converted (within the
meaning of section 1033(a)) if the taxpayer acquires a
new principal residence during the 2-year period
beginning on the date of the disposition or cessation
referred to in paragraph (1). Paragraph (1) shall apply
to such new principal residence during the recapture
period in the same manner as if such new principal
residence were the converted residence.
''(C) Transfers between spouses or incident to
divorce.--In the case of a transfer of a residence to
which section 1041(a) applies--
''(i) paragraph (1) shall not apply to such
transfer, and
''(ii) in the case of taxable years ending
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) Acquisition of new principal residence.--
Paragraph (1) shall not apply if the taxpayer acquires
a new principal residence during the 2-year period
beginning on the date of the disposition. Paragraph (1)
shall apply to such new principal residence during the
recapture period in the same manner as if such new
principal residence were the disposed residence.
''(3) Recapture period.--For purposes of this subsection,
the term 'recapture period' means the taxable year following
the taxable year for which a credit is allowed under subsection
(a).
''(4) 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.
''(f) Application of Section.--This section shall only apply to
principal residences purchased by the taxpayer before January 1,
2011.''.
(b) Conforming Amendments.--
(1) Section 26(b)(2) of such Code is amended by striking
''and'' at the end of subparagraph (U), by striking the period
and inserting '', and'' at the end of paragraph (V), and by
inserting after subparagraph (V) the following new
subparagraph:
''(W) section 36(e) (relating to recapture of
qualified service member homebuyer credit).''.
(2) Section 6211(b)(4)(A) of such Code is amended by
striking ''34'' and all that follows through ''6428'' and
inserting ''34, 35, 36, 53(e), and 6428''.
(3) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting'', 36'' after ''section 35''.
(4) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by redesignating the item relating to section 36 as
an item relating to section 37 and by inserting before such
item the following new item:

''Sec. 36. Qualified Service Member Homebuyer Credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to principal residences purchased by the taxpayer on or after the
date of enactment of this Act.
Solution:
American Heroes' Homeownership Assistance Act of 2008 - Amends the Internal Revenue Code to allow current or former members of the Uniformed Services who perform duty in a combat zone between 2001 and 2010, or their surviving spouses, a one-time tax credit for 10% of the purchase price of a principal residence, up to $7,500. Limits such credit to residences purchased before January 1, 2011.