[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5565 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5565
To amend the Internal Revenue Code of 1986 to provide a Federal income
tax credit for certain home purchases.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 10, 2008
Mr. Wilson of South Carolina 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 a Federal income
tax credit for certain home purchases.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CREDIT FOR CERTAIN HOME PURCHASES.
(a) Allowance of Credit.--Subpart A 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 25D the following new
section:
``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual who is a
purchaser of a qualified principal residence during the taxable
year, there shall be allowed as a credit against the tax
imposed by this chapter an amount equal to so much of the
purchase price of the residence as does not exceed $15,000.
``(2) Allocation of credit amount.--The amount of the
credit allowed under paragraph (1) shall be equally divided
among the 3 taxable years beginning with the taxable year in
which the purchase of the qualified principal residence is
made.
``(b) Limitations.--
``(1) Date of purchase.--The credit allowed under
subsection (a) shall be allowed only with respect to purchases
made--
``(A) after February 29, 2008, and
``(B) before March 1, 2009.
``(2) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any 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 imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section) for the taxable year.
``(3) One-time only.--
``(A) In general.--If a credit is allowed under
this section in the case of any individual (and such
individual's spouse, if married) with respect to the
purchase of any qualified principal residence, no
credit shall be allowed under this section in any
taxable year with respect to the purchase of any other
qualified principal residence by such individual or a
spouse of such individual.
``(B) Joint purchase.--In the case of a purchase of
a qualified principal residence by 2 or more unmarried
individuals or by 2 married individuals filing
separately, no credit shall be allowed under this
section if a credit under this section has been allowed
to any of such individuals in any taxable year with
respect to the purchase of any other qualified
principal residence.
``(c) Qualified Principal Residence.--
``(1) In general.--For purposes of this section, the term
`qualified principal residence' means an eligible single-family
residence that is purchased to be the principal residence of
the purchaser.
``(2) Eligible single-family residence.--
``(A) In general.--For purposes of this subsection,
the term `eligible single-family residence' means a
single-family structure that is--
``(i) a new previously unoccupied residence
for which a building permit is issued and
construction begins on or before September 1,
2007,
``(ii) an owner-occupied residence with
respect to which the owner's acquisition
indebtedness (as defined in section
163(h)(3)(B), determined without regard to
clause (ii) thereof) is in default on or before
March 1, 2008, or
``(iii) a residence with respect to which a
foreclosure event has taken place and which is
owned by the mortgagor or the mortgagor's
agent.
``(B) Certification.--In the case of an eligible
single-family residence described in subparagraph
(A)(i), no credit shall be allowed under this section
unless the purchaser submits a certification by the
seller of such residence that such residence meets the
requirements of such subparagraph.
``(d) Denial of Double Benefit.--No credit shall be allowed under
this section for any purchase for which a credit is allowed under
section 1400C.
``(e) Special Rules.--
``(1) Joint purchase.--
``(A) Married individuals filing separately.--In
the case of 2 married individuals filing separately,
subsection (a) shall be applied to each such individual
by substituting `$7,500' for `$15,000' in subsection
(a)(1).
``(B) Unmarried individuals.--If 2 or more
individuals who are not married purchase a qualified
principal residence, the amount of the credit allowed
under subsection (a) shall be allocated among such
individuals in such manner as the Secretary may
prescribe, except that the total amount of the credits
allowed to all such individuals shall not exceed
$15,000.
``(2) Purchase.--In defining the purchase of a qualified
principal residence, rules similar to the rules of paragraphs
(2) and (3) of section 1400C(e) (as in effect on the date of
the enactment of this section) shall apply.
``(3) Reporting requirement.--Rules similar to the rules of
section 1400C(f) (as so in effect) shall apply.
``(f) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section with respect to the purchase of any
residence, the basis of such residence shall be reduced by the amount
of the credit so allowed.''.
(b) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25D the
following new item:
``Sec. 25E. Credit for certain home purchases.''.
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