[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5962 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5962
To amend the Internal Revenue Code of 1986 to provide temporary housing
related tax relief for individuals, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 5, 2008
Mr. Mario Diaz-Balart of Florida (for himself, Mr. Davis of Illinois,
Mr. Lincoln Diaz-Balart of Florida, Mr. Tim Murphy of Pennsylvania, Mr.
Paul, Ms. Ros-Lehtinen, and Mr. Turner) 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 temporary housing
related tax relief for individuals, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Keep Our Homes Act of 2008''.
SEC. 2. TEMPORARY DEDUCTION FOR CERTAIN MORTGAGE COUNSELING.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to additional itemized
deductions) is amended by redesignating section 224 as section 225 and
by inserting after section 223 the following new section:
``SEC. 224. CERTAIN MORTGAGE COUNSELING.
``(a) In General.--In the case of an individual, there shall be
allowed as a deduction an amount equal to the amount paid or incurred
by the taxpayer during the taxable year for qualified mortgage
counseling.
``(b) Limitation.--The deduction allowed under subsection (a) shall
not exceed $500 for any taxable year.
``(c) Qualified Mortgage Counseling.--For purposes of this section,
the term `qualified mortgage counseling' means any mortgage counseling
provided by an organization accredited by the Federal Housing
Administration to provide such counseling if such counseling is
obtained before the issuance of the loan with respect to which such
counseling relates. Such term shall not include any counseling if such
counseling is provided with respect to a loan which is not secured by
the principal residence (within the meaning of section 121) of the
taxpayer.
``(d) Termination.--The deduction under this section shall not be
allowed with respect to any amount paid or incurred after December 31,
2012.''.
(b) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code is amended by inserting
before the last sentence the following new paragraph:
``(21) Certain mortgage counseling.--The deduction allowed
by section 224.''.
(c) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by redesignating the
item relating to section 224 as an item relating to section 225 and
inserting before such item the following new item:
``Sec. 224. Certain mortgage counseling.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 3. TEMPORARY DEDUCTION FOR UPSIDE DOWN MORTGAGES.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to additional itemized
deductions), as amended by this Act, is amended by redesignating
section 225 as section 226 and by inserting after section 224 the
following new section:
``SEC. 225. UPSIDE DOWN MORTGAGES.
``(a) In General.--In the case of an individual, there shall be
allowed as a deduction an amount equal to 20 percent of the excess (if
any) of--
``(1) the acquisition indebtedness (within the meaning of
section 163) as determined at the close of the taxable year
with respect to the principal residence (within the meaning of
section 121) of the taxpayer, over
``(2) the valuation (as in effect at the close of such
taxable year) of such residence as determined for purposes of
State and local real property tax assessments.
``(b) Limitation.--The deduction allowed under subsection (a) shall
not exceed $5,000 for any taxable year.
``(c) Denial of Benefit for Fraudulently Obtained Mortgages.--
Acquisition indebtedness shall not be taken into account under
subsection (a) if material misstatements were made by the taxpayer in
obtaining such indebtedness.
``(d) Termination.--The deduction under this section shall not be
allowed with respect to any amount paid or incurred after December 31,
2009.''.
(b) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code, as amended by this Act, is
amended by inserting before the last sentence the following new
paragraph:
``(22) Upside down mortgages.--The deduction allowed by
section 224.''.
(c) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of such Code, as amended by this Act, is
amended by redesignating the item relating to section 225 as an item
relating to section 226 and inserting before such item the following
new item:
``Sec. 225. Upside down mortgages.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 4. TEMPORARY 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
nonrefundable personal 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 the lesser of--
``(A) 10 percent of the purchase price of the
residence, or
``(B) $7,500 ($9,000 if such residence is in a high
cost area (as determined by the Secretary of Housing
and Urban Development)).
``(2) Allocation of credit amount.--The amount of the
credit allowed under paragraph (1) shall be equally divided
among the 2 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 the date of the enactment of this
section, and
``(B) before the date that is 12 months after such
date.
``(2) Limitation based on modified adjusted gross income.--
``(A) In general.--The amount allowable as a credit
under subsection (a) (determined without regard to this
paragraph) for the taxable year shall be reduced (but
not below zero) by the amount which bears the same
ratio to the amount which is so allowable as--
``(i) the excess (if any) of--
``(I) the taxpayer's modified
adjusted gross income for such taxable
year, over
``(II) $70,000 ($140,000 in the
case of a joint return), bears to
``(ii) $20,000.
``(B) Modified adjusted gross income.--For purposes
of subparagraph (A), the term `modified adjusted gross
income' means the adjusted gross income of the taxpayer
for the taxable year increased by any amount excluded
from gross income under section 911, 931, or 933.
``(3) 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 and section 23) for
the taxable year.
``(4) 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.--For purposes of this
section--
``(1) In general.--The term `qualified principal residence'
means any residence that is purchased to be the principal
residence of the purchaser.
``(2) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121.
``(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) Recapture in the Case of Certain Dispositions.--In the event
that a taxpayer--
``(1) disposes of the qualified principal residence with
respect to which a credit is allowed under subsection (a), or
``(2) fails to occupy such residence as the taxpayer's
principal residence,
at any time within 24 months after the date on which the taxpayer
purchased such residence, then the remaining portion of the credit
allowed under subsection (a) shall be disallowed in the taxable year
during which such disposition occurred or in which the taxpayer failed
to occupy the residence as a principal residence, and in any subsequent
taxable year in which the remaining portion of the credit would, but
for this subsection, have been allowed.
``(f) 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 `$3,500' for `$7,000' in paragraph (1)
thereof.
``(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
$7,000.
``(2) Purchase; purchase price.--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 for
purposes of this section.
``(3) Reporting requirement.--Rules similar to the rules of
section 1400C(f) (as so in effect) shall apply for purposes of
this section.
``(g) 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) Conforming Amendments.--
(1) Section 24(b)(3)(B) of the Internal Revenue Code of
1986 is amended by striking ``and 25B'' and inserting ``, 25B,
and 25E''.
(2) Section 25(e)(1)(C)(ii) of such Code is amended by
inserting ``25E,'' after ``25D,''.
(3) Section 25B(g)(2) of such Code is amended by striking
``section 23'' and inserting ``sections 23 and 25E''.
(4) Section 25D(c)(2) of such Code is amended by striking
``and 25B'' and inserting ``25B, and 25E''.
(5) Section 26(a)(1) of such Code is amended by striking
``and 25B'' and inserting ``25B, and 25E''.
(6) Section 904(i) of such Code is amended by striking
``and 25B'' and inserting ``25B, and 25E''.
(7) Subsection (a) of section 1016 of such Code is amended
by striking ``and'' at the end of paragraph (36), by striking
the period at the end of paragraph (37) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(38) to the extent provided in section 25E(g).''.
(8) Section 1400C(d)(2) of such Code is amended by striking
``and 25D'' and inserting ``25D, and 25E''.
(c) 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.''.
(d) Effective Date.--The amendments made by this section shall
apply to purchases in taxable years ending after the date of the
enactment of this Act.
(e) Application of EGTRRA Sunset.--The amendment made by subsection
(b)(1) shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 in the same manner as the provisions
of such Act to which such amendment relates.
SEC. 5. TEMPORARY ADDITIONAL STANDARD DEDUCTION FOR REAL PROPERTY TAXES
FOR NONITEMIZERS.
(a) In General.--Section 63(c)(1) of the Internal Revenue Code of
1986 (defining standard deduction) is amended by striking ``and'' at
the end of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at the end the
following new subparagraph:
``(C) in the case of any taxable year beginning in
2008 or 2009, the real property tax deduction.''.
(b) Definition.--Section 63(c) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(8) Real property tax deduction.--
``(A) In general.--For purposes of paragraph (1),
the real property tax deduction is so much of the
amount of the eligible State and local real property
taxes paid or accrued by the taxpayer during the
taxable year which do not exceed $500 ($1,000 in the
case of a joint return).
``(B) Eligible state and local real property
taxes.--For purposes of subparagraph (A), the term
`eligible State and local real property taxes' means
State and local real property taxes (within the meaning
of section 164), but only if the rate of tax for all
residential real property taxes in the jurisdiction has
not been increased at any time after April 2, 2008, and
before January 1, 2009.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 6. TEMPORARY EXCLUSION OF UNEMPLOYMENT COMPENSATION FROM GROSS
INCOME.
(a) In General.--Section 85 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(c) Temporary Exclusion.--Notwithstanding subsection (a), in the
case of unemployment compensation received by an individual during 2008
or 2009, gross income shall not include such compensation.''.
(b) Effective Date.--The amendments made by this section shall
apply to amounts received after December 31, 2007.
<all>