,,ii  #aae? ,,congress  #b;d ,session   
,s4 #cbej  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ai1 #bjah,ms4   
,h>ris 7= h]self1 ,mrs4 ,fe9/e91 ,mr4   
,blum5?al1 & ,ms4 ,hassan7 introduc$ !  
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,f9ance  ,a ,,bill   
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to all[ = a cr$it aga9/ tax = r5t 
paid on ! p]sonal resid5ce ( ! taxpay]4 
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,r5t ,relief ,act ( #bjah4  #b4       
,refundable cr$it = r5t paid = pr9cipal 
resid5ce  7a7 ,9 g5]al ,subp>t ,c ( "p  
,,iv ( sub*apt] ,a ( *apt] #a ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #cf;,b ! foll[+  
new section3  #cf;,c4 ,r5t paid =       
pr9cipal resid5ce  7a7 ,9 g5]al ,9 !    
case ( an individual :o leases !        
individual's pr9cipal resid5ce 7)9 !    
mean+ ( section #aba7 dur+ ! taxable ye>
 & :o pays r5t ) respect to su* resid5ce
 9 excess ( #cj p]c5t ( ! taxpay]'s     
gross income = su* taxable ye>1 !re %all

 be all[$ z a cr$it aga9/ ! tax impos$  
by ?is subtitle = su* taxable ye> an    
am\nt equal to ! applicable p]c5tage (  
su* excess4  7b7 ,cr$it limit$ by #aej  
p]c5t ( fair m>ket r5t ,solely =        
purposes ( det]m9+ ! am\nt ( ! cr$it    
all[$ "u subsection 7a7 ) respect to a  
resid5ce = ! taxable ye>1 !re %all n be 
tak5 into acc\nt r5t 9 excess ( an am\nt
 equal to #aej p]c5t ( ! fair m>ket r5t 
7includ+ ! utility all[ance7 applicable 
to ! resid5ce involv$ 7z mo/ rec5tly    
publi%$1 z ( ! beg9n+ ( ! taxable ye>1  
by ! ,dep>tm5t ( ,h\s+ & ,urban         
,developm5t74  7c7 ,def9itions & special
 rules ,= purposes ( ?is section-- 7#a7 
,applicable p]c5tage  7,a7 ,9 g5]al     
,except z provid$ 9 subp>agraph 7,b71 ! 
applicable p]c5tage %all be det]m9$ 9   
accordance ) ! foll[+ table3 ,!         
applicable,if gross income is3p]c5tage  
is3,n ov] #be1jjjajj percent,over       
#be1jjj1 b n ov] #ej1jjjge percent,over 
#ej1jjj1 b n ov] #ge1jjjej percent,over 
#ge1jjj1 b n ov] #ajj1jjjbe percent,over

 #ajj1jjjj p]c5t4  7,b7 ,high-co/ areas 
,9 ! case ( an individual ^: pr9cipal   
resid5ce is locat$ 9 an area = :i*1 "u !
 rule publi%$ 9 ! ,f$]al ,regi/] on     
,novemb] #af1 #bjaf 7#ha ,f$4 ,reg4     
#hjefg71 ! small area fair m>ket r5t is 
us$ = purposes ( ! ,h\s+ ,*oice ,v\*]   
,program1 ! table conta9$ 9 subp>agraph 
7,a7 %all be appli$ by sub/itut+        
#abe1jjj = #ajj1jjj ea* place x appe>s4 
7#b7 ,p>tial ye> resid5ce ,! ,secret>y  
%all prescribe su* rules z are necess>y 
to c>ry out ! purposes ( ?is section =  
taxpay]s ) respect to :om a resid5ce is 
a pr9cipal resid5ce = only a portion ( !
 taxable ye>4  7#c7 ,special rule =     
individuals resid+ 9 gov]nm5t-subsidiz$ 
h\s+ ,9 ! case ( a pr9cipal resid5ce--  
7,a7 ! r5t ) respect to :i* is subsidiz$
 "u a ,f$]al1 ,/ate1 local1 or tribal   
program1 &  7,b7 ) respect to :i* !     
taxpay] elects ! application ( ?is      
p>agraph1  9 lieu ( ! cr$it det]m9$ "u  
subsection 7a71 !re %all be all[$ z a   
cr$it aga9/ ! tax impos$ by ?is subtitle

 = su* taxable ye> an am\nt equal to    
#a_/ab ( ! am\nt ( r5t paid by ! taxpay]
 7& n subsidiz$ "u any su* program7 dur+
 ! taxable ye> ) respect to su*         
resid5ce4  7#d7 ,r5t ,! t]m r5t includes
 any am\nt paid = utilities ( a type    
tak5 into acc\nt = purposes ( det]m9+ ! 
utility all[ance "u section             
#db7;g77#b77;,b77ii74  4  7b7 ,cl]ical  
am5dm5t ,! table ( sections = subp>t ,c 
( "p ,,iv ( sub*apt] ,a ( *apt] #a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#cf;,b ! foll[+ new item3  ,sec4 #cf;,c4
 ,r5t paid = pr9cipal resid5ce4  4  7c7 
,effective date ,! am5dm5ts made by ?is 
section %all apply ) respect to taxable 
ye>s beg9n+ aft] ,decemb] #ca1 #bjag4