,,ii #aaeth ,,congress #b;d ,session ,s4 #ccfd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #bb1 #bjah,mr4 ,wyden introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to create a refundable first-time homebuyer tax credit4 #a4 ,short title ,this ,act may be cited as the ,first-,time ,homebuyer ,credit ,act of #bjah4 #b4 ,first-time homebuyer refundable credit 7a7 ,in general ,section #cf of the ,internal ,revenue ,code of #aihf is amended to read as follows3 #cf4 ,first-time homebuyer refundable credit 7a7 ,allowance of credit ,in the case of an individual who is a first-time homebuyer of a principal residence in the ,united ,states during a taxable year1 there shall be allowed as a credit against the tax imposed by this subtitle for such taxable year an amount equal to #b4e percent of the purchase price of the residence4 7b7 ,limitations2 special rules based on marital and filing status 7#a7 ,dollar limitation ,the credit allowed under subsection 7a7 shall not exceed #aj1jjj4 7#b7 ,limitation based on purchase price ,the amount allowable as a credit under subsection 7a7 7determined without regard to this paragraph and paragraph 7#c71 and after the application of paragraph 7#a77 for the taxable year shall be reduced 7but not below zero7 by the amount which bears the same ratio to the amount which is so allowable as-- 7,a7 the excess 7if any7 of-- 7i7 the purchase price of the residence1 over 7ii7 #fjj1jjj1 bears to 7,b7 #ajj1jjj4 7#c7 ,limitation based on modified adjusted gross income 7,a7 ,in general ,the amount allowable as a credit under subsection 7a7 7determined without regard to this paragraph and after the application of paragraphs 7#a7 and 7#b77 for the taxable year shall be reduced 7but not below zero7 by the amount which bears the same ratio to the amount which is so allowable as-- 7i7 the excess 7if any7 of-- 7,i7 the taxpayer's modified adjusted gross income for such taxable year1 over 7,,ii7 #hj1jjj 7#afj1jjj in the case of a joint return71 bears to 7ii7 #bj1jjj4 7,b7 ,modified adjusted gross income ,for purposes of subparagraph 7,a71 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 #iaa1 #ica1 or #icc4 7#d7 ,age limitation ,no credit shall be allowed under subsection 7a7 with respect to the purchase of any residence for a taxable year if-- 7,a7 the taxpayer has not attained age #ah as of the date of such purchase1 or 7,b7 a deduction under section #aea with respect to the taxpayer is allowable to another taxpayer for the taxable year4 ,in the case of a taxpayer who is married1 the taxpayer shall be treated as meeting the age requirement of subparagraph 7,a7 if the taxpayer or the taxpayer's spouse meets such age requirement4 7#e7 ,multiple purchasers ,if two or more individuals who are not married purchase a principal residence1 the amount of the credit under subsection 7a7 shall be allocated among such individuals in such manner as the ,secretary may prescribe by taking into account the requirements of paragraphs 7#b7 and 7#c71 except that the total amount of the credits allowed to all such individuals shall not exceed #aj1jjj4 7#f7 ,married couples must file joint return ,if an individual is married at the close of the taxable year1 the credit shall be allowed under subsection 7a7 only if the individual and the individual's spouse file a joint return for the taxable year4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,first-time homebuyer 7,a7 ,in general ,the term first-time homebuyer means any individual who acquires a principal residence by purchase if such individual 7and1 if married1 such individual's spouse7-- 7i7 has not claimed any credit or deduction under this title for any previous taxable year with respect to the purchase or ownership of any residence or residential real estate 7including for any expenditures relating to the placing in service of any property on1 in connection with1 or for use in such a residence or real estate71 and 7ii7 attests under penalty of perjury that-- 7,i7 the individual 7and1 if married1 the individual's spouse7 has not owned a principal residence at any time prior to the purchase of the principal residence to which this section applies1 and 7,,ii7 the principal residence to which this section applies was not acquired from a person related to such individual or spouse4 7,b7 ,waiver in case of certain changes in status ,the ,secretary may1 in such manner as the ,secretary may prescribe1 waive the requirements of subparagraph 7,a7 for a taxable year in the case of an individual who is not eligible to file a joint return for the taxable year1 and who was married at the time the individual or the individual's former spouse purchased a previous residence4 7#b7 ,principal residence ,the term principal residence has the same meaning as when used in section #aba4 7#c7 ,purchase 7,a7 ,in general ,the term purchase means any acquisition1 but only if-- 7i7 the property is not acquired from a person related to the person acquiring such property 7or1 if either such person is married1 such individual's spouse71 and 7ii7 the basis of the property in the hands of the person acquiring such property is not determined-- 7,i7 in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired1 or 7,,ii7 under section #ajad7;a74 7,b7 ,construction ,a residence which is constructed by the taxpayer shall be treated as purchased by the taxpayer on the date the taxpayer first occupies such residence4 7#d7 ,purchase price ,the term purchase price means the adjusted basis 7without regard to any reduction under section #ajaf7;a77#ch77 of the principal residence on the date such residence is purchased4 7#e7 ,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 #bfg or #gjg7;b7 7but1 in applying subsections 7b7 and 7c7 of section #bfg for purposes of this section1 paragraph 7#d7 of section #bfg7;c7 shall be treated as providing that the family of an individual shall include only the individual's spouse1 ancestors1 lineal descendants1 and spouse's ancestors and lineal descendants74 7#f7 ,marital status ,an individual's marital status shall be determined in accordance with section #ggjc4 7d7 ,denial and recapture rules in case of disposal of residence within #e taxable years 7#a7 ,denial of credit in case of disposal within taxable year ,no credit under subsection 7a7 shall be allowed to any taxpayer for any taxable year with respect to the purchase of a residence if the taxpayer disposes of such residence 7or such residence ceases to be the principal residence of the taxpayer 7and1 if married1 the taxpayer's spouse77 before the close of such taxable year4 7#b7 ,partial recapture 7,a7 ,in general ,except as provided in subparagraph 7,d71 if the taxpayer disposes of the residence with respect to which a credit was allowed under subsection 7a7 7or such residence ceases to be the principal residence of the taxpayer 7and1 if married1 the taxpayer's spouse77 during the #d-taxable-year period beginning with the taxable year immediately following the credit year1 the tax imposed by this chapter for the taxable year in which such disposal 7or cessation7 occurs shall be increased by an amount equal to the recapture percentage of the amount of the credit so allowed4 7,b7 ,credit year ,for purposes of subparagraph 7,a71 the term credit year means the taxable year in which the credit under subsection 7a7 was allowed4 7,c7 ,recapture percentage ,for purposes of subparagraph 7,a71 the recapture percentage with respect to any disposal or cessation described in such subparagraph shall be determined in accordance with the following table3 ,if the disposal or cessation,the recapture occurs in3percentage is3,the #ast taxable year beginning after the credit year #hj percent,the #bnd taxable year beginning after the credit year #fj percent,the #crd taxable year beginning after the credit year#dj percent,the #dth taxable year beginning after the credit year#bj percent4 7,d7 ,exceptions ,this paragraph shall not apply in the case of a disposal or cessation described in subparagraph 7,a7 which occurs after or incident to any of the following3 7i7 ,death of the taxpayer or the taxpayer's spouse4 7ii7 ,divorce of the taxpayer4 7iii7 ,involuntary conversion of the residence 7within the meaning of section #aba7;d77#e77;,a774 7iv7 ,relocation of duty station or qualified official extended duty 7as defined in section #aba7;d77#i77;,c77 of the taxpayer or the taxpayer's spouse who is a member of the uniformed services 7as defined in section #aba7;d77#i77;,c77ii771 a member of the ,foreign ,service of the ,united ,states 7as defined in section #aba7;d77#i77;,c77iii771 or an employee of the intelligence community 7as defined in section #aba7;d77#i77;,c77iv774 7v7 ,change of employment of the taxpayer or the taxpayer's spouse which meets the conditions of section #bag7;c74 7vi7 ,loss of employment1 health conditions1 or such other unforeseen circumstances as may be specified by the ,secretary4 7e7 ,adjustment to basis ,for purposes of this subtitle1 if a credit is allowed under this section with respect to any property1 the taxpayer's basis in such property shall be reduced by the amount of the credit so allowed4 7f7 ,reporting 7#a7 ,in general ,a credit shall be allowed under this section only if the following are included on the return of tax3 7,a7 ,the individual's 7and1 if married1 the individual's spouse's7 social security number issued by the ,social ,security ,administration4 7,b7 ,the street address 7not including a post office box7 of the principal residence purchased4 7,c7 ,the purchase price of the principal residence4 7,d7 ,the date of purchase of the principal residence4 7,e7 ,the closing disclosure relating to the purchase 7in the case of a purchase financed by a mortgage74 7#b7 ,reporting of real estate transactions ,if the ,secretary requires information reporting under section #fjde by a person described in subsection 7e77#b7 thereof to verify the eligibility of taxpayers for the credit allowable by this section1 the exception provided by section #fjde7;e77#e7 shall not apply4 4 7b7 ,conforming amendment relating to basis adjustment ,subsection 7a7 of section #ajaf of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking and at the end of paragraph 7#cf71 7#b7 by striking the period at the end of paragraph 7#cg7 and inserting 1 and1 and 7#c7 by adding at the end the following new paragraph3 7#ch7 to the extent provided in section #cf7;e74 4 7c7 ,conforming amendment ,section #bf7;b77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking subparagraph 7,w7 and by redesignating subparagraphs 7,x7 and 7,y7 as subparagraphs 7,w7 and 7,x71 respectively4 7d7 ,clerical amendment ,the item relating to section #cf in the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended to read as follows3 ,sec4 #cf4 ,first-time homebuyer refundable credit4 4 7e7 ,authority ,to treat claim of credit as error1 etc ,subparagraph 7,n7 of section #fbac7;g77#b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,n7 in the case of a return claiming the credit under section #cf-- 7i7 the omission of a social security number required under section #cf7;f77#a77;,a71 7ii7 the inclusion of a social security number so required if-- 7,i7 the claim of the credit on the return reflects the treatment of such individual as being of an age different from the individual's age based on such social security number1 or 7,,ii7 except as provided in section #cf7;c77#a77;,b71 such social security number has been included 7other than as a dependent for purposes of section #aea7 on a return for any previous taxable year claiming any credit or deduction described in section #cf7;c77#a77;,a77i71 7iii7 the omission of any other required information or documentation described in section #cf7;f77#a71 including the inclusion of a post office box instead of a street address for the purchased residence1 7iv7 the inclusion of any information or documentation described in clause 7iii7 if such information or documentation does not support a valid claim for the credit1 or 7v7 a claim of such credit for a taxable year with respect to the purchase of a residence made after the last day of such taxable year1 or 4 7f7 ,,irs recordkeeping ,notwithstanding the limitations on assessment and collection under section #feja of the ,internal ,revenue ,code of #aihf1 the ,commissioner of ,internal ,revenue shall maintain in perpetuity records of returns and return information 7as defined in section #fajc7;b77#b7 of such ,code7 of any taxpayer claiming the credit under section #cf of such ,code 7as amended by this section7 for the taxable year in which such credit is claimed and succeeding taxable years4 ,the ,commissioner may1 in the ,commissioner's discretion1 discard such records within a reasonable amount of time after the death of such taxpayer 7and1 if married1 the taxpayer's spouse74 7g7 ,effective date ,the amendments made by this section shall apply to residences purchased in taxable years beginning after ,december #ca1 #bjah4