,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #cdge  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #ag1 #bjbe,mr4   
,fitzpatrick 7= himself & ,mr4 ,gold5 ( 
,ma9e7 introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to e/abli% a new fir/-"t 
homebuy] cr$it & to e/abli% ! />t] home 
con/ruction cr$it4  #a4 ,%ort title ,?is
 ,act may be cit$ z ! ,bip>tisan        
,am]ican ,home[n]%ip ,opportunity ,act (
 #bjbe4  #b4 ,fir/-"t homebuy] cr$it    
7a7 ,9 g5]al ,section #cf ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  #cf4 ,fir/-"t homebuy] cr$it  
7a7 ,9 g5]al ln ! case ( an individual  
:o is a fir/-"t homebuy] ( a pr9cipal   
resid5ce 9 ! ,unit$ ,/ates dur+ a       
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 s mu* 
( ! am\nt ( ! d[n paym5t paid by su*    
taxpay] to pur*ase su* pr9cipal resid5ce
 z does n exce$ #ej1jjj4  7b7           

,limitation  7#a7 ,9 g5]al ,! am\nt     
all[able z a cr$it "u subsection 7a7    
7det]m9$ )\t reg>d to ?is p>agraph7 = ! 
taxable ye> %all be r$uc$ 7b n bel[ z]o7
 by ! am\nt :i* be>s ! same ratio to !  
am\nt :i* is s all[able z-- 7,a7 !      
excess 7if any7 (-- 7i7 ! taxpay]'s     
modifi$ adju/$ gross income = ! prec$+  
taxable ye>1 ov]  7ii7 ! applicable     
?re%old am\nt1 be>s to--  7,b7 #ajj1jjj 
7#b7 ,?re%old am\nt ,= purposes ( ?is   
subsection1 ! t]m ?re%old am\nt means-- 
7,a7 #cjj1jjj 9 ! case ( a jo9t return  
or surviv+ sp\se1  7,b7 #bbe1jjj 9 !    
case ( a head ( h\sehold1 or  7,c7      
#aej1jjj 9 ! case ( any o!r individual4 
7#c7 ,modifi$ adju/$ gross income ,=    
purposes ( p>agraph 7#a71 ! t]m modifi$ 
adju/$ gross income means ! adju/$ gross
 income ( ! taxpay] = ! taxable ye>     
increas$ by any am\nt exclud$ f gross   
income "u section #iaa1 #ica1 or #icc4  
7c7 ,exceptions ,no cr$it "u subsection 
7a7 %all be all[$ to any taxpay] = any  
taxable ye> ) respect to ! pur*ase ( a  

resid5ce if-- 7#a7 ! taxpay] is a       
nonresid5t ali51  7#b7 ! taxpay]        
disposes ( su* resid5ce 7or su* resid5ce
 ceases to be ! pr9cipal resid5ce ( !   
taxpay] 7&1 if m>ri$1 ! taxpay]'s       
sp\se77 be=e ! close ( su* taxable ye>1 
7#c7 a d$uction "u section #aea )       
respect to su* taxpay] is all[able to   
ano!r taxpay] = su* taxable ye>1 or     
7#d7 ! taxpay] fails to atta* to !      
return ( tax = su* taxable ye> a prop]ly
 execut$ copy ( ! settlem5t /atem5t us$ 
to complete su* pur*ase4  7d7 ,election 
= advanc$ paym5t  7#a7 ,9 g5]al ,at !   
election ( ! fir/-"t homebuy]1 !        
,secret>y %all transf] to a qualify+    
escr[ acc\nt an am\nt equal to ! am\nt t
 is all[able to su* fir/-"t homebuy] "u 
subsection 7a7 9 ! pres5t taxable ye>4  
7#b7 ,treatm5t ( transf] ,! am\nt ( !   
cr$it all[$ "u subsection 7a7 to any    
taxpay] = any taxable ye> %all be r$uc$ 
7b n bel[ z]o7 by ! aggregate am\nt (   
paym5ts made "u ?is subsection at !     
election ( su* taxpay] dur+ su* taxable 

ye>4 ,any failure to s r$uce ! cr$it    
%all be treat$ z aris+ out ( a          
ma!matical or cl]ical error & assess$   
accord+ to section #fbac7;b77#a74  7#c7 
,qualify+ escr[ acc\nt ,= purposes ( ?is
 subsection1 ! t]m qualify+ escr[ acc\nt
 means an escr[ acc\nt e/abli%$ = !     
pur*ase ( a pr9cipal resid5ce by a      
qualifi$ fir/-"t homebuy] t meets !     
foll[+ requirem5ts3 7,a7 ,am\nts 9 su*  
acc\nt may only be us$ = a d[n paym5t on
 a pur*ase ) respect to :i* a cr$it is  
all[$ "u subsection 7a74  7,b7 ,su*     
acc\nt is adm9i/]$ by a bank 7z def9$ 9 
section #djh;,a 7n774  7,c7 ,!          
adm9i/rator ( ! acc\nt %all transf] to !
 ,secret>y any am\nt 9 su* acc\nt n us$ 
"u subp>agraph 7,a7 on ! e>li] (-- 7i7 !
 date t is #ahj days aft] ! date on :i* 
su* am\nt 0 transf]r$ to su* acc\nt "u  
p>agraph 7#a71 or  7ii7 z soon z        
practicable ^u reque/ ( ! qualifi$      
fir/-"t homebuy]4  7e7 ,recapture (     
cr$it  7#a7 ,9 g5]al lf1 dur+ any       
taxable ye>1 !re is a recapture ev5t )  

respect to any prop]ty ) respect to :i* 
a cr$it 0 all[$ "u subsection 7a71 !n ! 
tax ( ! taxpay] to :om su* cr$it 0 all[$
 "u ?is *apt] = su* taxable ye> %all be 
increas$ by an am\nt equal to ! am\nt ( 
! cr$it t 0 all[$ ) respect to su*      
prop]ty4  7#b7 ,recapture ev5t ,=       
purposes ( ?is section1 ! t]m recapture 
ev5t means1 dur+ ! #e-ye> p]iod beg9n+  
on ! date ( ! pur*ase ) respect to :i* a
 cr$it 0 all[$ "u subsection 7a7-- 7,a7 
! sale1 lease to a ?ird p>ty1 or        
disposition ( any "p ( ! prop]ty )      
respect to :i* su* cr$it 0 all[$1 or    
7,b7 su* prop]ty ceases to be ! pr9cipal
 resid5ce ( ! taxpay] 7or1 9 ! case ( a 
jo9t return1 ( ! taxpay]'s sp\se74  7#c7
 ,exceptions ,p>agraph 7#a7 %all n apply
 to any ( ! foll[+3 7,a7 ,pur*ase ( new 
prim>y resid5ce  7i7 ,9 g5]al ,a sale ( 
a prop]ty ) respect to :i* a cr$it 0    
all[$ "u subsection 7a7 :i* is incid5t  
to ! pur*ase by a taxpay] ( a new prim>y
 resid5ce if ! proce$s ( su* sale are   
us$ to c>ry out ! pur*ase ( su* new     

prim>y resid5ce4  7ii7 ,treatm5t ( new  
prim>y resid5ce ln ! case ( a pur*ase ( 
a prim>y resid5ce describ$ 9 clause 7i71
 = purposes ( p>agraph 7#a71 su* prim>y 
resid5ce %all be treat$ z a prop]ty )   
respect to :i* a cr$it 0 all[$ "u       
subsection 7a71 except t ! p]iod        
describ$ 9 p>agraph 7#b7 %all beg9 on ! 
date on :i* ! orig9al pur*ase ) respect 
to :i* ! cr$it 0 all[$ "u subsection 7a7
 occurr$4  7,b7 ,dea? ,any taxable ye>  
end+ aft] ! dea? ( ! taxpay] 7or1 9 !   
case ( a jo9t return1 ( ! sp\se ( !     
taxpay]74  7,c7 ,divorce ,a transf] ( a 
resid5ce to :i* section #ajda7;a7       
applies4  7,d7 ,gov]nm5t ord]s ,a       
recapture ev5t relat+ to a pr9cipal     
resid5ce occurr+ 9 connection )         
,gov]nm5t ord]s receiv$ by su*          
individual1 or su* individual's sp\se1 =
 qualifi$ (ficial ext5d$ duty s]vice4   
7,e7 ,qualifi$ (ficial ext5d$ duty      
s]vice ,= purposes ( ?is p>agraph1 ! t]m
 qualifi$ (ficial ext5d$ duty s]vice    
means s]vice on qualifi$ (ficial ext5d$ 

duty z-- 7i7 a memb] ( ! uni=m$ s]vices1
  7ii7 a memb] ( ! ,=eign ,s]vice ( !   
,unit$ ,/ates1 or  7iii7 an employee ( !
 intellig5ce community4  7f7 ,def9itions
 ,= purposes ( ?is section-- 7#a7       
,fir/-"t homebuy] ,! t]m fir/-"t        
homebuy] means any individual if su*    
individual 7& if m>ri$1 su* individual's
 sp\se7-- 7,a7 _h no pres5t own]%ip     
int]e/ 9 a pr9cipal resid5ce dur+ !     
#aj-ye> p]iod end+ on ! date ( ! pur*ase
 ( ! pr9cipal resid5ce to :i* ?is       
section applies1  7,b7 has n be5 all[$ a
 cr$it "u subsection 7a7 = any prec$+   
taxable ye>1 &  7,c7 atte/s t su*       
individual 7& if m>ri$1 su* individual's
 sp\se7 has nev] _h a majority int]e/ 9 
a resid5tial prop]ty4  7#b7 ,pr9cipal   
resid5ce ,! t]m pr9cipal resid5ce has ! 
same mean+ z :5 us$ 9 section #aba4     
7#c7 ,pur*ase  7,a7 ,9 g5]al ,! t]m     
pur*ase means any acquisition1 b only   
if-- 7i7 ! prop]ty is pur*as$ us+ a     
mortgage loan f a comm]cial l5d]1  7ii7 
! prop]ty is n acquir$ f a p]son relat$ 

to ! p]son acquir+ su* prop]ty 7or1 if  
m>ri$1 su* individual's sp\se71 &  7iii7
 ! basis ( ! prop]ty 9 ! h&s ( ! p]son  
acquir+ su* prop]ty is n det]m9$-- 7,i7 
9 :ole or 9 "p by ref]5ce to ! adju/$   
basis ( su* prop]ty 9 ! h&s ( ! p]son f 
:om acquir$1 or  7,,ii7 "u section      
#ajad7;a74  7,b7 ,con/ruction ,a        
resid5ce :i* is con/ruct$ by ! taxpay]  
%all be treat$ z pur*as$ by ! taxpay] on
 ! date ! taxpay] fir/ occupies su*     
resid5ce4  7#d7 ,relat$ p]sons ,a p]son 
%all be treat$ z relat$ to ano!r p]son  
if ! relation%ip betwe5 su* p]sons w\ld 
result 9 ! disall[ance ( losses "u      
section #bfg or #gjg7;b7 7b1 9 apply+   
section #bfg7;b7 & 7c7 = purposes ( ?is 
section1 p>agraph 7#d7 ( section        
#bfg7;c77#d7 %all be treat$ z provid+ t 
! family ( an individual %all include   
only 8 sp\se1 ance/ors1 & l9eal         
desc5dants74  7g7 ,basis adju/m5t ,=    
purposes ( ?is subtitle1 if a cr$it is  
all[$ "u ?is section 9 connection ) any 
exp5diture = any prop]ty1 ! increase 9 !

 basis ( su* prop]ty :i* w\ld 7b = ?is  
subsection7 result f su* exp5diture %all
 be r$uc$ by ! am\nt ( ! cr$it s        
det]m9$4  7h7 ,inflation adju/m5t  7#a7 
,9 g5]al ,9 ! case ( any taxable ye>    
beg9n+ aft] #bjbe1 ! doll> am\nts 9 ?is 
section %all be increas$ by an am\nt    
equal to-- 7,a7 su* doll> am\nt1        
multipli$ by  7,b7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      
cal5d> ye> 9 :i* ! taxable ye> beg9s1   
det]m9$ by sub/itut+ 8cal5d> ye> #bjbc0 
= cal5d> ye> #bjaf 9 subp>agraph        
7,a77ii74  7#b7 ,r\nd+ lf any increase  
"u p>agraph 7#a7 is n a multiple ( #ajj1
 su* increase %all be r\nd$ to ! ne>e/  
multiple ( #ajj4  7i7 ,report+  7#a7 ,9 
g5]al lf ! ,secret>y requires in=mation 
report+ "u section #fjde by a p]son     
describ$ 9 subsection 7d77#b7 !re( to   
v]ify ! eligibility ( taxpay]s = ! cr$it
 all[able by ?is section1 ! exception   
provid$ by section #fjde7;e7 %all n     
apply4  7#b7 ,in=mation f l5d] ,!       
,secret>y may require any l5d] issu+ a  

loan = ! pur*ase ( a prop]ty ) respect  
to :i* a cr$it is all[$ "u subsection   
7a7 or ) respect to :i* a fir/-"t       
homebuy] has made a reque/ = a transf]  
"u subsection 7d77#a7 to provide su*    
in=mation relat+ to ! relat$ pur*ase z !
 ,secret>y det]m9es appropriate4  7j7   
,regulations ,! ,secret>y %all issue su*
 regulations or o!r guidance z may be   
necess>y or appropriate to c>ry out !   
purposes ( ?is section4  4  7b7         
,effective date ,! am5dm5t made by ?is  
section %all apply to resid5ces pur*as$ 
9 taxable ye>s beg9n+ aft] ! date ( !   
enactm5t ( ?is ,act4  #c4 ,/>t] home    
con/ruction cr$it  7a7 ,9 g5]al ,subp>t 
,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by add+ at ! end ! foll[+ new     
section3  #de,u4 ,/>t] home con/ruction 
cr$it  7a7 ,9 g5]al ,= ! purposes (     
section #ch1 ! />t] home con/ruction    
cr$it det]m9$ "u ?is section = any      
taxable ye> is an am\nt equal to #ae    
p]c5t ( ! qualifi$ home con/ruction co/s

 ( ! taxpay] = ! taxable ye>4  7b7      
,limitation ,! am\nt all[able z a cr$it 
"u subsection 7a7 to any taxpay] = any  
taxable ye> %all n exce$ ! am\nt        
allocat$ to su* taxpay] = ! cal5d> ye> 9
 :i* su* taxable ye> ends "u subsection 
7d74  7c7 ,increase = fir/-,"t homebuy] 
ln ! case ( a unit ( h\s+ sold to a     
fir/-"t homebuy] 7z def9$ 9 section     
#cf7;g77#a771 subsection 7a7 %all be    
appli$ by sub/itut+ #cj p]c5t = #ae     
p]c5t4  7d7 ,qualifi$ home con/ruction  
co/s ,= purposes ( ?is section1 ! t]m   
qualifi$ home con/ruction co/s means1 ) 
respect to a taxable ye>1 am\nts paid or
 incurr$ by ! taxpay] = labor & mat]ial 
co/s to con/ruct a unit ( h\s+ plac$ 9  
s]vice dur+ su* taxable ye>-- 7#a7 !    
total squ>e footage ( :i* does n exce$  
#abjj feet1 &  7#b7 ! sale price ( :i*  
does n exce$ #hj p]c5t ( ! area m$ian   
home price4  7e7 ,allocation4-- 7#a7 ,9 
g5]al ,! aggregate />t] home con/ruction
 cr$it doll> am\nt :i* a h\s+ cr$it     
ag5cy may allocate = any cal5d> ye> is !

 portion ( ! ,/ate />t] home con/ruction
 cr$it ceil+ allocat$ "u ?is p>agraph = 
su* cal5d> ye> to su* ag5cy4  7#b7 ,/ate
 ceil+ initially allocat$ to /ate h\s+  
cr$it ag5cies ,! ,/ate />t] home        
con/ruction cr$it ceil+ = ea* cal5d> ye>
 %all be allocat$ to ! h\s+ cr$it ag5cy 
( su* ,/ate4 ,if !re is m ?an #a h\s+   
cr$it ag5cy ( a ,/ate1 all su* ag5cies  
%all be treat$ z a s+le ag5cy4  7#c7    
,/ate />t] home cr$it ceil+ ,! ,/ate    
/>t] home cr$it ceil+ applicable to any 
,/ate = any cal5d> ye> %all be an am\nt 
equal to ! sum (-- 7,a7 ! unus$ ,/ate   
h\s+ cr$it ceil+ 7if any7 ( su* ,/ate = 
! prec$+ cal5d> ye>1 plus  7,b7 #cj     
multipli$ by ! population ( ! ,/ate     
7det]m9$ 9 accordance ) section         
#adf7;j774  7#d7 ,h\s+ cr$it ag5cy ,=   
purposes ( ?is subsection1 ! t]m h\s+   
cr$it ag5cy has ! mean+ giv5 9 section  
#db7;h77#h77;,a74  7#e7 ,inflation      
adju/m5t  7,a7 ,9 g5]al ln ! case ( any 
taxable ye> beg9n+ aft] #bjbe1 ! doll>  
am\nt 9 p>agraph 7#c77;,b7 %all be      

increas$ by an am\nt equal to-- 7i7 su* 
doll> am\nt1 multipli$ by  7ii7 !       
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> beg9s1 det]m9$ by sub/itut+ 
cal5d> ye> #bjbc = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  7,b7 ,r\nd+ 
lf any increase "u subp>agraph 7,a7 is n
 a multiple ( #e1 su* increase %all be  
r\nd$ to ! ne>e/ multiple ( #e4  7f7    
,basis adju/m5t ,= purposes ( ?is       
subtitle1 if a cr$it is all[$ "u ?is    
section 9 connection ) any exp5diture = 
any prop]ty1 ! increase 9 ! basis ( su* 
prop]ty :i* w\ld 7b = ?is subsection7   
result f su* exp5diture %all be r$uc$ by
 ! am\nt ( ! cr$it s det]m9$4  7g7      
,regulations ,! ,secret>y %all issue su*
 regulations or o!r guidance z may be   
necess>y or appropriate to c>ry out !   
purposes ( ?is section4  4  7b7 ,cr$it  
,to be "p ( g5]al bus9ess cr$it ,section
 #ch7;b7 ( su* ,code is am5d$ by /rik+  
plus at ! end ( p>agraph 7#cb71 by /rik+
 ! p]iod at ! end ( p>agraph 7#cc7 &    

ins]t+ 1 plus1 & by add+ at ! end !     
foll[+ new p>agraph3  7#cd7 ! />t] home 
con/ruction cr$it det]m9$ "u section    
#de,u7a74  4  7c7 ,cl]ical am5dm5t ,!   
table ( sections = subp>t ,d ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( su* ,code is  
am5d$ by ins]t+ aft] ! item relat+ to   
section #de,t ! foll[+ new item3  ,sec4 
#de,u4 ,/>t] home con/ruction cr$it4  4 
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ! date ( ! enactm5t ( ?is   
section4