< Back to H.R. 1805 (111th Congress, 2009–2010)

Text of the American Working Families Tax Relief Act of 2009

This bill was introduced on March 31, 2009, in a previous session of Congress, but was not enacted. The text of the bill below is as of Mar 31, 2009 (Introduced).

Source: GPO

I

111th CONGRESS

1st Session

H. R. 1805

IN THE HOUSE OF REPRESENTATIVES

March 31, 2009

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 make permanent the deduction for State and local sales tax, the deduction for qualified tuition and related expenses, and the deduction for mortgage interest premiums, and to modify to the homebuyer credit.

1.

Short title

This Act may be cited as the American Working Families Tax Relief Act of 2009.

2.

State and local sales tax deduction made permanent

(a)

In General

Paragraph (5) of section 164(b) of the Internal Revenue Code of 1986 is amended by striking subparagraph (I).

(b)

Effective Date

The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2009.

3.

Deduction for qualified tuition and related expenses made permanent

(a)

In general

Section 222 of the Internal Revenue Code of 1986 is amended by striking subsection (e) (relating to termination).

(b)

Sunset not To apply

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to provisions of, and amendments made by, section 431 of such Act (relating to deduction for higher education expenses).

(c)

Effective Date

The amendment made by this section shall apply to taxable years beginning after December 31, 2009.

4.

Mortgage insurance premiums treated as interest made permanent

(a)

In general

Subparagraph (E) of section 163(h)(3) of the Internal Revenue Code of 1986 is amended by striking clause (iv).

(b)

Effective date

The amendment made by this section shall apply to amounts paid or accrued after December 31, 2009.

5.

Expansion and modification of the homebuyer credit

(a)

Extension

(1)

In general

Section 36(h) of the Internal Revenue Code of 1986 is amended by striking December 1, 2009 and inserting December 31, 2009.

(2)

Conforming amendment

Section 36(g) of such Code is amended by striking December 1, 2009 and inserting December 31, 2009.

(b)

Expansion to all purchasers of principal residence

(1)

In general

Subsection (a) of section 36 of such Code is amended by striking who is a first-time homebuyer of a principal residence and inserting who purchases a principal residence.

(2)

Conforming amendments

(A)

Subsection (c) of section 36 of such Code is amended by striking paragraph (1) and by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), and (4), respectively.

(B)

Section 36 of such Code is amended by striking first-time homebuyer credit in the heading and inserting home purchase credit.

(C)

The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 36 and inserting the following new item:

Sec. 36. Home purchase credit.

.

(D)

Subparagraph (W) of section 26(b)(2) of such Code is amended by striking homebuyer credit and inserting home purchase credit.

(c)

Modification of recapture

(1)

Repeal of general recapture rule

Subsection (f) of section 36 of such Code is amended by striking paragraph (1) and by redesignating paragraphs (2) through (7) as paragraphs (1) through (6), respectively.

(2)

3-year recapture period

Paragraph (6) of section 36(f) of such Code, as so redesignated, is amended to read as follows:

(6)

Recapture period

For purposes of this subsection, the term recapture period means the 36-month period beginning on the date of the purchase of such residence by the taxpayer.

.

(3)

Conforming amendments

(A)

Paragraph (1) of section 36(f) of such Code, as so redesignated, is amended to read as follows:

(1)

In general

If a taxpayer disposes of the principal residence with respect to which a credit was allowed under subsection (a) (or such residence ceases to be the principal residence of the taxpayer (and, if married, the taxpayer’s spouse)) before the end of the recapture period, the tax imposed by this chapter for the taxable year of such disposition or cessation shall be increased by the amount of the credit so allowed.

.

(B)

Section 36(f)(2) of such Code, as so redesignated, is amended—

(i)

by striking paragraph (2) and inserting paragraph (1), and

(ii)

by striking the second sentence.

(C)

Section 36(f)(3) of such Code, as so redesignated, is amended—

(i)

by striking Paragraphs (1) and in subparagraph (A) and inserting Paragraph (1),

(ii)

in subparagraph (B)—

(I)

by striking Paragraph (2) both places it appears and inserting Paragraph (1), and

(II)

by striking paragraph (2) and inserting paragraph (1),

(iii)

in subparagraph (C)—

(I)

by striking paragraph (2) in clause (i) and inserting paragraph (1), and

(II)

by striking paragraphs (1) and (2) and inserting paragraph (1), and

(iv)

by striking subparagraph (D).

(4)

Conforming amendment

Subsection (g) of section 36 of such Code is amended by striking subsection (c) and inserting subsections (c) and (f)(4)(D).

(d)

Effective dates

(1)

Extension

The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.

(2)

1st time homebuyer

The amendment made by subsection (b) shall apply to purchases on or after the date of the enactment of this Act.

(3)

Modification of recapture

The amendments made by subsection (c) shall take effect as if included in the amendments made by section 3011(c) of the Housing and Economic Recovery Act of 2008.