S. 1728 (111th): Service Members Home Ownership Tax Act of 2009

111th Congress, 2009–2010. Text as of Sep 30, 2009 (Introduced).

Status & Summary | PDF | Source: GPO

II

111th CONGRESS

1st Session

S. 1728

IN THE SENATE OF THE UNITED STATES

September 30, 2009

(for herself and Mr. Merkley) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to modify the first-time homebuyer credit in the case of members of the Armed Forces and certain other Federal employees, and for other purposes.

1.

Short title

This Act may be cited as the Service Members Home Ownership Tax Act of 2009.

2.

Waiver of recapture of first-time homebuyer credit for individuals on qualified official extended duty

(a)

In general

Paragraph (4) of section 36(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(E)

Special rule for members of the Armed Forces, etc

(i)

In general

In the case of the disposition of a principal residence by an individual (or a cessation referred to in paragraph (2)) after December 31, 2008, in connection with Government orders received by such individual, or such individual’s spouse, for qualified official extended duty service—

(I)

paragraph (2) and subsection (d)(2) shall not apply to such disposition (or cessation), and

(II)

if such residence was acquired before January 1, 2009, paragraph (1) shall not apply to the taxable year in which such disposition (or cessation) occurs or any subsequent taxable year.

(ii)

Qualified official extended duty service

For purposes of this section, the term qualified official extended duty service means service on qualified official extended duty as—

(I)

a member of the uniformed services,

(II)

a member of the Foreign Service of the United States, or

(III)

as an employee of the intelligence community.

(iii)

Definitions

Any term used in this subparagraph which is also used in paragraph (9) of section 121(d) shall have the same meaning as when used in such paragraph.

.

(b)

Effective date

The amendment made by this section shall apply to dispositions and cessations after December 31, 2008.

3.

Extension of first-time homebuyer credit for individuals on qualified official extended duty outside the United States

(a)

In general

Subsection (h) of section 36 of the Internal Revenue Code of 1986 is amended—

(1)

by striking This section and inserting (1) In general.—This section, and

(2)

by adding at the end the following:

(2)

Special rules for individuals on qualified official extended duty outside the United States

In the case of any individual who serves on qualified official extended duty service outside the United States for at least 90 days in calendar year 2009 and, if married, such individual’s spouse—

(A)

paragraph (1) shall be applied by substituting December 1, 2010 for December 1, 2009,

(B)

subsection (f)(4)(D) shall be applied by substituting December 1, 2010 for December 1, 2009, and

(C)

in lieu of subsection (g), in the case of a purchase of a principal residence after December 31, 2009, and before July 1, 2010, the taxpayer may elect to treat such purchase as made on December 31, 2009, for purposes of this section (other than subsections (c) and (f)(4)(D)).

.

(b)

Coordination with first-Time homebuyer credit for District of Columbia

Paragraph (4) of section 1400C(e) of such Code is amended by inserting (December 1, 2010, in the case of a purchase subject to section 36(h)(2)) after December 1, 2009.

(c)

Effective date

The amendments made by this section shall apply to residences purchased after November 30, 2009.

4.

Exclusion from gross income of qualified military base realignment and closure fringe

(a)

In general

Subsection (n) of section 132 of the Internal Revenue Code of 1986 is amended—

(1)

in subparagraph (1) by striking this subsection) to offset the adverse effects on housing values as a result of a military base realignment or closure and inserting the American Recovery and Reinvestment Tax Act of 2009), and

(2)

in subparagraph (2) by striking clause (1) of.

(b)

Effective date

The amendments made by this act shall apply to payments made after February 17, 2009.

5.

Increase in penalty for failure to file a partnership or S corporation return

(a)

In general

Sections 6698(b)(1) and 6699(b)(1) of the Internal Revenue Code of 1986 are each amended by striking $89 and inserting $110.

(b)

Effective date

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

6.

Time for payment of corporate estimated taxes

The percentage under paragraph (1) of section 202(b) of the Corporate Estimated Tax Shift Act of 2009 in effect on the date of the enactment of this Act is increased by 0.5 percentage points.