Internal Revenue Code:Sec. 1400C. First-time homebuyer credit for District of Columbia

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Contents


Location in Internal Revenue Code


     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter W - District of Columbia Enterprise Zone
      

Statute

    Sec. 1400C. First-time homebuyer credit for District of Columbia
 
    (a) Allowance of credit
      In the case of an individual who is a first-time homebuyer of a
    principal residence in the District of Columbia during any taxable
    year, there shall be allowed as a credit against the tax imposed by
    this chapter for the taxable year an amount equal to so much of the
    purchase price of the residence as does not exceed $5,000.
    (b) Limitation based on modified adjusted gross income
      (1) In general
        The amount allowable as a credit under subsection (a)
      (determined without regard to this subsection and subsection (d))
      for the taxable year shall be reduced (but not below zero) by the
      amount which bears the same ratio to the credit so allowable as -
          (A) the excess (if any) of -
            (i) the taxpayer's modified adjusted gross income for such
          taxable year, over
            (ii) $70,000 ($110,000 in the case of a joint return),
          bears to
          (B) $20,000.
      (2) Modified adjusted gross income
        For purposes of paragraph (1), 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 911, 931, or 933.
    (c) First-time homebuyer
      For purposes of this section -
      (1) In general
        The term ''first-time homebuyer'' means any individual if such
      individual (and if married, such individual's spouse) had no
      present ownership interest in a principal residence in the
      District of Columbia during the 1-year period ending on the date
      of the purchase of the principal residence to which this section
      applies.
      (2) One-time only
        If an individual is treated as a first-time homebuyer with
      respect to any principal residence, such individual may not be
      treated as a first-time homebuyer with respect to any other
      principal residence.
      (3) Principal residence
        The term ''principal residence'' has the same meaning as when
      used in section 121.
    (d) Carryforward of Unused Credit.--
            (1) Rule for years in which all personal credits allowed 
        against regular and alternative minimum tax.--In the case of a 
        taxable year to which section 26(a)(2) applies, if the credit 
        allowable under subsection (a) exceeds the limitation imposed by 
        section 26(a)(2) for such taxable year reduced by the sum of the 
        credits allowable under subpart A of part IV of subchapter A 
        (other than this section and section 25D), such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year.
            (2) Rule for other years.--In the case of a taxable year 
        to which section 26(a)(2) does not apply, if the credit 
        allowable under subsection (a) exceeds the limitation imposed by 
        section 26(a)(1) for such taxable year reduced by the sum of the 
        credits allowable under subpart A of part IV of subchapter A 
        (other than this section and sections 23, 24, 25B, and 25D), 
        such excess shall be carried to the succeeding taxable year and 
        added to the credit allowable under subsection (a) for such 
        taxable year.
    (e) Special rules
      For purposes of this section -
      (1) Allocation of dollar limitation
        (A) Married individuals filing separately
          In the case of a married individual filing a separate return,
        subsection (a) shall be applied by substituting ''$2,500'' for
        ''$5,000''.
        (B) Other taxpayers
          If 2 or more individuals who are not married purchase a
        principal residence, the amount of the credit allowed under
        subsection (a) shall be allocated among such individuals in
        such manner as the Secretary may prescribe, except that the
        total amount of the credits allowed to all such individuals
        shall not exceed $5,000.
      (2) Purchase
        (A) In general
          The term ''purchase'' means any acquisition, but only if -
            (i) the property is not acquired from a person whose
          relationship to the person acquiring it would result in the
          disallowance of losses under section 267 or 707(b) (but, in
          applying section 267(b) and (c) for purposes of this section,
          paragraph (4) of section 267(c) shall be treated as providing
          that the family of an individual shall include only his
          spouse, ancestors, and lineal descendants), and
            (ii) the basis of the property in the hands of the person
          acquiring it is not determined -
              (I) in whole or in part by reference to the adjusted
            basis of such property in the hands of the person from whom
            acquired, or
              (II) under section 1014(a) (relating to property acquired
            from a decedent).
        (B) 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 residence.
      (3) Purchase price
        The term ''purchase price'' means the adjusted basis of the
      principal residence on the date such residence is purchased.
    (f) Reporting
      If the Secretary requires information reporting under section
    6045 by a person described in subsection (e)(2) thereof to verify
    the eligibility of taxpayers for the credit allowable by this
    section, the exception provided by section 6045(e)(5) shall not
    apply.
    (g) Credit treated as nonrefundable personal credit
      For purposes of this title, the credit allowed by this section
    shall be treated as a credit allowable under subpart A of part IV
    of subchapter A of this chapter.
    (h) Basis adjustment
      For purposes of this subtitle, if a credit is allowed under this
    section with respect to the purchase of any residence, the basis of
    such residence shall be reduced by the amount of the credit so
    allowed.
    (i) Application of section
      This section shall apply to property purchased after August 4,
    1997, and before January 1, 2008.
 

Sources

    (Added Pub. L. 105-34, title VII, Sec. 701(a), Aug. 5, 1997, 111
    Stat. 867; amended Pub. L. 105-206, title VI, Sec. 6008(d)(1)-(5),
    July 22, 1998, 112 Stat. 811, 812; Pub. L. 106-170, title V, Sec.
    510, Dec. 17, 1999, 113 Stat. 1924; Pub. L. 106-554, Sec. 1(a)(7)
    (title I, Sec. 163), Dec. 21, 2000, 114 Stat. 2763, 2763A-625; Pub.
    L. 107-16, title II, Sec. 201(b)(2)(H), 202(f)(2)(C), title VI,
    Sec. 618(b)(2)(E), June 7, 2001, 115 Stat. 46, 49, 108.)
 

Amendment of Section

                            AMENDMENT OF SECTION
        For termination of amendment by section 901 of Pub. L. 107-16,
      see Effective and Termination Dates of 2001 Amendment note below.
 

Miscellaneous

                                 AMENDMENTS

2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
Section 110(d) First-Time Homebuyer Credit.--
            (1) In general.--Subsection (i) of section 1400C is amended 
        by striking ``2006'' and inserting ``2008''.
            
      2005 - P.L. 109-135
(F) Subsection (d) of section 1400C is amended to read as 
        follows:
    ``(d) Carryforward of Unused Credit.--
            ``(1) Rule for years in which all personal credits allowed 
        against regular and alternative minimum tax.--In the case of a 
        taxable year to which section 26(a)(2) applies, if the credit 
        allowable under subsection (a) exceeds the limitation imposed by 
        section 26(a)(2) for such taxable year reduced by the sum of the 
        credits allowable under subpart A of part IV of subchapter A 
        (other than this section and section 25D), such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year.
            ``(2) Rule for other years.--In the case of a taxable year 
        to which section 26(a)(2) does not apply, if the credit 
        allowable under subsection (a) exceeds the limitation imposed by 
        section 26(a)(1) for such taxable year reduced by the sum of the 
        credits allowable under subpart A of part IV of subchapter A 
        (other than this section and sections 23, 24, 25B, and 25D), 
        such excess shall be carried to the succeeding taxable year and 
        added to the credit allowable under subsection (a) for such 
        taxable year.''.
            
      2004 - Subsec.310(d),Pub.L.108-311, amended Sec.1400C(i)
    by striking "January 1, 2004" and inserting "January 1, 2006".
      2001 - Subsec. (d). Pub. L. 107-16, Sec. 618(b)(2)(E), 901,
    temporarily substituted '', 24, and 25B'' for ''and 24''. See
    Effective and Termination Dates of 2001 Amendment note below.
      Pub. L. 107-16, Sec. 202(f)(2)(C), 901, temporarily substituted
    ''sections 23 and 24'' for ''section 24''. See Effective and
    Termination Dates of 2001 Amendment note below.
      Pub. L. 107-16, Sec. 201(b)(2)(H), 901, temporarily inserted
    ''and section 24'' after ''this section''.  See Effective and
    Termination Dates of 2001 Amendment note below.
      2000 - Subsec. (i). Pub. L. 106-554 substituted ''2004'' for
    ''2002''.
      1999 - Subsec. (i). Pub. L. 106-170 substituted ''2002'' for
    ''2001''.
      1998 - Subsec. (b)(1). Pub. L. 105-206, Sec. 6008(d)(1), inserted
    ''and subsection (d)'' after ''this subsection'' in introductory
    provisions.
      Subsec. (c)(1). Pub. L. 105-206, Sec. 6008(d)(2), reenacted
    heading without change and amended text generally.  Prior to
    amendment, text read as follows: ''The term 'first-time homebuyer'
    has the same meaning as when used in section 72(t)(8)(D)(i), except
    that 'principal residence in the District of Columbia during the
    1-year period' shall be substituted for 'principal residence during
    the 2-year period' in subclause (I) thereof.''
      Subsec. (e)(2)(B). Pub. L. 105-206, Sec. 6008(d)(3), inserted
    ''on the date the taxpayer first occupies such residence'' before
    the period at end.
      Subsec. (e)(3). Pub. L. 105-206, Sec. 6008(d)(4), substituted
    ''on the date such residence is purchased.'' for ''on the date of
    acquisition (within the meaning of section 72(t)(8)(D)(iii)).''
      Subsec. (i). Pub. L. 105-206, Sec. 6008(d)(5), substituted
    ''Application of section'' for ''Termination'' in heading and
    amended text generally.  Prior to amendment, text read as follows:
    ''This section shall not apply to any property purchased after
    December 31, 2000.''

                      EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
Section 110(d) First-Time Homebuyer Credit.--
            (2) <<NOTE: 26 USC 1400C note.>> Effective date.--The 
        amendment made by this subsection shall apply to property 
        purchased after December 31, 2005.

             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Amendment by section 201(b)(2)(H) of Pub. L. 107-16 applicable to
    taxable years beginning after Dec. 31, 2001, see section 201(e)(2)
    of Pub. L. 107-16, set out as a note under section 24 of this
    title.
      Amendment by section 202(f)(2)(C) of Pub. L. 107-16 applicable to
    taxable years beginning after Dec. 31, 2001, see section 202(g)(1)
    of Pub. L. 107-16, set out as a note under section 23 of this
    title.
      Amendment by section 618(b)(2)(E) of Pub. L. 107-16 applicable to
    taxable years beginning after Dec. 31, 2001, see section 618(d) of
    Pub. L. 107-16, set out as a note under section 24 of this title.
      Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
    limitation years beginning after Dec. 31, 2010, and the Internal
    Revenue Code of 1986 to be applied and administered to such years
    as if such amendment had never been enacted, see section 901 of
    Pub. L. 107-16, set out as a note under section 1 of this title.
                      EFFECTIVE DATE OF 1998 AMENDMENT
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates, see
    section 6024 of Pub. L. 105-206, set out as a note under section 1
    of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 23, 25, 1016 of this
    title.
 

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