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