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United States Code (Last Updated: May 24, 2014) |
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Title 26. INTERNAL REVENUE CODE |
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SubTitle A. Income Taxes |
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Chapter 1. NORMAL TAXES AND SURTAXES |
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SubChapter W. District of Columbia Enterprise Zone |
§ 1400C. First-time homebuyer credit for District of Columbia
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(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 If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) 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.
(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.
(4) Coordination with national first-time homebuyers credit No credit shall be allowed under this section to any taxpayer with respect to the purchase of a residence after
December 31, 2008 , if a credit under section 36 is allowable to such taxpayer (or the taxpayer’s spouse) with respect to such purchase.(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 beforeJanuary 1, 2012 .
Amendments
2013—Subsec. (d). Pub. L. 112–240 amended subsec. (d) generally. Prior to amendment, subsec. (d) related to carryforward of unused credit with a rule for years in which all personal credits allowed against regular and alternative minimum tax and a rule for other years.
2010—Subsec. (d)(2). Pub. L. 111–148, § 10909(b)(2)(M), (c), as amended by Pub. L. 111–312, § 101(b)(1), temporarily struck out “23,” after “this section and sections”. See Effective and Termination Dates of 2010 Amendment note below.
Subsec. (i). Pub. L. 111–312, § 754(d), substituted “2012” for “2010”.
2009—Subsec. (d)(2). Pub. L. 111–5, § 1144(b)(1)(F), substituted “30, and 30B” for “and 30”.
Pub. L. 111–5, § 1142(b)(1)(F), which directed the substitution of “25D, and 30” for “and 25D”, was executed by making the substitution for “25D”, to reflect the probable intent of Congress and the amendment by Pub. L. 110–343, § 205(d)(1)(E). See 2008 Amendment note below.
Pub. L. 111–5, § 1004(b)(6), inserted “25A(i),” after “24,”.
Subsec. (e)(4). Pub. L. 111–92 struck out “and before
Pub. L. 111–5, § 1006(d)(1), added par. (4).
2008—Subsec. (d)(2). Pub. L. 110–343, § 205(d)(1)(E), substituted “25D, and 30D” for “and 25D”.
Subsec. (i). Pub. L. 110–343, § 322(d)(1), substituted “2010” for “2008”.
2006—Subsec. (i). Pub. L. 109–432 substituted “2008” for “2006”.
2005—Subsec. (d). Pub. L. 109–135, § 402(i)(3)(F), amended heading and text of subsec. (d) generally. Prior to amendment, text read as follows: “If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) 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, and 25B), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.”
Pub. L. 109–58, § 1335(b)(3), which directed amendment of subsec. (d) by substituting “this section and section 25D” for “this section”, was repealed by Pub. L. 109–135, § 402(i)(4). See Effective and Termination Dates of 2005 Amendments notes below.
2004—Subsec. (i). Pub. L. 108–311 substituted “2006” for “2004”.
2002—Subsec. (d). Pub. L. 107–147 amended directory language of Pub. L. 107–16, § 618(b)(2)(E). See 2001 Amendment note below.
2001—Subsec. (d). Pub. L. 107–16, § 618(b)(2)(E), as amended by Pub. L. 107–147, substituted “, 24, and 25B” for “and 24”.
Pub. L. 107–16, § 202(f)(2)(C), substituted “sections 23 and 24” for “section 24”.
Pub. L. 107–16, § 201(b)(2)(H), inserted “and section 24” after “this section”.
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, § 6008(d)(1), inserted “and subsection (d)” after “this subsection” in introductory provisions.
Subsec. (c)(1). Pub. L. 105–206, § 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, § 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, § 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, § 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
Effective Date Of Amendment
Amendment by Pub. L. 112–240 applicable to taxable years beginning after
Amendment by section 754(d) of Pub. L. 111–312 applicable to homes purchased after
Amendment by Pub. L. 111–148 terminated applicable to taxable years beginning after
Amendment by Pub. L. 111–148 applicable to taxable years beginning after
Amendment by Pub. L. 111–92 applicable to residences purchased after
Amendment by section 1004(b)(6) of Pub. L. 111–5 applicable to taxable years beginning after
Amendment by section 1006(d)(1) of Pub. L. 111–5 applicable to residences purchased after
Amendment by section 1142(b)(1)(F) of Pub. L. 111–5 applicable to vehicles acquired after
Amendment by section 1144(b)(1)(F) of Pub. L. 111–5 applicable to taxable years beginning after
Amendment by section 205(d)(1)(E) of Pub. L. 110–343 applicable to taxable years beginning after
Pub. L. 110–343, div. C, title III, § 322(d)(2),
Pub. L. 109–432, div. A, title I, § 110(d)(2),
Amendment by section 402(i)(3)(F) of Pub. L. 109–135 subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, § 901, in the same manner as the provisions of such Act to which such amendment relates, see section 402(i)(3)(H) of Pub. L. 109–135, set out as a note under section 23 of this title. Title IX of Pub. L. 107–16 was repealed by Pub. L. 112–240, title I, § 101(a)(1),
The Internal Revenue Code of 1986 to be applied and administered as if the amendments made by section 1135(b)(1)–(3) of Pub. L. 109–58 had never been enacted, see section 402(i)(4) of Pub. L. 109–135, set out as a note under section 23 of this title.
Amendments by Pub. L. 109–135 effective as if included in the provisions of the Energy Policy Act of 2005, Pub. L. 109–58, to which they relate, except that amendment by section 402(i)(3)(F) of Pub. L. 109–135 is applicable to taxable years beginning after
Amendment by Pub. L. 109–58 applicable to property placed in service after
Amendment by Pub. L. 108–311 effective
Amendment by Pub. L. 107–16 inapplicable to taxable years beginning during 2004 or 2005, see section 312(b)(2) of Pub. L. 108–311, set out as a note under section 23 of this title.
Amendment by Pub. L. 107–16 inapplicable to taxable years beginning during 2002 and 2003, see section 601(b)(2) of Pub. L. 107–147, set out as a note under section 23 of this title.
Amendment by section 201(b)(2)(H) of Pub. L. 107–16 applicable to taxable years beginning after
Amendment by section 202(f)(2)(C) of Pub. L. 107–16 applicable to taxable years beginning after
Amendment by section 618(b)(2)(E) of Pub. L. 107–16 applicable to taxable years beginning after
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.