Questions about the existing first-time homebuyer credit and the amendment today

[Muttocracy]

1. Can someone summarize for me the first-time homebuyer credit that was passed last year?

2. When was it supposed to expire?

3. The House Stimulus bill has this - is this making the existing credit more generous?

http://www.rules.house.gov/111/LegText/111_hr1_text.pdf

Subtitle D—Housing Incentives
SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST TIME HOMEBUYER CREDIT.
(a) IN GENERAL.—Paragraph (4) of Section 36(f) is
amended by adding at the end the following new subparagraph:
‘‘(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009.—In the case of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before July 1, 2009—
‘‘(i) paragraph (1) shall not apply, and
‘‘(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of
such residence by the taxpayer.’’.
(b) CONFORMING AMENDMENT.—Subsection (g) of section 36 is amended by striking ‘‘subsection (c)’’ and inserting ‘‘subsections (c) and (f)(4)(D)’’.
(c) EFFECTIVE DATE.—The amendments made by this section shall apply to residences purchased after December 31, 2008.


4. And for the Isakson-Lieberman homebuyer credit amendment that passed this afternoon - does it replace that credit, or add to it?

http://frwebgate.access.gpo.gov/cgi-bin/getpage.cgi?dbname=2009_record&page=S1421&position=all

Strike section 1006 of title I of Division B and insert the following:
SEC. 1006. CREDIT FOR CERTAIN HOME PURCHASES.
(a) ALLOWANCE OF CREDIT.—Subpart A of part IV of subchapter A of chapter 1 is
amended by inserting after section 25D the following new section:
‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.
‘‘(a) ALLOWANCE OF CREDIT.—
‘‘(1) IN GENERAL.—In the case of an individual who is a purchaser of a qualified principal residence during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 10 percent of the purchase price of the residence.

...
‘‘Sec. 25E. Credit for certain home purchases.’’.
(c) SUNSET OF CURRENT FIRST-TIME HOMEBUYER CREDIT.—
(1) IN GENERAL.—Subsection (h) of section 36 is amended by striking ‘‘July 1, 2009’’ and inserting ‘‘the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009’’.
(2) ELECTION TO TREAT PURCHASE IN PRIOR YEAR.—Subsection (g) of section 36 is amended by striking ‘‘July 1, 2009’’ and inserting ‘‘the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009’’.
(d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

[mzmolly]

1. The existing credit is something that is to be paid back over time.

It sounds like the new provisions will waive the requirement to pay back the monies provided the home is purchased within a particular time frame? i.e. before July 1 of this year, or "the date of the enactment of the ARRTA of 2009...."

Make sense?

[Muttocracy]

2. yes, so from a loan to a grant - caught a clip of Cardin explaining that just now - but...

will that new program in the Isakson-Lieberman amendment take over from that, or be added to it? I can't figure out the legal section #s.

[mzmolly]

3. I'm not certain. Though it seems to me

it will essentially replace the former version?

[Muttocracy]

4. I guess the big difference is the first-time homebuyer requirement. nt