article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Economic Recovery Through Responsible Homeownership Act of 2009''. SEC. 2. REFUNDABLE CREDIT FOR RESIDENCES PURCHASED DURING 2009 OR 2010. (a) In General.--Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36 the following new section: ``SEC. 36A. GENERAL HOMEBUYER CREDIT FOR RESIDENCES PURCHASED DURING 2009 OR 2010. ``(a) Allowance of Credit.--In the case of an individual who makes an eligible purchase during the taxable year, there shall be allowed as a credit against the tax imposed by this subtitle for such taxable year an amount equal to so much of the purchase price as does not exceed the applicable amount. ``(b) Applicable Amount.--For purposes of subsection (a), the applicable amount is-- ``(1) $10,000 in the case of an eligible purchase where the down payment is at least 15 percent of the purchase price, ``(2) $5,000 in the case of an eligible purchase where the down payment is at least 10 percent of the purchase price, ``(3) $2,000 in the case of an eligible purchase where the down payment is at least 5 percent of the purchase price, and ``(4) zero in any other case. ``(c) Definitions.--For purposes of this section-- ``(1) Eligible purchase.--The term `eligible purchase' means the purchase of a residence for the taxpayer if-- ``(A) such residence is located in the United States, ``(B) the construction of such residence began before 2009, and ``(C) such purchase is made by the taxpayer during 2009 or 2010. ``(2) Other definitions.--The terms `purchase' and `purchase price' have the respective meanings given such terms by section 26(c). ``(d) Exceptions.--No credit shall be allowed under subsection (a) to any taxpayer for any taxable year with respect to the purchase of a residence if-- ``(1) credit under section 36 (relating to first-time homebuyer credit) or 1400C (relating to first-time homebuyer in the District of Columbia) is allowed to the taxpayer (or the taxpayer's spouse) for such taxable year or any prior taxable year, ``(2) the residence is financed by the proceeds of a qualified mortgage issue the interest on which is exempt from tax under section 103, ``(3) the taxpayer is a nonresident alien, or ``(4) the taxpayer disposes of such residence (or such residence ceases to be a residence of the taxpayer (or, if married, the taxpayer's spouse)) before the close of such taxable year. ``(e) Other Rules To Apply.-- ``(1) Related persons.--Rules similar to the rules of section 26(c)(5) shall apply for purposes of this section. ``(2) Married individuals filing separate returns, etc.-- Rules similar to the rules of subparagraphs (B) and (C) of section 26(b)(1) shall apply for purposes of this section. ``(3) Reporting.--Rules similar to the rules of section 26(e) shall apply for purposes of this section. ``(f) Recapture of Credit.--Rules similar to the rules of section 26(f) shall apply for purposes of this section, except that-- ``(1) paragraph (1) thereof shall be applied by substituting `33\1/3\ percent' for `6\2/3\ percent', and ``(2) paragraph (7) thereof shall be applied by substituting `3 years' for `15 years'.''. (b) Conforming Amendments.-- (1) Section 26(b)(2) of such Code is amended-- (A) in subparagraph (W)-- (i) by striking ``homebuyer credit'' and inserting ``first-time homebuyer credit'', and (ii) by striking ``and'', (B) by striking the period at the end of subparagraph (X) and inserting ``, and'', and (C) by inserting after subparagraph (X) the following new subparagraph: ``(Y) section 36A(f) (relating to recapture of general homebuyer credit)''. (2) Section 6211(b)(4)(A) of such Code is amended by inserting ``36A,'' after ``36,''. (3) Section 1324(b)(2) of title 31, United States Code, is amended by inserting ``36A,'' after ``36,''. (4) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36 the following new item: ``Sec. 36A. General homebuyer credit for residences purchased during 2009 or 2010.''. (c) Effective Date.--The amendments made by this section shall apply to residences purchased after December 31, 2008, in taxable years ending after such date.
summary: Economic Recovery Through Responsible Homeownership Act of 2009 - Amends the Internal Revenue Code to allow an individual taxpayer a refundable tax credit for the purchase in 2009 or 2010 of a residence located in the United States if the construction of such residence began before 2009. Allows a credit of either $2,000, $5,000, or $10,000 for downpayments of 5, 10, or 15% of the residence's purchase price respectively.