(a) In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section:

36C. Housing affordability credit

(a) Allowance of credit

In the case of an eligible individual, there shall be allowed $5,000 (twice such amount in the case of a joint return) as a credit against the tax imposed by this subtitle.

(b) Eligible individual

For purposes of this section, the term eligible individual means, with respect to a taxable year, an individual—

(1)

who purchases a principal residence (as such term is used in section 121) during such taxable year, and

(2)

with respect to whom no credit has been allowed during the 4 taxable years preceding such taxable year.

(c) Phaseout

(1) In general

The amount of the credit allowed under subsection (a) shall be reduced by the amount which bears the same ratio to $50,000 (twice such amount in the case of a joint return) as the excess of—

(A)

the modified adjusted gross income of the individual, over

(B)

$250,000 (twice such amount in the case of a joint return).

(2) Modified adjusted gross income

For purposes of this subsection, 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.

(b) Conforming amendments

(c) Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.