Community Development Homeownership Tax Credit Act S 875

This bill differs slightly from the New Homestead Economic Opportunity Act (S. 198), which is the other homeownership tax credit bill pending in the Senate. The Community Development Homeownership Tax Credit Act (S. 875) has a recapture penalty during the first five years of ownership, while S. 198 has a recapture penalty during the first three years. Additionally, this bill has a set aside of 10 percent of the tax credits for non-profit organizations and includes rural areas and Native American reservations as eligible locations. The New Homestead Economic Opportunity Act does not have these features. Finally, S. 198 would be applied to residences sold after December, 31, 2002, while this bill would be applicable on the date of its enactment.