Treasury Regulations · 26 CFR
§ 1.44-1. Allowance of credit for purchase of new principal residence after March 12, 1975, and before January 1, 1977.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 44
Cite as 26 CFR § 1.44-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- December 2, 1975 by T.D. 7391
- Issued under
- 26 U.S.C. § 44
- Length
- 458 words · about 2 min to read
- Cross-references
- cites 8 Code sections and 2 regulations; cited by 2
¶(a) General rule. Section 44 provides a credit against the tax imposed by chapter 1 of the Internal Revenue Code of 1954 in the case of an individual who purchases a new principal residence (as defined in paragraph (a) of § 1.44-5) which is property to which section 44 applies (as provided in § 1.44-2). Subject to the limitations set forth in paragraph (b) of this section, the credit is in an amount equal to 5 percent of the purchase price (as defined in paragraph (b) of § 1.44-5).
¶(b) Limitations—
¶(2) Limitation to one residence. Such credit shall be allowed with respect to only one residence of the taxpayer; the combined purchase prices of more than one new principal residence cannot be aggregated to increase the credit allowed.
¶(3) Married individuals. In the case of a husband and wife who file a joint return under section 6013, the maximum credit allowed on the joint return is $2,000. In the case of married individuals filing separate returns the maximum credit allowable to each spouse is $1,000. Where a husband and wife do not make equal contributions with respect to the purchase price of the new principal residence, allocation of the credit is to be made in proportion to their respective ownership interests in such residence. For this purpose, tenants by the entirety or joint tenants with right of survivorship are treated as equal owners.
¶(4) Certain other taxpayers. Where a new principal residence is purchased by two or more taxpayers (other than a husband and wife), the amount of the credit allowed will be allocated among the taxpayers in proportion to their respective ownership interests in such residence, with the limitation that the sum of the credits allowed to all such taxpayers shall not exceed $2,000. For this purpose, joint tenants with right of survivorship are treated as equal owners. For an example of the operation of this provision see Example (2) of § 1.44-5(b)(2)(ii).
¶(5) Application with other credits. The credit allowed by this section shall not exceed the amount of the tax imposed by chapter 1 of the Code for the taxable year, reduced by the sum of the credits allowable under—
[T.D. 7391, 40 FR 55851, Dec. 2, 1975]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 44 Expenditures to provide access to disabled individuals
- § 6013 Joint returns of income tax by husband and wife
- § 33 Tax withheld at source on nonresident aliens and foreign corporations
- § 37 Overpayments of tax
- § 38 General business credit
- § 40 Alcohol, etc., used as fuel
- § 41 Credit for increasing research activities
- § 42 Low-income housing credit
Regulations it cites
- § 1.44-5 Definitions.
- § 1.44-2 Property to which credit for purchase of new principal residence applies.
Cited by 2 other regulations
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 7391 (40 FR 55851)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- General Business Credits
Nearby sections
- § 1.43-3 Certification
- § 1.43-4 Qualified enhanced oil recovery costs.
- § 1.43-6 Election out of section 43.
- § 1.43-7 Effective date of regulations.
- § 1.44-1 Allowance of credit for purchase of new principal residence after March 12, 1975, and before January 1, 1977.
- § 1.44-2 Property to which credit for purchase of new principal residence applies.
- § 1.44-3 Certificate by seller.
- § 1.44-4 Recapture for certain dispositions.
- § 1.44-5 Definitions.