compulsorily or involuntarily converted (within the meaning of section 1033(a)) if the taxpayer acquires a new principal residence during the 2-year period beginning on the date of the disposition or cessation referred to in paragraph (1). Paragraph (1) shall apply to such new principal residence during the 5-year period referred to therein in the same manner as if such new principal residence were the converted residence. (C) Transfers between spouses or incident to divorce In the case of a transfer of a residence to which section 1041(a) applies— (i) paragraph (1) shall not apply to such transfer, and (ii) in the case of taxable years ending after such transfer, paragraph (1) shall apply to the transferee in the same manner as if such transferee were the transferor (and shall not apply to the transferor). (4) Joint returns In the case of a credit allowed under subsection (a) with respect to a joint return, half of such credit shall be treated as having been allowed to each individual filing such return for purposes of this subsection. (5) Return requirement If the tax imposed by this chapter for the taxable year is increased under this subsection, the taxpayer shall, notwithstanding section 6012, be required to file a return with respect to the taxes imposed under this subtitle. (g) Application of section This section shall only apply to a principal residence purchased by the taxpayer after December 31, 2017, and before January 1, 2020. . (2) Clerical amendment The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 36 and inserting the following new item: Sec. 36. First-time homebuyer credit for economically distressed communities. . (3) Effective date The amendments made by this section shall apply to principal residences purchased after December 31, 2017. (b) Use of hardest hit fund amounts for commercial demolition (1) Authority Notwithstanding any provision of title I of the Emergency Economic Stabilization Act of 2008 (