This bill creates a new federal tax credit to help first-time homebuyers purchase a principal residence in the United States. The credit equals 10 percent of the home's purchase price, capped at a maximum of $15,000 per person ($7,500 for married individuals filing separately). However, the credit phases out for buyers with higher incomes above 150 percent of their area's median income and for homes purchased above 110 percent of the area's median home price, ensuring the benefit targets lower and middle-income homebuyers. The credit is only available to individuals age 18 or older who have not owned a home in the prior three years, have not previously claimed this credit, and are financing their purchase with a federally-backed mortgage. If a homebuyer sells their home within four years of purchase, they must repay 25 percent of the credit annually for each remaining year in that four-year period, with some exceptions for military members, foreign service employees, and those experiencing job-related relocations. The bill also allows mortgage lenders to register to receive the credit directly instead of the homebuyer, with the lender passing the benefit to the borrower as a down payment or cash assistance. The tax credit would apply to homes purchased after the bill's enactment, with dollar limits adjusted annually for inflation.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.