This bill creates a new federal tax credit to help first-time homebuyers purchase their primary residences. The credit equals 10 percent of the home's purchase price, capped at $15,000 per person (or $7,500 for married individuals filing separately). To qualify, buyers must be at least 18 years old, own no home in the previous three years, and finance their purchase with a federally-backed mortgage. The credit phases out for higher-income earners and homes above area median prices, with amounts adjusted annually for inflation starting in 2026. If a homebuyer sells the residence within four years, they must repay 25 percent of the credit annually, though exceptions exist for death, job relocation, military service, and involuntary loss of the home. The bill also allows lenders to claim the credit instead of buyers if both agree, with the lender passing the benefit to the homebuyer at closing.
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