Bill > HR3475

This bill introduces two new tax credits aimed at supporting homeownership: a first-time homebuyer credit and a starter home construction credit. The first-time homebuyer credit allows individuals who have not owned a principal residence in the past 10 years to claim a tax credit of up to $50,000 for their down payment, with the credit amount gradually reducing for taxpayers with modified adjusted gross incomes above certain thresholds (e.g., $300,000 for joint filers). The credit includes provisions for advanced payment through a qualifying escrow account and a recapture mechanism if the home is sold or no longer serves as the principal residence within 5 years, with exceptions for specific circumstances like death, divorce, or military service. The starter home construction credit provides an incentive for constructing smaller, more affordable homes by offering a 15% tax credit (30% for first-time homebuyers) on construction costs for homes under 1,200 square feet and priced below 80% of the area's median home price. The credit is subject to a state-level allocation system, with each state receiving a baseline allocation based on population, and includes an inflation adjustment mechanism. Both credits are designed to help address housing affordability and increase access to homeownership for first-time buyers.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3475/all-info