Bill > S2402

This bill introduces the First-Time Homebuyer Tax Credit Act of 2025, which provides a refundable tax credit for first-time homebuyers purchasing a principal residence in the United States. The credit is equal to 10% of the home's purchase price, with a maximum credit of $15,000 (or $7,500 for married individuals filing separately). The credit is subject to several important limitations: it is phased out based on the taxpayer's modified adjusted gross income relative to the area median income, reduced if the home's purchase price exceeds 110% of the area median purchase price, and only available to individuals who are at least 18 years old. To qualify as a first-time homebuyer, an individual must not have owned a residence in the past three years and must not have previously claimed this credit. The bill includes provisions for recapturing the credit if the homeowner sells or stops using the home as a principal residence within four years, with some exceptions for death, involuntary conversion, or military service. Notably, the bill also allows homebuyers to transfer the credit to their mortgage lender, who can provide an upfront payment equal to the credit amount. The tax credit will be adjusted annually for inflation and is designed to help make homeownership more accessible, particularly for younger and lower-income individuals.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2402/all-info