Bill > HB1211

This bill establishes a one-time, nonrefundable individual income tax credit of $5,000 for first-time homebuyers in Virginia, available for purchases made between 2026 and 2030. A "first-time homebuyer" is defined as someone who hasn't owned a principal residence (their main home) in the three years prior to buying, and whose household income doesn't exceed $100,000 or 120% of the local median household income, whichever is greater. This credit is nonrefundable, meaning it can reduce a taxpayer's liability to zero but won't result in a refund, and any unused portion can be carried forward for up to five years. Crucially, the credit must be repaid to the state if the home is sold or no longer used as the buyer's principal residence within three years of purchase, unless the sale is due to a natural disaster making the home uninhabitable or a military relocation. The Tax Commissioner will create guidelines for claiming and repaying this credit.