Bill > SB674

This bill establishes a one-time, nonrefundable individual income tax credit for first-time homebuyers in Virginia, available for taxable years 2026 through 2030. A "first-time homebuyer" is defined as someone who hasn't owned a primary residence in the past three years and whose household income doesn't exceed $100,000 or the local median household income, whichever is greater. The credit will be for five percent of the home's purchase price, capped at $10,000, and the total amount of credits issued annually will be limited to $10 million, allocated on a first-come, first-served basis. Any unused credit can be carried over for up to five years. Importantly, the credit must be repaid to the state if the home is sold within three years of purchase, unless the sale is due to a natural disaster or other act of God that makes the property uninhabitable. The Tax Commissioner will create guidelines for claiming and repaying the credit.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/SB674