Bill > SB747

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 permanent home) in the preceding three years and whose household income does not exceed $100,000 or 120% of the local median household income, whichever is greater. This credit is limited to $10 million per year and is allocated on a first-come, first-served basis. If the credit amount exceeds a taxpayer's tax liability in the year of purchase, the remaining credit can be carried over for up to five years. Importantly, any claimed credit must be repaid to the Commonwealth if the home is sold or no longer used as the buyer's principal residence within three years of purchase, unless the sale or change in use is due to a natural disaster or military relocation. The Tax Commissioner will create guidelines for claiming and repaying this credit.