“To amend the Internal Revenue Code of 1986 to establish the first-time homebuyer refundable tax credit.”
No CRS summary available for this bill.
This section revises IRC §36 to establish a refundable first-time homebuyer tax credit for an eligible individual equal to 2% (i.e., 10% of the purchase price of a principal U.S. residence divided by 5) for each taxable year in the 5-year credit period beginning with the purchase year, with an aggregate limit of $25,000 for a single purchase ($12,500 for married individuals filing separately). An eligible individual is a first-time homebuyer (i.e., purchaser of a principal residence with no prior ownership in that year or the prior 4 taxable years) who is at least age 18 on the purchase date (or whose spouse is). The credit phases out (1) for modified adjusted gross income above 150% of applicable area median income (AMI) over the next 20% of AMI, and (2) for purchase price above 110% of area median purchase price over the next 15% of such price; dollar amounts are inflation-adjusted after 2025. The section directs the Secretary of the Treasury, in consultation with the Secretary of Housing and Urban Development, to issue regulations and guidance, including for area data and allocation among unmarried co-purchasers, and provides a special rule modifying the credit period for first responders, childcare workers, and teachers.