“A bill to amend the Internal Revenue Code of 1986 to provide for a first-time homebuyer credit, and for other purposes.”
No CRS summary available for this bill.
This section revises Section 36 of the Internal Revenue Code of 1986 (previously expired) to establish a refundable first-time homebuyer credit equal to 10% of the purchase price of a principal residence in the United States, up to $15,000 ($7,500 in the case of a married individual filing a separate return; allocated if multiple unmarried taxpayers purchase jointly, not to exceed $15,000 total). The credit is subject to (1) a phaseout for modified adjusted gross income exceeding 150% of the applicable area median income (AMI, as determined by HUD for the residence location, household size, and purchase year), phasing out fully over the next 20% of AMI; (2) a phaseout for purchase prices exceeding 110% of the area median purchase price, phasing out fully over the next 15% of such price; (3) inflation adjustment of the dollar limits for taxable years beginning after 2025, using the chained CPI-U with 2024 as the base year, rounded to the nearest $100; and (4) an age requirement that the taxpayer (or spouse, if married) be at least 18 years old on the purchase date. A first-time homebuyer is an individual (and spouse, if married) with no ownership interest in a principal residence during the prior three years and who has not previously claimed the credit; purchase generally requires financing via a federally backed mortgage (per CARES Act Section 4022), excludes related-party and inheritance transactions, and treats taxpayer-constructed homes as purchased upon first occupancy. (Thus, the credit is payable as a refund from appropriations under 31 U.S.C. 1324, which already authorizes disbursements for Section 36.)