The bill would create a federal tax credit for eligible first-time homebuyers and a tax credit for building certain starter homes. Homebuyers could claim a credit for down payment amounts up to $50,000, with the credit reduced for incomes above set limits. They must meet rules on prior homeownership, use the home as their main residence, and provide a settlement statement. Some buyers could choose to have the credit sent to a qualifying escrow account before the purchase. The credit may have to be repaid if the home is sold, rented, or no longer used as the buyer’s main home within five years, subject to listed exceptions.
Builders could claim a credit equal to 15% of qualifying labor and material costs for homes under 1,200 square feet and priced at no more than 80% of the area’s median home price. The rate would be 30% for a home sold to a first-time homebuyer. State housing agencies would allocate credits within annual state limits.
If you qualify as a first-time homebuyer, the proposed credit could reduce your federal tax, up to the amount allowed under the bill’s rules. Income limits, homeownership history, and other conditions apply. Builders could seek credits for eligible starter homes, subject to available allocations. The bill would apply to purchases and tax years beginning after enactment.
The bill does not state a total cost. It would create federal tax credits, and the amount available would depend on the eligible purchases, construction costs, and credit limits in the bill.
No publicly available information.
No publicly available information.