First-Time Homebuyer Tax Credit Act of 2025
Senate Bill Would Offer First-Time Homebuyers Up to $15,000 Tax Credit
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- Creates a refundable tax credit for first-time homebuyers worth 10% of a home’s purchase price, capped at $15,000 ($7,500 if married filing separately).
- Limits the credit for higher-income buyers using local “area median income,” and reduces it for homes priced well above typical local prices.
- Only applies if you buy your main home, you (and a spouse) haven’t owned a home in the last 3 years, and you’re at least 18.
- You generally must keep the home as your main home for up to 4 years, or you may have to pay back part of the credit (with exceptions like death, certain moves for work, or some government duty orders).
- Lets buyers choose to have the credit paid to their mortgage lender at closing, so the lender can give the buyer the same amount as cash or a down-payment help instead of waiting for tax time.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articlesPittsburgh's housing market is affordable on paper, out of reach for many
In an interview regarding local housing challenges, experts highlighted the pending First-time Homebuyer Tax Credit Act of 2025 as a federal measure that would offer a refundable tax credit of up to $15,000 to eligible first-time buyers, potentially easing the burden in competitive markets.
The $15,000 First-Time Homebuyer Tax Credit: Renewed In 2025
The First-Time Homebuyer Tax Credit Act of 2025 (S. 2402/H.R. 4717) proposes a refundable credit worth 10% of a home's price, capped at $15,000. It includes income phase-outs at 150% of area median income and recapture rules if the home is sold within four years of purchase.
New Bill: Senator Sheldon Whitehouse introduces S. 2402: First-Time Homebuyer Tax Credit Act of 2025
Senator Sheldon Whitehouse introduced S. 2402, which aims to provide a tax credit equal to 10% of a home's purchase price, up to $15,000. The bill targets middle-class buyers by phasing out the credit for those earning more than 150% of the area's median income.
Source Information
Document Type
Congressional Bill
Official Title
First-Time Homebuyer Tax Credit Act of 2025
Data Sources
Sponsor
Cosponsors
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