The First-Time Homebuyer Tax Credit: Explained

Overview: First-Time Homebuyer Tax Credit

The First-Time Homebuyer Tax Credit is a proposed bill that would create a refundable tax credit for first-time home buyers. A refundable credit is structured to provide value to eligible buyers based on the final rules, even when a buyer’s tax bill is small.

For home buyers, a refundable tax credit can support the cost of purchasing a home by improving your overall finances around tax time, depending on how the credit is designed in the final version of the bill.

H.R. 7160 is introduced in the 119th Congress. Note that bills often change on their way to becoming law, so this page will update as new details emerge. For real-time updates, subscribe to our newsletter.

What Is the First-Time Homebuyer Tax Credit?

The First-Time Homebuyer Tax Credit is a proposal to add a new refundable tax credit to the federal tax code for eligible first-time home buyers.

The bill summary provided here focuses on creating the credit. Details that home buyers usually want to know, such as the credit amount, income guidelines, and which purchase dates qualify, would be defined in the bill text and could be updated during the legislative process.

Who Qualifies for the First-Time Homebuyer Tax Credit?

The bill summary provided for this page does not include specific eligibility rules. When eligibility details are published, they commonly cover items like:

• How “first-time home buyer” is defined
• Whether there are income guidelines
• What types of homes qualify for the credit

As written in the summary, the bill’s intent is to direct the credit to first-time home buyers, with the exact rules set by the final legislation.

How The First-Time Homebuyer Tax Credit Works

The First-Time Homebuyer Tax Credit would work through your federal tax return as a tax credit, with refundable treatment described in the bill. In general terms, a tax credit is different from a deduction because it is designed to reduce taxes dollar for dollar, based on eligibility and the final credit rules.

The summary does not include operational details such as the maximum credit amount, the year you claim the credit, or required documentation. If the bill advances, those details can be described clearly once the published text and guidance are available.

Who Sponsors the First-Time Homebuyer Tax Credit?

The First-Time Homebuyer Tax Credit is introduced as H.R. 7160 in the House. Sponsor and cosponsor details can change as the bill moves through Congress. For the latest legislative updates and cosponsors, see the Bill Tracker above.