A Democratic bill with 38 Democratic cosponsors · See all 38 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill, titled the "First-Time Homebuyer Tax Credit Act of 2025," seeks to amend the Internal Revenue Code of 1986. It introduces a refundable tax credit for individuals purchasing a principal residence in the United States for the first time. The credit is set at 10 percent of the purchase price, subject to a $15,000 cap. Various limitations are included, such as income phaseouts and purchase price limits. The act also establishes rules for credit recapture if the home is sold early.
Yes· 3 of 8
- Scored +5
Would people in their twenties and thirties be better off under this?
The credit assists individuals in purchasing their first home, which is a common life stage for young adults.
- Scored +5
Would households on low incomes be better off under this?
The refundable credit and income-based phaseouts provide targeted relief for lower-income earners.
- Scored +5
Would middle-income households be better off under this?
The credit offers significant tax relief for middle-income earners purchasing a home.
The opposite
- Scored -2
Does this reduce what the federal government owes?
The tax credit represents a reduction in federal revenue.
Who it would affect, and how
Potential Positive Impacts for People
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Direct Financial Assistance for Homebuyers: Individuals who are first-time homebuyers can receive a credit equal to 10 percent of their home's purchase price, up to a limit of $15,000. This is intended to assist those purchasing a principal residence (Section 2(a)).
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Flexibility in Receiving the Credit: Taxpayers have the option to elect to have the credit transferred directly to their mortgage lender rather than receiving it themselves, which can be used as a down payment or partial payment (Section 2(h)).
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Inflation Protection: The dollar limits for the credit are subject to annual inflation adjustments based on cost-of-living, helping the benefit keep up with economic changes in years following 2025 (Section 2(b)(1)(4)).
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Protection for Specific Professionals: Members of the armed forces, the Foreign Service, or the intelligence community are exempt from certain recapture rules when disposing of a residence due to qualified official extended duty service (Section 2(f)(4)(D)).
Potential Negative Impacts for People
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Income-Based Reductions: The amount of the credit can be reduced based on the taxpayer's modified adjusted gross income if it exceeds 150 percent of the applicable Area Median Income (Section 2(b)(2)).
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Purchase Price Limitations: The credit can be reduced if the purchase price of the residence exceeds 110 percent of the area median purchase price (Section 2(b)(3)).
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Risk of Tax Recapture: If a taxpayer sells their principal residence or stops using it as their primary residence within a four-year "recapture period," they may have to pay back a portion of the credit (Section 2(f)(1)).
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Strict Eligibility Requirements: To qualify as a "first-time homebuyer," an individual must have had no present ownership interest in a residence during the 3-year period ending on the date of purchase (Section 2(c)(1)).
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Documentation Burdens: To avoid having a credit disallowed, taxpayers must attach a properly executed copy of the settlement statement used to complete the purchase to their tax return (Section 2(d)(3)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — The refundable credit and income-based phaseouts provide targeted relief for lower-income earners. Would middle-income households be better off under this? — The credit offers significant tax relief for middle-income earners purchasing a home. Would people in their twenties and thirties be better off under this? — The credit assists individuals in purchasing their first home, which is a common life stage for young adults. Would veterans be better off under this, taking everything together? — The bill includes specific exceptions to the recapture rules for members of the uniformed services.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill provides a refundable tax credit of up to $15,000 for first-time homebuyers. Is this likely to grow the economy? — The credit incentivizes home ownership and stimulates the real estate market. Does this reduce what the federal government owes? — The tax credit represents a reduction in federal revenue.
- Social Issues And Justice
- Does this make housing cost less? — The credit provides financial assistance to help individuals purchase a principal residence.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill requires taxpayers to attach a settlement statement to their tax returns to verify eligibility.
- 10/5/2026
- 1 Cosponsor added.
- 8/27/2026
- 1 Cosponsor added.
- 6/9/2026
- 1 Cosponsor added.
- 12/3/2025
- 1 Cosponsor added.
- 11/7/2025
- 1 Cosponsor added.
- 11/4/2025
- 1 Cosponsor added.
- 9/15/2025
- 1 Cosponsor added.
- 9/11/2025
- 1 Cosponsor added.
- 9/4/2025
- 1 Cosponsor added.
- 9/2/2025
- 1 Cosponsor added.
- 8/12/2025
- 1 Cosponsor added.
- 7/25/2025
- 3 Cosponsors added.
- 7/23/2025
- Referred to the House Committee on Ways and Means.
- 24 Cosponsors added.
- Introduced in House
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Julia BrownleyDemocrat · California
Janelle BynumDemocrat · Oregon
Steve CohenDemocrat · Tennessee
Angie CraigDemocrat · Minnesota
Gilbert CisnerosDemocrat · California
Troy CarterDemocrat · Louisiana
Danny DavisDemocrat · Illinois
Donald DavisDemocrat · North Carolina
Sharice DavidsDemocrat · Kansas
Cleo FieldsDemocrat · Louisiana
Shomari FiguresDemocrat · Alabama
Jonathan JacksonDemocrat · Illinois
Julie JohnsonDemocrat · Texas
William KeatingDemocrat · Massachusetts
Raja KrishnamoorthiDemocrat · Illinois
Mike LevinDemocrat · California
Greg LandsmanDemocrat · Ohio
George LatimerDemocrat · New York
Seth MagazinerDemocrat · Rhode Island
Robert MenendezDemocrat · New Jersey
April McClain DelaneyDemocrat · Maryland
Eleanor NortonDemocrat · District of Columbia
Johnny OlszewskiDemocrat · Maryland
Chris PappasDemocrat · New Hampshire
Emily RandallDemocrat · Washington
Terri SewellDemocrat · Alabama
Darren SotoDemocrat · Florida
Thomas SuozziDemocrat · New York
Hillary ScholtenDemocrat · Michigan
Emilia SykesDemocrat · Ohio
Eric SorensenDemocrat · Illinois
Andrea SalinasDemocrat · Oregon
Mike ThompsonDemocrat · California
Jill TokudaDemocrat · Hawaii
Shri ThanedarDemocrat · Michigan
Derek TranDemocrat · California
Gabe VasquezDemocrat · New Mexico
Eugene VindmanDemocrat · Virginia