A Democratic bill with 13 Democratic cosponsors · See all 13 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
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, called the "First-Time Homebuyer Tax Credit Act of 2025," amends the Internal Revenue Code of 1986 to create a tax credit for first-time homebuyers. The credit is equal to 10 percent of the home's purchase price, with a maximum credit of $15,000, but this amount may be reduced based on income and the area's median purchase price. It also allows taxpayers to elect to transfer the credit to their mortgage lender.
Yes· 3 of 20
- Scored +7
Would people in their twenties and thirties be better off under this?
The bill specifically targets first-time homebuyers, who are likely to be young adults, to help them purchase homes.
- Scored +7
Would middle-income households be better off under this?
This bill directly benefits middle-class households by providing a tax credit for first-time homebuyers.
- Scored +5
Would households on low incomes be better off under this?
The tax credit could make homeownership more accessible to low-income households, though the income limitations might reduce the benefit.
The opposite· 3 of 6
- Scored -2
Would high-income households be better off under this?
High-income households are less likely to qualify for the tax credit due to income limitations, thus the bill does not benefit them and might negatively impact their taxes.
- Scored -2
Would people with substantial wealth be better off under this?
High-net-worth individuals are less likely to qualify for the tax credit due to income limitations.
- Scored -2
Would the very wealthiest people be better off under this?
Ultra-high-net-worth individuals are less likely to qualify for the tax credit due to income limitations.
Who it would affect, and how
Potential Positive Impacts for People
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First-Time Homebuyer Credit (Sec. 2(a)): This section allows a tax credit for first-time homebuyers, potentially making homeownership more affordable. The credit is equal to 10% of the purchase price.
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Dollar Limitation (Sec. 2(b)(1)): Sets a maximum credit of $15,000, which could substantially help with a down payment. For married individuals filing separately, the limit is $7,500.
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Inflation Adjustment (Sec. 2(b)(4)): The dollar amounts in paragraph (1) shall be increased by an amount equal to such dollar amount, multiplied by the cost-of-living adjustment. This helps the credit keep pace with rising costs in the future.
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Transfer of Credit (Sec. 2(h)): Taxpayers can elect to transfer the credit to their mortgage lender, potentially reducing the amount they need to borrow. The mortgage lender needs to provide the taxpayer an amount equal to the credit otherwise allowable to such taxpayer.
Potential Negative Impacts for People
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Limitations Based on Income and Purchase Price (Sec. 2(b)(2) and (3)): The credit is reduced based on the taxpayer's income relative to the area median income and the purchase price relative to the area median purchase price. This means that some people who would otherwise qualify as first-time homebuyers might not receive the full credit, or any credit at all.
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Recapture of Credit (Sec. 2(f)): If a homeowner disposes of the home or it ceases to be their principal residence within four years, they may have to pay back a portion of the credit.
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Age Limitation (Sec. 2(b)(5)): No credit shall be allowed under subsection (a) with respect to the purchase of any residence unless the taxpayer has attained age 18 as of the date of such purchase. This may lock out some young people from getting the credit.
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 middle-income households be better off under this? — This bill directly benefits middle-class households by providing a tax credit for first-time homebuyers. Would people in their twenties and thirties be better off under this? — The bill specifically targets first-time homebuyers, who are likely to be young adults, to help them purchase homes. Would households on low incomes be better off under this? — The tax credit could make homeownership more accessible to low-income households, though the income limitations might reduce the benefit. Would students be better off under this? — The bill could help students who are first-time homebuyers purchase a home after graduation. Would Black Americans be better off under this? — This bill could help reduce the racial wealth gap by enabling more African Americans to become homeowners. Would Asian Americans be better off under this? — This bill could help reduce the racial wealth gap by enabling more Asian Americans to become homeowners. Would Hispanic Americans be better off under this? — This bill could help reduce the racial wealth gap by enabling more Hispanic Americans to become homeowners. Would immigrants be better off under this? — This bill can benefit immigrants who are first time home buyers. Would men be better off under this? — This bill can benefit men who are first time home buyers. Would people in middle age be better off under this? — The bill could benefit middle-aged individuals who are first-time homebuyers or are looking to purchase a new home. Would Native Americans be better off under this? — This bill could help reduce the racial wealth gap by enabling more Native Americans to become homeowners. Would people in rural areas be better off under this? — This bill can benefit rural residents who are first time home buyers. Would people in cities be better off under this? — This bill can benefit urban residents who are first time home buyers. Would white Americans be better off under this? — This bill could benefit White Americans who are first-time homebuyers. Would women be better off under this? — This bill can benefit women who are first time home buyers. Would billionaires be better off under this? — Billionaires are less likely to qualify for the tax credit due to income limitations. Would high-income households be better off under this? — High-income households are less likely to qualify for the tax credit due to income limitations, thus the bill does not benefit them and might negatively impact their taxes. Would people with substantial wealth be better off under this? — High-net-worth individuals are less likely to qualify for the tax credit due to income limitations. Would the very wealthiest people be better off under this? — Ultra-high-net-worth individuals are less likely to qualify for the tax credit due to income limitations.
- Economy And Finance
- Does this cut taxes for middle-income families? — This bill provides a tax credit for first-time homebuyers, which would likely reduce taxes for middle-class families. Is this likely to grow the economy? — The bill could stimulate economic growth by encouraging home purchases and related spending. Is this likely to create jobs? — The bill could indirectly lead to job creation in the construction and real estate industries due to increased home buying activity. Does this make the government pay for what it commits to? — The tax credits provided in this bill could decrease fiscal responsibility. Does this reduce what the federal government owes? — The tax credits provided in this bill could increase the national debt.
- Social Issues And Justice
- Does this make housing cost less? — By providing a tax credit for first-time homebuyers, the bill can indirectly improve affordable housing by making homeownership more accessible. Is this likely to lift people out of poverty? — The bill may help some low-income families achieve homeownership, potentially contributing to poverty reduction.
- 7/28/2025
- 1 Cosponsor added.
- 7/23/2025
- Read twice and referred to the Committee on Finance.
- 12 Cosponsors added.
- Introduced in Senate
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.
Angela AlsobrooksDemocrat · Maryland
Tammy BaldwinDemocrat · Wisconsin
Richard BlumenthalDemocrat · Connecticut
Lisa Blunt RochesterDemocrat · Delaware
Ruben GallegoDemocrat · Arizona
Martin HeinrichDemocrat · New Mexico
Andy KimDemocrat · New Jersey
Ben LujánDemocrat · New Mexico
John ReedDemocrat · Rhode Island
Jacky RosenDemocrat · Nevada
Tina SmithDemocrat · Minnesota
Chris Van HollenDemocrat · Maryland
Peter WelchDemocrat · Vermont