First-Time Homebuyer Tax Credit Act of 2025
Sponsored By: Representative Rep. Panetta, Jimmy [D-CA-19]
Introduced
Summary
Refundable tax credit for first-time homebuyers. This bill would create a refundable federal income tax credit equal to 10% of a home's purchase price, capped at $15,000, for qualifying first-time buyers.
Show full summary
- Families and first-time buyers: A refundable credit equal to 10% of the purchase price up to $15,000. The credit phases down based on modified adjusted gross income and local median purchase prices.
- Lenders and buyers: A buyer could elect to transfer the credit to a registered mortgage lender in exchange for an upfront cash payment equal to the credit amount, subject to lender registration and disclosure requirements.
- Tax filing and repayment rules: Claiming the credit requires attaching settlement documentation and can be flagged for age or income inconsistencies. If the home is sold or stops being the principal residence within four years, part of the credit can be recaptured at 25% per remaining year, with specified exceptions for death, involuntary conversions, transfers between spouses, and certain military or employment moves.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 3 costs, 0 mixed.
Refundable credit up to $15,000 for first-time buyers
If enacted, first-time buyers could claim a refundable tax credit equal to 10% of the home price, up to $15,000 ($7,500 if married filing separately). Amounts would adjust for inflation after 2025. You must be at least 18, and neither you nor your spouse owned a home in the past 3 years or claimed this credit before. The home must be your main home, not bought from a related person, and financed with a federally backed mortgage; a home you build counts when you first move in. Unmarried co-buyers would split up to $15,000 in total. For purchases after December 31, 2023, you could elect to treat the purchase as in the prior year to claim the credit sooner.
Use credit at closing through your lender
If enacted, you could choose to let your registered mortgage lender take the credit and pay you the same amount at or before closing, in cash or toward your down payment. You must make this choice by the purchase date, and the payment would not be taxable to you. Treasury could advance funds to registered lenders so they can make these payments. The IRS could revoke a lender’s registration for noncompliance.
Credit reduced by income and home price
If enacted, your credit would be cut when income is above 150% of the local Area Median Income. The cut phases in over the next 20% of that AMI. Your credit would also be cut when your purchase price is above 110% of the area’s median home price, phased in over the next 15% of that median. Both reductions cannot take the credit below zero.
Pay back credit if you sell early
If enacted, you could owe back part of the credit if you sell or move out within four years. The payback equals 25% of the credit times the number of years left in the four-year window. For sales to unrelated buyers, you would not pay back more than your gain. Some exceptions apply, like death, certain forced sales with replacement, divorce transfers, and some military or job moves after 12/31/2022.
Stronger paperwork and IRS checks for credit
If enacted, the credit would be denied for a year if you sell or stop using the home as your main home before year‑end, if someone else can claim you as a dependent, or if you do not attach the signed settlement statement. The IRS could require third‑party reports to verify eligibility. Claims could be treated as clerical errors if age records, past income, or missing paperwork show you do not qualify.
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Sponsors & CoSponsors
Sponsor
Rep. Panetta, Jimmy [D-CA-19]
CA • D
Cosponsors
Rep. Thompson, Mike [D-CA-4]
CA • D
Sponsored 7/23/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 7/23/2025
Landsman
OH • D
Sponsored 7/23/2025
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 7/23/2025
Bynum
OR • D
Sponsored 7/23/2025
Rep. Sewell, Terri A. [D-AL-7]
AL • D
Sponsored 7/23/2025
Rep. Carter, Troy A. [D-LA-2]
LA • D
Sponsored 7/23/2025
Rep. Fields, Cleo [D-LA-6]
LA • D
Sponsored 7/23/2025
Rep. Krishnamoorthi, Raja [D-IL-8]
IL • D
Sponsored 7/23/2025
Craig
MN • D
Sponsored 7/23/2025
Rep. Tokuda, Jill N. [D-HI-2]
HI • D
Sponsored 7/23/2025
Rep. Soto, Darren [D-FL-9]
FL • D
Sponsored 7/23/2025
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 7/23/2025
Rep. Scholten, Hillary J. [D-MI-3]
MI • D
Sponsored 7/23/2025
McClain Delaney
MD • D
Sponsored 7/23/2025
Rep. Tran, Derek [D-CA-45]
CA • D
Sponsored 7/23/2025
Rep. Davis, Donald G. [D-NC-1]
NC • D
Sponsored 7/23/2025
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 7/23/2025
Rep. Brownley, Julia [D-CA-26]
CA • D
Sponsored 7/23/2025
Rep. Johnson, Julie [D-TX-32]
TX • D
Sponsored 7/23/2025
Rep. Jackson, Jonathan L. [D-IL-1]
IL • D
Sponsored 7/23/2025
Rep. Cohen, Steve [D-TN-9]
TN • D
Sponsored 7/23/2025
Rep. Davis, Danny K. [D-IL-7]
IL • D
Sponsored 7/23/2025
Rep. Figures, Shomari [D-AL-2]
AL • D
Sponsored 7/23/2025
Rep. Sorensen, Eric [D-IL-17]
IL • D
Sponsored 7/25/2025
Rep. Olszewski, Johnny [D-MD-2]
MD • D
Sponsored 7/25/2025
Rep. Salinas, Andrea [D-OR-6]
OR • D
Sponsored 7/25/2025
Rep. Davids, Sharice [D-KS-3]
KS • D
Sponsored 8/12/2025
Cisneros
CA • D
Sponsored 9/2/2025
Rep. Pappas, Chris [D-NH-1]
NH • D
Sponsored 9/4/2025
Latimer
NY • D
Sponsored 9/11/2025
Rep. Levin, Mike [D-CA-49]
CA • D
Sponsored 9/15/2025
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 11/4/2025
Rep. Menendez, Robert [D-NJ-8]
NJ • D
Sponsored 11/7/2025
Rep. Keating, William R. [D-MA-9]
MA • D
Sponsored 12/3/2025
Roll Call Votes
No roll call votes available for this bill.
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