PRIA Logo™
119-hr-3475119th CongressWALLET

Bipartisan American Homeownership Opportunity Act of 2025

Sponsored By: Representative Fitzpatrick, Brian K. [R-PA-1]

Introduced

Summary

Expands homeownership with two new federal tax credits. This bill would create a first-time homebuyer tax credit tied to down payments and a separate starter home construction credit to subsidize building smaller, lower-priced homes.

Show full summary
  • First-time homebuyers: Would receive a credit equal to their down payment, up to $50,000. The credit is reduced for higher incomes above set MAGI thresholds and can be recaptured if the home stops being the primary residence within 5 years.
  • Builders of starter homes: Would get a credit equal to 15% of qualified construction costs, rising to 30% if the unit is sold to a first-time buyer. The credit targets smaller, lower-priced units with statutory size and price limits.
  • State housing agencies and lenders: State agencies would receive annual allocation ceilings that add unused prior-year amounts plus 30 times the state population. Banks holding advance escrow payments must return unused funds in about 180 days and may face new IRS reporting requirements.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Up to $50K credit for first-time buyers

If enacted, first-time homebuyers would get a federal tax credit equal to their down payment, up to $50,000. The credit would phase out as prior-year modified AGI rises above $300,000 (married filing jointly), $225,000 (head of household), or $150,000 (others), and would reach zero $100,000 later. You could ask for an advance payment into a bank escrow for your down payment; any advance would reduce your credit, and unused funds must be returned within 180 days. You must be a first-time buyer (no home ownership in the last 10 years, no prior credit, and no past majority interest), not be a nonresident alien, and not be claimed as a dependent. The purchase must use a mortgage from a commercial lender and be from an unrelated seller. You would need to attach the closing statement to your tax return. If you sell, rent out, or stop living in the home within five years, you would generally owe the credit back, with exceptions for buying a new primary home with the proceeds, death, divorce, certain government orders, and qualifying extended duty service. The credit would lower your home’s tax basis. Dollar amounts would adjust for inflation after 2025.

Tax credit to build starter homes

If enacted, builders could claim a business tax credit equal to 15% of qualified labor and material costs to construct a home. The credit would be 30% if the unit is sold to a first-time homebuyer. To qualify, the unit must be 1,200 square feet or less, sell for no more than 80% of the area median home price, and be placed in service that year. Your credit could not exceed the amount your state allocates to you from its yearly pool. Each state’s pool would equal last year’s unused housing credit plus $30 per resident, with the $30 inflation-adjusted after 2025. The credit would reduce the property’s tax basis, and Treasury would issue rules.

Sponsors & CoSponsors

Sponsor

Fitzpatrick, Brian K. [R-PA-1]

PA • R

Cosponsors

  • Rep. Golden, Jared F. [D-ME-2]

    ME • D

    Sponsored 5/17/2025

  • Rep. Vasquez, Gabe [D-NM-2]

    NM • D

    Sponsored 9/2/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 10/8/2025

  • Rep. Harder, Josh [D-CA-9]

    CA • D

    Sponsored 10/17/2025

  • Rep. Thanedar, Shri [D-MI-13]

    MI • D

    Sponsored 10/31/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation