Key Takeaways

The First-Time Homebuyer Act of 2021 is a proposed legislation that would provide first-time homebuyers with a tax credit of up to $15,000 if approved. Introduced in April 2021, the bill has not yet progressed through the legislative process. To qualify for the credit, first-time homebuyers must meet specific income and home purchase-price limits. Certain eligibility criteria such as age and homeownership history also apply.

How Will the First-Time Homebuyer Act of 2021 Function?

Sponsored by U.S. Representative Earl Blumenauer (D-OR), the First-Time Homebuyer Act of 2021 aims to establish a new refundable tax credit for first-time homebuyers. The tax credit would be equal to 10% of the home's purchase price, up to a maximum of $15,000. The bill is intended to assist lower-income households in purchasing homes.

History and Examples

In the past, first-time homebuyer tax credits have been successful. The proposed $15,000 tax credit for first-time homebuyers under the First-Time Homebuyer Act of 2021 is similar to previous initiatives that have helped millions of purchasers. The credit is refundable, which means it can offset taxes owed.

Who Qualifies for the First-Time Homebuyer Act?

To qualify for the tax credit under the First-Time Homebuyer Act of 2021, individuals must meet income and purchase-price criteria. For example, income must be below 160% of the area's median income, and the home's purchase price must not exceed 110% of the median home purchase price in that area. Other requirements, such as age and homeownership history, also apply.

Frequently Asked Questions (FAQs)

How do you qualify for the first-time homebuyer tax credit? Individuals must be at least 18 years old and meet specific income and purchase-price criteria outlined in the legislation.