NAHB Supports First-Time Home Buyer Tax Credit Legislation
After President Biden called for a new federal tax credit to support first-time home buyers in his State of the Union Address, the First-Time Homebuyer Tax Credit Act was introduced in the House and Senate on March 13.
Sponsored by Sens. Sheldon Whitehouse (D-R.I.) and Martin Heinrich (D-N.M.) and by Reps. Jimmy Panetta (D-Calif.) and Earl Blumenauer (D-Ore.), the legislation would create a refundable tax credit up to $15,000 for first-time home buyers. Buyers would have the option of claiming the credit at closing through their mortgage lender, which would help alleviate one of the biggest barriers for first-time buyers: accumulating enough savings to cover the initial costs of buying a home.
The credit phases out for those making above 150% of area median income and for those buying a house with a purchase price above 110% of the area median purchase price. Additionally, the credit is limited to home purchases financed through federally backed mortgages.
NAHB has endorsed this legislation, and while its fate is uncertain, NAHB welcomes the congressional focus on the challenges facing home buyers today. In addition to supporting tax incentives focusing on the unique challenges of a first-time buyer, NAHB strongly believes Congress should holistically look at how the tax code incentivizes homeownership for first-time buyers as well as existing home owners and move up buyers such as young families.
Latest from NAHBNow
Sep 24, 2025
New Home Sales Post Unexpected Large Gain in AugustSales of newly built single-family homes jumped 20.5% higher in August, to a seasonally adjusted annual rate of 800,000 from an upwardly revised reading in July, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales is up 15.4% from a year earlier. The three-month moving average of new home sales was 713,000, an increase from the 656,000 in July. New home sales remain down 1.4% on a year-to-date basis.
Sep 23, 2025
NAHB Members: Join the Housing Industry’s Attorney NetworkDoing business with fellow members is a core value of the NAHB Federation. To strengthen that commitment, NAHB is building a network of attorney members to assist peers with legal issues.
Latest Economic News
Sep 24, 2025
Single-Family Construction Loan Volume Falls BackThe NAHB Land Acquisition, Development and Construction (AD&C) loan survey in the second quarter reported tightening credit conditions for builders. Consequently, FDIC data reporting the outstanding volume of 1-4 family construction loans fell in the second quarter.
Sep 23, 2025
Beyond the Official Unemployment Rate: A Deep Dive into U.S. UnemploymentIn August, the official, or standardly referenced, unemployment rate rose slightly to 4.3%, up from 4.2% in July. This marks the highest level in nearly four years, though it remains historically low.
Sep 22, 2025
Single-Family Homes Are Built Faster in 2024Building a new single-family home took less time in 2024 compared to the previous two years. On average, it now takes 9.1 months from start to finish.