NAHB Supports First-Time Home Buyer Tax Credit Legislation

Tax Reform
Published
Contact: J.P. Delmore
[email protected]
AVP, Government Affairs
(202) 266-8412

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Membership

Jul 21, 2025

NAHB Mourns Passing of Rick Herman

NAHB mourns the passing of Rick Herman, longtime Executive Officer of the Rochester Home Builders Association (RHBA) in New York. Rick joined RHBA 30 years ago and served as a tireless advocate for members in Rochester and around the state.

Construction Costs

Jul 18, 2025

Metals and Equipment Drove Material Prices Higher in June

Residential building material prices rose in June, driven primarily by higher construction machinery and equipment part prices, based on data from the most recent Producer Price Index (PPI). Metal commodities also experienced significant increases, following recently implemented tariffs on steel and aluminum.

View all

Latest Economic News

Economics

Jul 21, 2025

Use of Private Water and Sewer Systems in New Single-Family Homes

The share of new single-family homes built with individual septic systems declined slightly in 2024 compared to the previous year, while the share of homes served by private wells remained steady.

Economics

Jul 21, 2025

Sales of Lower-Priced New Single-Family Homes Declined Over the Past Five Years

From 2020 to 2024, sales of lower-priced new homes declined significantly as the market moved toward higher-priced segments. Rising construction costs—driven by inflation, supply chain disruptions, and labor shortages—as well as higher regulatory costs, made it increasingly difficult for builders to construct affordable homes.

Economics

Jul 18, 2025

State-Level Employment Situation: June 2025

Nonfarm payroll employment increased in 27 states in June compared to the previous month, while employment decreased in 23 states and the District of Columbia. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 147,000 in June following a gain of 144,000 jobs in May.