Bills · HR 7160
IN COMMITTEE· 119TH CONGRESS
House BillHR 7160Taxation
First Home Affordability Act
INTRO JAN 20· LAST ACTION JAN 20
READING
16MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it aims to tackle the growing challenge of housing affordability, especially for those trying to buy their first home in a competitive market. Homeownership is a key way many Americans build wealth, and if this bill becomes law, it could help more people achieve that goal by offering substantial financial relief on their first home purchase. This could lead to more people owning homes, potentially boosting local economies as new homeowners invest in their properties and communities.
Without this bill, first-time buyers, particularly those with modest incomes or in high-cost areas, would continue to face the current barriers of high home prices and interest rates without this specific federal financial assistance. The bill could also help retain essential workers like teachers and first responders in their communities by making it more feasible for them to live where they work, addressing potential staffing shortages in vital public services.
KEY PROVISIONS
5AI-extractedPROVISION 01
Establishes a refundable tax credit for first-time homebuyers, equal to 10% of the home's purchase price, up to a maximum of $25,000.
This provides a significant financial incentive, potentially reducing the upfront or initial costs of homeownership for eligible individuals.
PROVISION 02
The credit is generally spread out over a five-year 'credit period,' with 20% of the total amount claimable each year.
This spreads the financial benefit over several years, providing ongoing support to new homeowners.
PROVISION 03
Teachers, childcare workers, and first responders receive the full 10% credit (up to $25,000) in the year of purchase.
This provision offers immediate and substantial financial relief to specific essential professions, making homeownership more accessible for them.
PROVISION 04
Includes phase-out mechanisms based on the taxpayer's income relative to the Area Median Income and the home's purchase price relative to the area median purchase price.
These limits ensure the credit primarily benefits lower and middle-income buyers and is not applied to excessively expensive properties, targeting affordability where it's most needed.
PROVISION 05
Requires the taxpayer to be at least 18 years old to claim the credit.
This sets a basic age requirement for eligibility, aligning with legal majority for property transactions.
SPONSORSHIP
1 + 0
D· Illinois
YRS IN OFFICE
9
BILLS LED
42
ACTION TIMELINE
2 EVENTSJAN 20
Introduced in House
JAN 20
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 7160
Congress119th
StatusIn Committee
IntroducedJan 20, 2026
Last actionJan 20, 2026
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JAN 20, 2026
House BillHR 7160Taxation
First Home Affordability Act
INTRODUCED JAN 20, 2026· LAST ACTION JAN 20, 2026
PASSAGE CHANCES
—%
READING
16 min
COSPONSORS
0
COMPLEXITY
Moderate
