Bills · S 2402
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2402Taxation
First-Time Homebuyer Tax Credit Act of 2025
INTRO JUL 23· LAST ACTION JUL 23
READING
14MIN
COSPONSORS
13
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it tries to tackle a significant financial barrier for many Americans: the high cost of buying a first home. If it becomes law, it could make homeownership more accessible by providing a substantial refundable tax credit, effectively reducing the overall cost of a home or helping with upfront expenses like down payments or closing costs. This could be particularly impactful in areas with rising home prices.
If the bill does not pass, these potential first-time homebuyers would not receive this direct financial assistance, meaning the existing challenges of affordability in the housing market would remain unchanged for them. It could also influence the broader housing market by potentially increasing demand, which some argue could further drive up prices, while others contend it could stimulate a stagnant market.
KEY PROVISIONS
4AI-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 $15,000 (or $7,500 for married individuals filing separately).
This provision directly reduces the financial burden of homeownership for eligible individuals by offering a significant tax benefit or direct refund.
PROVISION 02
Introduces phase-out rules that reduce the credit amount for taxpayers whose incomes exceed 150% of their area's median income or whose home purchase price exceeds 110% of the area's median purchase price.
These limitations aim to focus the financial assistance on moderate-income buyers and on more affordable homes, preventing the credit from being primarily claimed by higher-income individuals or on luxury properties.
PROVISION 03
Defines a 'first-time homebuyer' as someone who hasn't owned a principal residence in the past three years and sets conditions for qualifying purchases, including an age limit of 18 and requiring a federally backed mortgage loan.
These specific eligibility criteria ensure the credit targets its intended beneficiaries and prevents misuse, establishing clear boundaries for who can receive the benefit.
PROVISION 04
Mandates that the maximum dollar limits of the credit be adjusted annually for inflation starting in 2026.
This ensures the value of the tax credit keeps pace with the rising cost of living and home prices over time, maintaining its effectiveness for future homebuyers.
SPONSORSHIP
1 + 13
D· Rhode Island
YRS IN OFFICE
19
BILLS LED
99
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 13 REP 0 IND 0
ACTION TIMELINE
2 EVENTSJUL 23
Introduced in Senate
JUL 23
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 2402
Congress119th
StatusIn Committee
IntroducedJul 23, 2025
Last actionJul 23, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED JUL 23, 2025
Senate BillS 2402Taxation
First-Time Homebuyer Tax Credit Act of 2025
INTRODUCED JUL 23, 2025· LAST ACTION JUL 23, 2025
PASSAGE CHANCES
—%
READING
14 min
COSPONSORS
13
COMPLEXITY
Moderate
