First-Time Homebuyer Tax Credit Act of 2025

This bill would give first-time homebuyers a federal income tax credit equal to 10% of the home’s purchase price, up to $15,000. The credit shrinks for higher incomes (above 150% of your area’s median) and for homes priced more than 110% of your local median home price. You must be at least 18 to claim it, and if two non‑married people buy together, they can split the credit, but the total still can’t exceed $15,000 .

You could choose to transfer the credit to your mortgage lender at closing and get the same amount in cash or as part of your down payment; that payment wouldn’t be taxed as income to you, and the Treasury can advance funds to lenders to make this work. If you sell the home or move out within four years, you may have to pay back some of the credit, with exceptions for things like death, certain forced moves, transfers in divorce, certain military/Foreign Service/intelligence duty moves, or some job‑related moves. To claim the credit, you must attach your closing settlement statement to your tax return. The IRS can quickly correct or deny a claim if the age rule isn’t met, information on past returns doesn’t match, or the required form is missing. The credit would apply to homes bought after the bill becomes law, and you may choose to treat purchases made after December 31, 2023 as if made on the last day of the prior year for this credit. The $15,000 cap would increase over time with inflation starting after 2025 .

• Who is affected: First‑time homebuyers age 18+; some co‑buyers; and mortgage lenders who opt to receive the credit at closing .
• What changes: A new tax credit up to $15,000; it shrinks for higher incomes and higher‑priced homes; option to get the money at closing; possible payback if you sell or move within four years; and the cap rises with inflation after 2025 .
• When: Would apply after the bill becomes law; you can elect to treat purchases after December 31, 2023 as made on the prior year’s last day for this credit .