Bill Would Extend Tax Credit to First-Time Homebuyers

July 14th, 2016 by Editor

Sen. Ron Wyden, D-Ore., introduced a bill on Wednesday that could  help individuals and families buy their first home. The First-Time Homebuyer Credit Act of 2016 would give rookie home owners a refundable tax credit that would equal 2.5 percent of the home purchase price, with a maximum credit of $10,000.

“Our country’s housing policy needs a remodel,” said Wyden. “We have too many people working hard to support their families who can’t afford rent much less even think about buying their first home. The federal government needs to do more to repair the housing crisis at all levels, working closely with state and local governments. That includes making sure we are adequately funding effective programs to help people experiencing homelessness, getting low-income families access to quality housing, and making sure middle class Americans can afford rent or their first home.”

The credit would phase out for individuals with incomes above $80,000, and married couples above $160,000. Those claiming the credit who sell their new home within five years will have to pay back a portion of the credit unless they have special circumstances such as job relocation or military deployment.

“NAHB commends Sen. Wyden’s creative proposal to spur homeownership,”  said Ed Brady, chairperson of the National Association of Home Builders (NAHB) and a home builder and developer from Bloomington, Ill. “This measure recognizes the need to help young families get a leg up on the homeownership ladder. We look forward to working with Sen. Wyden as the bill moves forward.”

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