Bipartisan American Homeownership Opportunity Act of 2025
Bipartisan American Homeownership Opportunity Act of 2025
Plain Language Summary
# Bipartisan American Homeownership Opportunity Act of 2025 - Plain Language Summary **What the bill would do:** This bill aims to help more Americans buy their first homes by offering two main tax benefits. First-time homebuyers could receive a refundable tax credit (money back from the government) of up to $50,000 to help cover their down payment. Home builders would also get a tax credit covering up to 15% of construction costs for building "starter homes" (affordable homes for new buyers). These credits would help reduce the upfront costs of buying or building a home. **Who it affects and key details:** The homebuyer credit would primarily benefit first-time home purchasers, though it phases out for higher earners (singles making over $150,000, couples over $300,000).
There's a catch: if someone sells the home or stops living in it within five years, they'd have to repay the tax credit by adding it back to their taxable income. The builder credit would incentivize construction companies to build more affordable starter homes. Income limits would adjust each year for inflation starting after 2025. **Current status:** The bill is currently in committee, meaning it hasn't yet been debated or voted on by the full House of Representatives. It was introduced by Representative Brian Fitzpatrick (R-PA) and is designed to be bipartisan in approach.
CRS Official Summary
Bipartisan American Homeownership Opportunity Act of 2025This bill provides a new refundable tax credit for first-time homebuyers and a new tax credit to home builders for the construction of starter homes, both subject to limitations.First-time homebuyers may claim a tax credit equal to the amount of the down payment up to $50,000, subject to income limitations. The tax credit begins to phase out when a homebuyer’s income exceeds $300,000 for joint filers or surviving spouses, $225,000 for head of household filers, and $150,000 for single filers. The amounts are adjusted annually for inflation after 2025. The bill requires homebuyers to add the amount received as a tax credit to taxable income if, within five years from the purchase, the house is sold, leased, or is no longer used as the principal place of residence. (Some exceptions apply.)The bill also provides a tax credit for home builders of up to 15% of construction costs (materials and labor) incurred to build a home that is no larger than 1,200 square feet and is sold for an amount that does not exceed 80% of the median home prices for the area. The amount of the tax credit increases to 30% if the home is sold to a first-time home buyer.Finally, under the bill, each state receives an annual allocation for the tax credit for the construction of starter homes, for allocation by the state’s housing finance agency to builders (similar to the administration of the low-income housing tax credit).
Latest Action
Referred to the House Committee on Ways and Means.