First-Time Homebuyer Tax Credit Act of 2025

S. 2402 would create a federal tax credit to help first-time homebuyers purchase their primary residence in the United States. If enacted, the bill would allow eligible individuals to claim a tax credit equal to 10 percent of the home's purchase price, with a maximum credit of $15,000 for most taxpayers and $7,500 for married couples filing separately. The credit would be adjusted annually for inflation beginning in 2026.

To qualify, buyers must not have owned a home in the previous three years and cannot have claimed this credit before. The home must be purchased with a federally backed mortgage loan and cannot be acquired from a related person. The bill would apply to home purchases made during the taxable year, and the credit would reduce the buyer's federal income tax liability for that year.

The bill is currently under consideration by the Senate Finance Committee. It was introduced on July 23, 2025, and has not yet been voted on by the full Senate. If passed by Congress and signed by the President, it would provide tax relief to qualifying first-time homebuyers to help address housing affordability challenges.