I 

118TH CONGRESS 

2D SESSION H. R. 10025 

To amend the Internal Revenue Code of 1986 to establish a new firsttime homebuyer credit and to establish the starter home construction credit. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 22, 2024 

Mr. GOMEZ introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

a new first-time homebuyer credit and to establish the 

starter home construction credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Homeowner5 ship Opportunity Act of 2024’’. 

6 SEC. 2. FIRST-TIME HOMEBUYER CREDIT. 

7 (a) IN GENERAL.—Section 36 of the Internal Rev8 enue Code of 1986 is amended to read as follows: 


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1 ‘‘SEC. 36. FIRST-TIME HOMEBUYER CREDIT. 

2 ‘‘(a) IN GENERAL.—In the case of an individual who 

3 is a first-time homebuyer of a principal residence in the 

4 United States during a taxable year, there shall be allowed 

5 as a credit against the tax imposed by this subtitle for 

6 such taxable year an amount equal to so much of the 

7 amount of the down payment paid by such taxpayer to 

8 purchase such principal residence as does not exceed 

9 $25,000. 

10 ‘‘(b) LIMITATION.— 

11 ‘‘(1) IN GENERAL.—The amount allowable as a 

12 credit under subsection (a) (determined without re13 gard to this paragraph) for the taxable year shall be 

14 reduced (but not below zero) by the amount which 

15 bears the same ratio to the amount which is so al16 lowable as— 

17 ‘‘(A) the excess (if any) of— 

18 ‘‘(i) the taxpayer’s modified adjusted 

19 gross income for the preceding taxable 

20 year, over 

21 ‘‘(ii) the applicable threshold amount, 

22 bears to— 

23 ‘‘(B) $100,000. 

24 ‘‘(2) THRESHOLD AMOUNT.—For purposes of 

25 this subsection, the term ‘threshold amount’ 

26 means— 


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1 ‘‘(A) $300,000 in the case of a joint return 

2 or surviving spouse, 

3 ‘‘(B) $225,000 in the case of a head of 

4 household, or 

5 ‘‘(C) $150,000 in the case of any other in6 dividual. 

7 ‘‘(3) MODIFIED ADJUSTED GROSS INCOME.— 

8 For purposes of paragraph (1), the term ‘modified 

9 adjusted gross income’ means the adjusted gross in10 come of the taxpayer for the taxable year increased 

11 by any amount excluded from gross income under 

12 section 911, 931, or 933. 

13 ‘‘(c) INCREASE IN CREDIT FOR FIRST-GENERATION

14 HOMEBUYER.— 

15 ‘‘(1) IN GENERAL.—In the case of a first-gen16 eration homebuyer, subsection (a) shall be applied 

17 by substituting ‘$50,000’ for ‘$25,000’. 

18 ‘‘(2) FIRST-GENERATION HOMEBUYER.—For 

19 purposes of this subsection, the term ‘first-genera20 tion homebuyer’ means an individual who certifies 

21 during the taxable year for which a credit is allowed 

22 under subsection (a) that— 

23 ‘‘(A) no parent or legal guardian of the in24 dividual (or the individual’s spouse, in the case 

25 of a joint return) had a majority interest in a 


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1 residential property at any time during the life2 time of such individual (or during the lifetime 

3 of such individual’s spouse, as applicable), and 

4 ‘‘(B) such individual (or such individual’s 

5 spouse, in the case of a joint return)— 

6 ‘‘(i) aged out of the foster care sys7 tem, 

8 ‘‘(ii) was emancipated from their par9 ent or legal guardian, or 

10 ‘‘(iii) does not have a parent or legal 

11 guardian who had any ownership interest 

12 in a residential property during the 10- 

13 year period ending on the date of a pur14 chase with respect to which a credit was 

15 allowed under subsection (a). 

16 ‘‘(d) EXCEPTIONS.—No credit under subsection (a) 

17 shall be allowed to any taxpayer for any taxable year with 

18 respect to the purchase of a residence if— 

19 ‘‘(1) the taxpayer is a nonresident alien, 

20 ‘‘(2) the taxpayer disposes of such residence (or 

21 such residence ceases to be the principal residence of 

22 the taxpayer (and, if married, the taxpayer’s 

23 spouse)) before the close of such taxable year, 


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1 ‘‘(3) a deduction under section 151 with respect 

2 to such taxpayer is allowable to another taxpayer for 

3 such taxable year, or 

4 ‘‘(4) the taxpayer fails to attach to the return 

5 of tax for such taxable year a properly executed copy 

6 of the settlement statement used to complete such 

7 purchase. 

8 ‘‘(e) ELECTION FOR ADVANCED PAYMENT.— 

9 ‘‘(1) IN GENERAL.—At the election of the first10 time homebuyer, the Secretary shall transfer to a 

11 qualifying escrow account an amount equal to the 

12 amount that is allowable to such first-time home13 buyer under subsection (a) in the present taxable 

14 year. 

15 ‘‘(2) TREATMENT OF TRANSFER.—The amount 

16 of the credit allowed under subsection (a) to any 

17 taxpayer for any taxable year shall be reduced (but 

18 not below zero) by the aggregate amount of pay19 ments made under this subsection at the election of 

20 such taxpayer during such taxable year. Any failure 

21 to so reduce the credit shall be treated as arising out 

22 of a mathematical or clerical error and assessed ac23 cording to section 6213(b)(1). 

24 ‘‘(3) QUALIFYING ESCROW ACCOUNT.—For pur25 poses of this subsection, the term ‘qualifying escrow 


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1 account’ means an escrow account established for 

2 the purchase of a principal residence by a qualified 

3 first-time homebuyer that meets the following re4 quirements: 

5 ‘‘(A) Amounts in such account may only be 

6 used for a down payment on a purchase with 

7 respect to which a credit is allowed under sub8 section (a). 

9 ‘‘(B) Such account is administered by a 

10 bank (as defined in section 408A(n)). 

11 ‘‘(C) The administrator of the account 

12 shall transfer to the Secretary any amount in 

13 such account not used under subparagraph (A) 

14 on the earlier of— 

15 ‘‘(i) the date that is 180 days after 

16 the date on which such amount was trans17 ferred to such account under paragraph 

18 (1), or 

19 ‘‘(ii) as soon as practicable upon re20 quest of the qualified first-time homebuyer. 

21 ‘‘(f) RECAPTURE OF CREDIT.— 

22 ‘‘(1) IN GENERAL.—If, during any taxable year, 

23 there is a recapture event with respect to any prop24 erty with respect to which a credit was allowed 

25 under subsection (a), then the tax of the taxpayer to 


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1 whom such credit was allowed under this chapter for 

2 such taxable year shall be increased by an amount 

3 equal to the amount of the credit that was allowed 

4 with respect to such property. 

5 ‘‘(2) RECAPTURE EVENT.—For purposes of this 

6 section, the term ‘recapture event’ means, during the 

7 5-year period beginning on the date of the purchase 

8 with respect to which a credit was allowed under 

9 subsection (a)— 

10 ‘‘(A) the sale, lease to a third party, or dis11 position of any part of the property with respect 

12 to which such credit was allowed, or 

13 ‘‘(B) such property ceases to be the prin14 cipal residence of the taxpayer (or, in the case 

15 of a joint return, of the taxpayer’s spouse). 

16 ‘‘(3) EXCEPTIONS.—Paragraph (1) shall not 

17 apply to any of the following: 

18 ‘‘(A) PURCHASE OF NEW PRIMARY RESI19 DENCE.— 

20 ‘‘(i) IN GENERAL.—A sale of a prop21 erty with respect to which a credit was al22 lowed under subsection (a) which is inci23 dent to the purchase by a taxpayer of a 

24 new primary residence if the proceeds of 


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1 such sale are used to carry out the pur2 chase of such new primary residence. 

3 ‘‘(ii) TREATMENT OF NEW PRIMARY

4 RESIDENCE.—In the case of a purchase of 

5 a primary residence described in clause (i), 

6 for purposes of paragraph (1), such pri7 mary residence shall be treated as a prop8 erty with respect to which a credit was al9 lowed under subsection (a), except that the 

10 period described in paragraph (2) shall 

11 begin on the date on which the original 

12 purchase with respect to which the credit 

13 was allowed under subsection (a) occurred. 

14 ‘‘(B) DEATH.—Any taxable year ending 

15 after the death of the taxpayer (or, in the case 

16 of a joint return, of the spouse of the taxpayer). 

17 ‘‘(C) DIVORCE.—A transfer of a residence 

18 to which section 1041(a) applies. 

19 ‘‘(D) GOVERNMENT ORDERS.—A recapture 

20 event relating to a principal residence occurring 

21 in connection with Government orders received 

22 by such individual, or such individual’s spouse, 

23 for qualified official extended duty service. 

24 ‘‘(E) QUALIFIED OFFICIAL EXTENDED

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1 graph, the term ‘qualified official extended duty 

2 service’ means service on qualified official ex3 tended duty as— 

4 ‘‘(i) a member of the uniformed serv5 ices, 

6 ‘‘(ii) a member of the Foreign Service 

7 of the United States, or 

8 ‘‘(iii) an employee of the intelligence 

9 community. 

10 ‘‘(g) DEFINITIONS.—For purposes of this section— 

11 ‘‘(1) FIRST-TIME HOMEBUYER.—The term 

12 ‘first-time homebuyer’ means any individual if such 

13 individual (and if married, such individual’s 

14 spouse)— 

15 ‘‘(A) had no present ownership interest in 

16 a principal residence during the 10-year period 

17 ending on the date of the purchase of the prin18 cipal residence to which this section applies, 

19 ‘‘(B) has not been allowed a credit under 

20 subsection (a) for any preceding taxable year, 

21 and 

22 ‘‘(C) attests that such individual (and if 

23 married, such individual’s spouse) has never 

24 had a majority interest in a residential prop25 erty. 


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1 ‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin2 cipal residence’ has the same meaning as when used 

3 in section 121. 

4 ‘‘(3) PURCHASE.— 

5 ‘‘(A) IN GENERAL.—The term ‘purchase’ 

6 means any acquisition, but only if— 

7 ‘‘(i) the property is purchased using a 

8 mortgage loan from a commercial lender, 

9 ‘‘(ii) the property is not acquired from 

10 a person related to the person acquiring 

11 such property (or, if married, such individ12 ual’s spouse), and 

13 ‘‘(iii) the basis of the property in the 

14 hands of the person acquiring such prop15 erty is not determined— 

16 ‘‘(I) in whole or in part by ref17 erence to the adjusted basis of such 

18 property in the hands of the person 

19 from whom acquired, or 

20 ‘‘(II) under section 1014(a). 

21 ‘‘(B) CONSTRUCTION.—A residence which 

22 is constructed by the taxpayer shall be treated 

23 as purchased by the taxpayer on the date the 

24 taxpayer first occupies such residence. 


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1 ‘‘(4) RELATED PERSONS.—A person shall be 

2 treated as related to another person if the relation3 ship between such persons would result in the dis4 allowance of losses under section 267 or 707(b) (but, 

5 in applying section 267(b) and (c) for purposes of 

6 this section, paragraph (4) of section 267(c)(4) shall 

7 be treated as providing that the family of an indi8 vidual shall include only his spouse, ancestors, and 

9 lineal descendants). 

10 ‘‘(h) BASIS ADJUSTMENT.—For purposes of this sub11 title, if a credit is allowed under this section in connection 

12 with any expenditure for any property, the increase in the 

13 basis of such property which would (but for this sub14 section) result from such expenditure shall be reduced by 

15 the amount of the credit so determined. 

16 ‘‘(i) INFLATION ADJUSTMENT.— 

17 ‘‘(1) IN GENERAL.—in the case of any taxable 

18 year beginning after 2024, the dollar amounts in 

19 this section shall be increased by an amount equal 

20 to— 

21 ‘‘(A) such dollar amount, multiplied by 

22 ‘‘(B) the cost-of-living adjustment deter23 mined under section 1(f)(3) for the calendar 

24 year in which the taxable year begins, deterVerDate Sep 11 2014 19:13 Oct 29, 2024 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H10025.IH H10025

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1 mined by substituting ‘calendar year 2023’ for 

2 calendar year 2016 in subparagraph (A)(ii). 

3 ‘‘(2) ROUNDING.—If any increase under para4 graph (1) is not a multiple of $100, such increase 

5 shall be rounded to the nearest multiple of $100. 

6 ‘‘(j) REPORTING.— 

7 ‘‘(1) IN GENERAL.—If the Secretary requires 

8 information reporting under section 6045 by a per9 son described in subsection (e)(2) thereof to verify 

10 the eligibility of taxpayers for the credit allowable by 

11 this section, the exception provided by section 

12 6045(e) shall not apply. 

13 ‘‘(2) INFORMATION FROM LENDER.—The Sec14 retary may require any lender issuing a loan for the 

15 purchase of a property with respect to which a credit 

16 is allowed under subsection (a) or with respect to 

17 which a first-time homebuyer has made a request for 

18 a transfer under subsection (e)(1) to provide such 

19 information relating to the related purchase as the 

20 Secretary determines appropriate. 

21 ‘‘(k) REGULATIONS.—The Secretary shall issue such 

22 regulations or other guidance as may be necessary or ap23 propriate to carry out the purposes of this section.’’. 

24 (b) EFFECTIVE DATE.—The amendment made by 

25 this section shall apply to residences purchased in taxable 


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1 years beginning after the date of the enactment of this 

2 Act. 

3 SECTION 3. STARTER HOME CONSTRUCTION CREDIT. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 is amended by adding at the end the following new 

7 section: 

8 ‘‘SEC. 45U. STARTER HOME CONSTRUCTION CREDIT. 

9 ‘‘(a) IN GENERAL.—For the purposes of section 38, 

10 the starter home construction credit determined under this 

11 section for any taxable year is an amount equal to 15 per12 cent of the qualified home construction costs of the tax13 payer for the taxable year. 

14 ‘‘(b) LIMITATION.—The amount allowable as a credit 

15 under subsection (a) to any taxpayer for any taxable year 

16 shall not exceed the amount allocated to such taxpayer for 

17 the calendar year in which such taxable year ends under 

18 subsection (d). 

19 ‘‘(c) INCREASE FOR FIRST-TIME HOMEBUYER.—In 

20 the case of a unit of housing sold to a first-time home21 buyer (as defined in section 36(g)(1)), subsection (a) shall 

22 be applied by substituting ‘30 percent’ for ‘15 percent’. 

23 ‘‘(d) QUALIFIED HOME CONSTRUCTION COSTS.—For 

24 purposes of this section, the term ‘qualified home con25 struction costs’ means, with respect to a taxable year, 


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1 amounts paid or incurred by the taxpayer for labor and 

2 material costs to construct a unit of housing placed in 

3 service during such taxable year— 

4 ‘‘(1) the total square footage of which does not 

5 exceed 1200 feet, and 

6 ‘‘(2) the sale price of which does not exceed 80 

7 percent of the area median home price. 

8 ‘‘(e) ALLOCATION.— 

9 ‘‘(1) IN GENERAL.—The aggregate starter 

10 home construction credit dollar amount which a 

11 housing credit agency may allocate for any calendar 

12 year is the portion of the State starter home con13 struction credit ceiling allocated under this para14 graph for such calendar year to such agency. 

15 ‘‘(2) STATE CEILING INITIALLY ALLOCATED TO

16 STATE HOUSING CREDIT AGENCIES.—The State 

17 starter home construction credit ceiling for each cal18 endar year shall be allocated to the housing credit 

19 agency of such State. If there is more than 1 hous20 ing credit agency of a State, all such agencies shall 

21 be treated as a single agency. 

22 ‘‘(3) STATE STARTER HOME CREDIT CEILING.— 

23 The State starter home credit ceiling applicable to 

24 any State for any calendar year shall be an amount 

25 equal to the sum of— 


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1 ‘‘(A) the unused State housing credit ceil2 ing (if any) of such State for the preceding cal3 endar year, plus 

4 ‘‘(B) $30 multiplied by the population of 

5 the State (determined in accordance with sec6 tion 146(j)). 

7 ‘‘(4) HOUSING CREDIT AGENCY.—For purposes 

8 of this subsection, the term ‘housing credit agency’ 

9 has the meaning given in section 42(h)(8)(A). 

10 ‘‘(5) INFLATION ADJUSTMENT.— 

11 ‘‘(A) IN GENERAL.—In the case of any 

12 taxable year beginning after 2024, the dollar 

13 amount in paragraph (3)(B) shall be increased 

14 by an amount equal to— 

15 ‘‘(i) such dollar amount, multiplied by 

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year in which the taxable year be19 gins, determined by substituting ‘calendar 

20 year 2023’ for ‘calendar year 2016’ in sub21 paragraph (A)(ii) thereof. 

22 ‘‘(B) ROUNDING.—If any increase under 

23 subparagraph (A) is not a multiple of $5, such 

24 increase shall be rounded to the nearest mul25 tiple of $5. 


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1 ‘‘(f) BASIS ADJUSTMENT.—For purposes of this sub2 title, if a credit is allowed under this section in connection 

3 with any expenditure for any property, the increase in the 

4 basis of such property which would (but for this sub5 section) result from such expenditure shall be reduced by 

6 the amount of the credit so determined. 

7 ‘‘(g) REGULATIONS.—The Secretary shall issue such 

8 regulations or other guidance as may be necessary or ap9 propriate to carry out the purposes of this section.’’. 

10 (b) CREDIT TO BE PART OF GENERAL BUSINESS

11 CREDIT.—Section 38(b) of such Code is amended by strik12 ing ‘‘plus’’ at the end of paragraph (32), by striking the 

13 period at the end of paragraph (33) and inserting ‘‘, plus’’, 

14 and by adding at the end the following new paragraph: 

15 ‘‘(34) the starter home construction credit de16 termined under section 45U(a).’’. 

17 (c) CLERICAL AMENDMENT.—The table of sections 

18 for subpart D of part IV of subchapter A of chapter 1 

19 of such Code is amended by inserting after the item relat20 ing to section 45T the following new item: 

‘‘Sec. 45U. Starter home construction credit.’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 the date of the enactment of this section. 

Æ 


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