I 
118TH CONGRESS 
2D SESSION 
H. R. 7707 
To amend the Internal Revenue Code of 1986 to provide for a first-time 
homebuyer credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 15, 2024 
Mr. PANETTA (for himself and Mr. BLUMENAUER) 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 provide 
for a first-time homebuyer credit, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘First-Time Homebuyer 
Tax Credit Act of 2024’’. 
SEC. 2. FIRST-TIME HOMEBUYER REFUNDABLE TAX CRED-
IT. 
(a) IN GENERAL.—Section 36 of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
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‘‘SEC. 36. FIRST-TIME HOMEBUYER CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who is a first-time homebuyer of a principal resi-
dence in the United States during a taxable year, there 
shall be allowed as a credit against the tax imposed by 
this subtitle for such taxable year an amount equal to 10 
percent of the purchase price of the residence. 
‘‘(b) LIMITATIONS.— 
‘‘(1) DOLLAR LIMITATION.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, the credit allowed 
under subsection (a) shall not exceed $15,000. 
‘‘(B) MARRIED INDIVIDUALS FILING SEPA-
RATELY.—In the case of a married individual 
filing a separate return, subparagraph (A) shall 
be 
applied 
by 
substituting 
‘$7,500’ 
for 
‘$15,000’. 
‘‘(C) OTHER INDIVIDUALS.—If 2 or more 
individuals who are not married purchase a 
principal residence, the amount of the credit al-
lowed under subsection (a) shall be allocated 
among such individuals in such manner as the 
Secretary may prescribe, except that the total 
amount of the credits allowed to all such indi-
viduals shall not exceed $15,000. 
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‘‘(2) PHASEOUT BASED ON AREA MEDIAN IN-
COME.— 
‘‘(A) IN GENERAL.—The amount allowable 
as a credit under subsection (a) (determined 
without regard to this paragraph) shall be re-
duced (but not below zero) by the amount 
which bears the same ratio to the amount which 
is so allowable as— 
‘‘(i) the excess (if any) of— 
‘‘(I) the modified adjusted gross 
income of the taxpayer for the taxable 
year, over 
‘‘(II) 150 percent of the applica-
ble Area Medium Income, bears to 
‘‘(ii) 20 percent of the applicable Area 
Median Income. 
‘‘(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of subparagraph (A), the 
term ‘modified adjusted gross income’ means 
the adjusted gross income of the taxpayer for 
the taxable year increased by any amount ex-
cluded from gross income under section 911, 
931, or 933. 
‘‘(C) 
APPLICABLE
AREA
MEDIAN
IN-
COME.—For purposes of subparagraph (A), the 
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term ‘applicable Area Median Income’ means 
the Area Median Income set by the Secretary of 
Housing and Urban Development with respect 
to— 
‘‘(i) the area in which the principal 
residence is located, 
‘‘(ii) the size of the household of the 
taxpayer, and 
‘‘(iii) the calendar year in which the 
principal residence is purchased. 
‘‘(D) REGULATIONS AND GUIDANCE.—The 
Secretary, after consultation with the Secretary 
of Housing and Urban Development, shall issue 
such regulations and guidance as are necessary 
to carry out the purposes of this subparagraph. 
‘‘(3) LIMITATION BASED ON AREA MEDIAN PUR-
CHASE PRICE.— 
‘‘(A) IN GENERAL.—The amount allowable 
as a credit under subsection (a) (determined 
without regard to this paragraph) shall be re-
duced (but not below zero) by the amount 
which bears the same ratio to the amount which 
is so allowable as— 
‘‘(i) the excess (if any) of— 
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‘‘(I) the purchase price of the 
principal residence, over 
‘‘(II) the amount which is equal 
to 110 percent of the area median 
purchase price, bears to 
‘‘(ii) the amount which is equal to 15 
percent of the area median purchase price. 
‘‘(B) AREA MEDIAN PURCHASE PRICE.— 
For purposes of this paragraph, the term ‘area 
median purchase price’ means the median pur-
chase price for a home in both the area and the 
calendar year in which the purchase of the prin-
cipal residence takes place. 
‘‘(C) REGULATIONS AND GUIDANCE.—The 
Secretary, after consultation with the Secretary 
of Housing and Urban Development, shall pro-
mulgate such regulations and guidance as are 
necessary to carry out the purposes of this sub-
paragraph, including for determining the area 
median purchase price with respect to different 
localities. 
‘‘(4) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 
2024, each of the dollar amounts in paragraph (1) 
shall be increased by an amount equal to— 
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‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2023’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
Any increase determined under the preceding sen-
tence shall be rounded to the nearest multiple of 
$100. 
‘‘(5) AGE LIMITATION.—No credit shall be al-
lowed under subsection (a) with respect to the pur-
chase of any residence unless the taxpayer has at-
tained age 18 as of the date of such purchase. In 
the case of any taxpayer who is married (within the 
meaning of section 7703), the taxpayer shall be 
treated as meeting the age requirement of the pre-
ceding sentence if the taxpayer or the taxpayer’s 
spouse meets such age requirement. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) 
FIRST-TIME
HOMEBUYER.—The 
term 
‘first-time homebuyer’ means any individual if such 
individual 
(and 
if 
married, 
such 
individual’s 
spouse)— 
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‘‘(A) has no present ownership interest in 
any residence during the 3-year period ending 
on the date of the purchase of the principal res-
idence to which this section applies, and 
‘‘(B) has not taken the credit in any other 
taxable year. 
‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ has the same meaning as when used 
in section 121. 
‘‘(3) PURCHASE.— 
‘‘(A) IN GENERAL.—The term ‘purchase’ 
means any acquisition, but only if— 
‘‘(i) the property is not acquired from 
a person related to the person acquiring 
such property (or, if married, such individ-
ual’s spouse), 
‘‘(ii) 
the 
acquisition 
is 
financed 
through a federally backed mortgage loan 
(as defined in section 4022 of the CARES 
Act), and 
‘‘(iii) the basis of the property in the 
hands of the person acquiring such prop-
erty is not determined— 
‘‘(I) in whole or in part by ref-
erence to the adjusted basis of such 
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property in the hands of the person 
from whom acquired, or 
‘‘(II) under section 1014(a) (re-
lating to property acquired from a de-
cedent). 
‘‘(B) CONSTRUCTION.—A residence which 
is constructed by the taxpayer shall be treated 
as purchased by the taxpayer on the date the 
taxpayer first occupies such residence. 
‘‘(4) PURCHASE
PRICE.—The term ‘purchase 
price’ means the adjusted basis of the principal resi-
dence on the date such residence is purchased. 
‘‘(5) RELATED
PERSONS.—A person shall be 
treated as related to another person if the relation-
ship between such persons would result in the dis-
allowance of losses under section 267 or 707(b). 
‘‘(d) EXCEPTIONS.—No credit under subsection (a) 
shall be allowed to any taxpayer for any taxable year with 
respect to the purchase of a residence if— 
‘‘(1) the taxpayer disposes of such residence (or 
such residence ceases to be the principal residence of 
the taxpayer (and, if married, the taxpayer’s 
spouse)) before the close of such taxable year, 
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