Congress has not approved a $25,000 tax credit for first-time homebuyers. The proposed bill, The Down Payment Toward Equity Act of 2021, is still in draft form and it has not yet been presented to Congress or voted on by the 117th Congress.
The confusion likely stems from a Biden-Harris presidential campaign promise that suggests “help for hardworking Americans to buy or rent quality housing.” The campaign website mentions a refundable and advanceable tax credit of up to $15,000, not $25,000. An example of a false claim about Biden’s promise can be seen here . More information on “The Biden Plan for Investing in Our Communities Through Housing” can be seen joebiden.com/housing/ .
The Down Payment Toward Equity Act of 2021, a bill draft that addresses assistance for first-time homebuyers, has made an appearance in a congressional committee, but not much else. As of May 6, 2021, it has not yet been introduced as an actual bill.
A list of current and proposed bills can be seen on the website for a U.S. House Committee on Financial Services meeting held on March 10, 2021, here .
A summary of the proposed bill can be seen here .
The National Council of State Housing Agencies (NCSHA) states that “Funds under this act can be provided to first-time homebuyers who meet income requirements and qualify as what the act terms “first-generation” home buyers. “First-time home buyers” are those who have not owned a home in the prior three years.” (here)
According to the NCSHA’s summary, under the proposal, homebuyers could receive up to $25,000 in assistance if they qualify as a “socially and economically disadvantaged individual.” This is defined as “those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.” (See page 3, here )
The claims were also disproven by fact-checkers at USA TODAY here , and Lead Stories
False. Congress has not yet passed a bill that provides $25,000 in assistance to first-time homebuyers. As of this article’s publication, a proposed bill that provides housing assistance for disadvantaged individuals, also known as the Down Payment Toward Equity Act of 2021, remains in the U.S. House Financial Services Committee.
This article was produced by the Reuters Fact Check team. Read more about our fact-checking work here .
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