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New homebuyers in Las Vegas may get boost from government

Updated March 15, 2024 - 7:31 pm

Sen. Jacky Rosen helped introduce a bill that aims to lower costs for first-time homebuyers on Wednesday.

The First-Time Homebuyer Tax Credit Act would establish a tax credit worth up to 10 percent of a home’s purchase price — up to $15,000 — for low- and moderate- income first-time homebuyers, according to a statement from her office.

“Skyrocketing home prices are making it more difficult for hardworking Nevadans to achieve their dream of owning a home,” Rosen said in a statement.

The Nevada Democratic senator joined Sens. Sheldon Whitehouse, D-R.I., and Martin Heinrich, D-N.M., in co-sponsoring the legislation on the Senate side.

One barrier to owning a home is high down payments, Rosen said. The First-Time Homebuyer Tax Credit Act aims to make it easier for people to afford it, she said.

If the bill is passed, the tax credit would be available at the point of sale to help families without enough money for a down payment afford a home, according to the statement from Rosen’s office.

The credit would be limited to home purchases financed through federally backed mortgages. It would phase out for those who make above 150 percent of the area median income and for people buying a house with a purchase price above 110 percent of the median purchase price of the area.

This wouldn’t be the first tax credit for first-time homebuyers.

After the Great Recession in 2008, Congress passed a 10 percent tax credit for first-time homebuyers that had to be repaid in equal installments over the course of 15 years. That credit was extended to 2010 under the Obama administration.

During his State of the Union address, President Joe Biden called on Congress to pass legislation that provides a $10,000 tax credit for first-time homebuyers and for people who sell their starter home.

Contact Jessica Hill at jehill@reviewjournal.com. Follow @jess_hillyeah on X.

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