Tester Leads Bill To Provide Tax Credits For First-Time Homebuyers
As part of his continued efforts to lower housing costs, U.S. Senator Jon Tester is leading legislation that would provide a tax credit for Montanans buying their first home. Tester’s First-Time Homebuyer Tax Credit Act would put homeownership in reach for more Montana families by establishing a refundable tax credit worth up to 10 percent of a home’s purchase price – up to a maximum of $15,000 – for first-time homebuyers.
“Montanans in every corner of our state are struggling with the rising cost of housing, and I’m committed to doing everything I can to help drive down those costs and boost supply across our state,” said Tester. “That’s why I’m proud to lead legislation that would provide a tax-credit for first-time homebuyers to help cut costs and bring homeownership within reach for more Montana families. I’ve been fortunate enough to live and farm on the same plot of land my grandparents homesteaded more than 100 years ago, and I’ll work with anyone to make sure the ability to live and work in Montana is alive and well for future generations looking to lay down roots in their communities.”
Tester’s First-Time Homebuyer Tax Credit Act specifically would provide a tax credit for first-time homebuyers of 10% of the purchase price up to $15,000. The home must be the principal residence, financed using a federally backed mortgage, and the credit value phases out for those making above 150% of area median income and for homes with a purchase price above 110% of the area median purchase price. Additionally, the bill directs the Secretary of Housing and Urban Development to establish a program for advance payments of the tax credit so that it can be used at the time of home purchase. The bill was endorsed by the National Association of Home Builders and the National Association of Realtors.
Tester has worked to tackle the rising cost of housing across Montana. In July, Tester secured $10.2 million in Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant funding to improve housing and critical infrastructure in East Helena. Earlier this year, Tester secured more than $16 million for housing programs across the state to increase the supply of housing for Montanans.
In November, Tester introduced his Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Act – legislation that would revitalize Montana’s affordable housing supply by establishing a manufactured housing community improvement grant program. Last September, Tester also introduced his bipartisan Rural Housing Service Reform Act of 2023 – legislation which would improve federal rural housing programs, cut government red tape, and strengthen the supply of affordable housing across Montana.
