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Krishnamoorthi proposes $25,000 credit for new homebuyers
The congressman hopes to help first time homebuyers with upfront costs by creating a refundable tax credit.
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Jeffin T. Kaleekal - Fri, 16, Jan 2026
- 02:38 EST
- 20
Congressman Raja Krishnamoorthi / REUTERS/Evelyn Hockstein
Congressman Raja Krishnamoorthi introduced the First Home Affordability Act on Jan. 15.
The act would create a refundable tax credit of up to $25,000 for first-time buyers of primary residences. The credit will be delivered over five years, up to $5,000 annually, to help reduce upfront costs and promote long-term homeownership.
First responders, K-12 teachers, and childcare workers can receive the full $25,000 in the first year itself.
ALSO READ: Rep. Subramanyam moves to aid first-time homebuyers
The congressman hopes to help middle and working class homebuyers with upfront costs of the purchase by creating "a refundable tax credit during the first five years of homeownership, helping families stabilize their finances, build equity, and put down roots in their communities," as per a statement.
“For many Illinois families, the cost of buying a home has been pushed out of reach by surging housing prices,” Congressman Krishnamoorthi said.
He added, “My legislation, the First Home Affordability Act, creates a refundable tax credit for first-time homebuyers, helping break down that barrier and giving working families a fair shot to achieve the American Dream of building a middle-class life.”
Refundable tax credits provide for a reduction in federal income tax bill dollar-for-dollar, and if the credit amount is larger than the taxes you owe then the IRS sends you the difference as a cash refund.
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