Proposed law would provide first-time home buyers $10,000 tax credit

WASHINGTON (Gray DC) - Sen. Raphael Warnock, D-GA, said he hears constituents saying housing is unaffordable every single day.

“I hear it in my church, as a pastor, I hear it around every corner as I move throughout our community.”

The lack of young adults in the housing market is also a concern for Republicans and the Biden administration.

Actions by the Fed to cut down inflation have increased mortgage costs.

“These are costs that millions of Americans are experiencing,” White House Domestic Policy Advisor Neera Tanden said. “Higher interest rates is a significant challenge on home ownership.”

Warnock’s plan would provide a 10,000 dollar tax credit that could be used on either a down payment or a mortgage.

“This is so important for people,” Warnock said. “It builds generational wealth. It provides security for children and their families.”

The funding would come from the federal government, but the program would be operated at the state level.

“So it pushes them closer to the American dream, owning that first home, getting equity in that home sooner, and passing that wealth onto the next generation,” Warnock said.

A version of the plan has been circulating Congress since 2021 but has failed to gain significant traction.

Both the National Association of Home Builders and the National Housing Conference support the plan to subsidize first-time buyers.

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