KPAX: Sen. Tester discusses First-Time Homebuyers Tax Credit Act in Kalispell

U.S. Senator Jon Tester was in Kalispell on Friday to discuss legislation that he says will help lower housing costs

Senator Jon Tester was in Kalispell on Friday, Sept. 20, 2024, to talk about legislation he says will help lower housing costs

Tester is one of nine Democratic senators co-sponsoring the First-Time Homebuyer Tax Credit Act. The act would provide a tax credit for first-time homebuyers worth up to 10% of the home’s purchase price up to $15,000.

One of the important pieces of this legislation is that the credit would be available at the time of purchase allowing the money to be used to help cover initial costs.

“But this bill isn’t just about enabling more Montanans to buy a home. It’s also about keeping lifelong Montanans in their communities and supporting the hard-working folks that power our schools, our hospitals, our law enforcement agencies, our small businesses and so much more,” said. Sen. Tester. “Look, we all know the rich out of staters are buying up land and houses, but we got to make sure that Montanans can afford to live here and afford to stay here.”

The home must be a prinicpal residence financed using a federally backed mortgage. The tax 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.

The bill was endorsed by the National Association of Home Builders and the National Association of Realtors.