President Joe Biden proposed a new homebuyers tax credit that would provide 10,000 dollars to first-time home buyers.

The $10k Homebuyers Tax Credit: If It Will Be Official, How Would This New Tax Credit Work? (Photo: Smart Asset)

This Homebuyers Tax Credit bill will still need to be enacted by Congress before any Americans can benefit from it

Aside from the 10,000 dollars to first-time home buyers, President Biden is also proposing a separate 10,000-dollar homebuyers tax credit for current homeowners who sell their starter homes to move into a bigger house.

Homebuyers Tax Credit bill cheered by advocates of affordable housing. This Homebuyers Tax Credit bill is called the most consequential State of the Union address on housing in more than 50 years, said National Housing Council CEO David M. Dworkin.

The one-year Homebuyers Tax Credit for current homeowners would be available to people who own starter homes, defined as homes below the median home price in their U.S.

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How does the Homebuyers Tax Credit work and who is eligible to claim it?

Biden is proposing the following Homebuyers tax credits:
1. A first-time homebuyer tax credit of 10,000 dollars
2. A one-year tax credit of up to 10,000 dollars to present homeowners who sell their starter homes

First-time homebuyers will be eligible for a yearly Homebuyers tax credit of 5,000 dollars per year for two years, for a total of 10,000 dollars Homebuyers Tax Credit.

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