American Homeownership Opportunity Act of 2024

The American Homeownership Opportunity Act of 2024 creates two new tax credits to support homebuyers. It provides a first-time homebuyer credit of up to $25,000 (increased to $50,000 for first-generation homebuyers) for down payments on principal residences, with income limits ($150,000 individual/$225,000 head of household/$300,000 joint). It also establishes a starter home construction credit of 15% (30% for first-time buyers) of qualified costs for new homes under 1,200 square feet priced below 80% of local median home values. The credits are refundable, subject to recapture if the home is sold within five years (with exceptions for new purchases, death, or military service), and adjust for inflation annually. This directly affects first-time homebuyers and new construction buyers meeting specific income and ownership criteria.