Housing

Individual income tax; first-time homebuyer tax credit. Creates a one-time, nonrefundable individual income tax credit in taxable years 2026 through 2030 for expenses incurred by a first-time homebuyer for the purchase of direct ownership in residential real property in an amount equal to five percent of the purchase price value of such property detailed on the purchase agreement up to $10,000. The bill requires that any credits be repaid in the event that the residential real property for which first-time homebuyer expenses were incurred and such credit was claimed is sold within three years from the purchase date of such property.

Individual income tax; first-time homebuyer tax credit. Creates a one-time, nonrefundable individual income tax credit in taxable years 2026 through 2030 for the purchase of a principal residence by a first-time homebuyer, as such terms are defined in the bill, in an amount equal to $5,000. The bill requires that any credits be repaid if the principal residence is sold or no longer serves as the first-time homebuyer's principal residence within three years from the purchase date of such property.

Virginia Workforce Housing Assistance Program; report. Establishes the Virginia Workforce Housing Assistance Program to provide grants to eligible employers, defined in the bill, that set up housing down payment assistance programs for employees in amounts equal to the lesser of 15 percent of housing down payment assistance expenses incurred by an eligible employer during the fiscal year or $25,000. The bill specifies that an eligible employer may only receive grants in the aggregate of up to $150,000 across all fiscal years or $250,000 for housing down payment assistance expenses incurred for employees in certain fiscally stressed localities. The bill requires weighting grants according to the household income of participating employees, as measured against the area median income (AMI) for the locality in which the dwelling is located. Any participating employee shall have an annual household income at or below 120 percent of the AMI for the locality in which the employee's dwelling is located and have never owned or purchased under contract for deed, either individually or jointly, a single-family residence in the Commonwealth or outside of the Commonwealth. The bill has an expiration date of July 1, 2028.