WASHINGTON, D.C. — Rep. Tom Kean Jr. on Wednesday introduced legislation aimed at easing housing affordability by offering a new federal tax credit to Americans purchasing a primary residence.
The proposal, known as the Make American Housing Affordable Act, would provide a tax credit of up to $10,000 to help offset the cost of buying a home. The bill is co-led by Rep. Ryan Mackenzie of Pennsylvania.
Under the legislation, individual filers earning less than $250,000 would be eligible for a $5,000 tax credit when purchasing a primary home. Joint filers earning under $500,000 would be eligible for a credit of up to $10,000. The credit would phase out for incomes above those thresholds, with eligibility ending at $300,000 for individual filers and $600,000 for joint filers. Homebuyers could claim the credit once every five years.
“The goal of homeownership is part of the American Dream which has become increasingly difficult for middle-class families to reach,” Kean said. “Today’s buyers are facing skyrocketing prices, steep down payments, and a shortage of inventory. In New Jersey, where we have some of the nation’s highest housing prices and property taxes, working families are being locked out of the market. I believe this new tax credit will lower the barrier to entry, restore opportunity, and strengthen the path to homeownership for American families.”
Mackenzie said housing affordability remains a top concern for families in his district.
“Housing affordability is one of the top concerns of families across the Lehigh Valley and the Poconos. After enduring years of skyrocketing housing costs, first-time homebuyers deserve relief. That’s why this legislation provides targeted tax relief to help make homeownership a reality for hardworking families,” Mackenzie said. “I’m grateful to Rep. Kean for leading this commonsense approach to decrease the cost of buying a home.”
The bill comes as housing affordability continues to worsen nationwide. According to the National Association of Realtors, the median age of first-time homebuyers reached a record high of 40 in 2025, while their share of the market fell to a historic low of 21%. The median age for all homebuyers has risen to 59.
Kean has previously championed housing-related initiatives in the U.S. House, including efforts to restore the full state and local tax deduction. In the 2025 reconciliation package, he successfully pushed to increase the SALT deduction cap to $40,000, a move that particularly benefited New Jersey homeowners, according to his office.
