This legislative proposal aims to enhance homeownership opportunities and stimulate the construction of affordable housing through the creation of two distinct tax credits. It introduces a first-time homebuyer credit designed to assist individuals in purchasing their initial principal residence. The first-time homebuyer credit allows for a credit against tax equal to the amount of the down payment, capped at $50,000 . This credit is subject to income limitations, with a reduced amount for taxpayers whose modified adjusted gross income exceeds specified thresholds based on filing status. An important provision allows eligible first-time homebuyers to elect for an advanced payment of the credit directly into a qualifying escrow account to facilitate the down payment. To ensure sustained homeownership, the credit is subject to recapture if the residence is sold, leased, disposed of, or ceases to be the principal residence within a 5-year period, though exceptions exist for events like purchasing a new primary residence, death, divorce, or government orders for official duty. The bill also establishes a starter home construction credit to incentivize the building of smaller, more affordable homes. This credit amounts to 15 percent of qualified home construction costs, increasing to 30 percent if the unit is sold to a first-time homebuyer. To qualify, a unit of housing must not exceed 1200 square feet and its sale price must be no more than 80 percent of the area median home price . The credit is allocated to taxpayers by state housing credit agencies based on a state-specific ceiling, which includes a per capita amount adjusted for inflation.