SESSION WATCH
Died SENATE · SESSION 2026

No. SB 1672

Tax Credits for Contributions to Assist Homebuyers
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SPONSOR
McClain
FILED BY
Stan McClain — District 9, Republican [search donations]
EFFECTIVE
7/1/2026
DIED IN
Finance and Tax

Filed under Taxes & Budget.

PROVIDED SUMMARY

Tax Credits for Contributions to Assist Homebuyers; Authorizing certain taxpayers to receive a tax credit for contributions made to certain employees for specified expenses related to buying a home; providing a maximum credit authorized in certain circumstances; authorizing a taxpayer to receive a tax credit for contributions made to certain programs; authorizing the taxpayer to submit an application for the tax credit; authorizing the tax credit to be used against certain taxes; requiring the Department of Revenue to approve applications on a first-come, first-served basis, etc.

Full bill text →

Plain English Summary

AI-GENERATED
Grants employers a tax credit for helping employees buy homes.

Employers can deduct 100% of up to $5,000 given to employees for home down payments or closing costs.

Employers can also deduct 100% of contributions to state down payment assistance programs, like the Hometown Hero program.

The Department of Revenue approves applications on a first-come, first-served basis, capped at $5 million annually for three years.

Unused credits can be carried forward for three years but cannot be sold or transferred to other entities.

KEY PROVISIONS
§ 1 Employer Homebuyer Credit majors. 212.1836(2)

AIGrants a 100% tax credit to employers for up to $5,000 per employee toward down payments or closing costs.

“A taxpayer may not receive more than $5,000 of credit for contributions made to a single employee.” bill text, line 44 →
§ 2 Government Program Credit majors. 212.1836(3)

AIGrants a 100% tax credit for contributions to state down payment assistance programs, including Hometown Hero.

“100 percent of a contribution made to a government program offering down payment assistant to residents of the state” bill text, line 46 →
§ 3 Annual Funding Cap majors. 212.1836(6)

AILimits total annual tax credits to $5 million per fiscal year for 2026-2029, allocated on a first-come, first-served basis.

“The department may authorize $5 million in tax credits in each of state fiscal years 2026-2027, 2027-2028, and 2028-2029.” bill text, line 56 →
§ 4 Credit Transfer Prohibition moderates. 212.1836(8)

AIProhibits taxpayers from selling, transferring, or assigning approved tax credits or carryforwards to other entities.

“A taxpayer may not convey, transfer, or assign an approved tax credit or carryforward tax credit to another entity.” bill text, line 64 →
§ 5 Three-Year Carryforward moderates. 212.1836(7)

AIAllows unused tax credits to be carried forward for up to three taxable years if the taxpayer's liability is insufficient.

“the unused amount may be carried forward for a period not to exceed 3 taxable years” bill text, line 61 →
§ 6 Sunset Provision moderates. 212.1836(10)

AIAutomatically repeals the tax credit section on January 1, 2030, unless the Legislature reenacts it.

“This section is repealed January 1, 2030, unless reviewed and saved from repeal through reenactment by the Legislature.” bill text, line 72 →
TIMELINE
3/13/2026
Died in Finance and Tax
1/28/2026
Now in Finance and Tax
1/28/2026
Favorable by Commerce and Tourism; YEAS 9 NAYS 0
1/23/2026
On Committee agenda-- Commerce and Tourism, 01/28/26, 10:30 am,...
1/22/2026
Introduced
1/16/2026
Referred to Commerce and Tourism; Finance and Tax; Appropriations
1/9/2026
Filed
1 EARLIER →
STATUTES IT CHANGES
s. 212.1836
+391 / −0
STAFF ANALYSES