Towards a Targeted Homeownership Tax Credit

W98-5: Although the federal government provides tax incentives for homeownership, current tax provisions provide few incentives for lower-income families to buy a home and provide limited targeting of homeownership incentives. While the overall homeownership rate in the United States is at an all-time high, the gap between the ownership rates of low-income and higher-income households remains wide. In addition, homeownership rates in low-income and minority neighborhoods remain well below those in other neighborhoods. This has prompted a series of new proposals for a targeted low-income homeownership tax credit...