FirstHomes Tax Credit

The FirstHomes Tax Credit is a great option to help new homebuyers save money.

The program provides qualified first-time Rhode Island homebuyers (and those buying in
targeted areas of the state) with a mortgage credit certificate. You’ll receive a dollar-for-dollar tax credit of up to $2,000 against your federal tax liability for the life of the loan.

The FirstHomes Tax Credit

  • Tax savings for eligible borrowers reduces the borrower’s federal tax liability
  • May be claimed each year for the life of the mortgage
  • Also available to select, non first-time homebuyers (in targeted areas)

The FirstHomes Tax Credit

  • Tax savings for eligible borrowers by reduces the borrower’s federal tax liability
  • May be claimed each year for the life of the mortgage
  • Also available to select, non first-time homebuyers (in targeted areas)

Interested?

  • The FirstHomes Tax Credit is not a loan
    It is a tax credit – claimed by borrowers on their federal tax return annually. The credit is
    equal to 20% of the total mortgage interest amount paid – up to $2,000 each year
  • The remaining mortgage interest that a borrower pays each year can be claimed as an
    itemized tax deduction, further reducing the homeowner’s federal tax liability
  • Credit can be claimed yearly, as long as you continue to own and occupy the home as
    your primary residence.
  • Purchase Price & Income Limits apply

Interested?

  • Tax benefit for homeowners: The FirstHomes Tax Credit is not a loan. It is a tax credit – claimed by borrowers on their federal tax return annually. The credit is equal to 20% of the total mortgage interest amount paid – up to $2,000 each year.
  • The remaining mortgage interest that a borrower pays each year can be claimed as an itemized tax deduction, further reducing the homeowner’s federal tax liability.
  • Credit can be claimed yearly, as long as you continue to own and occupy the home as
    your primary residence.
  • Purchase Price & Income Limits apply

Availability

The FirstHomes Tax Credit can be used in conjunction with a RIHousing FirstHomes mortgage, or with a mortgage offered by a FirstHomes Tax Credit Approved Lender.

Targeted Areas

(for non-first time homebuyers)

  • Parts of Central Falls
  • Pawtucket
  • Providence
  • Woonsocket