FirstHomes Tax Credit

The FirstHomes Tax Credit helps new homebuyers save money.

The program provided qualified first-time Rhode Island homebuyers with a mortgage credit certificate. Homebuyers received a dollar-for-dollar tax credit of up to $2,000 against their federal tax liability for the life of the loan.

Effective February 14, 2023, the FirstHomes Tax Credit Program is suspended.

Reservation requests received prior to 2/14/23 will be honored and processed.

  • 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
  • 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
  • Available to first-time homebuyers statewide
  • Available to non-first-time homebuyers in the following targeted areas: Central Falls (parts of), Pawtucket, Providence, Woonsocket.
  • 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.