House Finance Committee reports first-time homebuyer rebate bill to the full House, 23-3

The House Finance Committee on Monday voted 23-3 to report House Bill 1450, which would create a five-year first-time homebuyer rebate funded by dedicating 10% of the state Realty Transfer Tax to rebates for qualifying first-time buyers.

Representative Nathan Davidson, the bill’s prime sponsor, told the committee the measure is intended to “help homebuyers, and get the market moving,” and thanked staff and his co-sponsor, Representative Kutz, for their work on the measure. Senior committee executive director Mark Forman summarized the bill as establishing a rebate tied to the Realty Transfer Tax.

Supporters and sponsors said the program would encourage homeownership. Committee estimates cited by the chair used the most recent year’s Realty Transfer Tax receipts of $530 million to illustrate the math: 10% redirected to the rebate would equal about $53 million and could support roughly 20,000–21,000 rebates; a Department of Revenue fiscal note suggested a higher estimate of about $83 million, which could fund about 33,000 rebates.

The committee adopted three changes before voting. Amendment A02220 (sponsored by Representative Kutz and described by Mark Forman) narrowed eligibility to first-time homebuyers, made awards first-come, first-served, required prorated repayment if a recipient resells within five years, and added notice at the time of the realty transfer. Representative Coutts described that amendment as “agreed to” after stakeholder consultation; the amendment passed unanimously. Amendment A02267 aligned appeal procedures with 2024 changes to Department of Revenue rules and also passed unanimously. Representative Kephart offered Amendment A02265, argued it made a point about redistribution, but withdrew it for committee consideration and said he might offer it on the House floor instead.

Debate on the bill mixed endorsement and caution. Representative Waxman said the rebate is “a tool to try to address” housing shortages and urged attention to safe, well-trained construction practices in denser areas. Representative Kephart said he would support reporting the bill but called it a partial fix that addresses symptoms rather than regulatory barriers that raise building costs; he characterized the mechanism as a form of redistribution.

Acting chair Representative Rossi described support for the bill’s intent but opposed a first-come, first-served structure that could exclude eligible buyers. Rossi said the rebate could be used by sellers as leverage in price negotiations and raised fraud concerns, referencing problems seen in prior rebate programs and expressing skepticism about recovery of improperly paid funds.

House Finance Committee Chair Samuelson noted existing allocations from the Realty Transfer Tax (including the Pennsylvania Housing Finance Agency’s FAIR program and the Keystone Recreation, Park and Conservation Fund) and emphasized the bill’s five-year sunset and the committee’s ability to revisit funding levels if needed.

After discussion and amendment, the committee voted to report House Bill 1450 as amended. The clerk recorded a roll-call vote and the committee reported the bill out by a vote of 23 to 3. The committee adjourned.

What’s next: With committee approval, House Bill 1450 is scheduled to be placed on the House calendar for consideration by the full House; supporters and critics signaled they may continue to pursue changes and additional debate on the floor.