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HD 3293

An Act relative to a first-time homebuyer tax deduction

194th Legislature (2025-2026) Introduced by Christopher Markey

Massachusetts bill creates state income tax deduction for first-time homebuyers to reduce homeownership costs and improve housing affordability.

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WeVote Research Nonpartisan
Bill Summary · HD 3293

Legislative bill overview

HD 3293 would create a state income tax deduction for first-time homebuyers in Massachusetts, allowing them to deduct a portion of their mortgage interest, property taxes, or down payment costs from their state taxable income. The bill aims to make homeownership more financially accessible to residents purchasing their first home by reducing their overall tax burden during the critical early years of ownership.

Why is this important

Housing affordability is a significant challenge in Massachusetts, particularly for younger and lower-income residents entering the market. A tax deduction could reduce the effective cost of homeownership and help more people achieve homeowner status, though the actual benefit depends heavily on income level and the specific deduction parameters outlined in the final bill language.

Potential points of contention

  • Cost to state revenue: The deduction would reduce tax receipts; the fiscal impact depends on utilization rates and deduction caps, which must be carefully modeled to understand long-term budget effects
  • Regressive benefit structure: Tax deductions typically benefit higher-income earners more than lower-income buyers, potentially limiting help for those most in need of affordability assistance
  • Targeted vs. broad approach: Debate over whether a tax deduction is the most efficient tool compared to alternatives like down payment assistance programs, affordability deed restrictions, or zoning reform to increase housing supply

Compiled from official sources — confirm details with the bill’s official record.

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