Refundable construction tax exemption provided for construction of new multifamily residential housing for first-time homebuyers.

HF 178 creates a refundable tax exemption for construction materials used in new duplexes and triplexes (the only multifamily housing types covered) where first-time homebuyers own and occupy at least one unit. It exempts taxes paid on the first $460,000 of construction costs for qualifying projects, with builders paying the tax upfront and receiving a refund under existing procedures. The exemption applies to new construction only, expires July 1, 2033, and is effective for sales after June 30, 2025. This directly benefits first-time homebuyers purchasing qualifying duplexes or triplexes by reducing construction costs through a tax refund mechanism.