To amend the Internal Revenue Code of 1986 to allow a deduction for amounts contributed to home savings accounts, and for other purposes.

This bill would create tax-advantaged home savings accounts that individuals could use to buy a primary home or to make extra payments on the principal of their home mortgage. People could deduct cash contributions to these accounts from their taxable income, up to $10,000 per year ($20,000 for married couples filing jointly), with the limits adjusted for inflation after 2027. Withdrawals used for qualified housing expenses would not be taxed, while withdrawals used for other purposes would be taxed as income plus an additional 20 percent tax, except in cases of disability or death. Individuals could also make a one-time, tax-free transfer from an IRA into a home savings account, up to the annual limit. The changes would apply to tax years beginning after December 31, 2026.

Full text and official record on Congress.gov

Sponsors

• Scott Perry Republican sponsor
• 0 cosponsors