First Home Savings Opportunity Act of 2025

This bill would create a new type of tax-advantaged savings account that adults can use to save for a down payment or closing costs on a first home. People who have not owned a principal residence in the past 3 years could deposit cash and deduct those deposits from their taxable income, up to $10,000 per year ($20,000 for joint filers), adjusted for inflation. The deduction would phase out for single filers with modified adjusted gross income above $150,000 and joint filers above $236,000. Withdrawals used for qualified first-home costs would not be taxed, while other withdrawals would be taxed as income plus an extra 20 percent tax, with exceptions for death or disability. The changes would apply to tax years beginning after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• Suhas Subramanyam Democrat sponsor
• 6 cosponsors