Homeownership Savings Act

This bill would create a new type of tax-advantaged savings account for first-time homebuyers age 18 or older to save for a down payment or closing costs on a primary home. People could deduct their yearly contributions from their taxable income, up to $3,000 for joint filers, $2,500 for heads of household, and $2,000 for others, with the deduction phased out at higher incomes. Total lifetime contributions to an account would be capped at $40,000, and money withdrawn for qualified home-buying costs would not be taxed. Withdrawals used for other purposes would be taxed as income plus an extra 20 percent tax, with exceptions for death or disability. Employer contributions would also be excluded from income and payroll taxes, and the changes would apply to tax years starting after December 31, 2026.

Full text and official record on Congress.gov

Sponsors

• Haley M. Stevens Democrat sponsor
• 0 cosponsors