A Democratic bill with no cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Homeownership Savings Act proposes to amend the Internal Revenue Code of 1986 to allow for the creation of homeownership savings accounts. These accounts are trusts intended specifically for paying qualified homeownership expenses, such as down payments or closing costs. Beneficiaries can claim a tax deduction for cash contributions made to these accounts, subject to specific annual dollar limits and income restrictions. The bill also outlines rules for how these accounts are taxed and how distributions are handled. It includes provisions for employer contributions and specific requirements for those seeking to be first-time homebuyers. The changes are intended to take effect for taxable years beginning after December 31, 2026.
Yes· 3 of 6
- Scored +5
Would people in their twenties and thirties be better off under this?
The bill provides a mechanism for individuals to save specifically for first-time homeownership which often aligns with younger demographics.
- Scored +5
Would middle-income households be better off under this?
Middle-income earners benefit from tax deductions for savings and potential employer-sponsored contributions.
- Scored +5
Does this cut taxes for middle-income families?
The bill allows middle-income families to deduct cash contributions to homeownership savings accounts from their taxable income.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Deductions for Savings: Individuals can receive a deduction for cash contributions made to a homeownership savings account, which may help lower their taxable income (Section 223A(a)).
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Support for First-Time Homebuyers: The bill provides a specific mechanism for individuals to save for down payments or closing costs specifically for the purchase of a primary residence (Section 223A(c)(2)).
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Tax-Free Distributions: Money taken out of the account to pay for qualified homeownership expenses is not included in the beneficiary's gross income (Section 223A(e)(1)).
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Tax-Exempt Account Growth: The homeownership savings account itself is exempt from taxation unless it ceases to be a homeownership savings account (Section 223A(d)(1)).
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Employer Contribution Benefits: Employer contributions to these accounts are excluded from the employee's gross income (Section 139J(A)).
Potential Negative Impacts for People
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Contribution Limits: There are strict caps on how much an individual can deduct annually, with limits of $3,000 for joint returns, $2,500 for head of household, or $2,000 for others (Section 223A(b)(1)).
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Income Restrictions: The ability to take a deduction is reduced or eliminated based on a person's modified adjusted gross income (Section 223A(b)(3)).
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Penalties for Misuse of Funds: If money is distributed from the account for purposes other than qualified homeownership expenses, it must be included in gross income and is subject to an additional 20 percent tax (Section 223A(e)(2) and 223A(e)(4)).
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Lifetime Contribution Cap: The bill limits lifetime aggregate contributions to $40,000 (Section 223A(c)(1)(A)(i)).
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Strict Eligibility Requirements: To establish the account, a beneficiary must be at least 18 years old and certify they are a first-time homebuyer (Section 223A(c)(1)(E) and 223A(c)(1)(F)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would middle-income households be better off under this? — Middle-income earners benefit from tax deductions for savings and potential employer-sponsored contributions. Would people in their twenties and thirties be better off under this? — The bill provides a mechanism for individuals to save specifically for first-time homeownership which often aligns with younger demographics. Would households on low incomes be better off under this? — The tax deduction and employer contribution provisions provide a targeted way for households to build homeownership equity.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill allows middle-income families to deduct cash contributions to homeownership savings accounts from their taxable income. Is this likely to grow the economy? — By incentivizing savings for down payments, the bill may facilitate increased homeownership and related economic activity.
- Social Issues And Justice
- Does this make housing cost less? — The bill assists individuals in accumulating funds for down payments and closing costs to purchase a primary residence.
- 5/7/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House