First-time Homebuyer Savings Account Act of 2026 | ChamberLight
Bills · HR 7756
IN COMMITTEE· 119TH CONGRESS
House BillHR 7756Taxation
First-time Homebuyer Savings Account Act of 2026
INTRO MAR 3· LAST ACTION MAR 3
READING
10MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
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This bill matters because it aims to make homeownership more accessible for first-time buyers by providing a significant tax incentive for saving. For many Americans, accumulating a sufficient down payment and closing costs is a major hurdle to buying a home. By allowing contributions to be tax-deductible and withdrawals for qualified expenses to be tax-free, this bill could help individuals save more money faster.
If this bill becomes law, it could encourage more people to save specifically for a home, potentially boosting homeownership rates among those who have been priced out or struggled to save enough. If it doesn't become law, first-time homebuyers will continue to rely on existing savings methods, without the added tax advantages offered by this proposed account, potentially making the path to homeownership longer and more challenging for some.
KEY PROVISIONS
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PROVISION 01
Allows individuals to deduct cash contributions made to a First-time Homebuyer Savings Account from their taxable income each year.
This provision provides a direct tax benefit, reducing the amount of income tax an eligible individual pays.
PROVISION 02
Establishes that money taken out of these accounts is tax-free if used for specific 'qualified homeowner expenses,' such as purchasing a first home or making certain improvements.
This makes the savings account a powerful tool for homeownership by ensuring the funds grow and are used tax-free for their intended purpose.
PROVISION 03
Defines an 'eligible individual' as someone (and their spouse) who has not owned a primary residence in the three years leading up to opening the account or making a qualified purchase.
This clearly targets the tax benefits towards true first-time homebuyers, ensuring the program serves its intended demographic.
PROVISION 04
Sets annual contribution limits for the accounts, tied to the IRA contribution limits, and an overall account balance limit of 20% of the national average single-family home price.
These limits prevent the accounts from being used excessively by high-income earners and ensure the benefits are broadly accessible while maintaining fiscal responsibility.
This bill matters because it aims to make homeownership more accessible for first-time buyers by providing a significant tax incentive for saving. For many Americans, accumulating a sufficient down payment and closing costs is a major hurdle to buying a home. By allowing contributions to be tax-deductible and withdrawals for qualified expenses to be tax-free, this bill could help individuals save more money faster.
If this bill becomes law, it could encourage more people to save specifically for a home, potentially boosting homeownership rates among those who have been priced out or struggled to save enough. If it doesn't become law, first-time homebuyers will continue to rely on existing savings methods, without the added tax advantages offered by this proposed account, potentially making the path to homeownership longer and more challenging for some.
KEY PROVISIONS
AI-extracted
high
Allows individuals to deduct cash contributions made to a First-time Homebuyer Savings Account from their taxable income each year.
This provision provides a direct tax benefit, reducing the amount of income tax an eligible individual pays.
high
Establishes that money taken out of these accounts is tax-free if used for specific 'qualified homeowner expenses,' such as purchasing a first home or making certain improvements.
This makes the savings account a powerful tool for homeownership by ensuring the funds grow and are used tax-free for their intended purpose.
med
Defines an 'eligible individual' as someone (and their spouse) who has not owned a primary residence in the three years leading up to opening the account or making a qualified purchase.
This clearly targets the tax benefits towards true first-time homebuyers, ensuring the program serves its intended demographic.
med
Sets annual contribution limits for the accounts, tied to the IRA contribution limits, and an overall account balance limit of 20% of the national average single-family home price.
These limits prevent the accounts from being used excessively by high-income earners and ensure the benefits are broadly accessible while maintaining fiscal responsibility.
The Secretary of the Treasury must publish the estimated national average price of a single family home for the following calendar year.
GLOSSARY
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Tax-advantaged
Refers to investments or accounts that receive special tax benefits, such as tax deductions on contributions or tax-free growth and withdrawals, typically for specific purposes like retirement or education.
Internal Revenue Code of 1986
The main body of tax law in the United States, containing all federal statutes related to taxation. This bill amends sections of this code.
Deduction Allowed
A provision that reduces the amount of income subject to tax. If you have a deduction, you pay tax on a smaller portion of your income.
Eligible Individual
A person who meets specific requirements to qualify for a particular benefit or program, in this case, the First-time Homebuyer Savings Account.
Homeowner Savings Account
A special trust or account designed to hold money saved for qualified home-related expenses, with specific tax benefits.
Qualified Homeowner Expenses
Specific costs related to buying, building, or improving a first principal residence that can be paid for with tax-free funds from a Homeowner Savings Account.
Principal Residence
ACTION TIMELINE
2 EVENTS
MAR 3
Introduced in House
INTROREFERRAL
MAR 3
Referred to the House Committee on Ways and Means.
The main home where a person lives, as opposed to a vacation home or investment property.
Rollover Contribution
Moving money from one tax-advantaged account to another, or from one Homeowner Savings Account to another, without incurring taxes or penalties, typically within a certain timeframe.
