Bill · H.R. 7468· House(119-HR-7468)
First-Time Home Buyer Empowerment Act
- Introduced
- 2/10/2026
- Last activity
- 2/10/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Tracey Mann
- Cosponsors
- - 8 - 2
- Introduced
- In Committee
What this bill would do
This bill, known as the "First-Time Home Buyer Empowerment Act," proposes changes to the Internal Revenue Code of 1986 regarding 529 qualified tuition programs. It allows certain distributions from these programs to be used for the purchase of a principal residence by a first-time homebuyer who is the designated beneficiary. To qualify, the program must have been maintained for a 15-year period. The distribution amount is limited to contributions made before a 5-year window and cannot exceed an aggregate limit of $35,000. The bill also includes rules for recapturing taxes if certain qualifying events occur.
Yes· 3 of 6
Would people in their twenties and thirties be better off under this?+5
The bill specifically targets first-time homebuyers, who are often in the younger age demographic.
Would middle-income households be better off under this?+4
The bill provides a benefit for those with long-term 529 savings to assist with home down payments.
Does this cut taxes for middle-income families?+4
The bill allows for tax-free distributions from 529 plans to be used for a first-time home purchase up to $35,000.
The opposite
Does this make college cost less?-2
The bill allows funds intended for education to be diverted toward home purchases, which could reduce total available college savings.
Who it would affect, and how
Potential Positive Impacts for People
-
Support for First-Time Homebuyers: The bill allows beneficiaries of long-term qualified tuition programs to use their funds for the purchase of a principal residence (Section 2(a)(i)).
-
Flexibility for Purchase Delays: If a home purchase or construction is delayed or canceled, the distribution can be contributed to a qualified tuition program or an ABLE account instead (Section 2(a)(iii)).
-
Reduced Tax Burdens Over Time: If a tax recapture is required, the amount of the tax increase can be reduced by 20 percent for each full year the individual owns the residence (Section 2(a)(iv)(I)).
Potential Negative Impacts for People
-
Tax Recapture Requirements: If a "qualifying event"—such as selling the home or no longer using it as a principal residence—occurs within five years of the purchase, the beneficiary may have to pay back the tax benefit plus interest (Section 2(a)(iv)(I) and (ii)).
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Strict Distribution Limits: The ability to use these funds is subject to a $35,000 aggregate limit, which may be further reduced by other distributions made under the code (Section 2(a)(ii)).
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Time-Based Restrictions on Funds: The special rule only applies to distributions from programs that have been maintained for a 15-year period (Section 2(a)(i)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Young Adults+5Good For Middle Class Households+4Good For People With Disabilities+3
- Economy And Finance
- Reduces Middle Class Taxes+4Improves Economic Growth+2
- Social Issues And Justice
- Improves Affordable Housing+3
- Education And Technology
- Improves College Affordability-2
- 2/20/2026
- 1 Cosponsor added.
- 2/10/2026
- Referred to the House Committee on Ways and Means.
- 9 Cosponsors added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Mark AlfordRepublican · Missouri
Mike BostRepublican · Illinois
James BairdRepublican · Indiana
Tom BarrettRepublican · Michigan
J. CorreaDemocrat · California
Sharice DavidsDemocrat · Kansas
Russ FulcherRepublican · Idaho
Nancy MaceRepublican · South Carolina
James MoylanRepublican · Guam
John McGuireRepublican · Virginia