Bill · H.R. 7756· House(119-HR-7756)
First-time Homebuyer Savings Account Act of 2026
- Introduced
- 3/3/2026
- Last activity
- 3/3/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Tom Barrett
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the "First-time Homebuyer Savings Account Act of 2026," proposes to amend the Internal Revenue Code to create tax-advantaged homeowner savings accounts. These accounts are designed for eligible individuals who have not owned a principal residence in the last three years. The accounts allow for cash contributions that can be deducted from taxable income. Funds can be used for qualified expenses such as purchasing or constructing a principal residence or making certain home improvements. The bill establishes specific contribution limits and rules for how these accounts are managed and taxed.
Yes· 3 of 7
Would middle-income households be better off under this?+6
The bill offers tax deductions and tax-free distributions for those saving for their first home purchase or improvements.
Would people in their twenties and thirties be better off under this?+5
The bill specifically targets individuals who have not owned a home in the last three years, a group often containing younger adults.
Does this cut taxes for middle-income families?+5
The bill allows for tax deductions on cash contributions made to homeowner savings accounts for first-time homebuyers.
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: Eligible individuals can take a deduction for the amount of cash they pay into a homeowner savings account during the taxable year (Section 225A(a)).
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Tax-Free Use for Home Expenses: Amounts distributed from the account to pay for qualified homeowner expenses are not included in the individual's gross income (Section 225A(d)(1)).
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Support for Home Ownership and Improvements: The funds can be used to purchase or construct a principal residence, or to pay for specific alterations, repairs, or improvements (Section 225A(b)(3)).
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Protection for Emergencies and Life Events: Distributions may be made without standard penalties due to emergencies like job loss or major health events, or life events such as marriage or death (Section 225A(d)(3)).
Potential Negative Impacts for People
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Taxation and Penalties on Non-Qualified Spending: If money is taken out of the account for reasons other than qualified homeowner expenses, it must be included in gross income and may face a 10 percent tax increase (Section 225A(d)(2)).
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Contribution Restrictions: There are specific limits on how much can be contributed, including limits based on compensation and a cap tied to 20 percent of the national average single family home price (Section 225A(b)(1) and Section 225A(c)(1)).
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Income-Based Reductions: The ability to deduct contributions may be reduced based on the taxpayer's adjusted gross income (Section 225A(c)(2)).
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 Middle Class Households+6Good For Young Adults+5Good For Low Income Households+2Good For Urban Residents+2
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Economic Growth+3
- Social Issues And Justice
- Improves Affordable Housing+4
- 3/3/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House