Bill · H.R. 9480· House(119-HR-9480)
To amend the Internal Revenue Code of 1986 to allow a deduction for amounts contributed to home savings accounts, and for other purposes.
- Introduced
- 6/25/2026
- Last activity
- 6/25/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Scott Perry
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill proposes to amend the Internal Revenue Code of 1986 to create a new type of account called a "home savings account." These accounts are designed for individuals to save money specifically for qualified housing expenses, such as purchasing a principal residence or paying down mortgage principal. Individuals would be allowed a tax deduction for cash contributions made to these accounts, up to certain limits. The bill also establishes specific rules for how these trusts must be managed and how distributions are taxed. Finally, it outlines how these accounts are treated in various life events, such as divorce or death.
Yes· 3 of 6
Would middle-income households be better off under this?+5
Middle-income families benefit from the new tax deduction and tax-free withdrawals for housing expenses.
Does this cut taxes for middle-income families?+5
The bill allows for a tax deduction of up to $10,000 for individuals and $20,000 for married couples for contributions to home savings accounts.
Does this make housing cost less?+4
The bill encourages saving for principal residences or mortgage principal through tax-advantaged accounts.
The opposite
Does this reduce what the federal government spends?-2
The tax deductions provided by the bill reduce federal tax revenue.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Deductions for Savings: Individuals can claim a deduction for cash contributions made to a home savings account, which could help reduce their taxable income (Section 214(a)).
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Increased Deduction Limits for Couples: Married individuals filing a joint return can deduct up to $20,000, which is double the $10,000 limit for single individuals (Section 214(b)(1)).
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Tax-Free Distributions for Housing: Money taken out of the account to pay for qualified housing expenses, like buying a home or paying off mortgage principal, is not included in the person's gross income (Section 214(e)(1)).
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Protection Against Taxation During Life Events: Transfers of account interests between spouses due to divorce or separation are not considered taxable transfers (Section 214(e)(6)).
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Benefits for Surviving Spouses: If a spouse becomes the beneficiary after the death of the account holder, the account is treated as if the spouse were the original beneficiary (Section 214(e)(7)(A)).
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Simplified Retirement Transfers: The bill allows for a direct trustee-to-trustee transfer from an individual retirement plan to a home savings account without including that distribution in gross income, subject to certain limits (Section 408(d)(1)).
Potential Negative Impacts for People
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Strict Contribution Limits: There is a cap on how much can be deducted, which is $10,000 for individuals and $20,000 for married couples filing jointly (Section 214(b)(1)).
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Tax Penalties for Non-Housing Uses: If money is taken out of the account for anything other than qualified housing expenses, it must be included in the person's gross income, and they may face an additional 20 percent tax on that amount (Section 214(e)(2) and (e)(4)(A)).
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Restrictions on Dependents: Individuals who are claimed as dependents by another taxpayer are not allowed to take a deduction under this section (Section 214(b)(2)).
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Tax Implications Upon Death: For certain heirs who are not the spouse of the deceased, the fair market value of the account assets may be included in their gross income (Section 214(e)(7)(B)(i)).
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Complexity of Account Rules: The bill requires the account to be a trust with specific requirements, such as being managed by a bank or insurance company and not investing in life insurance contracts (Section 214(c)(1)).
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+5Good For Young Adults+3Good For High Income Households+2
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Small Business Taxes+1Reduces Government Spending-2
- Social Issues And Justice
- Improves Affordable Housing+4
- 6/25/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House