Home Savings Account Tax Deduction

Current understanding

HR9480 (119th Congress) proposes amending the Internal Revenue Code of 1986 to allow taxpayers a deduction for contributions made to designated home savings accounts, creating a new tax-advantaged savings vehicle aimed at prospective homebuyers. The proposal is at the ‘introduced’ stage with no further action reported. Beneficiaries would be individuals saving toward a home purchase; the federal government would forgo revenue in exchange for encouraging homeownership savings.

Evidence log

• 2026-10-29 — To amend the Internal Revenue Code of 1986 to exclude from gross income certain retirement plan distributions used for a down payment or closing costs for a principal residence, and for other purposes.: cross-connection with homebuyer-retirement-distribution-exclusion: Parallel approaches to subsidizing home down payments through the tax code — one via retirement account withdrawals, the other via a dedicated savings account deduction. (novelty: 2)
• 2026-06-30 — Boat Loan Interest Deduction Act of 2026: cross-connection with boat-loan-interest-deduction: Both propose new personal deduction categories (boat loan interest vs. home savings contributions) that expand the itemized deduction landscape. (novelty: 2)
• 2025-02-13 — More Homes on the Market Act: cross-connection with taxation-housing-capital-gains: Both proposals aim to increase housing market liquidity via tax code changes — one on the sale side (exclusion expansion), the other on the savings/purchase side (deduction for home savings accounts). (novelty: 2)
• 2026-06-29 — Health Savings for Families Act of 2026: cross-connection with health-savings-accounts-family-expansion: Parallel ‘savings account’ tax-advantaged vehicle proposals — HSAs for health (family expansion) and home savings accounts for housing — both routed through Ways and Means. (novelty: 2)
• 2026-06-25 — To amend the Internal Revenue Code of 1986 to allow a deduction for amounts contributed to home savings accounts, and for other purposes.: cross-connection with taxation-housing-capital-gains: Both are housing-focused federal tax incentives — one subsidizes savings toward home purchase, the other adjusts capital gains treatment on housing transactions. (novelty: 2)

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