# 119-hr-7756: First-time Homebuyer Savings Account Act of 2026

119-hr-7756, First-time Homebuyer Savings Account Act of 2026, is a 119th Congress bill sponsored by Rep. Barrett, Tom [R-MI-7] (R-MI); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-hr-7756
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-7756
- Congress: 119
- Title: First-time Homebuyer Savings Account Act of 2026
- Status: introduced
- Introduced: 2026-03-03
- Sponsor: Rep. Barrett, Tom [R-MI-7] (R-MI)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

This bill would create a **tax-advantaged Homeowner Savings Account** to help first-time buyers save for a primary residence. It would let eligible people deduct cash contributions and take tax-free withdrawals for buying, building, or qualifying improvements while imposing tight limits to keep funds dedicated to housing. - People who did not own a principal residence in the prior three years would be eligible. They would be able to deduct cash contributions and withdraw tax-free for purchase, construction, or qualifying improvements. - Annual contributions would be limited by the lesser of the Section 219(b)(5) baseline amount, the taxpayer's earned income, or an amount that keeps the account balance below 20% of the national average single-family home price. Nonqualified distributions would be includible in income and subject to a 10% penalty unless an exempted reason applies, such as job loss or major health expenses. - Accounts would be trusts organized in the United States and held by banks, insurance companies, or approved custodians. The bill would add these accounts to excess-contribution rules under Section 4973 and allow rollovers within 60 days under specified conditions.

## Provisions PRIA read

- Tax deduction for account contributions: benefit, high. This bill would let an eligible individual deduct cash contributions to a Homeowner Savings Account on their tax return for the year. The deduction would be limited by the yearly legal contribution limit and contributions must be cash (except rollovers). You would have to meet the three‑year no‑own…
- New homeowner savings account rules: benefit, medium. This bill would create a new Homeowner Savings Account held as a U.S. trust or qualifying custodial account. Except for rollovers, only cash contributions would be allowed. Trustees would need to be a bank, an insurance company, or another Secretary-approved person, and account assets could not be…
- Annual price cap and contribution limits: mixed, medium. This bill would cap yearly contributions so the account balance cannot exceed 20% of the Secretary's published national average single‑family home price for the year. Your annual contribution would also be limited to the law's set baseline amount for the year and to your taxable compensation, which…
- Tax rules for withdrawals and penalties: mixed, medium. This bill would make withdrawals used only for qualified homeowner expenses tax‑free. To exclude money used to buy or build a home, you would need to meet the three‑year no‑ownership test. Amounts not used for qualified expenses (and not exempt or rolled over) would be taxable and subject to a 10%…

## Related bills

- 119-hr-9237: Take Care of America’s Veterans Act
- 119-hr-8324: Great American Healthcare Plan
- 119-hr-4317: PBM Reform Act of 2025
- 119-hr-1229: United States-Israel Defense Partnership Act of 2025
- 119-hr-353: Family First Act
- 119-hr-833: Educational Choice for Children Act of 2025

## Sources
- [119-hr-7756 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/7756)

## Related
- [119-hr-9237: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-hr-9237)
- [119-hr-8324: Great American Healthcare Plan](https://policyrisk.com/legislation/119-hr-8324)
- [119-hr-4317: PBM Reform Act of 2025](https://policyrisk.com/legislation/119-hr-4317)
- [119-hr-1229: United States-Israel Defense Partnership Act of 2025](https://policyrisk.com/legislation/119-hr-1229)
- [119-hr-353: Family First Act](https://policyrisk.com/legislation/119-hr-353)
- [119-hr-833: Educational Choice for Children Act of 2025](https://policyrisk.com/legislation/119-hr-833)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-7756 (as of 2026-04-21).