# 119-hr-8709: Homeownership Savings Act 119-hr-8709, Homeownership Savings Act, is a 119th Congress bill sponsored by Rep. Stevens, Haley M. [D-MI-11] (D-MI); status introduced; PRIA reads it as touching household money (as of 2026-09-21). - Canonical: https://policyrisk.com/legislation/119-hr-8709 - As of: 2026-09-21 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-hr-8709 - Congress: 119 - Title: Homeownership Savings Act - Status: introduced - Introduced: 2026-05-07 - Sponsor: Rep. Stevens, Haley M. [D-MI-11] (D-MI) - Cosponsors: 0 - Policy area: Taxation - Touches household money: yes - Last recorded action: 2026-09-21 ## Summary **Creates a new tax-advantaged Homeownership Savings Account to help first-time buyers build down payments and cover closing costs.** The bill writes the account into the tax code and lays out who can open one, how much can be saved, and when withdrawals are tax-free. - First-time homebuyers age 18 and older must certify first-time status to open an account. Qualified withdrawals are limited to a down payment or closing costs and lifetime contributions are capped at $40,000. - Contributions are deductible each year but annual deductions are capped by filing status, for example $3,000 for joint filers, and the deduction phases out above specified modified adjusted gross income thresholds. - Employers may contribute and those contributions are excluded from income and employment taxes up to the annual limit, but employees may not use salary reductions to fund the account. *Applies to tax years beginning after December 31, 2026.* ## Provisions PRIA read - Penalties for excess HSA contributions: cost, low. If enacted, extra amounts you put into an HSA above the rules would be treated as excess contributions and could trigger an excise tax. The bill would apply existing excess-contribution rules to HSAs and allow limited carryover mechanics. Contributions returned before your tax return are treated as… - Employer HSA pay and payroll rules: mixed, high. If enacted, employer contributions to your Homeownership Savings Account would be excluded from your gross income to the extent they do not make your lifetime contributions exceed the $40,000 cap. Employer contributions would count with all other contributions toward that lifetime limit. Employers… - How HSA withdrawals and penalties work: mixed, high. If enacted, money you take from an HSA for a down payment or closing costs for your first home would not be taxed. If the money is not used only for those costs, it would be includible in income and generally subject to a 20% additional tax, with exceptions for death or disability. When you acquire… - New homeownership savings accounts: mixed, high. If enacted, this bill would create a new Homeownership Savings Account you must open as a U.S. trust. You would have to be at least 18 and certify you are a first-time homebuyer when you open it. Lifetime contributions for each beneficiary would be limited to $40,000 and only cash contributions wou… - Tax deduction for HSA contributions: mixed, high. If enacted, you would be able to deduct cash you put into a Homeownership Savings Account on your tax return. The annual limits would be $3,000 if married filing jointly, $2,500 if head of household, and $2,000 for other filers. The deduction could not be more than your earned income and is disallo… ## Related bills - 119-hr-3151: SHIPS for America Act of 2025 - 119-hr-3816: Weather Act Reauthorization Act of 2025 - 119-hr-7977: Energy Bills Relief Act - 119-hr-7481: Department of Homeland Security Appropriations Act, 2026 - 119-hr-7973: Momnibus Act - 119-hr-5089: Weather Act Reauthorization Act of 2025 ## Sources - [119-hr-8709 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/8709) ## Related - [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151) - [119-hr-3816: Weather Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-hr-3816) - [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977) - [119-hr-7481: Department of Homeland Security Appropriations Act, 2026](https://policyrisk.com/legislation/119-hr-7481) - [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973) - [119-hr-5089: Weather Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-hr-5089) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-hr-8709 (as of 2026-09-21).