“To amend the Internal Revenue Code of 1986 to establish tax-advantaged homeowner savings accounts.”
No CRS summary available for this bill.
This section establishes an above-the-line deduction for cash contributions to a homeowner savings account by eligible individuals (i.e., those, and their spouses, with no ownership interest in a principal residence during the prior three years). The accounts are trusts exclusively for qualified homeowner expenses (i.e., purchasing or constructing a first principal residence or making qualified alterations, repairs, or improvements thereto) and subject to requirements including permissible trustees, non-commingling of assets, and nonforfeitable interests. Contribution limits equal the lesser of (1) the IRA dollar amount under IRC §219(b)(5)(A) ($7,000 for 2024, inflation-adjusted), (2) the individual's compensation, or (3) the amount keeping the account balance at or below 20% of the national average single-family home price published annually by Treasury; the deduction phases out for higher modified AGI (over applicable IRA thresholds, fully phasing out $10,000 higher ($20,000 joint)) and accommodates spousal contributions and one rollover per year.