H.R.8709

Homeownership Savings Act establishes tax-exempt accounts for first-time homebuyers to save for homeownership expenses.

The Homeownership Savings Act amends the Internal Revenue Code to introduce homeownership savings accounts. These accounts allow first-time homebuyers to save for down payments and closing costs tax-free. Contributions to these accounts are exempt from income tax, provided they are used for qualified homeownership expenses. Employers can contribute to these accounts without reducing employee wages. The accounts are subject to certain rules, including limits on contributions and penalties for non-qualified distributions.