Unlocking Homeownership Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7402 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7402 To amend the Internal Revenue Code of 1986 to allow distributions from qualified tuition programs for first home purchases, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 5, 2026 Mr. Moore of North Carolina introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to allow distributions from qualified tuition programs for first home purchases, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Unlocking Homeownership Act''. SEC. 2. ALLOWANCE OF DISTRIBUTIONS FROM QUALIFIED TUITION PROGRAMS FOR FIRST HOME PURCHASES. (a) In General.--Section 529(c)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: ``(F) Distributions for first home purchases.-- ``(i) In general.--Subparagraph (A) shall not apply to any qualified first-time homebuyer distribution. ``(ii) Qualified first-time homebuyer distribution.--For purposes of this subparagraph, the term `qualified first-time homebuyer distribution' means any distribution from a qualified tuition program of a designated beneficiary which is received by such beneficiary to the extent such distribution is used by the beneficiary before the close of the 120th day after the day on which such distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer who is such beneficiary, the spouse of such beneficiary, or any child, grandchild, or ancestor of such beneficiary or the beneficiary's spou