First Home Savings Opportunity Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 6542 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 6542 To amend the Internal Revenue Code of 1986 to allow the establishment of down payment savings accounts. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES December 9, 2025 Mr. Subramanyam (for himself, Mrs. Hinson, Mr. Thanedar, and Ms. Norton) 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 the establishment of down payment savings accounts. 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 ``First Home Savings Opportunity Act of 2025''. SEC. 2. DOWN PAYMENT SAVINGS ACCOUNT. (a) In General.--Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 223 the following new section: ``SEC. 223A. DOWN PAYMENT SAVINGS ACCOUNT. ``(a) Deduction Allowed.--In the case of an account beneficiary, there shall be allowed as a deduction for the taxable year an amount equal to the aggregate amount paid in cash during such taxable year by such individual to a down payment savings account of such individual. ``(b) Definitions and Special Rules.--For purposes of this section-- ``(1) Down payment savings account.--The term `down payment savings account' means a trust created or organized in the United States exclusively for the purpose of paying the qualified down payment expenses of the account beneficiary (and designated as a down payment savings account at the time created or organized), but only if the written governing instrument creating the trust meets the following requirements: ``(A) No contribution will be accepted-- ``(i) if such