US HB7422

Creates tax-advantaged "first-time homebuyer savings accounts" allowing individuals age 18+ who haven't owned a principal residence in 3 years to save for down payments, closing costs, and other home purchase expenses

Contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified home purchases are excluded from income; employer contributions are also excluded from income and employment taxes

Lifetime contribution limit set at 20% of the median home sale price in the state where the account is established, with annual limits and adjustments for inflation after 2025

Non-qualified withdrawals face inclusion in gross income plus a 20% additional tax penalty, with exceptions for death of the account beneficiary

Effective for taxable years beginning after December 31, 2025