First-time Homebuyer Savings Account Act of 2026

This bill creates a new type of tax-advantaged savings account specifically designed for first-time homebuyers. It allows individuals who have not owned a home in the past three years to make tax-deductible contributions to a special savings account, with a contribution limit based on income and capped at 20% of the national average home price. Money withdrawn from the account is tax-free if used for qualified expenses like purchasing a home or making major repairs, but taxable with a 10% penalty if used for other purposes. The bill also permits limited tax-free withdrawals for emergencies such as job loss, major health events, or marriage, and allows contributions to be rolled over into a new account within 60 days.