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Congress·In Committee·21 days ago

House Panel Reviews NEST Act to Create Tax-Free Savings Accounts for First-Time Homebuyers

Also known as: NEST Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • This bill creates a new type of savings account designed to help people buy their first home. Money put into these accounts is tax-deductible, meaning it lowers your taxable income for the year, and the money grows tax-free while it is in the bank.
  • To qualify, you must be at least 18 years old and cannot have owned a home in the last three years. The money in the account must be used for a down payment, construction costs, or closing costs for a primary residence.
  • There is a limit on how much you can save based on where you live. You cannot contribute more than 20% of the average home price in your state over the lifetime of the account.
  • Employers are allowed to contribute to these accounts for their workers. These employer contributions would not count as taxable income for the employee and would be exempt from Social Security and unemployment taxes.
  • If you take money out for anything other than buying a home, you will have to pay regular income taxes on that money plus an extra 20% tax penalty. This ensures the funds are used specifically for housing.
  • If the bill passes, these accounts would become available starting in 2026. The government would update the savings limits each year to keep up with rising home prices in different states.
TaxesHousing

Milestones

2 milestones2 actions
Feb 9, 2026House

Referred to the House Committee on Ways and Means.

Feb 9, 2026

Introduced in House

Related News

2 articles
Financial Regulation News·18 days ago

Rep. Mann leads bipartisan bill to help first time home buyers

While focusing on the First-Time Homebuyer Empowerment Act, the report notes the introduction of the NEST Act by Rep. Cammack as part of a broader legislative push to provide tax-advantaged savings vehicles for individuals entering the housing market.

C=
Townhall·about 2 months ago

The GOP Is Restoring the American Dream of Homeownership

The Republican Study Committee's Reconciliation 2.0 framework includes the NEST Act, aimed at allowing Millennials and Gen Z to save for down payments tax-free. The policy is framed as a way to empower individuals rather than government through 'equal opportunity' tools.

R+

Source Information

Document Type

Congressional Bill

Official Title

NEST Act

Bill NumberHR 7422
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(1)
R: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.