Save for Success Act

119 HR 7393 IH: Save for Success Act U.S. House of Representatives 2026-02-05 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 2d Session H. R. 7393 IN THE HOUSE OF REPRESENTATIVES February 5, 2026 Mr. Patronis (for himself and Mr. Bilirakis ) 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 qualified housing expenses, and for other purposes. 1. Short title This Act may be cited as the Save for Success Act . 2. Allowance of distributions from qualified tuition programs for qualified housing expenses (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 qualified housing expenses (i) In general Subparagraph (A) shall not apply to that portion of any distribution which is used to pay for a qualified housing expense of the designated beneficiary. (ii) Qualified housing expense For purposes of this subparagraph, the term qualified housing expense , with respect to a designated beneficiary, means any expense incurred by such beneficiary for the purchase of a principal residence, but only if such beneficiary is a first-time homebuyer, and includes any closing costs and mortgage payments incurred with respect to such purchase. (iii) Other definitions For purposes of this subparagraph— (I) First-time homebuyer The term first-time homebuyer means any individual if such individual (and if married, such individual’s spouse) had no present ownership interest in a principal residence during the 3-year period ending on the date of the purchase of the principal residence to which this subparagraph applies. (II) Principal residence The term principal residence has the same meaning as when used in section 121. (III) Purchase The term purchase has the meaning given such term in section 36(c). . (b) Effective date The amendment made by this section shall apply to distributions made after December 31, 2026.