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Tax-Exempt Savings Programs for Home Down Payments

This act establishes new tax-exempt savings programs to help citizens accumulate funds for a down payment when purchasing their first home. This aims to make homeownership more accessible, especially for young people and those with lower incomes. Funds saved in these accounts can be used to cover qualified down payment expenses, including closing costs, for a principal residence.
Key points
Allows the creation of special tax-exempt savings accounts for down payments.
Contribution limit starts at $129,440, adjusted annually for inflation.
Funds from the account can be used for a principal residence purchase without additional taxes.
Withdrawals for non-qualified purposes will be taxed and may incur an additional 10% penalty.
Aims to facilitate homeownership, particularly for first-time buyers, young people, and low-to-moderate income individuals.
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Expired
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Additional Information
Print number: 117_S_4722
Sponsor: Sen. Warnock, Raphael G. [D-GA]
Process start date: 2022-08-02
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

American Dream Down Payment Act of 2022

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_4722.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-08-02.

What are the main provisions?

Key points include:

  • Allows the creation of special tax-exempt savings accounts for down payments.
  • Contribution limit starts at $129,440, adjusted annually for inflation.
  • Funds from the account can be used for a principal residence purchase without additional taxes.
  • Withdrawals for non-qualified purposes will be taxed and may incur an additional 10% penalty.
  • Aims to facilitate homeownership, particularly for first-time buyers, young people, and low-to-moderate income individuals.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Warnock, Raphael G. [D-GA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Real Estate Economy