This bill proposes to amend the Internal Revenue Code of 1986 by establishing a new type of tax-advantaged savings vehicle called a Home Savings Account (HSA) . Its primary purpose is to allow individuals to save for the purchase of a principal residence or to pay down acquisition indebtedness on such a residence. Individuals would be able to deduct cash contributions made to their HSA from their gross income for the taxable year. The annual deduction for contributions to an HSA is capped at $10,000 for individuals and $20,000 for married individuals filing jointly , with these limits subject to inflation adjustments starting in 2027. An HSA is defined as a trust created exclusively for paying qualified housing expenses, requiring specific conditions such as cash contributions, a qualified trustee, and nonforfeitable beneficiary interest. No deduction is allowed for dependents. Qualified housing expenses include amounts paid for the purchase of a principal residence or for making excess payments on the principal of acquisition indebtedness related to that residence. Distributions from an HSA used for these qualified expenses are excluded from gross income . Conversely, distributions not used for qualified housing expenses are generally included in gross income and subject to an additional 20% tax, unless due to the account beneficiary's disability or death. The bill also allows for a one-time, tax-free direct trustee-to-trustee transfer from an individual retirement plan (IRA) to an HSA, up to the annual contribution limit. This deduction for HSA contributions is an "above-the-line" deduction, available whether or not an individual itemizes other deductions. The legislation includes provisions for rollover contributions between HSAs, transfers incident to divorce, and rules for account treatment upon the death of the beneficiary. The Secretary of the Treasury may require trustees to submit reports regarding account activity. Rules are established for taxing excess contributions to HSAs and clarifying their treatment under prohibited transaction rules. These amendments are slated to apply to taxable years beginning after December 31, 2026.