Save for Success Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7393 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7393

To amend the Internal Revenue Code of 1986 to allow distributions from 
  qualified tuition programs for qualified housing expenses, and for 
                            other purposes.


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                    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

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                                 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Save for Success Act''.

SEC. 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.
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