First Home Savings Opportunity Act of 2025

This bill creates a new tax deduction for first-time homebuyers who save for down payments in specially designated accounts. It allows a deduction of up to $10,000 ($20,000 for joint filers) for cash contributions to these accounts, with the deduction phasing out for single filers earning over $150,000 or joint filers over $236,000. Contributions must be used exclusively for down payments or closing costs on a first home, and withdrawals not used for this purpose incur a 20% tax penalty. The deduction applies to taxable years beginning after December 31, 2025.