,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bibi  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,augu/ #a1 #bjac ,mr4 
,c>ney 7= himself1 ,mr4 ,heck ( ,nevada1
 ,mr4 ,web/] ( ,florida1 & ,mr4 ,wel*7  
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to all[ a d$uction =      
contributions to tax-exempt ,h\s+       
,equity ,sav+s ,acc\nts4  #a4 ,%ort     
title ,?is ,act may be cit$ z ! ,creat+ 
,home[n]%ip ,opportunity ,act ( #bjac4  
#b4 ,h\s+ equity sav+s acc\nts  7a7 ,9  
g5]al ,"p ,,vii ( sub*apt] ,b ( *apt] #a
 ( ! ,int]nal ,rev5ue ,code ( #aihf     
7relat+ to additional itemiz$ d$uctions 
= individuals7 is am5d$ by r$esignat+   
section #bbd z section #bbe & by ins]t+ 
aft] section #bbc ! foll[+ new section3 
#bbd4 ,h\s+ equity sav+s acc\nts  7a7   
,d$uction all[$ ,9 ! case ( an eligible 
individual1 !re %all be all[$ z a       
d$uction ! aggregate am\nt paid 9 ca%   
dur+ ! taxable ye> by or on behalf ( su*

 individual to a h\s+ equity sav+s      
acc\nt ( su* individual4  7b7           
,limitation ,! am\nt all[able z a       
d$uction "u subsection 7a7 = any taxable
 ye> %all n exce$ ! less] (--  7#a7     
#aj1jjj1 or  7#b7 an am\nt equal to !   
comp5sation 7z def9$ 9 section          
#bai7;f77#a77 includible 9 !            
individual's gross income = su* taxable 
ye>4  7c7 ,eligible individual ,=       
purposes ( ?is section1 ! t]m eligible  
individual means1 ) respect to any      
taxable ye>1 any individual if su*      
individual 7& if m>ri$1 su* individual's
 sp\se7 _h no pres5t own]%ip int]e/ 9 a 
pr9cipal resid5ce dur+ ! #c-ye> p]iod   
end+ at ! close ( ! prec$+ taxable ye>4 
7d7 ,h\s+ equity sav+s acc\nt ,=        
purposes ( ?is section1 ! t]m h\s+      
equity sav+s acc\nt means a tru/ creat$ 
or organiz$ 9 ! ,unit$ ,/ates           
exclusively = ! b5efit ( an individual1 
b only if ! writt5 gov]n+ in/rum5t      
creat+ ! tru/ meets ! foll[+            
requirem5ts3  7#a7 ,except 9 ! case (   

rollov] contributions f ano!r h\s+      
equity sav+s acc\nt ( su* individual--  
7,a7 no contribution w be accept$ unless
 x is 9 ca%1 &  7,b7 contributions w n  
be accept$ = ! taxable ye> 9 excess ( ! 
doll> am\nt 9 effect = ! taxable ye> "u 
subsection 7b77#a74  7#b7 ,! tru/ee is a
 bank 7z def9$ 9 section #djh7n77 or su*
 o!r p]son :o demon/rates to !          
satisfaction ( ! ,secret>y t ! mann] 9  
:i* su* o!r p]son w adm9i/] ! tru/ w be 
consi/5t ) ! requirem5ts ( ?is section4 
7#c7 ,no "p ( ! tru/ funds w be inve/$ 9
 life insurance contracts4  7#d7 ,!     
int]e/ ( an individual 9 ! balance 9 8  
acc\nt is non=feitable4  7#e7 ,! assets 
( ! tru/ w n be comm+l$ ) o!r prop]ty   
except 9 a common tru/ fund or common   
inve/m5t fund4  7e7 ,tax treatm5t (     
di/ributions  7#a7 ,9 g5]al ,except z   
o!rwise provid$ 9 ?is subsection1 any   
am\nt di/ribut$ out ( a h\s+ equity     
sav+s acc\nt %all be includ$ 9 gross    
income ( ! di/ributee = ! taxable ye> 9 
:i* ! di/ribution is receiv$4 ,not)/&+  

any o!r provision ( ?is title 7includ+  
*apt]s #aa & #ab71 ! basis ( any p]son 9
 su* an acc\nt is z]o4  7#b7 ,exception 
= am\nts us$ to pur*ase pr9cipal        
resid5ce & = c]ta9 paym5ts to individual
 retirem5t acc\nts  7,a7 ,9 g5]al       
,p>agraph 7#a7 %all n apply to any      
di/ribution dur+ ! taxable ye> :i* w\ld 
7b = ?is p>agraph7 be includible 9 gross
 income = su* ye> to ! ext5t t !        
aggregate ( su* di/ributions dur+ !     
taxable ye> d n exce$ ! aggregate       
qualifi$ paym5ts made by ! acc\nt       
b5efici>y dur+ su* ye>4  7,b7 ,qualifi$ 
paym5t ,= purposes ( ?is p>agraph1 ! t]m
 qualifi$ paym5t means--  7i7 any paym5t
 ( qualifi$ acquisition co/s 7z def9$ 9 
section #gb7t77#h77;,c77 incurr$ )      
respect to ! pr9cipal resid5ce ( !      
acc\nt b5efici>y1 &  7ii7 any paym5t to 
an individual retirem5t acc\nt b only   
if--  7,i7 ! acc\nt b5efici>y ( ! h\s+  
equity sav+s acc\nt f :i* ! paym5t is   
made is also ! b5efici>y ( ! individual 
retirem5t acc\nt1 &  7,,ii7 ! paym5t is 

a qualifi$ ,,ira paym5t4  ,any paym5t   
describ$ 9 clause 7ii7 %all be treat$ = 
purposes ( ?is title z a rollov]        
contribution to ! individual retirem5t  
acc\nt4  7,c7 ,qualifi$ ira paym5t ,=   
purposes ( subp>agraph 7,b71 ! t]m      
qualifi$ ,,ira paym5t means any paym5t  
if--  7i7 ! acc\nt b5efici>y--  7,i7 is 
an eligible individual at ! "t ( !      
paym5t1 &  7,,ii7 atta9s age #ee z ( !  
close ( ! taxable ye> dur+ :i* ! paym5t 
is made1  7ii7 ! acc\nt b5efici>y is--  
7,i7 an eligible individual at ! "t ( ! 
paym5t1 &  7,,ii7 has be5 an eligible   
individual ?r\gh\t ! #bj-ye> p]iod end+ 
on ! date ( ! paym5t1 or  7iii7 ! paym5t
 is made )9 #a ye> aft] ! date ( a      
paym5t describ$ 9 subp>agraph 7,b77i74  
7#c7 ,exceptions = c]ta9 o!r            
di/ributions ,rules simil> to ! rules ( 
p>agraphs 7#c71 7#d71 7#e71 & 7#f7 (    
section #djh7;d7 %all apply = purposes (
 ?is section4  7#d7 ,additional tax on  
am\nts includ$ 9 gross income ,if any   
di/ribution f a h\s+ equity sav+s acc\nt

 is includible 9 gross income ( ! acc\nt
 b5efici>y1 ! tax liability ( su*       
b5efici>y "u ?is *apt] = ! taxable ye> 9
 :i* ! di/ribution is receiv$ %all be   
increas$ by an am\nt equal to #bj p]c5t 
( ! am\nt ( ! di/ribution4  7f7 ,tax    
treatm5t ( acc\nts  7#a7 ,exemption f   
tax ,a h\s+ equity sav+s acc\nt is      
exempt f taxation "u ?is subtitle unless
 su* acc\nt has ceas$ to be a h\s+      
equity sav+s acc\nt by reason ( p>agraph
 7#b74 ,not)/&+ ! prec$+ s5t5ce1 any su*
 acc\nt is subject to ! taxes impos$ by 
section #eaa 7relat+ to imposition ( tax
 on unrelat$ bus9ess income ( *>itable1 
etc4 organizations74  7#b7 ,acc\nt      
t]m9ations ,rules simil> to ! rules (   
p>agraphs 7#b7 & 7#d7 ( section #djh7;e7
 %all apply to h\s+ equity sav+s        
acc\nts1 & any am\nt treat$ z di/ribut$ 
"u su* rules %all be treat$ z n us$ to  
make paym5ts describ$ 9 subsection      
7e77#b74  7g7 ,b5efici>y mu/ be "u age  
#ee ,no d$uction %all be all[$ "u ?is   
section ) respect to any paym5t to a    

h\s+ equity sav+s acc\nt = ! b5efit ( an
 individual if su* individual has atta9$
 age #ee be=e ! close ( su* individual's
 taxable ye> = :i* ! contribution 0     
made4  7h7 ,o!r def9itions & special    
rules  7#a7 ,o!r def9itions ,= purposes 
( ?is section--  7,a7 ,acc\nt b5efici>y 
,! t]m acc\nt b5efici>y means !         
individual = ^: b5efit ! h\s+ equity    
sav+s acc\nt 0 e/abli%$4  7,b7 ,pr9cipal
 resid5ce ,! t]m pr9cipal resid5ce has !
 same mean+ z :5 us$ 9 section #aba1    
except t su* t]m %all include only      
resid5ces locat$ 9 ! ,unit$ ,/ates4     
7#b7 ,co/-(-liv+ adju/m5t  7,a7 ,9 g5]al
 ,9 ! case ( any taxable ye> beg9n+ 9 a 
cal5d> ye> aft] #bjae1 ! doll> am\nt 9  
subsection 7b77#a7 %all be increas$ by  
an am\nt equal to--  7i7 su* doll>      
am\nt1 multipli$ by  7ii7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* su* taxable ye>     
beg9s det]m9$ by sub/itut+ cal5d> ye>   
#bjad = cal5d> ye> #aiib 9 subp>agraph  
7,b7 !re(4  7,b7 ,r\nd+ ,if any increase

 "u subp>agraph 7,a7 is n a multiple (  
#ej1 su* increase %all be r\nd$ to !    
ne>e/ multiple ( #ej4  7#c7 ,c]ta9 rules
 to apply ,rules simil> to ! foll[+     
rules %all apply = purposes ( ?is       
section3  7,a7 ,section #bai7;d77#b7    
7relat+ to no d$uction = rollov]s74     
7,b7 ,section #bai7;f77#c7 7relat+ to "t
 :5 contributions deem$ made74  7,c7    
,section #bai7;f77#e7 7relat+ to employ]
 paym5ts74  7,d7 ,section #djh7;g7      
7relat+ to community prop]ty laws74     
7,e7 ,section #djh7;h7 7relat+ to       
cu/odial acc\nts74  7i7 ,reports ,!     
tru/ee ( a h\s+ equity sav+s acc\nt %all
 make su* reports reg>d+ su* acc\nt to !
 ,secret>y & to ! individual = ^: b5efit
 ! acc\nt is ma9ta9$ ) respect to       
contributions1 di/ributions1 & su* o!r  
matt]s z ! ,secret>y may by regulation  
prescribe4 ,! reports requir$ by ?is    
subsection %all be fil$ at su* "t & 9   
su* mann]1 & furni%$ to su* individuals 
at su* "t & 9 su* mann]1 z may be       
requir$ by su* regulations4  4  7b7     

,d$uction all[$ 9 arriv+ at adju/$ gross
 income ,subsection 7a7 ( section #fb ( 
su* ,code is am5d$ by ins]t+ aft]       
p>agraph 7#ba7 ! foll[+ new p>agraph3   
7#bb7 ,h\s+ equity sav+s acc\nt         
contributions ,! d$uction all[$ by      
section #bbd4  4  7c7 ,tax on excess    
contributions  7#a7 ,subsection 7a7 (   
section #digc ( su* ,code 7relat+ to tax
 on excess contributions to individual  
retirem5t acc\nts1 etc47 is am5d$ by    
/rik+ or at ! end ( p>agraph 7#d71 by   
ins]t+ or at ! end ( p>agraph 7#e71 & by
 ins]t+ aft] p>agraph 7#e7 ! foll[+ new 
p>agraph3  7#f7 a h\s+ equity sav+s     
acc\nt 7)9 ! mean+ ( section #bbd7;d771 
4  7#b7 ,section #digc ( su* ,code is   
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7h7 ,excess contributions  
to h\s+ equity sav+s acc\nts ,= purposes
 ( ?is section1 9 ! case ( h\s+ equity  
sav+s acc\nts 7)9 ! mean+ ( section     
#bbd7;d771 ! t]m excess contributions   
means ! sum (--  7#a7 ! excess 7if any7 
(--  7,a7 ! aggregate am\nt contribut$ =

 ! taxable ye> to ! acc\nts 7o!r ?an    
rollov] contributions71 ov]  7,b7 !     
am\nt all[able z a d$uction "u section  
#bbd = su* contributions1 &  7#b7 !     
am\nt det]m9$ "u ?is subsection = !     
prec$+ taxable ye>1 r$uc$ by ! sum (--  
7,a7 ! di/ributions out ( ! acc\nts :i* 
7 includ$ 9 gross income "u rules simil>
 to ! rules ( section #djh7;d77#e7 :i*  
apply to su* acc\nts by reason ( section
 #bbd7;e77#c71 &  7,b7 ! excess 7if any7
 (--  7i7 ! maximum am\nt all[able z a  
d$uction "u section #bbd7;b7 = ! taxable
 ye>1 ov]  7ii7 ! am\nt contribut$ to ! 
acc\nts = ! taxable ye>4  ,= purposes ( 
?is subsection1 any contribution :i* is 
di/ribut$ out ( ! h\s+ equity sav+s     
acc\nt 9 a di/ribution to :i* ! rules   
simil> to ! rules ( section #djh7;d77#d7
 :i* apply to su* acc\nts by reason (   
section #bbd7;e77#c7 %all be treat$ z an
 am\nt n contribut$4  4  7d7 ,tax on    
prohibit$ transactions  7#a7 ,9 g5]al   
,p>agraph 7#a7 ( section #dige7;e7 ( su*
 ,code 7relat+ to prohibit$             

transactions7 is am5d$ by /rik+ or at ! 
end ( subp>agraph 7,f71 by r$esignat+   
subp>agraph 7,g7 z subp>agraph 7,h71 &  
by ins]t+ aft] subp>agraph 7,f7 ! foll[+
 new subp>agraph3  7,g7 a h\s+ equity   
sav+s acc\nt describ$ 9 section         
#bbd7;d71 or  4  7#b7 ,special rule     
,subsection 7c7 ( section #dige ( su*   
,code is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#g7 ,special rule =    
h\s+ equity sav+s acc\nts ,an individual
 = ^: b5efit a h\s+ equity sav+s acc\nt 
is e/abli%$ %all be exempt f ! tax      
impos$ by ?is section ) respect to any  
transaction conc]n+ su* acc\nt 7:i* w\ld
 o!rwise be taxable "u ?is section7 if  
section #bbd7;f77#b7 applies ) respect  
to su* transaction4  4  7e7 ,failure ,to
 provide reports on h\s+ equity sav+s   
acc\nts ,p>agraph 7#b7 ( section        
#ffic7;a7 ( su* ,code 7relat+ to failure
 to provide reports on individual       
retirem5t acc\nts or annuities7 is am5d$
 by /rik+ & at ! end ( subp>agraph 7,d71
 by /rik+ ! p]iod at ! end ( subp>agraph

 7,e7 & ins]t+ 1 &1 & by add+ at ! end !
 foll[+ new subp>agraph3  7,f7 ,section 
#bbd7;i7 7relat+ to h\s+ equity sav+s   
acc\nts74  4  7f7 ,cl]ical am5dm5t ,!   
table ( sections = "p ,,vii ( sub*apt]  
,b ( *apt] #a ( su* ,code is am5d$ by   
/rik+ ! item relat+ to section #bbd &   
ins]t+ ! foll[+ new items3  ,sec4 #bbd4 
,h\s+ equity sav+s acc\nts4 ,sec4 #bbe4 
,cross ref]5ces4  4  7g7 ,effective date
 ,! am5dm5ts made by ?is section %all   
apply to contributions = taxable ye>s   
beg9n+ aft] ,decemb] #ca1 #bjac4