,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #bhjb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #g1 #bjag,mr4   
,c(fman 7= himself1 ,mr4 ,sean ,patrick 
,maloney ( ,new ,york1 & ,mrs4 ,com/ock7
 introduc$ ! foll[+ bill2 :i* 0 ref]r$  
to ! ,committee on ,ways & ,means  ,a   
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to provide a tax-pref]r$  
sav+s acc\nt = fir/-"t homebuy]s4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,fir/-,"t ,homebuy] ,sav+s ,acc\nt ,act 
( #bjag4  #b4 ,fir/-"t homebuy] acc\nt  
7a7 ,9 g5]al ,sub*apt] ,f ( *apt] #a ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by add+ at ! end ! foll[+ new "p3  ,,ix
 ,fir/-,"t homebuy] acc\nts  ,sec4      
#ecj;,a4 ,fir/-"t homebuy] acc\nt4      
#ecj;,a4 ,fir/-"t homebuy] acc\nt  7a7  
,9 g5]al ,a fir/-"t homebuy] acc\nt %all
 be exempt f taxation "u ?is subtitle4  
,not)/&+ ! prec$+ s5t5ce1 ! fir/-"t     
homebuy] acc\nt %all be subject to !    
taxes impos$ by section #eaa 7relat+ to 
imposition ( tax on unrelat$ bus9ess    

income ( *>itable organizations74  7b7  
,fir/-,"t homebuy] acc\nt ,! t]m fir/-"t
 homebuy] acc\nt means a tru/ creat$ or 
organiz$ 9 ! ,unit$ ,/ates exclusively =
 ! purpose ( pay+ ! qualifi$ pr9cipal   
resid5ce pur*ase exp5ditures ( an       
individual :o is ! designat$ b5efici>y (
 ! tru/ 7& designat$ z a fir/-"t        
homebuy] acc\nt at ! "t creat$ or       
organiz$71 b only if ! writt5 gov]n+    
in/rum5t creat+ ! tru/ meets ! foll[+   
requirem5ts3  7#a7 ,no contribution w be
 accept$-- 7,a7 unless x is 9 ca%1  7,b7
 except 9 ! case ( a rollov]            
contribution1 if su* contribution w\ld  
result 9 aggregate contributions--  7i7 
= ! taxable ye> exce$+ #ad1jjj 7#bjj    
p]c5t ( su* am\nt 9 effect = ! taxable  
ye> 9 ! case ( individuals :o are m>ri$1
 own a fir/-"t homebuy] acc\nt jo9tly1 &
 file a jo9t return = ! taxable ye>71   
7ii7 = all taxable ye>s exce$+ #ej1jjj1 
&  7,c7 if ! fair m>ket value ( ! acc\nt
 to exce$s1 or to ! ext5t su*           
contribution w\ld result 9 ! fair m>ket 

value ( ! acc\nt exce$+1 #aej1jjj4  7#b7
 ,! tru/ee is a bank 7z def9$ 9 section 
#djh7n77 or ano!r p]son :o demon/rates  
to ! satisfaction ( ! ,secret>y t !     
mann] 9 :i* t p]son w adm9i/] ! tru/ w  
be consi/5t ) ! requirem5ts ( ?is       
section or :o has s demon/rat$ ) respect
 to any individual retirem5t plan4  7#c7
 ,no "p ( ! tru/ assets w be inve/$ 9   
life insurance contracts4  7#d7 ,!      
assets ( ! tru/ %all n be comm+l$ ) o!r 
prop]ty except 9 a common tru/ fund or  
common inve/m5t fund4  7c7 ,qualifi$    
pr9cipal resid5ce pur*ase exp5ditures ,=
 purposes ( ?is section-- 7#a7 ,9 g5]al 
,! t]m qualifi$ pr9cipal resid5ce       
pur*ase exp5ditures means1 ) respect to 
a designat$ b5efici>y :o is a fir/-"t   
homebuy]--  7,a7 any am\nt paid t[>d !  
pur*ase price ( a pr9cipal resid5ce ( ! 
b5efici>y1  7,b7 any am\nt requir$ to be
 paid to settle ! pur*ase ( su*         
resid5ce1 &  7,c7 any am\nt requir$ to  
be paid by ! b5efici>y to obta9         
acquisition indebt$ness ) respect to su*

 resid5ce4  7#b7 ,pur*ase price ,! t]m  
pur*ase price means ! adju/$ basis ( !  
resid5ce on ! date su* resid5ce is      
pur*as$4  7d7 ,tax treatm5t  7#a7       
,di/ributions  7,a7 ,9 g5]al ,if        
di/ributions f a fir/-"t homebuy] acc\nt
 = ! taxable ye> d n exce$ ! qualifi$   
pr9cipal resid5ce pur*ase exp5ditures ( 
! designat$ b5efici>y = ! taxable ye>1  
no am\nt %all be includible 9 gross     
income4  7,b7 ,di/ributions 9 excess (  
exp5ditures ,if su* di/ributions exce$  
su* exp5ditures = ! taxable ye>1 su*    
di/ributions %all be includible 9 !     
gross income ( ! di/ributee 9 ! mann] z 
provid$ 9 section #gb 7to ! ext5t n     
exclud$ f gross income "u any o!r       
provision ( ?is *apt]71 r$uc$ by an     
am\nt :i* be>s ! same ratio to ! am\nt  
o!rwise s includible z su* exp5ses be>  
to su* di/ributions4  7,c7 ,additional  
tax = di/ributions n us$ = fir/-"t      
homebuy] purposes  7i7 ,9 g5]al ,! tax  
impos$ by ?is *apt] = any taxable ye> on
 any taxpay] :o receives a paym5t or    

di/ribution f a fir/-"t homebuy] acc\nt 
:i* is includible 9 gross income %all be
 increas$ by ! applicable p]c5tage ( !  
am\nt :i* is s includible4  7ii7        
,applicable p]c5tage ,= purposes (      
clause 7i71 ! applicable p]c5tage is--  
7,i7 9 ! case ( a paym5t or di/ribution 
made n lat] ?an #aj ye>s aft] ! date ( !
 fir/ contribution to ! acc\nt1 #e      
p]c5t1 &  7,,ii7 9 ! case ( any o!r     
paym5t or di/ribution1 #aj p]c5t4  7iii7
 ,exceptions ,clause 7i7 %all n apply if
 ! paym5t or di/ributions--  7,i7 is    
made to a b5efici>y 7or to ! e/ate ( !  
designat$ b5efici>y7 on or aft] ! dea? (
 ! designat$ b5efici>y1  7,,ii7 is      
attributable to ! designat$ b5efici>y's 
be+ disabl$ 7)9 ! mean+ ( section       
#gb7m77#g771 or  7,,iii7 are made "u    
rules simil> to ! rules "u section      
#djh7;d77#d7 7relat+ to contributions   
return$ be=e due date ( return74  7,d7  
,rollov]s ,subp>agraph 7,a7 %all n apply
 to any am\nt paid or di/ribut$ f a     
fir/-"t homebuy] acc\nt to ! ext5t t !  

am\nt receiv$ is paid1 n lat] ?an ! #fj?
 day aft] ! date ( su* paym5t or        
di/ribution1 into ano!r fir/-"t homebuy]
 acc\nt = ! b5efit ( ! same b5efici>y4  
,! prec$+ s5t5ce %all n apply to any    
paym5t or di/ribution if x appli$ to any
 prior paym5t or di/ribution dur+ !     
#ab-mon? p]iod end+ on ! date ( ! paym5t
 or di/ribution4  7,e7 ,*ange 9         
b5efici>y ,any *ange 9 ! b5efici>y ( a  
fir/-"t homebuy] acc\nt %all n be treat$
 z a di/ribution = purposes (           
subp>agraph 7,a74  7,f7 ,disall[ance (  
exclud$ am\nts z d$uction1 cr$it1 or    
exclusion ,no d$uction1 cr$it1 or       
exclusion %all be all[$ to ! taxpay] "u 
any o!r section = any qualifi$ pr9cipal 
resid5ce pur*ase exp5ditures to ! ext5t 
tak5 into acc\nt 9 det]m9+ ! am\nt ( !  
exclusion "u ?is p>agraph4  7#b7 ,e/ate 
& gift tax ) respect to ! acc\nt ,rules 
simil> to ! rules ( p>agraphs 7#b71     
7#d71 & 7#e7 ( section #ebi7;c7 %all    
apply = purposes ( ?is section4  7#c7   
,tax treatm5t aft] dea? ( acc\nt hold]  

7,a7 ,jo9tly held acc\nts ,9 ! case ( a 
fir/-"t homebuy] acc\nt :i* 0 jo9tly    
held by sp\ses1 if ! surviv+ sp\se      
acquires ! deceas$ sp\se's int]e/ 9 a   
fir/-"t homebuy] acc\nt by reason ( be+ 
! designat$ b5efici>y ( su* acc\nt at ! 
dea?1 su* acc\nt %all be treat$ z if !  
sp\se 7 ! sole acc\nt hold]4  7,b7 ,o!r 
cases  7i7 ,9 g5]al ,if1 by reason ( !  
dea? ( ! acc\nt hold]1 any p]son        
acquires ! acc\nt hold]'s int]e/ 9 an   
fir/-"t homebuy] acc\nt 9 a case to :i* 
subp>agraph 7,a7 does n apply--  7,i7   
su* acc\nt %all cease to be a fir/-"t   
homebuy] acc\nt z ( ! date ( dea?1 &    
7,,ii7 an am\nt equal to ! fair m>ket   
value ( ! assets 9 su* acc\nt on su*    
date %all be includible if su* p]son is 
n ! e/ate ( su* hold]1 9 su* p]son's    
gross income = ! taxable ye> :i*        
includes su* date1 or if su* p]son is ! 
e/ate ( su* hold]1 9 su* hold]'s gross  
income = ! la/ taxable ye> ( su* hold]4 
7ii7 ,d$uction = e/ate taxes ,an        
appropriate d$uction %all be all[$ "u   

section #fia7;c7 to any p]son 7o!r ?an !
 dec$5t or ! dec$5t's sp\se7 ) respect  
to am\nts includ$ 9 gross income "u     
clause 7i74  7e7 ,o!r def9itions &      
special rules ,= purposes ( ?is         
section-- 7#a7 ,fir/-"t homebuy]  7,a7  
,9 g5]al ,! t]m fir/-"t homebuy] means  
any individual if su* individual 7& if  
m>ri$1 su* individual's sp\se7 has _h no
 pres5t own]%ip int]e/ 9 a pr9cipal     
resid5ce4  7,b7 ,special rule = divorc$ 
individuals ,any individual :o is       
divorc$ & is n describ$ 9 subp>agraph   
7,a7 %all be treat$ z a fir/-"t homebuy]
 = purposes ( ?is section if su*        
individual _h no pres5t own]%ip int]e/ 9
 a pr9cipal resid5ce s9ce su*           
individual's mo/ rec5t divorce & dur+ ! 
#c-ye> p]iod end+ on ! date ( ! pur*ase 
( ! pr9cipal resid5ce ) respect to :i*  
paym5ts f a fir/-"t homebuy] acc\nt are 
made "u ?is section4  7#b7 ,pr9cipal    
resid5ce ,! t]m pr9cipal resid5ce has ! 
same mean+ z :5 us$ 9 section #aba4     
7#c7 ,designat$ b5efici>y ,! t]m        

designat$ b5efici>y means--  7,a7 !     
individual designat$ at ! comm5cem5t ( !
 fir/-"t homebuy] acc\nt z ! b5efici>y (
 am\nts paid 7or to be paid7 to !       
acc\nt1 or  7,b7 9 ! case ( a *ange 9   
b5efici>ies describ$ 9 subsection       
7d77#a77;,c71 ! individual :o is ! new  
b5efici>y4  7#d7 ,acc\nt own]%ip ,except
 9 ! case ( individuals :o are m>ri$1 an
 acc\nt may be own$ by only "o          
individual & may only h "o designat$    
b5efici>y4  7#e7 ,co/-(-liv+ adju/m5t ,9
 ! case ( any taxable ye> beg9n+ 9 a    
cal5d> ye> aft] #bjah1 ! doll> am\nts "u
 subsection 7b77#a7 %all be increas$ by 
an am\nt equal to--  7,a7 su* doll>     
am\nt1 multipli$ by  7,b7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s1
 det]m9$ by sub/itut+ cal5d> ye> #bjag =
 cal5d> ye> #aiib 9 subp>agraph 7,b7    
!re(4  ,if any am\nt aft] adju/m5t "u ! 
prec$+ s5t5ce is n a multiple ( #ajj1   
su* am\nt %all be r\nd$ to ! next l[]   
multiple ( #ajj4  4  7b7 ,excess        

contributions  7#a7 ,9 g5]al ,section   
#digc7;a7 ( su* ,code is am5d$ by /rik+ 
or at ! end ( p>agraph 7#e71 by ins]t+  
or at ! end ( p>agraph 7#f71 & by ins]t+
 aft] p>agraph 7#f7 ! foll[+ new        
p>agraph3  7#g7 a fir/-"t homebuy]      
acc\nt 7)9 ! mean+ ( section #ecj;,a71  
4  7#b7 ,excess contributions ,section  
#digc ( su* ,code is am5d$ by add+ at ! 
end ! foll[+ new subsection3  7i7       
,excess contributions to fir/-,"t       
homebuy] acc\nt ,9 ! case ( a fir/-"t   
homebuy] acc\nt1 ! t]m excess           
contributions means ! am\nt by :i* !    
am\nt contribut$ = ! taxable ye> to su* 
acc\nt 7o!r ?an contributions describ$ 9
 section #ecj;,a7d77#a77;,c77iv7 & 7v77 
exce$s ! contribution limits "u section 
#ecj;,a7b74 ,= purposes ( ! prec$+      
s5t5ce1 any contribution :i* is         
di/ribut$ f ! acc\nt 9 a di/ribution to 
:i* section                             
#ecj;,a7d77#a77;,c77iii77,,iii7 applies 
%all be treat$ z an am\nt n contribut$4 
4  7c7 ,cl]ical am5dm5t ,! table ( p>ts 

= sub*apt] ,f ( *apt] #a ( su* ,code is 
am5d$ by add+ at ! end ! foll[+ new     
item3  ,"p ,,ix4 ,fir/-,"t homebuy]     
acc\nts  4  7d7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4